Orthopedic Care Partners Appoints New CEO and Executes Major Investments
Orthopedic Care Partners ("OCP"), a prominent player in orthopedic practice management, has made significant strides by appointing Dr. Tim Corvino as its Chief Executive Officer. Dr. Corvino brings with him a wealth of experience from his previous role as CEO of Spire Orthopedic Partners. His career also includes serving as the Chief Operating Officer for Covenant Physician Partners and U.S. Acute Care Solutions, where he demonstrated his capability in operational leadership within the healthcare sector.
Strategic Investment of $185 Million
In a move poised to enhance its operational capacity, OCP announced a strategic growth recapitalization transaction which includes a substantial $185 million hybrid capital raise from Brookfield Asset Management. This investment is part of Brookfield’s Special Investments program and aims to provide OCP with financial flexibility and strength. The strategic infusion of capital is intended to support the company’s growth trajectory, enabling it to explore new avenues for expansion in the healthcare market.
Significant Debt Refinancing
In conjunction with the capital raise, OCP has successfully closed a $358 million senior debt refinancing led by TPG Twin Brook Capital Partners. This refinancing will allow OCP to benefit from lower capital costs while extending the maturity of its debt. The restructuring of the credit facility includes an expanded revolving credit option and a delayed draw term loan, ensuring that OCP has the necessary funds to fuel future developments and initiatives.
Future Growth Plans Under Dr. Corvino
Dr. Corvino expressed enthusiasm about the new direction for OCP, emphasizing that the company is not just aiming for growth in existing markets but also looking to expand its geographical presence. The plan includes investing in improved patient experiences across all clinics, a critical component of OCP's service philosophy. This strategic vision is rooted in enhancing patient care while advancing OCP's operational goals.
OCP's Environment and Support Structure
The company operates a network of 42 clinical locations and six ambulatory surgery centers, providing services across five states and collaborating with 136 recognized physicians. This extensive network is designed to streamline patient care and ensure high-quality service delivery. OCP is supported by Varsity Healthcare Partners ("VHP"), a well-respected firm in private equity that specializes in nurturing healthcare service companies into leading entities. VHP's extensive experience in the healthcare investment landscape provides OCP with a strong backer as it embarks on its next phase of growth.
Advisory Support for Financial Transactions
The successful capital-raising and debt refinancing initiatives are complemented by the strategic advisory services from Moelis & Company LLC, who served as the exclusive placement agent and financial advisor for OCP. McDermott Will & Emery LLP functioned as the legal advisor for the transactions to ensure a seamless execution of the financing. Additionally, Houlihan Lokey supported Brookfield Asset Management in its advisory role.
About Orthopedic Care Partners
Orthopedic Care Partners prides itself on being the leading partner for high-performing and patient-focused orthopedic surgery practices. The firm is dedicated to providing comprehensive resources that enable its affiliated practices to thrive while maintaining their unique identities. This dual commitment to operational excellence and identity preservation has been fundamental to OCP's success in the highly competitive orthopedic landscape.
About Varsity Healthcare Partners
Varsity Healthcare Partners (VHP) engages deeply with healthcare founders and management teams to construct top-tier healthcare service platforms. The firm's investment strategy emphasizes growth-oriented companies, using a proven "buy and build" methodology to facilitate operational improvements and accelerate company growth. VHP's collaborative culture and strong performance drive have established it as a noteworthy presence in private equity investment.
About Brookfield Asset Management
Brookfield Asset Management (NYSE: BAM) is a prominent global alternative asset manager with a diverse portfolio exceeding $1 trillion in assets. The firm is renowned for focusing on real assets and essential services, providing tailored investment products globally. Their experience as operators enhances their investment strategy, aiming to generate significant returns across economic cycles.
Frequently Asked Questions
What does the appointment of Dr. Corvino mean for OCP?
Dr. Corvino's appointment is intended to bring new leadership and vision to OCP, aiding in the company's growth strategies and operational improvements.
What is the significance of the $185 million investment?
This investment provides OCP with financial strength and strategic flexibility, allowing the company to expand its operations and improve patient services.
How will the debt refinancing impact OCP?
The refinancing is expected to lower OCP's capital costs, extend repayment terms, and increase available funds for future growth and development projects.
What core services does OCP provide?
OCP offers a full spectrum of services aimed at high-performance orthopedic practices, enabling them to operate efficiently while enhancing patient care.
Who advised OCP during its financing transactions?
Moelis & Company acted as the exclusive placement agent, while McDermott Will & Emery LLP served as legal advisors for the financing activities.
