• January 20, 2014
  • North America

H.I.G. Capital Completes the Sale of MagnaCare

MIAMI – January 20, 2014 – H.I.G. Capital, LLC (“H.I.G.”), a leading global private equity investment firm with more than $13 billion of equity capital under management, announced today that it has completed the sale of its portfolio company MagnaCare Holdings, Inc. (“MagnaCare” or the “Company”) to an investor group led by an affiliate of Goldman Sachs, Pamplona Capital Management, and the MagnaCare Management Team.

Based in New York, NY, MagnaCare is a leading health plan services company offering a broad range of healthcare administrative services and access to a proprietary provider network of approximately 95,000 individually contracted physicians, hospitals and other healthcare providers. MagnaCare currently provides services to approximately 850,000 members and manages approximately $1.5 billion of annual health care expenses.

After acquiring MagnaCare in 2010, H.I.G. partnered with management and invested significant resources in the Company to augment its infrastructure and further expand its service offering into the workers compensation and commercial markets. Through these investments, MagnaCare has grown to be one of the leading full service healthplan providers in the NY/NJ markets, generating significant revenue and EBITDA growth during H.I.G.’s ownership. The transaction adds to H.I.G.’s longstanding track record of successful investments in the healthcare services industry.

“H.I.G. has been an outstanding and committed partner to the MagnaCare management team. Together, we established a clear strategic vision and made significant investments to build out and strengthen our provider network, enhance our corporate infrastructure, and introduce a wide range of new products and services to develop a comprehensive solution for the self-insured market,” said Joseph Berardo Jr., CEO and President of MagnaCare.

“We have been very fortunate to be able to partner with Joe Berardo and the executive team at MagnaCare. They have successfully executed on a number of strategic initiatives and significantly grown the business over the course of our ownership,” commented Tenno Tsai, Managing Director of H.I.G. “MagnaCare has been a successful investment for management, H.I.G. and our investors. We look forward to watching the Company’s continued success in the future.”

About MagnaCare
MagnaCare is a leading health plan services company focused on the New York and New Jersey region. For over 20 years MagnaCare has provided solutions to Taft Hartley funds, self-insured companies, commercial insurers such as health, workers compensation, or no fault, TPA’s, and government entities. Whether it’s access to a broad provider network, predictive modeling analyses, member outreach programs or an integrated solution that includes full plan management services including claims adjudication, eligibility management, client/customer service, and a full suite of products, MagnaCare understands its customer needs and develops cost effective, comprehensive solutions. For more information, visit www.magnacare.com.

About H.I.G. Capital
H.I.G. is a leading global private equity investment firm with more than $13 billion of equity capital under management. Based in Miami, and with offices in Atlanta, Boston, Chicago, Dallas, New York and San Francisco in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris and Rio de Janeiro, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed manufacturing or service businesses. Since its founding in 1993, H.I.G. has invested in and managed more than 200 companies worldwide. The firm’s current portfolio includes more than 80 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.hig.com.


Rick Rosen
Executive Managing Director

Tenno Tsai
Managing Director

H.I.G. Capital
1450 Brickell Avenue
31st Floor
Miami, FL 33131
P 305.379.2322
F 305.379.2013