Alaris Equity Partners has announced a $75 million bought deal offering of convertible debentures alongside a US$30 million investment in Renew Medical Group, enhancing its portfolio within the healthcare industry.

Information on the Target

Alaris Equity Partners (TSX:AD.UN), known as Alaris or the Trust, has recently completed a US$30 million investment into Renovo Medical Group, LLC, which operates as Renew Medical Group. Renew specializes in providing outsourced physician services to hospitals and surgical centers across the United States, focusing on delivering cost-efficient and enhanced patient care. Their areas of expertise include anesthesiology, radiology, pulmonology, family medicine, and critical care, positioning them as a vital resource for healthcare facilities nationwide.

The investment by Alaris comprises US$26.5 million of preferred equity and US$3.5 million of common equity. The preferred equity investment allows Alaris to benefit from an initial annualized distribution of US$3.71 million, equating to a pre-tax annualized yield of 14%, with adjustments based on Renew's annual revenue growth. This investment reaffirms Alaris’s commitment to backing profitable private businesses.

Industry Overview in the United States

The healthcare industry in the United States is a multi-trillion dollar sector, encompassing a broad range of services, including hospital and surgical care, mental health services, and outpatient care. As the demand for health