Welsh, Carson, Anderson & Stowe
| Company type | Private |
|---|---|
| Industry | Private equity |
| Founded | 1979 |
| Founder | Patrick Welsh, Russell Carson, Bruce Anderson |
| Headquarters | New York City and San Francisco , United States |
Area served | United States |
Key people | Anthony (Tony) de Nicola (President and Managing Partner), D. Scott Mackesy (Managing Partner) |
| Products | Private equity funds |
Number of employees | Approximately 90 professionals including 15 general partners and about 20 operating partners |
Welsh, Carson, Anderson & Stowe (commonly referred to as Welsh Carson or WCAS) is a private equity firm established in 1979 that concentrates on investments in the technology and healthcare sectors, primarily within the United States. WCAS oversees assets exceeding $27 billion spread across roughly 30 portfolio companies and has launched 17 limited partnerships, which include 13 equity partnerships and four subordinated debt partnerships. The firm continues active investments through vehicles like WCAS XII, L.P. and WCAS XIII, L.P.
The organization employs approximately 90 professionals, including 15 general partners, complemented by a Resources Group consisting of around 20 operating partners. This group works closely with investment teams and portfolio company executives to design customized value maximization plans ("VMPs") aimed at driving growth, enhancing operations, increasing revenues, managing costs, improving governance, and exploring acquisition opportunities.
History
Founded in 1979 by Patrick Welsh, Russell Carson, and Bruce Anderson, WCAS originated from the leadership of Welsh and Carson at Citicorp Venture Capital, while Anderson brought experience as EVP at Automatic Data Processing. The firm's inaugural Equity Partnership secured $33 million in capital. Richard Stowe joined as General Partner the same year, transitioning from New Court Securities Corporation (now Rothschild Inc.).
Over more than forty years, WCAS has amassed capital exceeding $27 billion, with about $8 billion allocated specifically to healthcare ventures. The company operates out of offices located in New York and San Francisco and maintains a leadership team of 15 General Partners.
In 2018, the SEC imposed penalties on WCAS due to conflicts of interest involving professional services fees during the period from 2012 to 2016. That year also marked the firm's launch of a government services platform aimed at broadening its investment reach.
Leadership
As of 2019, Anthony (Tony) de Nicola holds the roles of President and Managing Partner at WCAS and serves on the Management Committee. His focus lies within the information/business and communications sectors. De Nicola became a General Partner in 1994 after previously working in Goldman Sachs' Mergers and Acquisitions Department. He earned an MBA from Harvard Business School.
D. Scott Mackesy is another Managing Partner and member of the Management Committee who co-heads WCAS's healthcare division. Mackesy graduated with a BBA from The College of William & Mary in 1991, joined WCAS in 1998, and was promoted to General Partner in 2001.
Portfolio investments
WCAS has played a role in founding or expanding 40 publicly traded companies within its primary industries, collectively valued at over $100 billion in market capitalization.
Technology sector
- Absorb Software
- Alert Logic
- Alliance Data Systems
- American Residential
- Avetta—In 2018, WCAS acquired a controlling interest from Northwest Venture Partners, who retained a minority position along with TCV. Avetta is an Irvine, California-based provider of risk management software.
- BISYS Group
- Card Establishment Services
- Ceridian
- Clearwater Analytics—A fintech company delivering software-as-a-service solutions.
- Cohesive Network Systems
- Decision One
- Centennial Communications Corp.
- DriveCam
- Electronic Evidence Discovery
- General Computer Corporation—Fully acquired by GenCC, a WCAS subsidiary, in 1994; previously publicly traded on NASDAQ under GCCC before privatization.
- GlobalCollect
- Global Knowledge Network
- Green Street Advisors—A research, data analytics firm purchased from Golden Gate Capital in July 2019.
- JCPenney Business Services—Acquired in 1996; specialized in credit services and electronic transaction processing.
- MedE America
- Mobile Mini (Nasdaq:MINI)
- NEWAsurion
- Ozburn-Hessey Logistics
- Paycom—WCAS held majority ownership as of 2014; proceeds from the company's IPO were used to repay loans extended by WCAS.
- Peak 10
- QwestDex—Obtained jointly with The Carlyle Group in 2002 through an auction for Qwest's yellow pages division.
- QuickBase, Inc.
- Retrievex
- Revel Systems
- Ruesch International
- Service Repair Solutions
- Titan Outdoor Holdings
- TransFirst
- United Vision Logistics
- US Investigations Services
- Walsh International
- Windstream Yellow Pages—Acquired following Windstream's spin-off and sale finalized in 2007.
Previous technology investments
- Amdocs—WCAS previously owned as much as 35% of this company. By September 2003, WCAS had completely distributed its shares among partners, holding no direct ownership.
- Bridge Information Systems—Purchased in 1995, the firm grew through acquisitions but declared bankruptcy in 2001, resulting in the divestiture of its divisions, including sales to Reuters.
- Windstream—In 2006, WCAS divested its 4.1% equity in Windstream during the acquisition of Windstream Yellow Pages.
Healthcare industry
- Accredo Health
- Aptuit
- Ardent Health Services
- AGA Medical
- AmComp
- AmeriPath
- Bausch & Lomb
- CareSpot Express Healthcare
- Concentra
- Emerus Holdings Inc.
- Hawk Medical Supply
- K2M
- Kindred Healthcare —In 2018, a consortium including WCAS, Humana, and TPG Capital acquired Kindred. The transaction encompassed Kindred’s long-term acute care hospitals, inpatient rehabilitation centers, and contract rehabilitation services but excluded Kindred at Home.
- LabOne
- Lincare Holdings (Nasdaq:LNCR)
- Matrix Medical Network
- MedAssets
- Medcath—Acquired alongside Kohlberg Kravis Roberts & Company in 1998.
- MemberHealth
- MultiPlan
- National Dentex
- NaviHealth
- Norstella
- Onward Healthcare
- Pediatrix Medical Group
- Quorum Health Group—Purchased by Triad Hospitals, Inc.
- Renal Advantage
- Select Medical Corporation (NYSE: SEM)
- SHPS
- Smile Brands
- Solstas Lab Partners
- Springstone
- United Surgical Partners International (USPI)—WCAS sold a controlling interest in 2015 for , with plans to exit remaining holdings by 2020.
- Universal American Financial (NYSE:UAM)
- U.S. Acute Care Solutions—Founded by WCAS in 2015 as a capital partner alongside Emergency Medicine Physicians. The company grew through acquisitions including Ergentus Emergency Service Physicians and others across Colorado, Maryland, and Florida. Physicians maintain majority ownership.
- U.S. Anesthesia Partners (USAP)—WCAS became a principal investor in 2013. In 2016, USAP acquired East Texas Anesthesiology Associates (ETAA).
- US Oncology
- US Radiology Specialists
- Valeritas
- Westminster Healthcare
Investment funds
In July 2019, WCAS finalized its thirteenth fund at $4.3 billion, attracting investors such as the California State Teachers' Retirement System, Minnesota State Board of Investment, and New York City Board of Education Retirement System. Since its inception in 1979, WCAS has raised thirteen private equity funds alongside four mezzanine capital funds:
Private Equity
- 1979 – WCAS I ($33 million)
- 1980 – WCAS II ($32 million)
- 1983 – WCAS III ($81 million)
- 1985 – WCAS IV ($178 million)
- 1989 – WCAS V ($371 million)
- 1993 – WCAS VI ($604 million)
- 1995 – WCAS VII ($1.4 billion)
- 1998 – WCAS VIII ($3.0 billion)
- 2000 – WCAS IX ($3.8 billion)
- 2005 – WCAS X ($3.3 billion)
- 2008 – WCAS XI ($3.9 billion)
- 2015 – WCAS XII ($3.3 billion)
- 2018 – WCAS XIII ($4.3 billion)
Mezzanine Debt
- 1987 – WCAS Capital Partners ($209 million)
- 1990 – WCAS Capital Partners II ($354 million)
- 1997 – WCAS Capital Partners III ($1 billion)
- 2004 – WCAS Capital Partners IV ($1 billion)