Add-ons, the Building Blocks for Clinics

CCMP Capital Advisors is in the process of acquiring an 80% stake in clinical research organization Medpace. The remaining 20% stake will be held by the company's existing management team. CCMP specializes in upper-middle market buyouts and growth equity investments of $100 million to $500 million.

Since the beginning of 2009, 138 PE investors have invested in 205 companies in the Healthcare Services industry, according to the PitchBook Platform. At 36 so far, this year's completed deal count is on track to exceed 2009's final tally of 57. Last year, there were 113 completed deals. Almost half, 47%, of the Healthcare Services deals since 2009 have been add-on acquisitions. The Clinics/Outpatient Services sector has accounted for more of the add-ons than any other sector with a 25% share, followed by Hospitals/Inpatient Services with 20%, indicating that acquisitions have played an important role in the growth of PE-backed clinics and hospitals. 83 PE-backed companies were responsible for the add-ons. The most acquisitive were CarePoint Partners (backed by Waud Capital Partners), Great Expressions Dental Centers (Audax Group, Bush O'Donnell Capital Partners) and Vanguard Health Systems (Metalmark Capital, The Blackstone Group), each with 6 add-ons during the time period.