Main Street Exits NCP Portfolio Investment
Main Street Capital announced that it recently fully exited its investment in NCP Investment Holdings, a healthcare services company operating free-standing outpatient cardiac and vascular procedure labs.
The centers are joint venture partnerships between NCP and a group of physicians (and occasionally hospitals) that perform diagnostic and therapeutic procedures at the site.
Main Street made its initial investment in NCP in 2004 to support growth initiatives, with Main Street’s initial investment consisting of a first lien, secured debt investment with equity warrant participation. Main Street’s debt investment in NCP was fully repaid during the second quarter of 2012, and a majority of its equity interest in NCP was purchased by a leading private equity investment firm in the fourth quarter of 2012.
In October 2014, Main Street realized a gain of approximately $8.6 million on the sale of its remaining equity interest in NCP in conjunction with a change of control of NCP. On a cumulative basis since Main Street made its initial investment in NCP in 2004, Main Street realized an internal rate of return of 30.9% and a 4.7 times money invested return on its investment in NCP.