Welsh, Carson, Anderson & Stowe
Encyclopedia
Welsh, Carson, Anderson & Stowe (Welsh Carson or WCAS) is a private equity
investment firm in the United States. Founded in 1979, it has organized 14 limited partnerships with total capital over $16 billion and is currently in the process of raising a new $4 billion private equity fund
Welsh, Carson Anderson & Stowe XI. There are approximately 40 publicly traded companies that trace their roots to WCAS.
WCAS has developed a focus on growth companies in two industry sectors:
Although historically, WCAS has made investments in telecommunications, the firm moved away from the sector after poor performance adversely impacted the performance of its eighth private equity fund
.
WCAS has approximately 40 employees; including 15 general partners; based on Park Avenue
in New York City
.
, formerly of Citicorp Venture Capital, the private equity arm of Citicorp (today Citigroup
) as well as Bruce Anderson and Rick Stowe.
In healthcare, examples of current or former public companies include
transactions and smaller deals through its buy-and-build strategy. The firm’s mezzanine capital
funds are used as a captive source of financing for its private equity investments, despite potential conflicts of interest that may arise in the event of a liquidation of a portfolio company.
Since its founding in 1979, WCAS has raised ten private equity
funds and four mezzanine capital
funds and its 11th private equity fund is expected to be raised by the end of 2008:
Source: Preqin
(Formerly known as Private Equity Intelligence)
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
investment firm in the United States. Founded in 1979, it has organized 14 limited partnerships with total capital over $16 billion and is currently in the process of raising a new $4 billion private equity fund
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
Welsh, Carson Anderson & Stowe XI. There are approximately 40 publicly traded companies that trace their roots to WCAS.
WCAS has developed a focus on growth companies in two industry sectors:
- Information & Business Services, including outsourcingOutsourcingOutsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
, information technologyInformation technologyInformation technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
, telephone directoriesYellow PagesYellow Pages refers to a telephone directory of businesses, organized by category, rather than alphabetically by business name and in which advertising is sold. As the name suggests, such directories were originally printed on yellow paper, as opposed to white pages for non-commercial listings...
and payment processing; and - Healthcare, including medical devices, pharmaceuticals, hospitals and other medical facilities.
Although historically, WCAS has made investments in telecommunications, the firm moved away from the sector after poor performance adversely impacted the performance of its eighth private equity fund
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
.
WCAS has approximately 40 employees; including 15 general partners; based on Park Avenue
Park Avenue (Manhattan)
Park Avenue is a wide boulevard that carries north and southbound traffic in New York City borough of Manhattan. Through most of its length, it runs parallel to Madison Avenue to the west and Lexington Avenue to the east....
in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
.
History
The firm was founded in 1979 by Patrick Welsh and Russell CarsonRussell Carson
Russell L. Carson is a Co-founder and General Partner at Welsh, Carson, Anderson & Stowe.-Early life and career:Carson attended public high school in Toledo, Ohio. He then matriculated at Dartmouth College, graduating with an A.B. in economics in 1965. After Dartmouth, Carson attended Columbia...
, formerly of Citicorp Venture Capital, the private equity arm of Citicorp (today Citigroup
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
) as well as Bruce Anderson and Rick Stowe.
Portfolio Investments
In information & business services, current and historical portfolio companies include:- Alliance Data Systems
- Amdocs LimitedAmdocsAmdocs Limited is a provider of software and services for billing, customer relationship management , operations support systems...
- BISYS Group
- Centennial Communications Corp.
- Dex Media, Inc.Dex MediaDex Media, Inc. was a print and interactive marketing company. It was acquired by R.H. Donnelley, which became Dex One Corporation in February 2010...
which was acquired from QwestQwestQwest Communications International, Inc. was a large United States telecommunications carrier. Qwest provided local service in 14 western U.S. states: Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, and Wyoming.On April...
and later merged into R. H. Donnelley (NYSE:RHD) - FiServ, Inc.FiservFiserv, Inc. provides information management systems and services to the financial and insurance industries. Leading services include transaction processing, outsourcing, business process outsourcing , software and systems solutions. The company serves more than 16,000 clients worldwide...
- Local Insight Media, LLC
- SunGard Data Systems, Inc.SunGardSunGard is a multinational company based in Wayne, Pennsylvania, which provides software and services to education, financial services, and public sector organizations. It was formed in 1983, as a spin-off of the computer services division of Sun Oil Company, during a period of low crude oil...
- Global Knowledge TrainingGlobal Knowledge TrainingGlobal Knowledge Training LLC is an IT & Business skills training company headquartered in Cary, NC , Toronto and London . It is owned by New York-based investment firm Welsh, Carson, Anderson & Stowe. Founded in 1995, Global Knowledge currently employs more than 1,300 people...
In healthcare, examples of current or former public companies include
- Aptuit, Inc. (pharmacetical services provider)
- Accuro HealthAccuro Healthcare SolutionsAccuro Healthcare Solutions, Inc. is an American company that provides business intelligence and revenue management software to healthcare practices and systems. One of its major clients is Tenet Healthcare...
(Nasdaq:ACDO) - Lincare Holdings (Nasdaq:LNCR)
- National Dentex Corp.
- MedCath Corp.MedCath Corp.MedCath Corporation is an American public company which provides cardiac health care. The company was founded in 1988 as MedCath Partners, a for-profit corporation which offered cath lab, nuclear cardiology, and sleep medicine services...
(Nasdaq:MDTH) - Quorum Health Group which was acquired by Triad Hospitals, Inc.Triad HospitalsTriad Hospitals was a hospital operator based in Plano, Texas. Originally a spinoff of Hospital Corporation of America, it was merged into Community Health Systems in 2007....
- Select Medical CorporationSelect Medical CorporationSelect Medical Corporation is a leading provider of specialized health care in both inpatient and outpatient settings. Based in Mechanicsburg, Pennsylvania, Select Medical has 27,300 employees throughout the United States. The company was co-founded in 1996 by Rocco Ortenzio and Robert Ortenzio...
- SHPSSHPSSHPS, Inc. is a national, single-source provider of benefits administration services and health improvement programs through the company's SHPS HR Solutions and Carewise Health subsidiaries. The company employs approximately 2,000 people, and is headquartered in Louisville, Kentucky with multiple...
(formerly Sykes HealthPlan Services) - United Surgical Partners International
- US Oncology
- Viant Inc.
Investment Funds
WCAS’s investment funds invest in both larger leveraged buyoutLeveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
transactions and smaller deals through its buy-and-build strategy. The firm’s mezzanine capital
Mezzanine capital
Mezzanine capital, in finance, refers to a subordinated debt or preferred equity instrument that represents a claim on a company's assets which is senior only to that of the common shares...
funds are used as a captive source of financing for its private equity investments, despite potential conflicts of interest that may arise in the event of a liquidation of a portfolio company.
Since its founding in 1979, WCAS has raised ten private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
funds and four mezzanine capital
Mezzanine capital
Mezzanine capital, in finance, refers to a subordinated debt or preferred equity instrument that represents a claim on a company's assets which is senior only to that of the common shares...
funds and its 11th private equity fund is expected to be raised by the end of 2008:
Source: Preqin
Preqin
Preqin is a research and consultancy firm focusing on alternative asset classes. The company covers private equity, real estate, infrastructure, and hedge funds and is headquartered in London, UK, with additional offices in New York and Singapore. Preqin maintains a number of publications and...
(Formerly known as Private Equity Intelligence)
External links
- Welsh, Carson, Anderson & Stowe (Official Website)
- Hoovers Business Listing
- Yahoo! Finance listing