Chartis Announces Majority Investment from Blackstone to Advance Mission to Transform Healthcare | Healthcare IT Today

Chartis, a leading healthcare consulting firm, today announced that it has signed a definitive agreement to receive a majority investment from funds managed by Blackstone. The strategic investment supports the company’s continued growth as a leading advisor to providers, payers, technology innovators, retailers and investors who are driving positive, transformative change in healthcare in the U.S. The investment includes continuing equity participation from Audax Private Equity (Audax).

Blackstone is investing in Chartis through its core private equity strategy, which partners with high quality, market-leading companies for longer periods than traditional private equity. The investment will enable Chartis to further expand its capabilities across strategy, digital, technology, clinical and financial transformation services for healthcare clients. The funds are also expected to support further expansion across the Chartis group, which currently includes HealthScape Advisors, Jarrard and Greeley.

“Chartis was founded with a mission to help clients radically improve health care delivery across the United States. We have made great progress in the 23 years since our founding, and as we look to the future, we are excited to make even more progress. Blackstone shares our commitment to supporting health care leaders who work to make health care in America more accessible, more affordable, more reliable, more equitable and more human for patients and caregivers,” said Chartis co-founder and CEO Ken Grabois and managing partner Ethan Arnold.

“Blackstone’s expertise, scale and resources are well aligned with Chartis’ transformational vision for the future of the industry,” said Greg Madley, president of Chartis. “This investment provides us the resources to expand our organic offerings, expand our capabilities and further strengthen our infrastructure. We are excited about the future and confident this partnership will help our clients change health care for the better.”

“As the healthcare industry grows in complexity, the need for a trusted partner like Chartis is even greater,” said Ram Jagannath, senior managing director at Blackstone. “Ken, Ethan, Greg and their team have done an outstanding job building a leading advisory business for their clients as strategic thought partners leveraging next-generation technologies and care models. The firm’s strong mission-driven culture is a testament to its incredible leadership and talent. We look forward to leveraging the resources of Blackstone’s global platform to support Chartis’ continued growth.”

Since Audax’s investment in 2019, Chartis has made and integrated seven additional acquisitions, expanding the company into complementary capabilities and new end markets. During this period, Chartis has also established several new research and development centers to contribute to better understanding and addressing healthcare’s most vulnerable populations.

“Our investment in Chartis represents our buy-and-build strategy, supporting a top-tier management team, understanding and collaborating with the company’s vision for growth, and deploying capital and resources to help the company execute on its purpose-driven strategy,” said Young Lee, Partner and Co-President of Audax Private Equity. “We sincerely thank Ken, Ethan, Greg and the entire Chartis team for their continued collaboration.”

The transaction is expected to close by the end of 2024, subject to customary closing conditions and regulatory approvals. Terms of the transaction were not disclosed.

Lincoln International and Banc of America Securities acted as financial advisors, and Ropes & Gray LLP and Winston & Strawn LLP acted as legal advisors to Chartis and Audax Private Equity. Goldman Sachs LLC acted as financial advisor to Blackstone, and Kirkland & Ellis LLP acted as legal advisor.

About the chart

The challenges facing U.S. healthcare are longstanding and well known to all. We at Chartis believe in better. We work with more than 900 clients annually to develop and execute transformational strategies, operating models and organizational operations to make U.S. healthcare more affordable, accessible, safe and humane. With more than 1,000 professionals, we help providers, payers, technology innovators, retailers and investors create and adopt solutions that make tangible and substantial improvements to healthcare. Our family of brands – Chartis, Jarrard, Greeley and HealthScape Advisors – are 100% focused on healthcare, each with a longstanding commitment to helping transform healthcare in ways big and small. Learn more at chartis.com.

About Blackstone

Blackstone is the world’s largest alternative asset manager. We seek to provide attractive returns to institutional and individual investors by strengthening the companies in which we invest. Our more than $1 trillion in assets under management includes global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds. For more information, visit blackstone.com. Follow us on LinkedIn, X (Twitter) and Instagram.

About Audax Private Equity

Headquartered in Boston with offices in San Francisco, New York and London, Audax Private Equity is a capital partner to mid-market and smaller companies seeking to drive transformational growth through private equity and strategic capital strategies. With approximately $19 billion in assets under management, over 270 employees and over 100 investment professionals, the firm has invested in over 170 platforms and over 1,300 add-on acquisitions since its founding in 1999. Through a disciplined Buy & Build approach across six core industry sectors, Audax helps portfolio companies execute organic and inorganic growth initiatives that drive revenue expansion, optimize operations and significantly increase equity value. For more information, visit audaxprivateequity.com or follow us on LinkedIn.

Originally announced: August 14, 2024