BUSINESS NEWS

TPG Invests in Compass Surgical Partners

FEBRUARY 2, 2024

TPG, a global alternative asset management firm, announced last week a strategic investment in Compass Surgical Partners, an independent full-service ASC development and management partner, according to a release. TPG Growth, the firm’s middle market and growth equity platform, funded the investment, participating alongside existing investor Health Velocity Capital. As a strategic capital partner, TPG will bring valuable expertise to the Compass Surgical Partners leadership team, accelerating growth and scaling capacity in response to increased demand in ASC joint ventures from health system partners.

“We are thrilled to partner with the team at TPG Growth, which brings a wealth of healthcare services experience and strategic resources to Compass," said DJ Hill, chief executive officer of Compass Surgical Partners, in the release. "TPG’s investment will serve as a powerful growth catalyst, enabling enhanced infrastructure support for our partners. We are also grateful for Health Velocity Capital’s continued support of our mission and trust in our leadership team. This is an exciting time for Compass and the ASC industry and we are well positioned to provide enhanced value to our joint venture centers, physician partners and patients.”

Health systems nationwide are increasingly migrating certain surgical procedures from hospital outpatient departments to standalone ASC facilities, according to the release. In addition to significant cost savings for both patients and hospitals, patients often favor the consumer experience and convenience of an ASC. Physicians overwhelmingly prefer to operate in ASCs, which offer highly customized operating suites and specialized operating room teams.

“We have known DJ and the Compass team for a number of years and are excited to partner with such a high-caliber team and company," said Zach Ferguson, partner at TPG, in the release. "Compass offers deep strategic and operational expertise to guide its provider partners through the complexities of ASC development and management. This investment is a continuation of our longstanding investment thesis around partnering with great operators to build leading ambulatory care networks through joint ventures with health systems and physician groups. We look forward to collaborating with the entire Compass team and the company’s existing investors in the coming years.”

Terms of the transaction were not disclosed. Latham & Watkins served as legal counsel to TPG and Crowe LLP advised on accounting, tax and IT. McDermott Will & Emery served as legal counsel to Compass.