RoundTable Healthcare Partners Raises $200 Million Subordinated Debt Fund
New Fund Enhances RoundTable’s Financing Alternatives and Streamlines the Financing Process
LAKE FOREST, IL, July 17, 2006 — RoundTable Healthcare Partners (“RoundTable”), an operating-oriented private equity firm focused exclusively on the healthcare industry, announced today the closing of a captive $200 million subordinated debt fund (the “Capital Fund”). The Capital Fund was initially targeted at $150 million and was oversubscribed by the firm’s existing investors. The employees of RoundTable were the single largest investor in the Capital Fund.
RoundTable’s strategy is designed to capitalize on the strategic insight, established industry relationships, and extensive operational and transactional experience of the firm’s partners and principals to deliver superior investment returns. The Capital Fund is a dedicated pool of capital that will make fixed rate subordinated debt investments alongside the equity investments of RoundTable’s equity funds. The equity funds were established in 2001 and 2005 with aggregate commitments of $900 million.
“We are excited about the Capital Fund and its ability to enhance our financing alternatives and further differentiate RoundTable,” said Lester B. Knight, Managing Partner of RoundTable and one of its Founding Partners. “Having a captive subordinated debt fund allows us to increase the speed and certainty of our transaction financings.”
Three individuals on the transaction team have been promoted to support the firm’s growing investment activities. David J. Koo, a founding Principal, has been promoted from Partner to Senior Partner. R. Craig Collister, who joined in 2002, has been promoted to Partner and Joshua M. Saipe has been promoted to Vice President.
“Our new Capital Fund, together with these recent promotions, highlights the unique transaction resources and capabilities RoundTable has to offer,” continued Lester B. Knight. “We appreciate the support our limited partners have demonstrated for the Capital Fund and view it as a vote of confidence in our ability to successfully execute our strategy.”
To date, the RoundTable team has completed nine platform investments and multiple add-on acquisitions. Realizations in the first fund have resulted from the sale of Sabex and American Medical Instruments Holdings, Inc., as well as from several dividend recapitalizations.
Davis Polk & Wardwell served as legal advisor to RoundTable for the fund raising efforts.
About RoundTable Healthcare Partners
RoundTable Healthcare Partners, Lake Forest, IL, is an operating-oriented private equity firm focused exclusively on the healthcare industry. RoundTable partners with companies that can benefit from its extensive industry relationships and proven operating and transaction expertise. RoundTable has established a successful track record of working with owner/founders, family companies, management teams, entrepreneurs, and corporate partners who share its vision and believe in the value creation potential of its partnership model. More information about RoundTable Healthcare Partners can be found at www.roundtablehp.com.