On January 3, 2018, Upstream Rehabilitation (“Upstream”), a company sponsored by lead investor Revelstoke Capital Management (“Revelstoke”), completed the acquisition of Drayer Physical Therapy (“Drayer”). As part of the transaction, Upstream completed a re-financing that allowed for a one-time distribution to investors.
Upstream is an operator of outpatient physical therapy clinics in the Southeastern United States. Since WP Global invested in Upstream in December 2015, the company has nearly tripled in size driven by above-market same-clinic growth, approximately 100 de novo clinic openings and 12 add-on acquisitions. According to Revelstoke, with the Drayer transaction, Upstream will be the fourth-largest outpatient physical therapy provider in the U.S. with over 550 clinics across 27 states.
We were attracted to the company because of the growth of the physical therapy industry driven by: 1.) aging U.S. demographics; 2.) cost savings to healthcare; and 3.) changing patient preferences. Upstream also represented a business model where growth could be achieved via overall industry growth; business development initiatives; de novo openings; and select add-on acquisitions.
About WP Global Partners
WP Global Partners is a private markets firm focused on investing in operating companies with enterprise values under $250 million via both direct and fund vehicles across both private equity and debt strategies. With decades of experience, the WP Global team has collectively invested $6 billion into over 100 companies and 400 small to mid-market funds.