Daily News: November 19, 2013

BofA, Others Advise MidCap in Acquisition by Apollo Global Entity

MidCap Financial announced it was acquired by an entity managed by Apollo Global Management and its consolidated subsidiaries. Under its new ownership, MidCap will continue to provide capital to all sectors of the healthcare middle market, and will also expand its access to capital and product offerings through its partnership with Apollo. Terms of the transaction were not disclosed.

Bank of America Merrill Lynch, SunTrust Robinson Humphrey, and Moelis & Company advised MidCap, and GreenbergTraurig served as legal counsel.

Since its founding in 2008, MidCap established a leadership position in providing financing across the healthcare middle market through asset-based working capital loans, leveraged loans, life sciences loans and real estate loans. MidCap has more than 150 lending relationships and nearly $2 billion under management, with a robust pipeline of lending opportunities to continue its growth trajectory across the healthcare industry.

“The entire MidCap team is excited to embark on this new chapter in our development,” said Howard Widra, CEO of MidCap Financial. “We are grateful for the support we have received from Lee Equity Partners, Genstar Capital, and Moelis Capital Partners in helping to fund MidCap’s growth over the past five years, and we now look forward to partnering with Apollo’s industry leading credit business, which we believe will enable us to meaningfully expand MidCap’s product set and capabilities going forward.”

Marc Rowan, senior managing director of Apollo, said, “MidCap has built an outstanding lending business in the healthcare industry, which represents the largest and one of the most important sectors of the U.S. economy. We believe MidCap’s leadership position, best-in-class team, proven credit track record, and healthcare expertise will provide substantial opportunities to Apollo affiliates and other accounts managed by Apollo’s credit platform through direct access to loan originations in the healthcare sector.”