Welsh Carson raises $1.3bn sub-debt fund

The New York firm has closed it fourth vehicle for purchasing subordinated debt and has also announced a $100 million commitment to Accuro Healthcare Solutions.

New York private equity firm Welsh, Carson, Anderson & Stowe today announced the close of its fourth subordinated debt fund on $1.284 billion (€958 million).

WCAS Capital Partners IV will make investments in companies in the information and business services, healthcare, and communications industries.

In addition to the fund closing, Welsh Carson also announced a $100 million (€75 million) commitment to Accuro Healthcare Solutions, a Dallas-based healthcare company formed to develop a “comprehensive solution to the reimbursement pressures that exist in the healthcare provider marketplace.”

Accuro, in turn, has purchased a majority interest in Innovative Managed Care Solutions, Ltd. (IMaCS). IMaCS provides Internet-based contract management services which allows providers to access their managed care contracts, validate reimbursement and improve collections.

According to a statement, this commitment also represents the fourth time Welsh Carson has partnered with John Carlyle, founder of Accuro, to build a healthcare services company.

Last week, Welsh Carson acquired Ruesch International, a leading provider of foreign exchange and international payment services. Thomas Staudt was also appointed president and chief executive officer of the company, following the death of Reusch founder and CEO Otto Ruesch, who passed away in October.

Back in October, Welsh Carson announced an agreement to take private hospital operator Select Medical in a deal worth approximately $2.3 billion (€1.84 billion). Chicago private equity firm Thoma Cressey Equity Partners will join Welsh Carson in the deal, as will members of the company’s senior management.

Since its founding in 1979, Welsh Carson has organised 13 private investment partnerships with total capital of more than $13 billion. WCAS has completed nearly 100 buyouts and investments since inception and invests out of WCAS IX, a $3.9 billion equity fund, in addition to WCAS CP IV.