This article contains content that is written like an advertisement .(April 2021) |
Company type | Limited liability company |
---|---|
Industry | Private equity |
Founded | 1979 |
Founder |
|
Headquarters | New York, New York, United States |
Key people |
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Products | Leveraged buyout and Growth capital |
Total assets | US$27 billion |
Number of employees | 90 |
Website | www |
Welsh, Carson, Anderson & Stowe (WCAS), also referred to as Welsh Carson, is a private equity firm. WCAS was formed in 1979 and focuses on investing in two growth industries, technology and healthcare, primarily in the United States. WCAS has a current portfolio of approximately 30 companies and has organized 17 limited partnerships with total capital of over $27 billion, consisting of 13 equity partnerships and four subordinated debt partnerships. WCAS is currently investing equity funds, including WCAS XII, L.P. and WCAS XIII, L.P. [1]
WCAS's strategy is to (i) buy growth businesses, (ii) partner with outstanding management teams, and (iii) build value for WCAS's investors through a combination of operational improvements, internal growth initiatives, and strategic acquisitions. WCAS differentiates itself from other private equity firms by industry specialization, investment track record, growth oriented and operational focus, repeat management teams, and the continuity and financial commitment of WCAS.
WCAS has approximately 90 employees, [2] including 15 general partners. The firm also has a Resources Group, which is composed of approximately 20 operating partners. The Resources Group assists the firm's portfolio companies by identifying and implementing initiatives focused on growth and operational improvement. The Resources Group works with the firm's investment professionals and portfolio company management teams to develop value maximization plans ("VMPs") for each new investment. These VMPs are unique for each portfolio company and encompass a wide range of strategic initiatives, including revenue enhancement and cost management strategies, corporate governance, motivation of key management team members, financial reporting dashboards, as well as potential acquisitions and integration timelines.
WCAS was formed in 1979 by three founders, Patrick Welsh, Russell Carson, and Bruce Anderson. Patrick Welsh and Russ Carson had previously served as president and Chairman of Citicorp Venture Capital. Bruce Anderson was formerly Executive Vice President of Automatic Data Processing. WCAS was originally a venture capital firm, and WCAS's first Equity Partnership totaled $33 million in commitments. In 1979, Richard Stowe joined WCAS as a General Partner, having worked previously at New Court Securities Corporation, now Rothschild Inc.
WCAS has been in business for over four decades, having raised over US$27 billion of capital as of 2019 in 13 equity partnerships and four subordinated debt partnerships. [1] Of the total capital raised, US$8 billion has been devoted to the healthcare sector. [3] WCAS has 15 General Partners, who work in New York and San Francisco offices.
In 2018, WCAS was fined by the Securities and Exchange Commission (SEC) for a conflict of interest involving receipt of professional services fees between 2012 and 2016. [4]
Also in 2018, WCAS began development of a government services platform. [5]
As of 2019 [update] , Anthony (Tony) de Nicola is the President and a Managing Partner of WCAS, [6] [7] and serves as a member of the Management Committee. He focuses on the information/business and communications industry. [6] de Nicola joined WCAS in 1994, becoming a General Partner the same year, after working in the Mergers and Acquisitions Department of Goldman Sachs. [6] He received an MBA from Harvard Business School in 1990. [6] [8]
In addition to de Nicola, the other Managing Partner of the firm is D. Scott Mackesy, [7] [9] also a member of the firm's Management Committee. Mackesy co-leads the firm's healthcare practice. [3] [9] Mackesy received a BBA from The College of William & Mary in 1991 and joined WCAS in 1998, becoming a General Partner in 2001. [3] [9]
There are 40 current or former public companies in WCAS's two core industries that can trace their roots to the firm. The combined market capitalization of these companies exceeds $100 billion.
WCAS invests in growth-oriented companies within the healthcare and technology/technology-enabled services industries. WCAS's investment strategy is to (i) buy growth businesses in two core industries, (ii) partner with outstanding management teams and (iii) build value through a combination of operational improvements, internal growth initiatives and strategic acquisitions.
WCAS's investment strategy is deal size agnostic. WCAS's activities include (i) conceiving and creating new market opportunities, (ii) providing capital to meet the needs of growing businesses and (iii) investing in growth oriented later-stage buyouts and special situations. For both small and large investments, focus on producing capital gains and attractive investment multiples in addition to strong internal rates of return.
In July 2019, WCAS closed its 13th fund at $4.3 billion. Investors in the fund include the California State Teachers’ Retirement System, the Minnesota State Board of Investment and the Board of Education Retirement System of the City of New York. [2] Since its founding in 1979, WCAS has raised thirteen private equity funds and four mezzanine capital funds: [1]
Private Equity
Mezzanine Debt
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