Milestone anniversaries provide opportunities for reflection. What worked? What didn’t? How has the industry changed? Where are the opportunities ahead?
In November 2023, Waud Capital Partners marked its 30th anniversary. The firm that began as a one-person operation in Lake Forest, Illinois, had grown to approximately 70 professionals managing $4.6 billion in assets.
1993: Humble Beginnings in Lake Forest
Reeve Waud founded Waud Capital Partners in 1993 at age 29. The firm began as a self-funded operation—no institutional investors, no team, no office infrastructure. Just one investor with experience from Salomon Brothers and GTCR, willing to back his own judgment.
“I am very humbled to be celebrating this major milestone,” Reeve Waud reflected in November 2023. “The beginning days were far from glamorous, and the future was entirely uncertain, but I had confidence in the opportunity to partner with exceptional executives and build exciting and profitable companies.”
That confidence proved warranted, though the path took time. The firm operated for five years before raising its first institutional fund in 1998. Those initial years established a track record demonstrating Reeve Waud’s ability to identify opportunities, complete transactions, and generate returns.
450+ Investments Across Three Decades
Since 1993, Waud Capital Partners has completed more than 460 investments, including both platform companies and add-on acquisitions. This volume reflects the firm’s buy-and-build strategy, which averages more than 10 add-on acquisitions per healthcare platform investment.
The investment portfolio spans healthcare services and software/technology. Healthcare investments have included Acadia Healthcare (behavioral health), GI Alliance (gastroenterology practices), Ivy Rehab (physical therapy), Center for Vein Restoration (vein treatment clinics), and Unifeye Vision Partners (eye care practices).
Software investments have included iOFFICE (workplace management software), IPS (healthcare IT), PracticeTek (practice management software), and Science Exchange (research marketplace). These companies serve various industries, with several focusing on healthcare customers.
Reeve Waud has led or overseen more than 500 company acquisitions throughout his career. This acquisition experience distinguishes Waud Capital’s approach from firms that make occasional bolt-on purchases. The firm pursues systematic consolidation strategies requiring expertise in integration, operational improvement, and portfolio management.
Looking Forward: Recent Exits and New Platforms
The 30th anniversary came amid significant portfolio activity. Matt Clary, a long-time Partner at Waud Capital, noted: “I don’t think I’ve ever been as excited for the future as I am now. The last few years have brought some very meaningful exits for us, the last four of which were iOffice, Ivy Rehab, GI Alliance, and, most recently, IPS.”
These exits demonstrated the firm’s ability to build businesses and realize returns across different subsectors. iOFFICE, a software company, was sold to Thoma Bravo in 2021 after Waud Capital quintupled its revenues in 2.5 years. GI Alliance was recapitalized in 2022 at a $2.2 billion valuation, with Apollo Global Management joining as a new investor.
Clary continued: “In addition, we have closed a handful of new platforms, the two most recent being Fusion Healthcare and PharmAlliance, which we believe have the potential for meaningful growth. It’s an exciting time for Waud Capital.”
New platforms represent future growth opportunities. Waud Capital typically holds investments for several years while executing expansion plans, suggesting these recent acquisitions may generate returns in the years ahead.
Reeve Waud concluded his anniversary statement by acknowledging stakeholders: “On behalf of myself and the other partners of Waud Capital, I want to thank our investors, our CEO partners, and all members of the Waud Capital family, from the firm to the portfolio companies. Your continued loyalty, hard work, and dedication have been instrumental to our long-term success.”
The firm relocated from Lake Forest to downtown Chicago in 2009. This move reflected organizational growth and facilitated recruitment of investment professionals. By 2023, the team had grown to approximately 70 people across investment, operations, and support functions.
Waud Capital’s fund sizes also increased substantially over three decades. Fund III, raised in 2011, totaled $487 million. Fund IV, closed in 2016, reached $1.05 billion—more than double its predecessor. This fundraising success reflected investor confidence in the firm’s strategy and track record.