Passport recapitalization tops $200M

Friday, August 1, 2008 at 2:22am

Two large private equity firms are the new majority owners of Franklin-based Passport Health Communications after a recent recapitalization worth $232 million.

Spectrum Equity Investors and Great Hill Partners — both based in Boston — also have taken two spots each on the board of Passport, which provides revenue cycle management tools to the healthcare sector. Spectrum was founded in 1994 and manages more than $4 billion. Great Hill manages about $2.5 billion and has invested in more than 100 companies.

Primus Capital Funds, which led Passport’s 2006 minority recapitalization, reinvested a majority of its stake and additional equity in this deal. Existing lenders Goldman Sachs Specialty Lending Group and Ares Capital Corp. also took part, as did Passport CEO Jim Lackey and other senior executives.

Lackey said the investors’ “collective experience and resources will allow us to carry out our long-term business plan by making continued investments in our administrative and financial services.”

Earlier this year, the company told NashvillePost.com of its plans to secure new investment and buy several peers — it acquired an Illinois company in May — with an eye to growing revenue to $100 million by 2011.

Brentwood Capital Advisors was the exclusive financial advisor on the deal. The 9-year-old investment bank also took part in Passport’s 2006 deal and has worked on more than 25 healthcare deals since 2002.

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