Stout announced today that its client, Center for Rheumatology Management Company, Inc. (“CFR”), has entered into a strategic partnership with VSS Capital Partners (“VSS”), a New-York-based private equity fund focused on the healthcare, business services, and education industries with $4 billion of aggregate committed capital.

Stout served as exclusive financial advisor to CFR in connection with this transaction.

Founded in 2008 and headquartered in Los Angeles, CA, CFR is a leading rheumatology practice that specializes in treating patients with complex inflammatory diseases, including Rheumatoid Arthritis, Lupus, Psoriatic Arthritis, Ulcerative Colitis, Crohn’s Disease, and Ankylosing Spondylitis. Services include infusion therapy, laboratory testing, imaging, ultrasound, patient evaluation, and long-term care management.

“We greatly appreciate the hard work and collaboration with Stout throughout the process. Stout excelled at guiding us while effectively communicating our story and authentic vision. Stout successfully identified VSS, given their experience in successful multi-site healthcare investing, as an ideal partner to help CFR build our practice through de novo location openings and acquisitions,” said Arash Horizon, Founder and CEO of CFR.

“Rheumatology is a highly fragmented segment of physician practice management with several ancillary services that are necessary for effective patient care. We believe that CFR has the blueprint and management team to become the preeminent rheumatology practice in the U.S.,” said John Calcagnini, Managing Director and Head of Healthcare Investment Banking at Stout.

John Calcagnini led the team at Stout, and additional team members Eric Froidevaux, Tyler Skarstein, and Jake Kussin-Bordo assisted in executing the deal. McDermott Will & Emery LLP served as counsel to CFR. Waller Law served as counsel for VSS.

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