MidOcean Partners has made a preferred equity investment in Emergency Care Partners (ECP), a leading provider of emergency medicine services to U.S. hospitals majority-owned by Varsity Healthcare Partners.
The non-control capital investment will fund planned acquisitions and dividends to certain long-time physician shareholders. Terms were not disclosed.
The investment marks the second transaction for MidOcean’s Structured Equity Solutions strategy, launched last year with an investment in Gridhawk. The platform combines MidOcean’s private equity sector expertise with alternative credit structuring discipline to deliver creative financing solutions to middle-market companies.
Formed in 2018, ECP manages clinical services for hospital emergency departments, supporting over 1,100 emergency medicine providers across 63 clinical locations with 1.5 million annual patient visits. The company is backed by Varsity Healthcare Partners and Regal Healthcare Capital Partners.
“ECP’s differentiated model, consistent performance, strong sponsor backing, and strategic alignment with MidOcean’s healthcare investment thesis made it an ideal candidate for relationship capital from our platform,” said Graham Clempson, Vice Chairman of MidOcean Partners.
Bill Yarbrough, ECP’s Chief Executive Officer, said the partnership positions ECP for continued growth as it expands its physician partnership model and health system relationships.
Gibson Dunn & Crutcher advised MidOcean. Greenhill & Co. and Evercore served as placement agents, with Greenhill acting as exclusive financial advisor to ECP. Morgan Lewis advised ECP.
