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MidCap is being led by the entire former senior management team of MerrillLynch Capital Healthcare Finance, including its founder, Howard Widra, whowill serve as Chief Executive Officer of MidCap. Prior to founding MerrillLynch Capital Healthcare Finance, Mr. Widra served as President of GEHealthcare Financial Services, President of Heller Healthcare Finance, andChief Operating Officer of Healthcare Financial Partners.
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The other senior members of MidCap's management team include:
-- Steve Curwin, Chief Credit Officer, who formerly served as ManagingDirector and Chief Credit Officer of ML Capital Healthcare Finance;
-- David Moore, Chief Financial Officer and Chief Administrative Officer,who formerly served as Managing Director and Head of ML Capital HealthcareFinance's asset-based lending business;
-- Kevin McMeen, Head of Real Estate Finance, who formerly served asManaging Director and Head of ML Capital Healthcare Finance's real estatebusiness;
-- Clare Bailhe, Head of Leveraged Finance, who formerly served asManaging Director and Head of ML Capital Healthcare Finance's leveraged loanbusiness; and
-- Will Gould, Head of Life Sciences and Asset Based Lending, who foundedand served as Head of ML Capital Healthcare Finance's life sciences business.
MidCap Financial will focus on investments in four areas:
-- Real estate loans to senior housing, skilled nursing facilities andmedical office buildings;
-- Working capital loans collateralized by third-party accounts receivableand other assets;
-- Leveraged loans to healthcare companies backed by private equitysponsors; and
-- Life sciences loans, primarily to pharmaceutical, biotech and medicaldevice companies.
"Our target markets share common features that make them especiallyattractive," Mr. Widra said. "Healthcare continues to be one of the largestand most rapidly growing segments of the economy. The current liquiditycrisis has created significant demand for our products and services. We areextremely pleased to be in a position to fill the void in an industry ascritical and necessary as healthcare."
Genstar Capital and Lee Equity committed the majority of the capital andwill have equal representation on the Board. The Board will also includemembers of management and Moelis Capital Partners, with Mark K. Gormley, aPartner at Lee Equity, serving as Chairman.
Tom Lee, President of Lee Equity Partners added, "MidCap is one of thosebusinesses that can do well by doing good. The liquidity crisis in which ournation finds itself has put a significant strain on businesses of all types.Through investment in the healthcare industry, we support both maintenance andimproved quality of life. On the investment side, significant opportunitiesexist for a business with proven management, deep industry contacts and nolegacy portfolio."
Jean-Pierre Conte, Chairman and Managing Director of Genstar Capital,stated, "MidCap's management expertise creates opportunities for lending inniche markets where specialized industry knowledge and experience mattergreatly. This transaction provides an opportunity for Genstar to leverage ourexpertise in the healthcare sector and partner with Howard and his successfulteam with whom we have had a strong working relationship and whose executivesunderstand the complexities of lending to middle market healthcare companiesto support their growth. We are very excited about the opportunities thatMidCap has in this and future markets."
Ken Moelis, Chief Executive Officer of Moelis & Company, stated, "Weexpect that MidCap's highly disciplined approach to the market will yieldsignificant benefits for all parties involved in transactions with them.MidCap's management team will work closely with its clients to providetailored solutions that meet their specific financing needs, and bring to eachtransaction an unparalleled knowledge of the healthcare industry and itsunique financing requirements."
Mr. Widra added, "Demand for healthcare services is expected to increasemarkedly as the baby boomer generation ages, creating higher demand for thefull range of healthcare services. MidCap opens its doors with substantialcapital available to lend into this growing market. Given the limitedavailability of credit in the middle market generally and in the healthcareindustry specifically, we believe we offer a valuable new opportunity forgrowing and successful healthcare companies to expand their businesses throughcustom-tailored solutions."
Moelis & Company acted as exclusive financial advisor to MidCap Financialon this transaction.
ABOUT GENSTAR CAPITAL LLC
Genstar Capital (www.gencap.com) is a leading private equity firm that for20 years has been actively investing in high quality middle-market companies.Based in San Francisco, Genstar works in partnership with its management teamsand its network of strategic advisors to transform its portfolio companiesinto industry-leading businesses. Genstar has more than $3 billion ofcommitted capital under management and targets investments focused on selectedsectors within the life science, healthcare services, industrial technology,software, and financial services industries.
ABOUT LEE EQUITY PARTNERS LLC
Lee Equity Partners LLC is a private investment firm founded by Thomas H.Lee in August 2006. Mr. Lee is a leader in the private equity industry, andhis new firm continues his longstanding focus on growth-oriented investing.Lee Equity integrates a deep experience base in selected industries, includingcommercial finance, with an intensive, fact-based approach to due diligence,and a world-class strategy and operations capability to create returns for itsinvestors. The partners at Lee Equity have collectively invested over $10billion of capital in total and over $3 billion in capital across 24transactions in financial services. It typically invests between $100 millionand $500 million in its portfolio companies. Lee Equity Partners is based inNew York City.
ABOUT MOELIS CAPITAL PARTNERS
Moelis Capital Partners is the private equity business of Moelis & Company(www.moelis.com). Moelis Capital Partners specializes in traditional privateequity investments in the middle market. It targets investments between $25million and $200 million and supports Moelis & Company's clients on keystrategic transactions. Moelis & Company's investment banking businessprovides advice on mergers and acquisitions, restructurings, capital raising,and other corporate finance matters and serves a broad client base through itsoffices in New York, Boston, Chicago, London and Los Angeles.
ABOUT MIDCAP FINANCIAL LLC
MidCap Financial is a commercial finance company focused on middle marketlending in healthcare and other specialty vertical markets. Mid Capspecializes in middle market loans in the $10 million to $200 million range.Its principal officers are all veterans of the health care finance industry,having worked together at the Healthcare Finance division of Merrill LynchCapital until it was sold in early 2008 and at two healthcare financecompanies previously. The company is headquartered in Bethesda, MD, withoffices in Chicago and Los Angeles.
SOURCE MidCap Financial LLC
