Riverside Benefits from Workers' Compensation Firm March 19, 2008
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Private Equity Firm’s Eighth Investment of the Year
(March 19, 2008) – The Riverside Company did not have to go out on a limb for its latest investment – Universal SmartComp, a specialty workers’ compensation managed care network. The company is focused on medical claims for physical medicine, including chiropractors, physical therapists (“PTs”) and occupational therapists (“OTs”). SmartComp represents the 16th platform company for the Riverside Micro-Cap Fund and the eighth overall investment for the firm in 2008.
Headquartered in Washington, Pennsylvania and founded in 2000, SmartComp has a national network of over 35,000 providers (chiropractors, PTs and OTs) to help control the rising medical costs of workers’ compensation claims in the US. Managing this extensive network benefits the Company’s customer base of third-party administrators, managed care companies, insurance companies and self-administered/self-insured corporations, which contract with SmartComp to gain access to its network and the discounts it provides.
“Riverside is impressed with Universal SmartComp’s clinical approach,” said Loren Schlachet, Riverside Managing Partner. “SmartComp has developed a reputation for being clinically-oriented and delivers a superior value to its customers. This is evident throughout the organization and highlighted by the fact that the CEO is also a clinician. Riverside likes the opportunities that exist within the workers’ compensation market to take SmartComp to a new level.”
Workers’ compensation is a $30 billion market, with the physical medicine portion accounting for $6 billion and growing at an annual rate of 7.5%. SmartComp has leveraged its unique offering in the market to grow revenue by approximately 180% annually since 2005.
“We are excited about our partnership with Riverside,” said Dr. Shannon Vissman, Founder and CEO of SmartComp. “We are looking forward to strengthening our focus on IT advancements and electronic data interchanges, as well as our clinical solution. In addition, Riverside will provide the resources to assist in evaluating untapped market expansion.”
Working with Schlachet on the transaction from Riverside was Eric Keen, Senior Associate. Robert Landis, Riverside Partner, Origination, sourced the deal and equity for the transaction was provided by RMCF.
The Riverside Company
The Riverside Company is the largest global private equity firm focused on the smaller end of the middle market (“SEMM”) and is one of the industry’s most experienced leveraged buyout investors. Riverside specializes in investing in premier SEMM companies (those with enterprise values of up to $150 million) and partners with strong management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in 184 transactions with a total enterprise value of $3.4 billion. Its current portfolio in the U.S., Europe and Asia numbers 61, with combined annual sales of $3 billion, EBITDA of $428 million and more than 11,000 employees. Riverside offers the resources to complete acquisitions smoothly and in as little as 30 days – thanks to its sizeable pool of capital under management (nearly $2 billion in nine funds), over 150 professionals in 17 offices (Amsterdam, Atlanta, Budapest, Brussels, Chicago, Cleveland, Dallas, Los Angeles, Madrid, Munich, New York, Prague, San Francisco, Seoul, Stockholm, Tokyo and Warsaw), and long-standing relationships with partner lenders. Five of seven of the firm’s mature vintages are currently top quartile, and the firm’s investors include the world’s leading pension funds, endowments, funds-of-funds, insurance companies and banks. Please visit www.riversidecompany.com and www.riversideeurope.com for more information.
Universal SmartComp, LLC
Universal SmartComp, LLC founded in 2000, with corporate headquarters based in Washington, PA, is a nationwide Best-In Class Physical Medicine network that is setting the standard for decreasing the spiraling costs of physical medicine in workers’ compensation. Universal SmartComp utilizes proprietary treatment benchmarks and a pricing model specific to physical medicine to control over utilization which is one of the toughest challenges with medical costs in workers’ compensation. Utilizing Universal SmartComp’s physical medicine program allows clients to realize significant reductions in both medical and indemnity costs, while improving injured workers’ satisfaction with the physical medicine process. Please visit www.universalsmartcomp.com for more information.