Welsh, Carson, Anderson & Stowe

Welsh Carson takes majority stake in Revel, Scott Betts replaces ...

src: techcrunch.com

Welsh, Carson, Anderson & Stowe (WCAS), also referred to as Welsh Carson, is a private equity firm. WCAS was formed in 1979 and focuses on investing in two growth industries, technology and healthcare, primarily in the United States. WCAS has a current portfolio of approximately 30 companies and has organized 16 limited partnerships with total capital of over $22 billion, consisting of 12 equity partnerships and four subordinated debt partnerships. WCAS is currently investing an equity fund, Welsh, Carson, Anderson & Stowe XII, L.P.

WCAS's strategy is to (i) buy growth businesses, (ii) partner with outstanding management teams, and (iii) build value for the WCAS's investors through a combination of operational improvements, internal growth initiatives, and strategic acquisitions. WCAS differentiates itself from other private equity firms by industry specialization, investment track record, growth oriented and operational focus, repeat management teams, and the continuity and financial commitment of WCAS.

WCAS has approximately 80 employees, including 15 general partners. The firm also has a Resources Group, which is composed of approximately 20 operating partners. The Resources Group assists the firm's portfolio companies by identifying and implementing initiatives focused on growth and operational improvement. The Resources Group works with the firm's investment professionals and portfolio company management teams to develop value maximization plans ("VMPs") for each new investment. These VMPs are unique for each portfolio company and encompass a wide range of strategic initiatives, including revenue enhancement and cost management strategies, corporate governance, motivation of key management team members, financial reporting dashboards, as well as potential acquisitions and integration timelines.

Video Welsh, Carson, Anderson & Stowe

History

WCAS was formed in 1979 by three founders, Patrick Welsh, Russell Carson, and Bruce Anderson. Patrick Welsh and Russ Carson had previously served as President and Chairman of Citicorp Venture Capital. Bruce Anderson was formerly Executive Vice President of Automatic Data Processing. WCAS was originally a venture capital firm, and WCAS's first Equity Partnership totaled $33 million in commitments. In 1979, Richard Stowe joined WCAS as a General Partner, having worked previously at New Court Securities Corporation, now Rothschild Inc.

Today, WCAS has been in business for over 38 years, having raised over $22 billion of capital in 12 equity partnerships and four subordinated debt partnerships. WCAS has 15 General Partners, who work in New York and San Francisco offices.

Portfolio Investments

There are 40 current or former public companies in WCAS's two core industries that can trace their roots to the firm. The combined market capitalization of these companies exceeds $100 billion.

In technology and technology-enabled services, current and former portfolio companies include:

Alert Logic
Alliance Data Systems
Amdocs Limited
American Residential
BISYS Group
Card Establishment Services
Ceridian
Cohesive Network Systems
Decision One
Centennial Communications Corp.
Dex Media, Inc. which was acquired from Qwest and later merged into R. H. Donnelley (NYSE:RHD)
DriveCam
Electronic Evidence Discovery
GlobalCollect
Global Knowledge Network
Headstrong
MedE America
Mobile Mini (Nasdaq:MINI)
NEWAsurion
Ozburn-Hessey Logistics
Paycom
Peak 10
QuickBase
Retrievex
Revel systems
Ruesch International
Service Repair Solutions
Titan Outdoor Holdings
TransFirst
Triple Point Technology
United Vision Logistics
US Investigations Services
Walsh International

In healthcare, current or former public companies include:

Accredo Health
Aptuit
Ardent Health Services
AGA Medical
AmComp
AmeriPath
Bausch & Lomb
CareSpot Express Healthcare
Concentra
Hawk Medical Supply
K2M
LabOne
Lincare Holdings (Nasdaq:LNCR)
Matrix Medical Network
MedAssets
MedCath Corp. (Nasdaq:MDTH)
MemberHealth
MultiPlan
National Dentex
NaviHealth
Onward Healthcare
Oxford Finance
Pediatrix Medical Group
Quorum Health Group which was acquired by Triad Hospitals, Inc.
Renal Advantage
Select Medical Corporation (NYSE: SEM)
SHPS
Smile Brands
Solstas Lab Partners
Springstone
United Surgical Partners International
Universal American Financial (NYSE:UAM)
U.S. Anesthesia Partners (USAP)
US Oncology
Valeritas
Westminster Healthcare

Investment Funds

WCAS invests in growth-oriented companies within the healthcare and technology/technology-enabled services industries. WCAS's investment strategy is to (i) buy growth businesses in two core industries, (ii) partner with outstanding management teams and (iii) build value through a combination of operational improvements, internal growth initiatives and strategic acquisitions.

WCAS's investment strategy is deal size agnostic. WCAS's activities include (i) conceiving and creating new market opportunities, (ii) providing capital to meet the needs of growing businesses and (iii) investing in growth oriented later-stage buyouts and special situations. For both small and large investments, focus on producing capital gains and attractive investment multiples in addition to strong internal rates of return.

Since its founding in 1979, WCAS has raised eleven private equity funds and four mezzanine capital funds: