New York private equity firm Cortec Group, acquired a majority stake in Philadelphia-based Community Veterinary Partners, through its affiliate, Cortec Group Fund V, L.P., in partnership with CVP’s management. Terms of the transaction were not disclosed.
CVP manages and co-owns a network of veterinary hospitals located predominantly in the northeastern U.S. CVP was founded in 2009 with the goal of supporting veterinarians who provide great clinical medicine and benefit from general business tools to manage and grow their hospitals. To enhance their operations, CVP hospitals are provided access to various resources in the areas of marketing, leadership development, finance, and human resources. Local medical leaders retain all clinical decision-making authority. CVP’s mission is to provide operational support to its hospitals, enabling veterinarians to focus on practicing medicine and providing high quality pet and animal care.
“We believe CVP’s model of partnering with veterinarians and focus on the delivery of high quality medical services has proven to be a key differentiator in the market. CVP’s successful track record of attracting leading regional veterinarians to its network speaks for itself,” said Jeffrey Lipsitz, a Managing Partner at Cortec.
Cortec plans to use CVP as a consolidator in the veterinary services industry. “We are excited about the path forward. In partnership with Cortec, CVP will now have the resources needed to support management’s ambitious plans to expand the network’s footprint throughout the Eastern U.S.”, added Jeffrey Shannon, a Cortec Partner.
Daniel Eisenstadt, CVP’s co-founder and Chairman, who together with co-founder Michael Raphael will continue to drive the growth of CVP while retaining significant ownership, commented that, “Cortec is an ideal partner for CVP, given their investment experience in healthcare and multi-site businesses and strong track record of helping founder-owned businesses achieve their next level of growth.”
Raphael further stated that, “Cortec also shares CVP’s commitment to supporting veterinarians and maintaining the culture and standard of care of our growing group of practices.”
Fali Sidhva, CVP’s President and Chief Operating Officer, added, “We look forward to building on the growth our company has enjoyed. Our entire management team is enthusiastic about the capabilities that Cortec brings to CVP to continue that expansion trend while providing added support to our partner hospitals.”
CVP manages 17 veterinary hospitals located throughout the northeastern United States. The Company owns hospitals in Pennsylvania (12), New York (2), New Jersey (1), Maryland (1) and Connecticut (1). CVP hospitals have the benefit of accessing various business tools to manage their hospital, while keeping local control of clinical medicine.
CVP’s chairman Daniel Eisenstadt also serves as Managing Director of MDM Equity Partners (MDM). Prior to founding MDM and CVP, he served as managing director at CMS Companies, a private equity and real estate investment firm. At CMS, he led investments into companies that focused on education, health care services, and food and beverage, among others. Before joining CMS, He was the founding executive director and co-founder of the Auschwitz Jewish Center, a museum and visitor center located near the former concentration camp. Mr. Eisenstadt began his career as a corporate lawyer at Fulbright and Jaworski, L.L.P., where he focused on mergers and acquisitions. He has an MBA from Harvard Business School, a J.D. from the University of Virginia School of Law and a bachelor’s degree from Clark University. He was a Wallenberg Scholar at the Hebrew University of Jerusalem. Mr. Eisenstadt is a trustee of the Washington Institute for Near East Policy, where he serves on the Next Generation Council, a trustee of the Jewish Federation of Greater Philadelphia, and a member of the National Young Leadership Cabinet of Jewish Federations of North America. Daniel also serves on the Board of Directors of the Rabbinical School of the Jewish Theological Seminary, and Hillel of Greater Philadelphia.
Michael Raphael is Chairman of Hospitals at Community Veterinary Partners. Before helping found CVP, he was a director at CMS Companies where he led investments into companies that focused on health care services, manufacturing services, new media and others. Before joining CMS, Michael co-founded and was CEO of a financial services software company, vcmVertical. Before that, he spent seven years as newspaper journalist, working for the Philadelphia Inquirer, the Associated Press, the Newark Star-Ledger, and the Virginian Pilot. He has a bachelor of science degree from Northwestern University. He also has an MBA from The Fox School at Temple University. He is a member of the board of directors of the Philadelphia Animal Welfare Society, Philadelphia’s largest rescue organization and only no-kill shelter.
Founded in 1984, Cortec acquires high value-added, middle-market healthcare, specialty service, consumer, and distribution businesses from owners and management teams who want to work with Cortec to drive growth and improve business fundamentals. The CVP acquisition represents Cortec Fund V’s eighth and final platform investment. Cortec is now making new platform investments out of Cortec Fund VI, a $1.1 billion fund that closed in May 2015.