In an interview with Reuters' Private Equity (PE) Hub, Shore Capital Partners Managing Partner Justin Ishbia disclosed that the firm could raise a new institutional fund in 2014.
Ishbia said, "We will evaluate a more traditional institutional-based private equity fund in 2014 or 2015."
Shore, founded in 2009 by four private equity executives including Ishbia, was a product from former talents of larger private equity companies. Ishbia was into healthcare investments at Valor Equity Partners, while partner Ryan Kelle was formerly employed at Water Street Healthcare Partners. Shore Partner Mike Cooper had logged work experience at Wind Point Partners, while Partner John Hennegan came from the private investing firm for Chicago's Crown family, Henry Crown & Co.
The decision to launch Shore in the middle of the financial crisis, Shore believed that it was time to tap into an underserved market, Ishbia said. Shore had been making investments in microcap healthcare companies that has EBITDA, or earnings before interest, taxes, depreciation and amortization of around USD 1 million to USD 5 million. The private equity firm raises money per deal, Ishbia said, and draws from an investor base that is composed mainly family offices and three institutional investors who has the privilege to opt in or opt out, Ishbia said. Shore since its establihsment had made 11 investments that include HomeCare IV, RapidCare Clinic, Sirona Infusion, Access I.V., and ClearPath Diagnostics.
The company made its first exit when it sold the SCP Physical Therapy business to ATI Physical Therapy, which is KRG Capital Partners' portfolio company. ATI acquired SCP's business including Quantum Physical Therapy and Michigan Rehabilitation Specialists of Davison, Michigan, and Excel Rehabilitation Services. This month, Shore made another exit by selling its its home infusion therapy portfolio company, SCP Specialty Infusion, to AxelaCare Health Solutions. Ishbia said its Shore Capital Partners Fund I will be garnering a 67% internal rate of return (IRR) with regard to the Axela sale. A source told PE Hub that Shore could make four times the money it invested in the deal.
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