Investment Group Pays $130 Million For LTCG

April 12, 2004 at 08:00 PM

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NU Online News Service, April 12, 2004, 6:15 p.m. EDT – Advent International Corp. and Conning Capital Partners are leading an investment group that is paying $130 million for Long Term Care Group Inc., El Segundo, Calif.[@@]

Advent, Boston, is investing $46 million in the deal, and Conning Capital, the venture capital unit of Conning Research & Consulting Inc., Hartford, is investing $23 million.

LTCG managers are kicking in another $6 million, Advent reports.

A unit of Merrill Lynch & Company Inc., New York, rounded up the senior debt financing for the deal, and Northwestern Mutual Life Insurance Company, Milwaukee, handled the subordinated debt.

LTCG is a privately held company that sells underwriting support services, care management services and other support services to long term care insurers. Ted White, an executive with more than 30 years of experience in health care administration, co-founded the company in 1996 and continues to serve as its president.

LTCG administers LTC policies that cover about 600,000 insureds. In February, it bought a block of third-party administrator contracts from ERC Long Term Care Services, a division of the Employers Reinsurance Corp. unit at General Electric Company, Fairfield, Conn.

In addition to its main office in El Segundo, LTCG has major operations in Eden Prairie, Minn.; Hudson, Wis.; Maitland, Fla.; and Natick, Mass.

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