WindRose sees ~15x return on myNexus amid dividend recap

  • Brentwood, Tenn., co’s run-rate Ebitda lies at ~$75 mln
  • WindRose, formerly MTS Health Investors, backed myNEXUS in October 2014
  • Dividend recap comes after WindRose pulled UBS-run action

WindRose Health Investors has so far made close to 15x its money on myNexus, which recently completed a dividend recapitalization, a source with knowledge of the matter said.

The Brentwood, Tennessee, healthcare benefits management firm will distribute more than $200 million to investors as part of the deal, the source said.

The dividend payment is the first to WindRose since the firm’s October 2014 investment in myNexus.

The dividend recapitalization comes after WindRose opted to call off a UBS-run auction that kicked off last fall, as initially reported by Buyouts in September.

While myNexus fielded significant sponsor interest, potential offers failed to meet seller’s valuation expectations, the source said.

The PE-backed company, whose current run-rate Ebitda lies at approximately $75 million, will reevaluate a return to the market over the next 12 months, the source said.

MyNexus offers care and benefits management services to payers providing home-care services, remote-monitoring services and preventative health recommendations.

Insurer partners include Anthem and Humana, the company’s website shows.

The company was founded in 2014 by former executives of home-care and hospice company SunCrest Healthcare (now part of Almost Family) — McArthur VanOsdale and John W. “Wally” Dant — who serve as CEO and executive chairman of myNexus, respectively.

WindRose, formerly MTS Health Investors, completed its majority investment in myNexus in October 2014 through MTS Health Investors III LP. VanOsdale and Dant rolled over significant ownership stakes, an announcement at the time said.

In other recent activity, WindRose earlier this week sold Ovation Fertility to Morgan Stanley Capital Partners, concluding a sponsor-focused auction for the Los Angeles network of in vitro fertility and genetic testing labs.

The firm said in June that it recapitalized Baltimore’s Basys, a provider of benefits administration technology for the Taft-Hartley market.

Action Item: See WindRose’s latest Form ADV: