Warburg Pincus brings home Deal of the Year for $8.9bn exit of Summit Health (formerly CityMD)

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Warburg Pincus brings home Deal of the Year for $8.9bn exit of Summit Health (formerly CityMD)

Good morning, Hubsters.

MK Flynn here with a special edition of the Wire, featuring the winners of Buyouts’ and PE Hub’s annual deal awards.

Congratulations to Warburg Pincus on winning Deal of the Year for the firm’s $8.9 billion exit of Summit Health (formerly CityMD)!

Here’s a look at that deal, written by Iris Dorbian. Plus, see all the winners, below.

Deal of the Year

If there is a word that can adequately sum up Warburg Pincus’ early 2023 sale of Summit Health (formerly CityMD) – an operator of urgent care centers in the New York metropolitan area – to primary care platform VillageMD for $8.9 billion, it would be “stunning,” Iris writes.

The deal had a historical component, with the covid pandemic hitting in the midst of Warburg’s hold, and with CityMD being at the heart of the New York City’s covid testing at the time.

“That was a pivotal moment in the company’s trajectory,” recalls Warburg’s TJ Carella. “Everything was turned upside down in New York.”

Managing Summit Health’s merger with CityMD in 2019, right before covid, added to the complexity.

To learn how Warburg managed all the complexities, upgrade to the premium version of the Wire.

Kudos

Congratulations to all the winners:

• Kaiser Permanente’s $5 billion portfolio sale earns the Secondaries title

• Ares Management’s exit of Savers Value Village, a for-profit thrift chain, wins the Turnaround trophy

• BlackRock LTPC’s sale of luxury fragrance Creed (which was founded in 1760 and had Queen Victoria as a customer), takes home the international prize

• Vestar Capital Partners’ exit of foodservice equipment and services distributor Edward Don & Co is the Mid-Market winner

• Vesey Street Capital Partners’ exit of healthcare data services firm Quality Metric wins the Small Market sector

And congrats to Chris Witkowsky and Karl Shmavonian on leading the Deal of the Year project!

Cheers,

MK

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Will less control impede private equity investing in sports teams? Deal activity in professional sports “presents unique risks and challenges that differ from traditional investments,” a Deloitte report said. (Buyouts)

The infrastructure secondaries market is likely to end up looking significantly different to its private equity counterpart, Diego Jimenez, principal at HarbourVest Partners told attendees at PEI Group’s Infrastructure Investor Network Global Summit last week. (Secondaries Investor)

From simple but effective steps such as turning down the thermostats in shopping centers to more advanced measures such as fitting solar panels on the roofs of logistics assets, there are many ways managers can make buildings more sustainable, and PERE’s Sustainable Investing report is ripe with them, as it is with investor perspectives and the latest developments on standardizing carbon accounting and disclosures.

They said it

Covid “was a pivotal moment in the company’s trajectory. Everything was turned upside down in New York; people were scared and didn’t know the consequences of infection. At the same time, the government was looking for answers as to the nature of community spread. In partnership with the city of New York, CityMD and its front-line staff and clinicians played an important role in providing healthcare access to its many communities, serving the medical needs of its patients irrespective of insurance status and taking an all-hands-on deck approach to the broader healthcare crisis.”

— TJ Carella, a managing director and head of healthcare at Warburg Pincus, on the pandemic hitting in the midst of Warburg’s ownership of CityMD