Waud Capital Partners Closes Continuation Fund for Ivy Rehab Physical Therapy

Continuation fund provides incremental capital to support growth and future M&A

Chicago, IL; White Plains, NY – October 4, 2022 – Waud Capital Partners (“WCP”), a growth-oriented private equity firm, today announced the closing of a single-asset continuation fund in connection with the recapitalization of its portfolio company Ivy Rehab Physical Therapy (“Ivy” or the “Company”). Ivy is a leading provider of outpatient therapy services across the Northeast, Mid-Atlantic, Southeast, and Midwest regions of the United States through a rapidly growing network of more than 450 clinics that includes approximately 100 dedicated pediatric therapy clinics. The continuation fund, sponsored by WCP, has been supported by new and returning limited partners and is anchored by funds managed by Morgan Stanley Private Equity Secondaries Team, an investment team within Morgan Stanley Investment Management. WCP, its existing limited partners, and Ivy management reinvested significant proceeds into the continuation fund as part of the transaction.

Ivy has grown its clinic base and revenue more than tenfold since WCP’s initial investment in 2016. The Company has pursued growth organically by opening new locations and expanding service lines and inorganically through add-on acquisitions to build density in existing markets and to expand into new geographies. Ivy is led by CEO Michael Rucker, and he and the experienced executive leadership team recruited by WCP will remain with the company over its new investment horizon in an effort to pursue additional growth and industry leadership. Michael Rucker, CEO of Ivy, stated, “Since initially partnering with WCP, Ivy advanced from being the 25th to the 5th largest outpatient therapy services provider in the United States. WCP has been a supportive partner, making significant contributions to Ivy through strategic planning and proactive resourcing. I couldn’t be more pleased to continue my relationship with WCP over the years ahead as we work to be an industry leader in growth, quality of patient care, and teammate satisfaction.”

Reeve B. Waud, Managing Partner and Founder of WCP, commented, “We are thrilled by the tremendous support from our new and existing limited partners for this continuation fund, which provides Ivy additional capital and time to support meaningful value creation as Ivy continues to execute on its demonstrated, multi-pronged growth strategy.”

David O. Neighbours, Partner of WCP and deal lead for the Ivy investment, commented, “We look forward to extending our longstanding partnership with Michael Rucker and the rest of the Ivy executive leadership team as we work to build the preeminent industry innovator in the therapy services market. We believe Ivy is well-positioned to build upon the success achieved to date.”

Harris Williams served as financial advisor, Aviditi Advisors served as continuation fund advisor, and Kirkland & Ellis LLP served as legal counsel for WCP and Ivy.