Scully's WCAS Finishes Riding Humana for Massive Profits

A WCAS press release stated:

BlackRock will acquire WCAS's current equity ownership, valued at approximately $2.8 billion, with modifications to terms reflecting the maturity of the business today compared to when the legacy joint ventures were formed.

WCAS website already shows it "realized" its former investment

Stage one of the joint venture started in 2020::

Stage two bloomed in 2022:

WCAS, with former Medicare/Medicaid Chief Tom Scully on board, did multiple deals with Humana over the years.  Humana CEO Bruce Broussard was once the CEO of U.S. Oncology, a WCAS affiliate.  

Broussard chose to involve WCAS and TPG in its buyout of Kindred Home Health, Hospice and Community Care giving the pair of private equity underwriters (PEU) a 60% majority stake.  Humana was the operator of these services, integrating Home Health into their clinical operations and rebranding hospice under its former Gentiva name.  

WCAS put up $2 billion and got $2.8 billion, an $800 million profit.  I'm sure they earned deal and management fees over the period.  None of this helped healthcare costs go down.

Semafor had a strange take on the deal, turning it into a BlackRock vs. Apollo cage match:

A little-noticed deal this week for senior-care clinics is the first shot fired in a Wall Street turf battle. BlackRock’s HPS credit arm is essentially lending $2.8 billion to Humana, marking Larry Fink’s entry into a space that Apollo has had to itself until now.

The deal is the purchase of equity.  Humana's press release notes "Humana expects a significant reduction in the liabilities on its balance sheet."  That doesn't happen with a $2.8 billion loan.

Humana chose to partner with a PEU for its senior focused primary care clinics.  That PEU has been replaced by BlackRock and its captive HPS.  It may be the usual complex LLC, holding company arrangement with layers of entities, but someone has the equity.   

My conclusion would be that BlackRock has officially joined the greed and leverage boys.  Larry Fink, now a PEU, has a unique stench to it.  Let's call it Fink Stink.

Politicians Red & Blue love PEU and their new TechGod brethren (who want AI to be your doctor).  Increasingly, more are one and for that many people suffer.