Welsh Carson Anderson & Stowe

  • Overview

Niche investing

Welsh, Carlson, Anderson & Stowe (WCAS) is a private equity firm focusing primarily on the industries of health care and technology.  It is one of the oldest and the largest firms in the United States and has raised capital for more than 15 limited partnerships with a cumulative value of more than $20 billion.  WCAS is a leader in the niche it has carved out for itself, since its inception, it has invested in more than 150 companies including Alliance Data, SunGard Data Systems, Accuro Health, Lincare Holdings, MedCath and Fiserv.

The company's portfolio consists of 32 companies with revenue of more than $29 billion.  WCAS' 11th private equity fund, WCAS XI, was valued at about $3.7 billion by the time it closed in June 2009.  WCAS is ranked No. 40 in Private Equity International's list of 300 largest private equity firms in the world for 2009.

Surgical partners

One of WCAS' acquisitions is United Surgical Partners, a health care company that runs short-stay surgery centers, which is purchased in 2007 for $1.8 billion.  As one of its founding shareholders, WCAS has had a long relationship with United Surgical.  The company's main operations are specialized outpatient procedures, which are outsourced from general-service hospitals at a lower cost.

In the first half of 2008, WCAS added two companies to its portfolio.  In the technology sector, the company recently invested in Mini Mobile, a provider of mobile storage solutions.  In the health care sector, WCAS acquired Med Assets, a public company provides "technology-enabled products and services that improve operating margin and cash flow for hospitals and health systems."

"Delighted with the credit crunch"

In the wake of the subprime mortgage fallout, financing has dried up for many private equity firms.  However, WCAS was not worried about the credit crisis.  In fact, at the 2008 Wharton Private Equity Conference, WCAS Partner Sean Traynor laid out how turmoil in the markets might actually be advantageous for middle-market investment firms.  "We're delighted with the credit crunch.  Despite what's going on with the market and the economy, a lot of the businesses that we look at are still very good businesses.  There will be opportunities, certainly, in a distressed world, and recessions don't last forever."  Traynor went on to explain that a lack of frenzy for acquisitions gives firms a better chance to research their potential buys, saying, "The greater appetite from lenders for due diligence gives us more time to evaluate deals.  If we have time to do our work, I'm confident that we'll make a good decision."



Welsh Carson Anderson & Stowe


320 Park Ave
Suite 2500
New York, NY 10022-6815
Phone: 212-893-9500
Fax: 212-893-9575
www.welshcarson.com

STATS


  • Employer Type: Private
  • Founders: Patrick Welsh, Russell Carson
  • 2008 Employees: 40

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