RoundTable Healthcare Partners Raises $400 Million for Private Equity Fund
Firm to Focus Investments on Healthcare Companies that will benefit from its Partners’ Industry Relationships and
LAKE FOREST, ILL., March 14, 2002 — RoundTable Healthcare Partners, an operating-oriented private equity firm focused on the healthcare industry, announced today the closing of its fund after raising $400 million in equity capital. The debut fund was initially targeted for $250 million. RoundTable’s institutional investors include financial holding companies, university endowments, fund managers, pension funds, investment banking firms, and foundations.
“We are very excited about the achievement of this important milestone and thank all our L.P.’s for their support and commitment,” said Lester B. Knight, one of RoundTable’s founding partners. “We believe the interest shown by investors validates our strategy to invest in healthcare companies that can benefit from our strong operational focus.”
RoundTable has assembled an experienced healthcare team to manage the fund and actively assist portfolio companies. The founding partners, Joseph F. Damico, Lester B. Knight, Jack L. McGinley, and Todd E. Warnock, have significant healthcare industry experience in managing, operating, acquiring and financing healthcare companies. Mr. Knight and Mr. Damico were the former Chairman/CEO and President/COO, respectively, of Allegiance Corporation; Jack McGinley was a Group Vice President of Baxter International; and Todd Warnock was the former Head of U.S. Health Care Investment Banking at Credit Suisse First Boston. With their tenure, the founding partners bring a broad network of industry relationships with companies and executives in the healthcare industry.
Other key members of RoundTable’s team include Principals, David J. Koo, formerly a Vice President in Credit Suisse First Boston’s Health Care Investment Banking Group, and Leonard G. Kuhr, formerly the Chief Financial Officer of TruServ and Vice President/Treasurer of Cardinal Health and Allegiance.
RoundTable is focused on established, profitable companies that fall within segments of the healthcare industry that benefit most from the underlying industry growth trends and fall within the expertise and experience of the firm’s partners. Specifically, investment opportunities are being targeted in medical products (devices and disposables), medication delivery systems, specialty pharmaceuticals, specialty distribution, and complementary outsourced services. RoundTable is seeking to make controlling equity investments of approximately $5 to $50 million in healthcare companies with revenues ranging from $25 to $300 million.
RoundTable will work with management teams to provide strategic direction for growth and profitability by identifying sales opportunities through the development of new products, services, and channels, by developing cost containment strategies, and by gaining access to key customers, distributors, manufacturers and vendors. Additionally, our transaction principals provide our portfolio companies assistance with capital structure optimization, acquisition analysis and execution, as well as capital markets expertise.
RoundTable’s first investment from the fund was the acquisition of Vanguard Medical Concepts, Inc., the leading medical device reprocessor in the United States. Since their investment in October of 2001, Vanguard has already benefited from RoundTable’s industry relationships by signing distribution agreements with the nation’s two leading medical-surgical distributors and by recruiting experienced individuals to key positions of Vanguard’s executive management team and its board of directors.
“Our approach is to actively work with business owners and management teams to create significant shareholder value,” said Mr. Knight. “We look forward to partnering with companies that are interested in our strategic resources and relationships as much as our financial capital.”
Further information about RoundTable Healthcare Partners can be found athttp://www.roundtablehp.com
About RoundTable Healthcare Partners
RoundTable Healthcare Partners, Lake Forest, Ill, is an operating-oriented private equity firm focused on the healthcare industry. The partners of RoundTable have significant experience in managing, operating, acquiring and financing multibillion-dollar diversified healthcare companies. RoundTable partners with companies that can benefit from its extensive industry relationships and proven operating and transaction expertise.
Joseph F. Damico has more than 25 years of healthcare industry operating experience, most recently as Executive Vice President of Cardinal Health, Inc. and Group President of Allegiance Corporation. Prior to the acquisition of Allegiance by Cardinal Health, Mr. Damico was President and Chief Operating Officer of Allegiance.
Lester B. Knight has over 20 years of operating experience, principally in senior management roles at Baxter International, Allegiance and Cardinal Health. Most recently, he served as Vice Chairman of Cardinal Health following the merger of Allegiance with Cardinal Health. Prior to the merger, Mr. Knight was Chairman and Chief Executive Officer of Allegiance.
Jack L. McGinley served his entire 30-year career in senior domestic and international operating positions with Baxter International. Most recently, he was Group V.P. with responsibility for the I.V. Systems and Medical Products, Fenwal and Renal Divisions as well as Baxter’s Japanese and Canadian operations.
Todd E. Warnock has extensive mergers and acquisition, and financing experience in the healthcare industry. Most recently, he was Managing Director and Head of U.S. Health Care Investment Banking at Credit Suisse First Boston Corporation and worked at CSFB for over 12 years. Mr. Warnock advised on over 90 completed transactions valued in excess of $75 billion.
David J. Koo has extensive healthcare transaction experience, most recently as Vice President in Credit Suisse First Boston’s Health Care Investment Banking Group. In his 7 years at CSFB, he advised on 45 M&A and financing transactions valued in excess of $25 billion.
Leonard G. Kuhr was most recently Senior Vice President and Chief Financial Officer at TruServ Corporation. His prior experience includes 21 years in financial management positions in healthcare. He was previously Vice President and Treasurer of Cardinal Health and Allegiance, and served in corporate finance positions at Baxter International and American Hospital Supply.