Caltius Mezzanine Finances Management-led Buyout of Integrated Healthcare Strategies
August 30, 2010
Caltius Mezzanine (“Caltius”) is pleased to announce the recent closing of an investment in Integrated Healthcare Strategies (“IH Strategies”), a healthcare management consulting firm focused on compensation and benefit designs and human resource advisory. Proceeds from Caltius’ investment were used to help finance the management-led buyout of a passive equity investor.
With over 30 years of strategic consulting experience provided primarily to non-profit healthcare organizations, IH Strategies brings a unique depth and breadth of knowledge to its customers. Through its four primary business lines which include Executive Compensation and Governance, Physician Services, MSA HR Capital, and MSA Executive Search, IH Strategies provides executives and boards with a comprehensive solution for the increasing complexities and challenges of operating a healthcare organization.
The shareholder buyout was financed with the proceeds from Caltius’ subordinated debt facility, a new senior debt facility provided by the Bank of Texas, and common equity investments made by Benson Botsford, LLC and approximately 25 executives and senior consultants of IH Strategies.
“We are excited about our new partnership with Caltius, who worked diligently with our executive management team to structure a transaction which aligned the incentives of all parties involved,” noted Bob Erra, President of IH Strategies. “All of the senior partners at IH Strategies are excited to be invested in the transaction and have an increased ownership in our growing firm.”
“IH Strategies has a highly experienced team of consultants, many of whom are thought leaders in their market niche,” stated Michael Kane, Managing Director of Caltius Mezzanine. “Caltius believes this unique expertise will be increasingly valuable in dealing with regulatory and technological change.”
Based in Los Angeles, Caltius Mezzanine provides innovative capital solutions in amounts of $10 to $75 million to middle market companies throughout North America. Since its founding in 1997, Caltius Mezzanine has invested over $500 million in a broad range of industries to support acquisitions, recapitalizations, buyouts, and organic growth. Caltius Mezzanine is currently investing out of its fourth fund, Caltius Partners IV, LP, a $500 million fund that closed in 2008. For more information or to refer an investment opportunity, please call us at (310) 996-9585.