Private Investment Groups

Building market leaders through acquisition

GPI’s core skill is providing innovative platform search services that create attractive new investment opportunities. Our value-added deal sourcing activities allow private equity groups to deploy large amounts of capital with superior risk-adjusted returns. Over the last 20 years, GPI has functioned as an outsourced deal origination team for over twenty private equity groups with fund sizes ranging from $150 million to over $2 billion. Our core services include, identifying attractive industries, developing the universe of targets operating in a desired segment, approaching targets to determine their interest in selling and providing non-auction buy-side mergers and acquisition advisory services.

Our proactive deal sourcing capabilities provide clients a steady stream of primarily non-auction deal flow. Further, it ensures that our clients spend less time developing strategies and more time evaluating fully-packaged opportunities.

GPI also performs add-on acquisition searches for our clients’ portfolio companies and is a leading developer of Management Driven Industry Consolidation (“MDIC”) investment opportunities. A MDIC is a unique private equity investment opportunity that combines (i) a sound investment thesis in an attractive industry, (ii) an accomplished management team, (iii) ample private equity, (iv) a platform company and (v) add-on acquisitions.

Platform Search - Case Study

Avella, Inc. ("Avella") is one of the largest specialty pharmacies in the United States.

Acquisition Search Mandate

GPI was retained by Riordan, Lewis & Haden (“RLH”), a Los Angeles based private equity group. Our mandate was to identify a proven management team and platform company that we could partner with through a recapitalization transaction.

Platform Execution

GPI researched over 2000 companies, of which over 112 met RLH's initial acquisition criteria. We identified 35 owners interested in discussing the sale of their business. We focused on companies that had scale and which operated in the fastest growing segments of specialty pharmacy and leaders within their product categories. RLH visited 11 targets. We advised them in the recapitalization of The Apothecary Shops, one of the largest specialty pharmacies in the western United States

Add-on Execution

The plan called for adding a number of new vertical specialty products. GPI performed numerous add-on searches. We identified another 81 companies interested in exploring a transaction. Management visited 24 of these targets. To get into the fast growing oncology market, GPI advised the Company in the acquisition of Greater Sacramento Pharmacy. To gain an entrance in the 503b market we advised them in its acquisition of Advanced Pharma. The combined companies were later consolidated under the name Avella Specialty Pharmacy.

Summary

At the initial acquisition, Avella had sales of just under $100 million. After growing the Company to $1.4 Billion, Avella was acquired by OptumRx, a business unit of UnitedHealth Group (NYSE: UHG).