New York-based private equity firm Kohlberg & Company invested in Greenwich, Conn.-based Orthopaedic Neurosurgery Specialists, a three-location multispecialty group.
Five things to know:
1. Kohlberg made a growth capital investment in ONS so the practice could continue expanding its clinical offerings and ancillary services. The practice currently includes orthopedics, sports medicine, joint replacement and physiatry as well as physical therapy and MRI.
2. ONS physician owners also operate an ASC and urgent care center. The group plans to continue growth regionally. "Kohlberg brings extensive industry experience and financial resources with a proven track record of investing in leading healthcare services companies, " said Mark Camel, MD, co-founder of ONS. "We believe Kohlberg will be the ideal partner to help implement our plan for strategic growth and to expand our clinical model to better serve our patients today and going forward."
3. The terms of the investment were not disclosed. Lazard Middle Market was the financial advisor and Kattan Muchin Rosenman was legal counsel to ONS. Kolberg's financial advisor was Houlihan Lokey and legal counsel was Ropes & Gray.
4. Since its launch in 1987, Kohlberg has organized eight private equity funds that raised $7.5 billion of committed equity capital. It has completed 76 platform investments as well as 200 add-on acquisitions for a transactional value of $15 billion.
5. Private equity firms have been getting into orthopedics, although primarily on the technology side. Varsity Healthcare Partners has invested in Gainesville, Fla.-based The Orthopedic Institute, Frazier Healthcare Partners and Princeton Ventures invested in the Healthcare Outcomes Performance Company — the parent company of The Core Institute — and Candescent Partners acquired Mount Pleasant, S.C.-based Southeastern Spine Institute.