Advent leads $130m outsourcing buyout

Advent International and Conning Capital lead a management buyout of Long Term Care Group, which provides outsourced administrative services to the long-term healthcare insurance industry.

Boston-based international private equity firm Advent International, in partnership with Hartford, Connecticut-based Conning Capital Partners, today announced a $130 million (€108 million) buyout of Long Term Care Group (LTCG), a provider of outsourced services to the long-term healthcare insurance industry.

 

Advent will contribute $46 million in equity, Conning Capital will contribute $23 million and LTCG management will contribute $6 million, according to a press release. Merrill Lynch Capital will provide senior debt while Northwestern Mutual will provide subordinated debt.

 

Founded in 1996, LTCG provides application processing, underwriting support, policy administration, claims processing and care management. According to the press release, only 6.5 million Americans currently have long-term care insurance, and this number is expected to triple by 2010.

 

Bob Taylor, a partner at Advent, led the deal for his firm while Michael Aspinwall at Conning led his firm’s participation.

 

Conning Capital specialises in financial services and healthcare investing.