United Digestive recently partnered with private equity firm Kohlberg & Company, ending its partnership with Frazier Healthcare Partners, who created the platform in tandem with Atlanta Gastroenterology Associates in 2018.
United Digestive CEO Mark Gilreath and President Neal Patel, MD, spoke with Becker’s to discuss why the company decided to choose a new private equity partner and what is next for the management services organization.
Question: What made you decide to find a new private equity partner?
Mark Gilreath: Private equity firms generally hold those portfolio companies for about five to seven years. I think that’s average. When the company achieves the goals that were set out in the beginning then they typically will sell their position to the next sponsor. We achieved our goals ahead of plan. We’ve been really fortunate.