TPG (NASDAQ: TPG) has been incredibly active these last few months. As a global asset management firm with more than $137 billion of assets under management, TPG operates out of 14 offices across the globe. According to its website, it has more than 95,000 employees that serve more than 12 million patients each year. TPG invests across five multi-product platforms: Capital, Growth, Impact, Real Estate and Market Solutions, as well as a myriad of funds such as The Rise Funds.
TPG kicked 2023 off with the acquisition of MedQuest Associates, Inc., a provider of on-site diagnostic imaging services that generates annualized revenue of approximately $200 million. This deal was completed as a joint venture with Novant Health Enterprises, a not-for-profit health system with 15 medical centers and more than 1,100 physicians across more than 340 locations. TPG’s investment was made through TPG Growth, the firm’s middle market and growth equity platform.
Zach Ferguson, a Managing Director with TPG Growth, said, “We believe [MedQuest] is well-positioned to build its platform in existing markets and establish joint venture partnerships in new markets.”
Carrying on M&A activity in 2023, TPG and AmerisourceBergen Corporation (NYSE: ABC) acquired OneOncology, Inc. for $2.1 billion from General Atlantic.
According to Kendall Garrison, Partner at TPG, TPG was interested in this investment because OneOncology empowers “physicians to remain independent while providing benefits of scale that create value for the entire healthcare ecosystem.”
With this acquisition, because of OneOncology’s team of more than 700 physicians, TPG can fortify its oncology capabilities and lead one of the largest oncology networks in the country.
The Rise Funds, specifically, has made a splash this year. Founded in 2016 by TPG in partnership with Bono and Jeff Skoll, The Rise Funds invest behind impact entrepreneurs and growth-stage, high-potential, mission-driven companies focused on achieving the United Nations’ Sustainable Development Goals. The United Nations’ Sustainable Development Goals in the healthcare space center on reducing the global maternal mortality ratio, ending diseases such as tuberculosis, malaria, AIDS and water-borne diseases, as well as supporting the research of vaccines and medicines, all goals which The Rise Funds can help achieve with its $7.6 billion of assets under management.
For the most recent acquisition to expand TPG’s portfolio, The Rise Funds made a significant investment in Banyan Treatment Centers. According to data captured in the LevinPro HC database, this marks TPG’s first acquisition in the Behavioral Health Care field since it purchased LifeStance Health, Inc., an outpatient behavioral health service provider, in 2020 for $1.2 billion.
The acquisition of Banyan Treatment Centers follows The Rise Funds’ 2022 acquisition of Blue Cloud Pediatric Surgery Centers. Blue Cloud Pediatric Surgery Centers is an ambulatory surgery center based in Glen Rock, Pennsylvania that serves more than 23,000 patients annually out of 15 facilities across six states. The investment from The Rise Fund supported Blue Cloud’s expansion to meet the growing needs for dental procedures requiring anesthesia nationwide, particularly for those in lower-income communities and within special needs populations.
As The Rise Funds has such deep pockets for investing in the healthcare market, we expect the fund to continue its momentum throughout the rest of the year.
