Chartis (a leading healthcare advisory firm) announced that it has entered into a definitive agreement to receive a majority investment from funds managed by Blackstone. This strategic investment will support the firm’s growth as a leading advisor to providers, payers, technology innovators, retail companies, and investors who are making positive and transformative changes within US healthcare. This investment also includes continued equity participation from Audax Private Equity.
Blackstone is investing in Chartis through its core private equity strategy – which partners with market-leading businesses for longer periods than traditional private equity. And the investment will enable Chartis to further extend its capabilities across its strategic, digital and technology, clinical, and financial transformation offerings for healthcare clients. This funding is also expected to help further expand the full Chartis family of companies, including HealthScape Advisors, Jarrard, and Greeley.
Since Audax’s 2019 investment, Chartis has acquired and integrated seven add-on acquisitions, expanding the firm into complementary capabilities and new end markets. During this period, Chartis has also established several new centers for research and advancement, which contribute to better understanding and addressing healthcare where it is most vulnerable.
The deal is expected to close by the end of the year, subject to customary closing conditions and regulatory approvals. Terms of the transaction were not disclosed.
Lincoln International and BofA Securities served as financial advisors, and Ropes and Gray and Winston & Strawn served as legal counsel to Chartis and Audax Private Equity. Goldman Sachs served as financial advisor and Kirkland & Ellis served as legal counsel to Blackstone.
KEY QUOTES:
“Chartis was founded with the mission to help clients fundamentally improve healthcare delivery across the United States. Over the past 23 years, since our inception, great strides have been made. Looking to the future, we are excited to do even more. Blackstone shares our commitment to supporting industry leaders across the healthcare landscape as they strive to make care in the US more accessible, more affordable, more reliable, more equitable, and more human for patients and caregivers.”
- Co-founders Ken Graboys, CEO of Chartis, and Ethan Arnold, Managing Partner
“Blackstone’s expertise, scale, and resources align well with Chartis’ transformative vision for the future of the industry. This investment will provide us with the resources to grow our organic offerings, expand our capabilities, and further enhance our infrastructure. We are excited about the future and confident that this partnership will help us enable our clients to reshape healthcare for the better.”
- Greg Maddrey, President of Chartis
“The increasing complexity of the healthcare landscape has only amplified the need for trusted partners like Chartis. Ken, Ethan, Greg, and their team have done a tremendous job building a leading advisory business for their clients by serving as a strategic thought partner that leverages next-generation technology and care models. The company’s powerful mission-driven culture is a testament to its impressive leadership and people. We look forward to bringing the resources of Blackstone’s global platform to bear to support Chartis’ continued growth.”
- Ram Jagannath, a Senior Managing Director at Blackstone
“Our investment in Chartis is emblematic of our Buy & Build strategy, backing a first-class management team, understanding and collaborating around their vision for growth, and bringing capital and resources to bear to help the company execute on its purpose-driven strategy. We sincerely thank Ken, Ethan, Greg, and the rest of the Chartis team for their continued partnership.”
- Audax Private Equity Partner and Co-President Young Lee
