Crowe Paradis Cashes In

Medicare Set-Aside Blog on December 1, 2010
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Verisk Analytics announced the acquistion of CPSC MSA today for $90,000,000. The private equity partners must be dancing a jig since they acquired Crowe for a reported 12MM in 2006. Not a bad rate of return in today’s environment of 1% interest rates and negative stock returns. So here is how the big money winners in the MSA game stack up based on my rough calculations.

#1 HIG Capital with the sale of G&L to ABRY Partners – $130MM
#2 June Simpson with the sale of Health Advocates to Amerisource Bergen – $86MM
#3 Clarion Capital Partners with sale of CPSC MSA to Verisk Analytics – $60MM
#4 Jan and Michael Gould with sale of G&L to HIG Capital – $57MM
#5 Ken Paradis with sale to Clarion Capital Partners (base +earnout) – $25MM

And the big losers?

#1  The shareholders of Amerisource Bergen which sold PMSI (including Health Advocates three years after purchase) – $100MM+
#2  ABRY Parterns which overpaid for G&L by about $80M and had to clean house of management in 2010
#3  All the other private equity firms that passed on the intial investment of G&L, Health Advocates and CPSC

This market is only getting bigger and is ripe for consolidation by public firms with deep pockets.

Read the complete release here .