CalPERS-backed HCP lands healthcare deal

The Victor Maruri co-founded firm, which targets investments with a Hispanic demographic focus, has acquired a majority stake in Polaris Hospital Company.

HCP & Company has acquired a majority interest in the Polaris Hospital Company, its first foray into the healthcare industry, according to a statement. Terms of the deal were not disclosed.

Polaris operates a hospital in Lubbock, Texas and is in the process of constructing a second in Murfreesboro, Tennessee. The company focuses on hospitals that provide physical medicine, rehabilitation and behavioural health services. Polaris is HCP’s fourth investment from its most recent fund, Hispania Private Equity II.

The fund targets investments in the business services, consumer products, education and healthcare services sectors in the US and Puerto Rico, with a focus on the Hispanic population.

Hispania II held a first close on $105 million in January, 2009. The fund, which launched in 2008, was targeting between $120 million and $150 million. The firm will invest up to $20 million per platform investment in companies with at least $10 million in annual revenue, according to a statement.

The fund had generated a 0.9x investment multiple and negative 8.8 percent net internal rate of return as of 31 March, according to the California Public Employees’ Retirement System. It is unclear if the fund has held a final close.

CalPERS invested in Hispania II through its Capital Link Fund, which is managed by emerging markets fund of funds Centinela Capital Partners.

Other limited partners in Hispania II include Verizon’s Pension Fund, the Municipal Employee’s Annuity & Benefit Fund of Chicago, the Public School Teachers’ Pension and Retirement Fund of Chicago, Credit Suisse’s Customised Fund Investment Group, the Connecticut Retirement Plans and Trust Funds and the New York City Employee Retirement System, according to a statement. 

HCP was founded in 2003 by former Banque Paribas regional Latin America head Victor Maruri and CM Equity Partners executive Carlos Signoret. The firm, which is headquartered in Chicago, targets investments geared toward the US’s growing Hispanic population and currently manages $215 million in capital.