Another Strong Exit for HealthEdge Investment Partners with Sale of The Columbus Organization to CareSource
TAMPA, FLORIDA – November 30, 2021 – HealthEdge Investment Partners (“HealthEdge”), a Tampa-FL based private equity fund focused on lower middle market healthcare companies, continues to drive significant liquidity for its limited partners with the sale of The Columbus Organization (“Columbus” or the “Company”), a leading provider of services for individuals with intellectual/developmental disabilities (I/DD), to CareSource, a nationally recognized nonprofit managed care organization. TripleTree, LLC acted as the exclusive financial advisor to Columbus for this transaction.
Based outside of Philadelphia, PA, Columbus operates three business lines, Care Coordination, Professional Clinical Staffing, and Quality Improvement Services, and serves over 100,000 individuals across 13 states. During HealthEdge’s ownership, Columbus completed significant operating and infrastructure investments, including key senior leadership hires and other personnel additions, quality and compliance program improvements, and proprietary technology developments. Consistent with HealthEdge’s growth strategy across many of its investments, Columbus also completed ten add-on acquisitions, significantly expanding its geographic presence and the number of individuals served.
HealthEdge Managing Partner Phil Dingle commented, “At initial investment, we sought to roughly double the size of Columbus through geographic expansion, add-on acquisitions, and in-market organic growth—a milestone that the Company will have achieved in 2021. We are highly pleased with this outcome for our investment in the Company and are excited for CareSource to execute on its vision to expand Columbus’s ability to positively impact the lives of those with I/DD.”
Jeff Klimaski, CEO of Columbus, said of the transaction, “Becoming part of CareSource is an exciting milestone for The Columbus Organization and is a testament to the unmatched quality, innovation and passion that the Company has consistently delivered to the individuals, families and organizations we serve.” Mr. Klimaski added, “HealthEdge has been an excellent partner for Columbus over the past five years, providing the right type of guidance, support, and resources we needed to achieve the meaningful growth that has positioned us for this next step in our journey.”
As an operationally-oriented, sector-focused private equity fund, HealthEdge delivers attractive and replicable returns to its investors by partnering with lower middle market healthcare companies where HealthEdge’s investment and operational teams can add substantial value—driving organizational transformation, cultural excellence, and accelerated growth through active involvement with management teams. The Columbus exit follows the successful sale of the majority of HealthEdge’s investment in Formulated Solutions, a FL-based contract development and manufacturing organization (CDMO), to Linden Capital Partners in September. HealthEdge is currently investing and raising its fourth fund, which has a $150 million target.
ABOUT THE COLUMBUS ORGANIZATION
The Columbus Organization empowers individuals to realize their meaningful–life goals through nationally recognized care/support coordination, professional clinical staffing, and quality improvement services for the intellectual/developmental disability (I/DD) or behavioral needs community. The Company delivers an unmatched depth of expertise, breadth of resources, diversity of thinking, and dedication to finding the most appropriate, personalized solutions for its customers. For more information on Columbus, visit www.columbusorg.com.
ABOUT HEALTHEDGE INVESTMENT PARTNERS
HealthEdge Investment Partners, LLC is an operating-oriented private equity firm founded in 2005 that focuses exclusively on the healthcare industry. HealthEdge seeks to achieve superior returns by investing in businesses that benefit from the knowledge, experience, and network of relationships of its partners. HealthEdge’s partners have more than 100 years of combined experience in healthcare as operators and investors.
ABOUT CARESOURCE
CareSource is a nonprofit, multi-state health plan recognized as a national leader in managed care. Founded in 1989, CareSource administers one of the nation’s largest Medicaid managed care plans and offers a lifetime of access to care through health insurance, including Medicaid, Health Insurance Marketplace, Medicare Advantage and dual-eligible programs. Headquartered in Dayton, Ohio, CareSource serves 2 million members in Georgia, Indiana, Kentucky, Ohio and West Virginia. CareSource is also a partner in CareSource PASSE, which has been approved as a new option for the Provider-Led Arkansas Shared Savings Entity (PASSE) Program for Arkansans with complex behavioral health and individuals with intellectual and developmental disabilities. CareSource understands the challenges consumers face navigating the health system and is transforming health care with industry-leading programs that improve the health and well-being of our members. For more information on Columbus, www.caresource.com.