Houlihan Lokey Advises Avista Capital Holdings

Houlihan Lokey is pleased to announce that Avista Capital Holdings, LP (Avista) has sold a noncontrolling, minority GP participation to Capital Constellation (Constellation), which is advised by Wafra Inc. In addition to the GP participation, Constellation is making significant capital commitments to certain investment vehicles managed by Avista. The transaction was announced on January 12, 2020.

Avista was founded in 2005 as a spin-out from DLJ Merchant Banking by Thompson Dean and David Burgstahler. The company is a leading healthcare-focused buyout firm that primarily invests in stable middle-market companies in North America and Europe across five discrete healthcare subsectors. Avista has raised nearly $7 billion since its inception across five flagship funds. Its operationally focused healthcare value-creation strategy has generated strong performance since inception. Avista currently employs a team of 25 individuals, including 13 investment professionals and six operating executives, and is headquartered in New York.

Wafra is a global alternative investment platform that was founded in 1985. It is headquartered in New York and, along with its affiliated and associated firms, has additional offices in Austin, London, Kuwait, and Bermuda. Wafra and its affiliates manage assets and commitments of approximately $28 billion. Constellation unites the expertise and capital base of premier institutional investors around the world with next-generation alternative asset managers. By providing strategic and financial support alongside a substantial, stable capital base, Constellation seeks to catalyze growing investment management platforms and generate consistent, long-term returns for its members. Constellation has partnered with seven managers since its inception across North America and Europe. Funds advised by Wafra currently have 21 minority partnerships with both growth-stage and mature alternative investment management firms.

The transaction entails Constellation acquiring a minority equity interest in Avista and making significant direct capital commitments to certain investment vehicles managed by Avista. In addition, Avista will use the proceeds from the transaction to directly or indirectly increase GP commitments in its own funds, confirming the team’s strong dedication to align itself with its limited partners and drive the long-term growth of the business. There will be no changes in the strategy, management, investment process, or day-to-day operations of Avista or any Avista-managed products resulting from Constellation’s investment.

As a result of the transaction, a minority of Avista is now indirectly owned by the asset owners who back the Constellation platform. This deal also solidifies Avista’s partnership with Wafra, a provider of flexible and accretive capital solutions focused on long-term partnerships with best-in-class management teams.

Houlihan Lokey served as the exclusive financial advisor to Avista and assisted in structuring and negotiating the transaction. This deal highlights Houlihan Lokey’s expanding capability as a leading advisor in GP transactions.