Shore Capital seals 4x healthcare exit

The firm completed its second exit by selling SCP Specialty Infusion to Harvest Partners-backed AxelaCare Health Solutions.

Chicago-based healthcare investor Shore Capital Partners has sold home infusion services company SCP Specialty Infusion to Harvest Partners-backed AxelaCare Health Solutions for an undisclosed sum. 

Shore Capital declined to disclose a return multiple for the deal, but a source familiar with the matter said the exit will generate a 4x return and 67 percent IRR. SCP Specialty Infusion operates through a network of pharmacies, infusion centers and nursing staff that provide intravenously delivered medicines. The sale marks the second exit for Shore Capital, which invests on a deal-by-deal basis exclusively in the healthcare sector.

“Our investment strategy is to raise a committed pool of capital and invest in a specific niche,” Shore Capital founder and managing partner Justin Ishbia told Private Equity International. 

During the holding period, Shore helped grow the company from one location to seven and completed three add-on acquisitions, two in California and one in Oregon. 

Shore Capital first invested in the company in 2009 after identifying the home infusion segment as an attractive and growing sub-sector within healthcare. The firm’s “home infusion” fund represented its first of four healthcare-focused investment vehicles. 

Shore Capital focuses on smaller healthcare companies with an EBITDA between $1 million and $5 million. 

“We’re incubating [companies] for larger private equity firms,” Ishbia said. 

The firm’s first exit came in August when it sold SCP Physical Therapy to KRG Partners-backed ATI Physical Therapy. 

Shore Capital was founded in 2009 by Ishbia, a former member of Valor Equity Partners, and co-founders Ryan Kelly, a former member of Water Street Healthcare Partners, Mike Cooper, a former member of Wind Point Partners, and John Hennegan, a former member of Henry Crown & Company, the private investing firm for the Crown family of Chicago. Including add-on acquisitions, the firm has completed 11 investments in the home infusion, lab services, physical therapy and urgent care sectors.