Consonance Capital Partners
Consonance Capital Partners focuses exclusively on healthcare and targets U.S. middle-market companies through growth equity, leveraged buyout, and recapitalization transactions.
Consonance Capital Partners publicly targets U.S.
middle-market healthcare companies generally generating between $25 million and $500 million in revenue. Its stated transaction focus includes growth equity, leveraged buyouts, and recapitalizations, and its healthcare experience spans providers, payors, diagnostics, distribution, devices, specialty pharmaceuticals, outsourced services, and healthcare IT.[1][2][4][5][6]
What does Consonance Capital Partners invest in?
Consonance Capital Partners is a private equity manager focused exclusively on investing in healthcare. The firm identifies its office at 545 Madison Avenue, 7th Floor, New York, NY 10022. It targets growth equity, leveraged buyout, and recapitalization transactions in the middle market and supports management teams through strategic relationships, operational improvements, internal growth initiatives, and mergers and acquisitions.[1]
CCP seeks U.S. middle-market companies that can add sustainable value to the healthcare system by facilitating higher-quality care at lower cost. Its stated approach includes proactively identifying high-growth subsectors, emerging business models, and platform opportunities in unconsolidated subsectors. CCP also seeks to partner with management teams and states that strong operators with aligned incentives are central to its investment strategy.[1]
Owners evaluating a financial buyer can compare the offer with independent valuation analysis, understand how acquirers approach transactions through Auxo’s buy-side M&A process guide, and consider whether a full or partial sale best fits their objectives.
What should a business owner evaluate before considering a transaction with Consonance Capital Partners?
Owners evaluating CCP can compare their business against CCP’s stated U.S. healthcare middle-market focus, general revenue range of $25 million to $500 million, and interest in growth equity, leveraged buyouts, and recapitalizations. CCP also states that it seeks to partner with management teams and has publicly described work with healthcare businesses across multiple subsectors. The transaction releases identified above do not provide disclosed terms for those examples, so owners should clarify the proposed transaction structure and economics directly with CCP.[1][4][5][6]
What transaction structure and equity contribution would CCP consider for the proposed business
How would CCP evaluate the business's contribution to higher-quality care, lower cost, efficiency, or cost containment
Which healthcare operating and management resources would CCP make available to the company
What companies does Consonance Capital Partners target?
CCP states that target companies generally have between $25 million and $500 million in revenues. The firm seeks businesses that can contribute to higher-quality care at lower cost within the healthcare system.[1]
CCP’s publicly stated healthcare experience includes providers, payors, diagnostics, distribution, devices, specialty pharmaceuticals, outsourced services, and healthcare IT.[1]
CCP states that it invests in U.S. middle-market companies. The firm identifies its office at 545 Madison Avenue, 7th Floor, New York, NY 10022.[1]
CCP’s stated investment strategy includes identifying platform opportunities in unconsolidated healthcare subsectors. Its public transaction record also includes mergers and acquisitions as part of the support it provides to portfolio companies.[1]
CCP’s official case-studies page identifies investment or portfolio experience including Enclara Health, KEPRO, Orsini Pharmaceutical Services, Psychiatric Medical Care, Summit Health, and Turn-Key Health, among other healthcare companies.[3]
CCP completed the sale of Turn-Key Health to CareCentrix on May 4, 2020. It announced on December 16, 2019 that it had signed a definitive agreement to sell Enclara Healthcare, along with management, to Humana. CCP also completed an investment supporting the August 13, 2019 merger of Summit Medical Group and CityMD alongside Warburg Pincus, and completed the recapitalization of Orsini Pharmaceutical Services in partnership with management on February 6, 2019.[4][5][6][7]
What is not clear from Consonance Capital Partners's public investment criteria?
The official Turn-Key Health sale release states that the transaction terms were not disclosed. The official Enclara Healthcare sale release states that certain assets were excluded from the transaction and that the terms were not disclosed. The official Summit Medical Group and CityMD investment release also states that the transaction terms were not disclosed.[4][5][6]
Questions to ask when evaluating Consonance Capital Partners as a buyer or investment partner
What transaction structure and equity contribution would CCP consider for the proposed business?
How would CCP evaluate the business's contribution to higher-quality care, lower cost, efficiency, or cost containment?
Which healthcare operating and management resources would CCP make available to the company?
How would CCP define the role of the existing management team and the alignment of incentives?
What terms can CCP provide for a transaction involving a healthcare business in the stated revenue range?
Sources & research notes
- Official website / firm overview
- Transaction size / criteria
- Transaction / portfolio evidence
- Transaction / portfolio evidence
- Transaction / portfolio evidence
- Transaction / portfolio evidence
- Transaction / portfolio evidence
- SEC investment adviser record
- SEC filing / regulatory record
How this profile was researched
Auxo profiles are prepared from publicly available primary and authoritative sources and reviewed for entity identity, factual support and disclosure consistency. When a fact cannot be supported by the reviewed public record, the profile identifies it as something to confirm directly rather than inferring it.
Independent research profile
This profile was prepared by Auxo Capital Advisors from publicly available information believed to be reliable and is provided solely for informational and educational purposes. It is not an endorsement, recommendation, ranking, solicitation, or representation regarding the profiled firm, its services, qualifications, transaction experience, regulatory status, financial condition, or suitability for any particular person, company, transaction, or investment.
Information obtained from third-party and public sources may be incomplete, inaccurate, outdated, or subject to change, and Auxo Capital Advisors makes no representation or warranty, express or implied, as to its accuracy, completeness, or timeliness. Readers should conduct their own independent diligence and consult appropriate professional advisers before engaging any advisor, intermediary, investor, lender, acquirer, or other transaction counterparty.
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