VHP's Orthopedic Care Partners Announces Dr. Tim Corvino as Chief Executive Officer, Secures $185 Million Strategic Investment from Brookfield and Completes $358 Million Senior Debt Refinancing

Rhea-AI Summary

Orthopedic Care Partners (OCP) has appointed Dr. Tim Corvino as CEO and secured significant financing, including a $185 million strategic investment from Brookfield Asset Management and a $358 million senior debt refinancing led by TPG Twin Brook Capital Partners. The refinancing extends and reduces the interest rate on existing credit facilities while providing additional revolving credit and delayed draw term loan options.

OCP, backed by Varsity Healthcare Partners, operates across five states with 136 physicians, 42 clinical locations, and six ambulatory surgery centers. Dr. Corvino, formerly CEO of Spire Orthopedic Partners and COO of Covenant Physician Partners, will lead the company's expansion into new markets and focus on enhancing patient care.

Positive

• Secured $185M strategic investment from Brookfield Asset Management
• Completed $358M senior debt refinancing at lower interest rates
• Obtained expanded revolving credit facility for future growth
• Significant operational scale with 136 physicians across 42 locations

Negative

• None.

Insights

Financial Analyst

The $543 million combined financing package for Orthopedic Care Partners represents a significant capital infusion that strengthens the company's financial position. The $185 million strategic investment from Brookfield Asset Management provides flexible capital for growth initiatives, while the $358 million senior debt refinancing at lower rates improves the cost structure. With 136 physicians across 42 locations and 6 surgery centers, OCP has substantial scale in the fragmented orthopedic care market. The dual-track financing demonstrates strong institutional backing and sets up OCP for an aggressive growth strategy through both organic expansion and potential acquisitions. The involvement of major players like Brookfield, TPG and Varsity Healthcare Partners provides multiple strategic advantages beyond just capital.

Healthcare Industry Analyst

This deal highlights the continued consolidation trend in orthopedic care, where private equity-backed platforms are aggregating independent practices to achieve operational efficiencies and greater market presence. OCP's multi-state footprint and significant physician network positions it as a major player in orthopedic practice management. The appointment of Dr. Corvino, with his extensive experience at Spire Orthopedic Partners and Covenant Physician Partners, brings valuable operational expertise in scaling physician practice management platforms. The substantial capital injection will likely accelerate OCP's acquisition strategy in both existing and new markets, potentially reshaping regional orthopedic care delivery networks.

New Executive Leadership Under Corvino, Capital Raise Positions Company For Strong Future Growth

GAINESVILLE, Fla., Dec. 5, 2024 /PRNewswire/ -- Orthopedic Care Partners ("OCP" or the "Company"), a leading orthopedic practice management platform, today announced that Tim Corvino, MD was named as the Company's Chief Executive Officer. Dr. Corvino is the former CEO of Spire Orthopedic Partners. He also previously served as Chief Operating Officer of Covenant Physician Partners and, prior thereto, as Chief Operating Officer of U.S. Acute Care Solutions.

In addition, the Company announced a growth recapitalization transaction, inclusive of a $185M hybrid capital raise provided by Brookfield Asset Management through its Special Investments program ("BSI") and a $358M senior credit facility refinancing, led by TPG Twin Brook Capital Partners ("TPG Twin Brook"). BSI's hybrid capital investment brings strategic partnership and adds additional flexibility to OCP's capital structure, positioning the Company for its next phase of growth. OCP's successful debt refinancing extends and reprices the Company's existing credit facility to a lower rate, while providing OCP with an expanded revolving credit facility and delayed draw term loan to support OCP's future growth.

"Today's senior debt refinancing and partnership with BSI positions OCP for accelerated future growth; we look forward as an organization to growing OCP's presence in current and new markets, continuing to invest in enhancing our patient care and experience at every OCP location and executing on our robust pipeline of high impact growth opportunities," commented Dr. Corvino, OCP's Chief Executive Officer.

Orthopedic Care Partners, which has a presence in five states and supports 136 recognized physicians across a platform of 42 clinical locations and six ambulatory surgery centers, is backed by Varsity Healthcare Partners ("VHP"), a Los Angeles-based lower middle-market healthcare services private equity investment firm with deep expertise and a long track record of building leading physician practice management platforms.

Moelis & Company LLC acted as exclusive placement agent and exclusive financial advisor to the Company in connection with this financing, and McDermott Will & Emery LLP acted as legal advisor to OCP and VHP.

Houlihan Lokey acted as financial advisor to BSI, and Kirkland & Ellis LLP acted as legal advisor to BSI.

About Orthopedic Care Partners
Orthopedic Care Partners (OCP) is the leading partner for high-performing, quality, and patient-focused orthopedic surgery practices. OCP provides a full spectrum of services and enhanced resources to help its family of practices thrive and grow while still fostering the unique identities that have made them so successful. To learn more, visit www.ocpmgmt.com.

About Varsity Healthcare Partners
Varsity Healthcare Partners (VHP) is a lower middle-market private equity investment firm focused on partnering with founders, entrepreneurs, and management teams to build leading healthcare services companies. VHP's tactical investment strategy emphasizes identifying and transacting with growth-seeking, provider- or founder-owned companies, leveraging VHP's developed "buy and build" playbook to drive significant operational, managerial enhancements early in the life of each platform investment, followed by a well-resourced aggressive and multidimensional growth plan. VHP's unique tactical investment playbook and strong track record are complemented by VHP's distinct organizational culture, emphasizing highly collaborative engagement, strong professional accountability, and a commitment to excellence in work product and team performance. For more information, please visit https://varsityhealthcarepartners.com/.

About Brookfield
Brookfield Asset Management (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager with over $1 trillion of assets under management across renewable power and transition, infrastructure, private equity, real estate, and credit. We invest client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy. We offer a range of alternative investment products to investors around the world — including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors. We draw on Brookfield's heritage as an owner and operator to invest for value and generate strong returns for our clients, across economic cycles. For more information, please visit our website at www.bam.brookfield.com.

About TPG Twin Brook
TPG Twin Brook is a direct lending finance company focused on providing cash-flow based financing solutions for the middle market private equity community. The firm is managed by highly experienced, dedicated professionals who have successfully worked together throughout their careers at leading middle market lending institutions. TPG Twin Brook's flexible product suite allows for tailored financing solutions for leveraged buyouts, recapitalizations, add-on acquisitions, growth capital and other situations.

Contact Information
For Orthopedic Care Partners and Varsity Healthcare Partners
Prosek Partners
Mickey Mandelbaum / Julia Sidi
mmandelbaum@prosek.com / jsidi@prosek.com

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SOURCE Orthopedic Care Partners

FAQ

How much funding did Orthopedic Care Partners receive from Brookfield Asset Management (BAM)?

Orthopedic Care Partners received a $185 million strategic investment from Brookfield Asset Management through its Special Investments program.

What is the size of Orthopedic Care Partners' senior debt refinancing in 2024?

Orthopedic Care Partners completed a $358 million senior debt refinancing led by TPG Twin Brook Capital Partners.

Who is the new CEO of Orthopedic Care Partners as of December 2024?

Dr. Tim Corvino was appointed as the new CEO of Orthopedic Care Partners. He previously served as CEO of Spire Orthopedic Partners.

How many clinical locations does Orthopedic Care Partners operate?

Orthopedic Care Partners operates 42 clinical locations and six ambulatory surgery centers across five states.