Case study - Financial Report on Candescent Partners buying Physician

- Financial Report on Candescent Partners buying Physician practices - Case Study Example Moreover, this investment approach is beneficial for the company to focus more on business expansion and thereby get closer to its long term business goals. Introduction Candescent Partners, LLC is an investment/management company specialized in business expansion activities like buyouts, growth capital, middle market, mezzanine debt investments, and recapitalization. The company was founded by Steve Jenks and Sandy McGrath in 2009 at Boston in the United States. The company is very interested to invest in healthcare, IT sector, software services, consumer products, and business and technology enabled services. Candescent Partners is exploring investment opportunities in US and Canada based companies. As per its investment policy, the company’s investments may range from $2 million to $30 million and the firm tends to invest in companies having a revenue range of $10 million -$50 million, EBITDA between $2million and $10 million, and an enterprise value between $10 million and $75 million (â€Å"Company Overview of Candescent Partners†). Candescent Partners maintains a board seat in companies where it has investments. It is interesting to note that the organization raises funds for investments through personal capital. This paper will focus on the healthcare sector investments of the Candescent Partners by giving specific reference to the financial aspects of buying physician group practices such as Koch Eye in RI. Candescent Partners’ Investments in Healthcare Currently, the organization has managed an amount worth over $600 million of private equity investments in 44 private growing companies (Candescent Partners website). In this, a notable percent of private equity investments is accounted for healthcare technology and services. Some of the major physician practices bought by the firm are described below. 1. Koch Eye Associates Koch Eye Associates, one of the leading providers of comprehensive vision care services in Rhode Island, was a cquired by Candescent Partners in January 2012. Candescent Partners led this business acquisition in association with other co-investors including Pine Street Capital Partners, First New England Capital, Bush O’Donnell Capital Partners, and BCA Mezzanine Fund, LP. The Koch Eye Associates possesses its own surgery center and offers vision care services ranging from basic optometry to LASIK and cataract surgery. In addition, the organization