GI Alliance Finalizes Physician-led Buyout and New Partnership with Apollo

By: GI Alliance

9/15/2022

Apollo Hybrid Value Strategy is new strategic capital partner

Dallas, TX – September 15, 2022 – GI Alliance, the nation’s largest GI physician practice management company, announced that it has completed its physician-led buyout facilitated by a $785 million non-control investment from Apollo Hybrid Value funds (“Apollo”). Apollo will serve as a long-term strategic partner to GI Alliance, helping to further strengthen its existing practices and future growth. GI Alliance is committed to exceptional gastroenterology care through the creation of a network of top-tier providers and team members. Since 2018, GI Alliance has grown to include 14 states with nearly 700 physicians and over 800 advanced practice providers. "Our relationship with Waud Capital Partners (“WCP”) has helped us become the national leader in gastroenterology and we are excited to pursue our next chapter with Apollo," said James Weber, M.D., CEO of GI Alliance. "Apollo closely aligns with GI Alliance’s values. This strategic partnership creates true physician ownership, physician-led decision-making, and a continued commitment to thoughtful growth.”

GI Alliance’s patient-focused model provides significant clinical autonomy. This model allows physicians and team members to practice medicine locally with the support of best-in-class management resources and leadership.

"Our physicians feel strongly that the structure of GI Alliance is by far the best model for the future of independent private practice medicine,” said Paul Berggreen, M.D., Chief Strategy Officer at GI Alliance. “The patient first, physician-owned, and physician-led model of our group is setting the standard for what can be accomplished when like-minded physicians come together on a national scale."

“As the first large-scale practice to have joined GI Alliance in 2019, we look forward to building on the strong foundation of success achieved over the last few years,” said Mitch Bernsen, M.D., GI Alliance of Illinois. “Our physician-led model sets us apart from other organizations and provides the autonomy to focus on consistent, efficient, safe, high-quality, patient-centered medical care.”

David Neighbours, Partner at WCP, commented, “We are proud to have partnered with Dr. Weber over the last four years to help build one of the leading physician practice management organizations in the U.S. Since the time of our initial investment, GIA has increased its physician count by nearly 5 times, while expanding its states of service from 2 to 14. This growth was achieved through both organic initiatives and highly targeted, strategic acquisitions. We wish GIA continued success with its new partner, Apollo.”

Jason Scheir, Apollo Partner and Head of US Hybrid Value, said, “We are excited to support Dr. Weber and the GI Alliance team in its next phase as a physician-controlled practice that can benefit from Apollo’s strategic and capital support for continued growth.”
Latham & Watkins LLP and Houlihan Lokey acted as legal counsel and financial advisor, respectively, to Apollo. Jefferies acted as the lead financial advisor to GI Alliance and its shareholders. Greenhill & Co. acted as lead financial advisor to management and physician owners of GI Alliance. Kirkland & Ellis LLP and Katten Muchin Rosenman LLP served as legal advisors to WCP and GI Alliance, respectively. Blackstone & Ally led the lender group providing committed debt financing for the transaction.

About GI Alliance
GI Alliance is a physician-led and majority physician-owned GI practice management company providing services to nearly 700 independent gastroenterologists operating in Texas, Arkansas, Arizona, Colorado, Florida, Illinois, Indiana, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Utah, and Washington. GIA-managed practices focus on providing the highest-quality care to their patients. In addition to providing operational support for practices, GIA is working to unite gastroenterologists nationwide by aligning interests and improving patient care. To learn more, please visit www.gialliance.com.

About Apollo
Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients with excess returns at every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of June 30, 2022, Apollo had approximately $515 billion of assets under management. To learn more, please visit www.apollo.com.

About Waud Capital Partners
Waud Capital Partners is a growth-oriented private equity firm with total capital commitments of approximately $3.7 billion since its founding in 1993. WCP partners with exceptional management teams to build market-leading companies within two industries: healthcare services and software/technology. Since its founding, WCP has successfully completed more than 400 investments, including platform companies and follow-on opportunities. To learn more, please visit www.waudcapital.com.

GI Alliance Contact
Dee Dee Brooks
Head of Communications
(214) 998-3434
[email protected]

Apollo Contacts
Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
[email protected]

Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
[email protected]

Waud Capital Partners Contacts
Antonia Schwartz
312.676.8436
[email protected]

Gabriel Torres
312.676.8431
[email protected]

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