TPG Growth, the middle market and growth equity platform of leading global alternative asset management firm TPG, has announced a significant strategic investment in Compass Surgical Partners. This investment will fuel Compass’s expansion and capacity building efforts within the ambulatory surgery center (ASC) market, alongside existing investor Health Velocity Capital.
TPG’s investment underscores the growing demand for ASC joint ventures from health systems seeking to optimize surgical care delivery. This strategic partnership will leverage TPG’s extensive experience in healthcare services to support Compass Surgical Partners’ leadership team in accelerating growth and responding to market needs. Zach Ferguson, Partner at TPG, highlighted Compass’s deep operational and strategic expertise in ASC development and management as key factors in the investment decision. This aligns with TPG’s established strategy of partnering with exceptional operators to develop leading ambulatory care networks through joint ventures with health systems and physician groups.
alt text: Compass Surgical Partners logo, showing a stylized compass with a central star.
The shift towards ASCs for certain surgical procedures reflects broader industry trends. Health systems are increasingly recognizing the cost-effectiveness and patient-centric benefits of standalone ASC facilities compared to traditional hospital outpatient departments. ASCs offer advantages such as cost savings, improved patient experience, enhanced convenience, and customized operating suites tailored to physician preferences.
DJ Hill, CEO of Compass Surgical Partners, emphasized the transformative potential of TPG Growth’s investment. He stated that TPG’s resources and healthcare expertise will significantly enhance infrastructure support for Compass’s partners and accelerate the company’s growth trajectory. Hill also acknowledged the continued support of Health Velocity Capital, reinforcing their confidence in Compass’s leadership and mission.
This investment marks a significant milestone for Compass Surgical Partners, positioning the company for continued success in the rapidly evolving ASC market. The partnership with TPG Growth provides a strong foundation for expanding its reach and further enhancing its value proposition to joint venture centers, physician partners, and patients. While transaction details remain undisclosed, Latham & Watkins served as legal counsel to TPG, with Crowe LLP advising on accounting, tax, and IT matters. McDermott Will & Emery acted as legal counsel to Compass Surgical Partners. This strategic alliance reinforces the growing importance of ASCs in the healthcare landscape and signals a promising future for Compass Surgical Partners. The collaboration between TPG Growth and Compass is expected to drive innovation and further elevate the quality and accessibility of surgical care.
