SAN FRANCISCO & RALEIGH, N.C.—TPG, a prominent global alternative asset management firm, has announced a significant strategic investment in Compass Surgical Partners, a leading independent, full-service ambulatory surgery center (ASC) development and management organization. The investment, spearheaded by TPG Growth, TPG’s middle market and growth equity platform, includes participation from existing investor Health Velocity Capital. This capital infusion positions TPG as a key strategic partner, bringing considerable expertise to the Compass Surgical Partners leadership team. The collaboration aims to accelerate growth and enhance capacity to meet the escalating demand for ASC joint ventures with health system partners.
Zach Ferguson, Partner at TPG, stated, “Having followed DJ and the Compass team’s progress for some time, we are enthusiastic about partnering with such a high-caliber organization. Compass demonstrates profound strategic and operational knowledge, guiding its provider partners through the complexities inherent in ASC development and management.” Ferguson added, “This investment aligns with our established investment strategy of collaborating with exceptional operators to develop premier ambulatory care networks through joint ventures with health systems and physician groups. We anticipate a productive partnership with the Compass team and their current investors in the years ahead.”
The healthcare landscape is witnessing a significant shift as health systems across the nation increasingly transition specific surgical procedures from hospital outpatient departments to independent ASC facilities. This migration is driven by the compelling advantages ASCs offer, including substantial cost savings for both patients and hospitals. Furthermore, patients often prefer the enhanced consumer experience and convenience associated with ASCs. Physicians are also increasingly favoring ASCs due to their customized operating suites and specialized operating room teams.
DJ Hill, Chief Executive Officer of Compass Surgical Partners, commented, “We are delighted to welcome TPG Growth, whose extensive experience in healthcare services and strategic resources will be invaluable to Compass. TPG’s investment will act as a robust catalyst for growth, strengthening infrastructure support for our partners.” Hill further noted, “We also appreciate Health Velocity Capital’s ongoing commitment to our mission and confidence in our leadership. This is an exciting phase for Compass and the ASC sector, and we are ideally positioned to deliver greater value to our joint venture centers, physician partners, and patients.”
The terms of the transaction remain undisclosed. TPG received legal counsel from Latham & Watkins, with Crowe LLP providing advisory services on accounting, tax, and IT matters. McDermott Will & Emery served as legal counsel to Compass.
About TPG
TPG, listed on Nasdaq as TPG, is a leading global alternative asset management firm established in San Francisco in 1992. With $212 billion in assets under management as of September 30, 2023, the firm operates with investment and operational teams worldwide. TPG’s investment strategies are broad and diversified, encompassing private equity, impact investing, credit, real estate, and market solutions. The firm’s unique approach is rooted in collaboration, innovation, and inclusion. TPG teams leverage deep product and sector expertise combined with extensive capabilities to generate differentiated insights and value for fund investors, portfolio companies, management teams, and communities. For more details, please visit www.tpg.com.
About Compass Surgical Partners
Compass Surgical Partners is a recognized leader as an independent, full-service ambulatory surgery center (ASC) development and management partner. The company manages a national portfolio of joint ventures with health systems and physicians. Its leadership team brings over three decades of experience, having developed more than 250 ASCs, establishing Compass as a preferred partner for high-performing ASCs. Known for its proven success and adaptable operating model, Compass Surgical Partners is dedicated to building strong partnerships that enhance the experiences of both patients and providers. More information is available at www.compass-sp.com.
About Health Velocity Capital
Health Velocity Capital is dedicated to investing exclusively in innovative healthcare software and services companies. The firm’s partners bring a collective experience of over 90 years as investors, entrepreneurs, and executives. They have a strong track record of financing and developing innovative companies that have not only created new healthcare markets but have also become market leaders. Their successful portfolio includes companies like Teladoc, Livongo Health, Change Healthcare, and many others. Health Velocity Capital’s investor base includes institutional investors and numerous prominent healthcare organizations and executives representing entities that provide health insurance to over 175 million Americans and operate more than 600 hospitals. For further information, please visit www.healthvelocitycapital.com.
[1] Data as of September 30, 2023, includes AUM attributable to TPG Angelo Gordon on a pro forma basis.
