Cressey & Company LP

  • Overview
THE SCOOP

In good shape

The name Cressey & Company may lead some to think that it is a newly formed company.  On the contrary, the history of the firm spans some 25 years of service and is a spinoff of private equity firm Thoma Cressey Bravo (TCB).  Cressey & Company LP is a private investment firm that focuses on investments in health care services, providers and facilities.  Primarily based in Chicago, Ill., the firm expanded its operations and opened office and Nashville, Tenn., in 2008.  The Nashville unit was formed to maximize the potential and support the growth of health care entrepreneurs in the area.  Managing the Nashville office is one of the firm’s partners Bill Frist, a former senator of the United States.  The other partners of the Cressey & Company are Bryan Cressey, formerly of Thoma Cressey Bravo; Ralph Davis, former chairman of Waller Lansden Dortch & Davis; and Peter Ehrich who was once also a partner at Thoma Cressey Bravo.

The health care sector of the United States represents an excess of $1 trillion or approximately 10 percent of the country’s gross domestic product, making the venture of the firm to be a demanding but worthwhile cause.  Cressey & Company manages about $1 billion of capital, which is committed in helping to build leading health care companies.  The active portfolio of the firm, added with its experience of investing in health care and covering numerous economic cycles, makes the firm a top player in middle-market equity.

Going healthy

Rumors of a division in the private equity firm Thoma Cressey Bravo circulated in October 2007 but were denied by the partners of the firm.  One month after, however, the firm announced that one of its partners, Bryan Cressey, was planning to leave TCB to form his own private equity company that would dedicate its services to the health care industry.  The remaining partners of TCBâ€"now doing business under the name Thoma Bravoâ€"maintains investments in the firm’s previous interests that are not related to health care.  After a successful expansion of Cressey & Company by opening shop in Nashville, Bryan Cressey gained acclaim in 2009 when the Illinois Venture Capital Association named him the recipient of the Stanley C. Golder Medal.  The recognition was created in memory of one of the founders of GTCR, and it acknowledged the contributions that Cressey has given to the private equity industry in Illinois.  The departure of Cressey from Thoma Bravo elicited little criticism from his peers because although Thoma Bravo is not necessarily an ailing company, the potential in the health care industry is yet to be seen.  Despite the shaky market, there are no diminished investment opportunities in private equity focusing on health care.

Unique strategy

Cressey & Company is unyielding in its objective of focusing on the middle market.  This unfazed focus gives the firm leeway on imposing its buy-and-build strategy, wherein rather than being an owner or investor, the firm takes the role of being a value-added partner.  The relationship between capital and management teams which strive to be leading consolidators in their respective industries has been healthy and productive for nearly three decades.  Bryan Cressey is known to be the pioneer of this strategy, a policy that he upheld since his days in Golder, Thoma, Cressey, Rauner.

With Cressey’s decision of forming his own company came further studies on devising a new strategy.  With the core of the buy-and-build strategy still intact, Cressey added proprietary screening and analytical tools to its investment process thus developing a refined strategy called “Target, Buy-and-Build.† With a devised strategy that focuses on relatively few attractive health care segments at a time, Cressey & Company was able to minimize risks since the “targeted†are only those with strong growth prospects.  The typical investment made by Cressey & Company specifies a range from $10 million to $100 million of equity with an average of approximately $50 million of equity per investment.

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Cressey & Company LP


233 South Wacker Drive
Suite 9200
Chicago, IL 60606
Phone: (312) 777-4424
Fax: (312) 777-4445
www.cresseyco.com

STATS


  • Employer Type: Private
  • Founder & Partner: Bryan Cressey

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