Main Street Capital has sold the majority of its equity interest in Laurus to a private equity investment firm, which has previously made numerous growth investments within the healthcare sector.
Main Street realised a gain of approximately USD9.9m on the deal. As a result of this disposal, Main Street has now realised a 3.4x return on its total debt and equity investments in Laurus, a developer and manager of outpatient healthcare facilities.
Main Street made its initial investment in Laurus during 2004, which consisted of a first lien, secured debt investment with equity warrant participation. Subsequent to the initial investment in Laurus, Main Street made several follow on debt investments to support Laurus in various acquisition and internal growth initiatives. Main Street’s cumulative secured debt investment in Laurus was fully refinanced during the second quarter of 2012.
While Main Street sold the majority of its equity interest in Laurus, the firm also retained a portion of its equity investment through a new entity owned by the Laurus management team and the private equity investment firm. Based upon the valuation utilised to complete the recent private equity investment, Main Street’s retained equity ownership interest in Laurus has a fair value of USD2.5m which reflects an additional unrealised gain of approximately USD2.5m.
