Riverside sees 3.4x return on healthcare exit

Healthcare services company HCPro made 20 acquisitions under ownership of the US mid-market buyout firm.

The Riverside Company’s Capital Appreciation Fund 2000 has exited healthcare information provider HCPro, generating a 26 percent gross IRR and a 3.4x gross cash-on-cash return. Since Riverside's acquisition of Massachusetts-based HCPro in December 2002, HCPro has made 20 acquisitions, allowing the company to add products, services and brands and to enter new markets.

HCPro was purchased by New York-based private equity firm Halyard Capital for an undisclosed sum. As a provider of information, educational and advisory products and services to the US healthcare industry, HCPro falls under Halyard’s umbrella of expertise. Halyard will seek to leverage its sector focuses on media and information services in order to continue the growth of HCPro set in motion under Riverside Company, the firm said in a statement.

Riverside Company focuses on the smaller end of the middle market investments in the US and Europe. The firm has nearly $2 billion under management across nine funds. 

Halyard focuses on investments between $15 million and $40 million in the media, communications and business services industries. The firm has over $600 million under management.

Berkery Noyes advised Riverside Company on the sale of HCPro to Halyard and represented Riverside Company in its negotiations with Halyard.