Hauser Private Equity Executes Successful Healthcare Industry Co-investments

Cincinnati-based Hauser Private Equity (HPE) is a hybrid equity fund management company that has successfully executed numerous co-investment strategies. The Company’s Directors and Limited Partners possess diverse industry expertise, enabling enhanced investments in prominent verticals.

Specifically, Hauser Private Equity seeks co-investments with funds that provide their portfolio businesses with operational expertise. HPE has entered into several co-investment partnerships in the healthcare industry.

The Revelstoke-CEI Partnership

In May 2018, Hauser Private Equity invested in the Cincinnati Eye Institute (or CEI), a large Cincinnati-based ophthalmology practice with an excellent reputation. HPE assumed its co-investor and strategic partner roles alongside Revelstoke Capital Partners. This Denver-area private equity firm has taken a leadership role in similar healthcare industry investments.

Cincinnati Eye Institute Overview

The Cincinnati Eye Institute is known for its superb medical and surgical eye care. In 1945, Morris Osher, M.D. founded this regional ophthalmology practice, which today includes over 60 practicing ophthalmologists and optometrists. CEI’s physicians frequently perform surgical care, and certain ophthalmologists are engaged in significant research efforts.

CEI’s “front-to-back” eye care services set it apart from other regional practices. The organization includes prominent physicians who practice in all major sub-specialty areas.

The CEI services umbrella includes 14 clinical centers along with three ambulatory surgical centers. Each year, CEI handles more than 200,000 patient encounters and performs more than 25,000 annual surgical procedures.

CEI Vision Partners Complements CEI

Revelstoke and Cincinnati Eye Institute structured CEI Vision Partners (or CEIVP) as the practice’s management services company. The multifaceted CEI management team will continue to dedicate the resources and human capital needed to facilitate CEI’s clinical services.

CEIVP also remains focused on CEI’s ongoing growth, facilitating beneficial partnerships with other prominent ophthalmology practices. CEI managers will also work closely with Revelstoke on emerging initiatives.

Benefits of Additional Resource Allocation

Daniel Miller, M.D., Ph.D., and CEI’s Chief Medical Officer outlined the benefits CEI will receive from the additional resources. “We see tremendous growth opportunities by recruiting best-in-class providers, opening new clinical and surgical facilities, expanding our patient care and business support services, and aligning with market-leading provider groups,” Dr. Miller emphasized.

From a management perspective, CEIVP’s Chief Executive Officer Clyde Bell acknowledged Revelstoke’s contribution to CEI’s continued growth. “The strategic and healthcare expertise that Revelstoke brings will enable us to accelerate our growth while maintaining the highest levels of compassionate patient care,” Bell stated.

“We are thrilled to partner with such an experienced team of investors committed to building industry-leading companies and enhancing the patient experience.”

The formation of CEI Vision Partners does not affect CEI’s physician shareholders, who will retain their practice ownership rights. The physicians, along with over 650 practice employees, will remain in their current positions.

CEIVP’s Relationship to Patient Care

While CEIVP focuses on CEI’s ongoing growth, CEI will continue its role as the region’s premier eye care facility. The roster of physicians and patient care services will remain the same. In fact, patients will gradually benefit from greater care access as CEI benefits from increased resources and targeted investments.

From the Revelstoke Perspective

Revelstoke Capital Partners is a Denver-based private equity firm comprised of seasoned investors. Collectively, the firm devotes resources to building premier companies in the healthcare and business services arenas.

Through collaborations with each partner’s talented management team, Revelstoke executes a targeted expansion strategy. Organic and acquisition-driven growth are both key components of Revelstoke’s successful approach.

Since Revelstoke was launched in mid-2013, the firm has raised an estimated $2.3 billion in equity. The Company has also executed 64 acquisitions, including 16 platform companies along with 48 add-on acquisitions.

Revelstoke’s View of its CEI Partnership

Revelstoke’s Managing Director Andrew Welch has given high marks to the CEI Vision Partners CEO and his management team. “CEI Vision Partners is a true platform in the industry. Clyde Bell, Chief Executive Officer of CEI Vision Partners, and his management team have a differentiated relationship with the CEI’s physicians and, collectively, they have developed impressive infrastructure and capabilities to support and grow their operations,” concluded Welch.

CEIVP’s Purchase of Virginia Eye Consultants

In February 2019, CEI Vision Partners further expanded its reach by purchasing Virginia Eye Consultants (or VEC). This 17-provider ophthalmology group serves the Norfolk, Chesapeake, and Virginia Beach markets via four established clinics and one ambulatory surgery center. The practice’s physicians offer a range of ophthalmology specialties.

The CEI Vision Partners’ VEC purchase marks an additional step in CEIVP’s goal to be the country’s premier ophthalmology management services group. Purchasing the southern Virginia-based practice gives CEI Vision Partners a foothold in the desirable Mid-Atlantic region.

In fact, VEC becomes the fifth practice to partner with CEI Vision Partners since the management services company’s May 2018 launch with CEI and Revelstoke. Collectively, CEIVP’s partner practices include over 100 well-regarded physicians across all major ophthalmology specialties. These skilled professionals work in 30 clinical centers and numerous ambulatory surgical centers in the Midwest and Mid-Atlantic regions.

CEIVP’s View of the VEC Partnership

CEI Vision Partners’ Chief Executive Officer Clyde Bell recognizes the clear advantages of the Virginia Eye Consultants partnership. “With Virginia Eye Consultants joining CVP, we now offer a dual platform business model to grow ophthalmology practices in the Midwest and the Mid-Atlantic regions.

“VEC is well established with a strong reputation for providing surgical services in multiple specialties with the highest level of patient care. By partnering with VEC, CVP is able to reach additional markets and expand patient access to top ophthalmologists.”

Revelstoke’s Longer-Term View

Revelstoke’s Managing Director Andrew Welch takes a slightly different strategic view of CEIVP’s continued growth. “CVP’s expansion has been impressive but our goal is not to be the biggest in the industry – our strategy is to be the best ophthalmology management services organization by partnering with premier practices in targeted regions.

“The interest we have received from leading Midwest groups in joining our platform has been phenomenal and we are excited to replicate and extend this strategy in the Mid-Atlantic region.”

Investment firm Hauser Private Equity continues to evaluate investments in the healthcare, business services, financials, consumer goods, and industrials verticals. The firm’s executive management team maintains oversight of the Company’s investments and assets. Hauser Private Equity has offices in Washington, DC and Santa Monica, California, enabling the Company to adequately serve clients throughout the United States.