DFW Sells Covenant Surgical Partners to KKR

10/9/17

DFW Capital Partners announced today that it has completed the sale of its portfolio company, Covenant Surgical Partners, Inc., to an affiliate of private equity firm Kohlberg, Kravis & Roberts. Covenant is a leading owner and operator of ambulatory surgery centers focused on endoscopy and ophthalmology specialties – partnering with specialist physicians.

Covenant also owns interests in several related medical practices, as well as anesthesia operations and its own anatomical pathology lab business which serves its network of physician partners.

In 2013, DFW invested in a recapitalization of Covenant which led to significant growth through acquisition and the expansion of the company’s ancillary services efforts. During its investment tenure, Covenant grew to over 35 centers, significantly increased its geographical and infrastructure footprint, expanded and deepened its management team and systems capabilities, and positioned itself as a unique platform in the alternate-site healthcare services market.

“This transaction marks the next stage of Covenant’s evolution,” said Lew Little, Chief Executive Officer of Covenant. “This is the second time I’ve had the opportunity to work with KKR. Having seen firsthand what their partnership and resources can contribute to a company, I am thrilled to welcome them to the Covenant family and together accelerate our future growth.”

“Covenant provides an important role in improving patient access and reducing costs for the health care system. We look forward to partnering with Covenant in building a premier professional services organization to support its affiliated surgery centers and physician practices,” said Jim Momtazee, Head of KKR’s Health Care investment team.

“It has been a privilege to partner with the Covenant team in building one of the premier ambulatory surgery platforms and physician services companies in the nation,” said Keith Pennell, Managing Partner at DFW Capital Partners.

Alongside DFW’s original investment was a co-investment by affiliates of Pinebridge Investments and Iroquois Capital Group, as well as several of DFW’s limited partners. Piper Jaffray advised Covenant on the sale.

About DFW Capital Partners

DFW Capital Partners is a private equity investment firm focused on lower middle-market companies. The firm concentrates on service companies, with an emphasis on healthcare and outsourced business and industrial support services. DFW is backed by both institutional and high-net worth individual investors, and has established a 20+ year track record of success in building leading companies, and delivering attractive returns for its investors. DFW is headquartered in Teaneck, NJ, and maintains an office in Chevy Chase, MD. For more information contact Keith Pennell, Managing Partner, at (201) 836-6000.

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