Genstar Capital launches healthcare company

The San Francisco mid-market shop has teamed with Nautic Partners and HealthCare Dimensions to form AXIA Health Management, marking the first deal out of its recently closed Fund IV.

San Francisco-based Genstar Capital has teamed with Nautic Partners and HealthCare Dimensions to form population health management company AXIA Health Management.

Financial terms of the transaction were not disclosed, though the deal involves the merger of AXIA with HealthCare Dimensions, which provides prevention programs to Medicare-focused health plans.

According to a press statement, industry leader L. Ben Lytle, former chairman and chief executive officer of health insurance giant Anthem will serve as AXIA’s chairman and CEO. AXIA focuses on improving the health of individuals in specific population segments through high yield interventions and health management programs that prevent or reduce the risk of disease or injury.

The deal is the first investment Genstar has made out of its newest Fund IV, which closed back in October on $475 million. Genstar focusses on making middle-market investments in the life sciences, business services and industrial technologies sectors. The firm currently manages more than $900 million in capital. Its most recent exit was its March sale of Prestolite Electric Holding, a manufacturer of alternators and starter motors for heavy-duty vehicles, to New York-based middle-market buyout firm First Atlantic Capital.

Providence, Rhode Island-based Nautic Partners currently manages more than $1.8 billion of capital and focusses on manufacturing, business services, healthcare, and media and communications. The firm is currently investing from its $1.1 billion Fund V.