Daily News: August 13, 2012

MCG Provides Financing for Riverside’s Investment in IDOC

The Riverside Company has invested in Independent Doctors of Optometric Care (IDOC), an alliance of independent optometrists throughout the U.S. MCG Capital provided debt and equity financing for the transaction.

IDOC includes practices representing more than 1,400 optometrist members across the United States. The company has more than 65 partner vendors and provides group purchasing services, marketing, and continuing-education offerings to its members.

Riverside’s investment will help IDOC continue to build its strong value proposition. IDOC provides members significant savings and increased practice revenue. IDOC’s additional value-added services for members include a wide range of educational and business-management materials. Vendors benefit through access to IDOC’s large number of independent optometrists in multiple forums to explain their offerings, while significantly lowering sales and marketing costs.

“IDOC’s member network has grown significantly while the company itself has remained lean and efficient,” said Riverside managing partner Loren Schlachet. “The service provides a clear and compelling value for both members and vendors, and we are confident in its growth trajectory.”

No changes are planned for IDOC’s management, and nothing is required of the members or vendors, said IDOC CEO Mark Feder.

“We are looking forward to the changes from this investment, which are all positive,” said Feder. “This allows us to provide better service while growing the company more effectively. We’re excited about working with Riverside to make IDOC bigger and better.”

Riverside intends to accelerate IDOC’s growth through investments in sales and marketing, as well as improvements in the company’s IT and member service areas. Riverside has deep and proven experience growing specialty networks like IDOC.

“While IDOC is already an outstanding company, we see incredible potential for deepening member relationships and growing the member base by providing an even better service experience,” said Riverside Principal Alan Peyrat. “IDOC has enormous potential.”

Working with Schlachet and Peyrat on the transaction for Riverside were senior associate John McKernan, associate Tim Thacher, and finance director Kim Katzenberger. Healthcare Origination principal Joseph Ibrahim sourced the opportunity for Riverside.

Jones Day advised Riverside. Loeb Partners advised IDOC on the transaction.

The Riverside Company is a global private equity firm focused on acquiring growing businesses valued at up to $200 million.