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The Wire

Mar. 9, 2022

Morgan Stanley Capital on its buy of SpendMend; Lexington to buy big chunk of CalPERS’ portfolio

Happy Wednesday!

 

This is Chris, on the Wire this morning.

 

Big: Lexington Partners has emerged as a buyer of at least a piece of a massive portfolio being sold by CalPERS. The deal, up to $6 billion, is the largest LP portfolio on the market and, if sold in total, would be among the largest-ever PE secondary sales.

 

However, Lexington is only taking a piece of the portfolio. It’s not clear if CalPERS will try and sell the rest of it. Read it here on Buyouts.

 

Healthcare: Morgan Stanley Capital Partners invested in SpendMend, which provides tech-enabled services to optimize the cost cycle for the healthcare industry. The firm made the investment as it closed its seventh fund earlier this month on $2 billion, writes Aaron Weitzman on PE Hub today.

 

MSCP has spent a lot of time on cost cycle management for providers who are “getting squeezed” as healthcare costs rise, said Steve Rodgers, partner with Morgan Stanley Capital. “There is pressure on revenue, and costs are going up at the same time; reimbursement is shifting to value-based methodologies that put hospitals at risk, and they often do not have good information on what it costs to perform procedures.”

 

Overpayments and contract compliance errors are problems hospitals face, in part because conflicting data exists in multiple places.

 

“We have looked at a series of companies over the last four years, which provide various tech-enabled offerings that help hospitals address these huge problems, which have only become more acute since the covid crisis emerged,” he said. Read it here on PE Hub.

 

That’s it for me! Have a great rest of your Wednesday. Hit me up with tips n’ gossip, feedback or book recommendations at [email protected] or find me on LinkedIn.

 

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Lios Partners, recently launched by Jonathan Belair, a one-time OMERS Private Equity executive, is in the market with a first-time buyout offering, sources told Buyouts.

 

UK private equity activity by high-net-worth individuals jumped to the greatest amount in a decade last year, according to private wealth law firm Boodle Hatfield. (Private Equity International)

 

French manager InfraVia Capital Partners has sailed past its €3 billion target to close its fifth European fund on its €5 billion hard-cap. (Infrastructure Investor)