Complex rehab: Not sexy but stable
It turns out ATG Rehab isn't the only complex rehab provider to get some outside help recently. United Seating & Mobility received an injection of capital from Philadelphia-based LLR Partners in November.
So who are these private equity firms and what do they want with complex rehab?
ATG Rehab’s private equity firm, 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 sees ATG Rehab as an “industry leader that holds key process and strategic advantages in an industry poised for continued growth,” according to a press 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.”
United Seating & Mobility’s private equity firm, LLR, is also an investor in middle market companies. It has more than $1.4 billion under management in a broad range of industries, including health care, finance, information technology and education. It believes USM has a proven ability to deliver a critical service on a nationwide level.
“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. They know there are challenges in any industry and by investing in a good company with good people in a good market that’s not going away, they see opportunity.”