Complex rehab: It's not sexy, but it's stable

Sunday, February 27, 2011

So who are these private equity firms and what do they want with complex rehab?

Audax is an investor in middle market companies with a reputation for spurring growth and creating value. It manages more than $4 billion in capital through its private equity and other funds. It believes ATG Rehab  "holds key process and strategic advantages in an industry poised for continued growth," according to a release.

"There are many industries that operate on thin margins that have had outside investment for many years because of their volume," said Cody Verrett, vice president of sales and marketing for ATG Rehab. "We believe that if we continue to drive efficiency and control costs, that we'll create an even more viable business."

LLR Partners is also an investor in middle market companies. It has more than $1.4 billion under management in a broad range of industries.

"They see stability in health care," said Bob Gouy, co-founder and CEO of USM. "It may not be the sexiest investment, but it's a stable one that will produce a rationale return over time as the company grows."