Partners Group buys ECP for $2.2bn

March 2020 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

March 2020 Issue

In what represents private equity’s latest vision-care investment of scale, global private markets investment manager Partners Group has made a $2.2bn equity investment on behalf of its clients in EyeCare Partners LLC (ECP), the largest vertically integrated medical vision services provider in the US.

Upon completion of the transaction, Partners Group will become the majority shareholder, while ECP’s management team and physician partners will continue to maintain a substantial equity stake.

“As the largest medically focused and integrated eye care services provider in the US, ECP is a market outperformer with strong momentum in a growing industry,” said Todd Miller, managing director and co-head of private equity directs Americas at Partners Group. “We are excited to bring our operational experience with multi-site healthcare operations into partnership with ECP’s talented management team and physician partners, who share Partners Group’s focus on ensuring patient care remains at the forefront of operational decisions.”

Founded in 2015 and headquartered in St. Louis, Missouri, ECP has an extensive network of full-scope medical optometry and ophthalmology practices, with over 450 locations across 13 states throughout the US. The company employs over 500 optometrists and 85 ophthalmologists who, together with over 4400 clinic staff, offer patients end-to-end services covering medical optometry, ophthalmology and sub-specialties, and vision correction products.

Following completion of the transaction, Partners Group will work closely with ECP’s management team, led by its chief executive Kelly McCrann, on strategic initiatives to support ongoing organic and acquisitive growth. Among the key areas of focus for these initiatives will be: (i) increasing the recruitment of high-quality ophthalmologists and optometrists; (ii) optimising the network model; (iii) expanding and maximising ambulatory surgical centre utilisation; (iv) enhancing administrative processes and operating efficiencies; (v) investing in clinical technologies that enhance patient care; and (vi) pursuing select M&A partnership opportunities that provide world-class medical vision care and patient experience.

“Partners Group has excellent operational support capabilities and an extremely successful track record of working with high-growth companies to build critical mass in the highly fragmented US healthcare sector,” said Ms McCrann. “We are thrilled to have found a long-term partner that shares our patient- and physician-centric outlook. We are very excited to work with Partners Group to both strengthen ECP’s offering and expand our presence throughout the US.”

ECP’s model – which provides an integrated network of services that cover the entire lifecycle of a patient’s eye care needs – results in increased patient and physician satisfaction and retention. “Our Thematic Sourcing efforts over the past 24 months identified the medical vision segment as a highly attractive sub-sector within the healthcare sector, ripe for organic growth, expansion and consolidation,” said Remy Hauser, managing director and head of healthcare industry value creation at Partners Group. “ECP’s vertically integrated model, offering the full spectrum of medical eye health solutions and one network for scheduling, billing and coordination, provides a competitive advantage as it creates a better experience, improved medical outcomes, and retention for patients, physicians and medical providers.”

Kirkland & Ellis LLP represented Partners Group in the transaction, which is expected to be completed in the first quarter of 2020.

Mr Miller concluded: “We look forward to working together with ECP and the entire team to enhance patient care, expand geographically and build local density.”

Fraser Tennant