Healthcare Services Deals: Capital Partner LPA Done Right
Independent sponsor counsel for healthcare services, focused on Capital Partner LPA and the deal mechanics that protect sponsor economics and LP alignment.
The economics on a healthcare services platform deal usually hinge on a handful of structural decisions. Capital Partner LPA is one of them.
The typical healthcare services platform sits at $15M to $120M EV with EBITDA in the $3M to $20M range. The thesis runs on roll-up of physician practices and ancillary service lines. Most off-market healthcare deals come through advisors who have seen the structure before. Have one in your call list.
How Capital Partner LPA actually gets structured.
Anchor on a 20 percent carry above an 8 percent preferred return, 50/50 catch-up.
Build a one-vote, one-LP majority for any waterfall change.
Define key-person and removal-for-cause provisions narrowly.
Make distributions quarterly, with an annual true-up against the waterfall.
In healthcare services, layer in PC/MSO structuring as part of the Capital Partner LPA workstream.
Reusing a fund LPA template for a deal-by-deal structure. The economics, governance, and waterfall need to be different.
"The LPA outlives the deal. Draft it like the next ten deals will be governed by the same paper."Jason Powell · Capital Partner LPA
The deal is one thing. The capital that opens up after close is another.
The capital that opens up post-close, from refinancing to growth equity to strategic exit, runs through a small set of Wall Street relationships. That network is built in.
Related deal pages.
LOI Negotiation for Healthcare Services
The 4 to 8 page agreement that frames the deal economics, exclusivity, and diligence period.
Independent Sponsor Economics for Healthcare Services
The package of deal-by-deal carry, management fees, and transaction fees that compensates the independent spo…
Management Fee Structuring for Healthcare Services
The annual fee paid by the deal entity to the independent sponsor for ongoing oversight, board service, and p…
Equity Rollover for Healthcare Services
The portion of seller proceeds reinvested into the post-close entity, aligning seller with buyer.
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Capital Partner LPA for Healthcare Services, on independent sponsor terms.
Independent sponsor counsel that already speaks fluent deal-by-deal economics, structures clean LPAs, and travels with capital markets relationships for what comes after close.