Blackstone Group's Vanguard Health Systems followed KKR's HCA to the New York Stock Exchange. Both companies own for-profit hospitals and captive insurance divisions. Blackstone bled Vanguard and KKR/Bain Capital drained HCA for debt-funded dividends, a common private equity underwriter (PEU) move.
Vanguard priced well below range at $18 vs. $21 to $23. It took major discounting to entice investors. Did dividend bleeding make up for Blackstone's 26% haircut?
Vangiard and HCA hospitals are not considered "tax exempt facilities" under health reform. Their PEU owners get preferred carried interest rates, at least until tax reform.
