Varsity Healthcare Partners (VHP), a healthcare services-focused private equity investment firm with offices in Los Angeles and Stamford, has closed a growth capital investment in Colonial Family Practice, a provider of primary care and ancillary patient diagnostic services in South Carolina, through a recapitalization transaction in partnership with Colonial’s shareholder physicians.

To consummate its investment, VHP and Colonial’s physician partners have formed Family Care Partners, a platform holding company established to facilitate the consolidation of clinically differentiated primary care practices in South Carolina and to centralize non-clinical management functions, in order to maximize provider productivity.

“Consistent with VHP’s investment priorities, we believe the growth of primary care availability is fundamental to lowering the cost of U.S. healthcare delivery, especially at the local level,” said David Alpern, a founding partner of VHP. “Along these lines, we believe Colonial’s unique business model, leading market position, and results-focused clinical leadership provide a great platform to build a leading regional primary care and diagnostic services business. We are excited to partner with Colonial’s physicians and accelerate Colonial’s already strong growth path.”