Genstar buys healthcare company from Advent, CCP

Genstar Capital will buy Long Term Care Group from Advent International and CCP Equity Partners for an undisclosed amount.

Genstar, a mid-market private equity firm that invests in healthcare services, is investing in partnership with Long Term Care’s management and industry executives Ben Lytle and Hugh Lytle. The investment comes from Genstar’s UniVita Health, a healthcare services platform.

Long Term Care, based in Eden Prairie, Minnesota, was established in 1996 through the acquisition of UnitedHealth’s long-term care group. The company provides outsource services to the long-term care insurance industry and the geriatric care services market.

Private equity firms Advent and CCP led the buyout of Long Term Care in 2004, after which the firms made several add-on acquisitions to the company, including the purchase and integration of Nation’s CareLink.

UniVita Health, Genstar’s healthcare services platform, was established to “create a comprehensive and integrated senior care services company”, James Nadauld, vice president of Genstar, said in a statement. The platform is focused on the concept of independent aging.

San Francisco-based Genstar recently joined a $500 million investment to form MidCap Financial, a company that will provide loans to the healthcare industry. Genstar and Lee Equity Partners provided the bulk of the equity in the investment, and Moelis Capital provided the remainder. The firm is investing from its fifth fund, which closed on $1.6 billion in June 2007.

Advent is a global buyout firm that has raised $24 billion in private equity capital since its inception in 1984. CCP Equity, formerly Conning Capital Partners, provides growth capital to financial services and healthcare services companies. The firm manages more than $500 million.