Sunday, August 26, 2018

Carlyle to PEU Primary Care

The Carlyle Group announced:

Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced that it is making a significant minority investment of up to $350 million into 1Life Healthcare, the technology and management company behind One Medical, to support the company’s growth. One Medical is the largest independently held primary care practice in the U.S. The company is working to transform health care by making high-quality primary care personal, accessible and affordable.
OneMedical's CEO told CNBC his company could save the U.S. healthcare system 10%.   His statement is likely sales talk, puffery.  Private equity ownership can add significant capital, management fees and special dividend burdens.

The Carlyle Group chose to omit ManorCare and LifeCare Holdings, both bankrupted by Carlyle, from its healthcare track record in its press release:

Carlyle’s significant experience investing in the healthcare space includes MedRisk, Albany Molecular Research, PPD, WellDyneRx, Ortho Clinical Diagnostics, Rede D'Or São Luiz, Healthscope, Qualicorp, MultiPlan, and most recently, Millicent Pharma.
Carlyle announced the formation of Millicent Pharma in May 2018 with its acquistion of Femring from Allergan. states:

Femring® (estradiol acetate vaginal ring) is an off-white, soft, flexible ring with a central core containing estradiol acetate. described its use:

Femring (estradiol) is a member of the estrogens drug class and is commonly used for Atrophic Urethritis, Atrophic Vaginitis and Postmenopausal Symptoms.
Femring's price history can be seen below:

The drug price rose 145% from 2012 until today.  It's not clear how much of the increase came as a result of Carlyle Group ownership.

Hospital giant HCA's ownership by private equity underwriters (PEU) added $15 billion in costs

PPACA's founders projected healthcare costs would rise less than 1% per year between 2010-2019.  Many of those people now work for private equity underwriters.

The greed and leverage boys will not decrease healthcare costs, whether they be hospitals, home health agencies, hospices or physician practices.

One Medical, offers concierge-style primary care, charging patients an annual fee of $149 to $199.
PEUs will distort the system to feed their insatiable need for grand returns, lying all along the way.  When challenged puffery has been their core defense     

Update 1-8-20:  One Medical is in line for an IPO as 1Life Healthcare Inc.

Monday, August 13, 2018

Carlyle CEO Owns Chunk of New Professional Fighters League

The Washingtonian reported:

Love the Caps but wish hockey were even more violent? A group of DC businessmen has just the thing for you: a new national mixed-martial-arts fighting league. Dubbed the Professional Fighters League, it debuted in June.

Davis came up with the idea for the MMA league after he saw that the hugely popular Ultimate Fighting Championship sold for $4 billion last year.  Davis approached a group of business leaders—including Wizards and Capitals owner Ted Leonsis, financier Russ Ramsey, and Carlyle Group co-CEO Glenn Youngkin—with the intent of building their own operation to capture some of the sport’s 300 million fans.
Carlyle has streetwear brand Supreme to dress its new league of street fighters.  It may get to cross sell Carlyle investments to other PFL investors.  

Update 11-25-18:   Netflix comedy show takes on Supreme and The Carlyle Group.