Harris Williams & Co. Advises Hospitalists Management Group in its Recapitalization by AEA Investors

April 30, 2010

Harris Williams & Co. announces that Hospitalists Management Group (HMG), a portfolio company of Waud Capital Partners (WCP), has been recapitalized by AEA Investors (AEA). The transaction closed on April 30, 2010. Harris Williams & Co. acted as the exclusive advisor to HMG. The transaction was led by Turner Bredrup and Cheairs Porter from the firm's Healthcare & Life Sciences Group in Richmond.

"HMG is a market leader in the rapidly growing hospitalist industry. With a differentiated partnership model, HMG has a competitive position that is well understood by the new investor group led by AEA," said Turner Bredrup, managing director at Harris Williams & Co.

HMG is a leading outsourced provider of comprehensive hospitalist physician programs to hospitals throughout the United States. Hospitalists are physicians whose primary focus is managing and driving the care of hospitalized patients. Through its contracted customer relationships, HMG helps its hospital partners improve clinical outcomes, reduce average length of stay, increase patient satisfaction, achieve higher revenue and realize greater efficiencies through the application of best practices and quality management.

WCP is a leading middle market private equity investment firm, founded in 1993, that partners with exceptional management teams to invest in growth equity investments, industry consolidations, buyouts and recapitalizations. The firm seeks to invest $10 million to $100 million in private companies in the following four areas: healthcare services, business and consumer services, specialty distribution and value-added industrial businesses. Typically, the companies in which WCP invests have enterprise values between $30 million and $300 million.

AEA Investors was founded in 1968 by Rockefeller, Mellon and Harriman family interests in partnership with S.G. Warburg & Co. Today its investors-known as "Participants"-include many of the world's leading industrial families, business executives and influential institutional investors. AEA has investment professionals operating from offices in New York, London, Munich, Hong Kong, and Shanghai. It manages approximately $5 billion of invested and committed capital in funds dedicated to three purposes: (1) buyouts of middle market companies operating principally in four sectors - industrial, specialty chemical, consumer products and services, (2) buyouts of smaller middle market companies in these same sectors, and (3) mezzanine and senior debt investments.