Chicago-based Waud Capital Partners announced a partnership with healthcare distribution executive Bill Mixon to pursue medical device and supply chain services consolidation backed by over $100 million in equity capital. The investment represents founder Reeve Waud’s continued focus on fragmented healthcare markets and demonstrates the firm’s established approach to sector-specific consolidation.
The partnership targets home distribution, specialty distribution, outsourced provider equipment services, and chronic care management—markets that exhibit the fragmentation characteristics that have historically attracted Reeve Waud’s investment attention throughout his 30+ year private equity career.
Chicago-Based Waud Capital Targets Fragmented Healthcare Markets
Since founding Waud Capital Partners in 1993, Reeve Waud has built the Chicago-based firm into a leading healthcare services investor with approximately $4.6 billion in assets under management. The firm’s growth from a one-person operation to nearly 70 professionals reflects the success of its disciplined approach to identifying and consolidating fragmented service markets.
The medical device and supply chain services opportunity continues Reeve Waud’s established pattern of entering healthcare markets before they become crowded with competing private equity firms. This early-mover advantage has characterized many of the firm’s most successful investments, from behavioral health through specialty medical services.
Waud Capital Partners’ Chicago location provides advantages for healthcare investing, including proximity to major medical device manufacturers, healthcare systems, and the University of Chicago’s medical complex. The firm’s established relationships within the broader healthcare ecosystem, built through successful investments like Acadia Healthcare, provide competitive advantages in sourcing and evaluating new opportunities.
Reeve Waud’s continued involvement as Chairman of Acadia Healthcare, which operates over 260 facilities across 40 states and Puerto Rico, demonstrates the firm’s commitment to hands-on oversight of major healthcare investments. This operational engagement informs new investment decisions and helps identify market trends that create consolidation opportunities.
Medical Device Distribution Joins Healthcare Services Portfolio
Bill Mixon brings operational expertise that complements Waud Capital Partners’ financial and operational resources. His experience growing Advanced Diabetes Supply to $1 billion in revenue while serving nearly 500,000 patients demonstrates the scaling potential within specialty healthcare distribution markets.
“The healthcare supply chain markets are highly fragmented with significant opportunities for organizations to deliver value-add solutions and address substantial challenges for key stakeholders,” explained Mike Lehman, Principal at Waud Capital. This assessment reflects the investment thesis that has guided Reeve Waud’s healthcare portfolio construction since the firm’s inception.
The partnership structure exemplifies Waud Capital Partners’ executive partnership model, which emphasizes identifying experienced operators and providing them with capital and operational support to build market-leading companies. This approach has generated substantial returns across multiple healthcare sectors under Reeve Waud’s leadership.
Mixon’s background includes successful exits from both National Seating & Mobility and Advanced Diabetes Supply, demonstrating his ability to build businesses that attract buyers. His experience completing transactions with multiple private equity sponsors provides valuable perspective on building scalable healthcare distribution platforms.
The medical device and supply chain services investment extends Waud Capital Partners’ healthcare portfolio beyond direct patient care into supporting infrastructure. This diversification approach provides exposure to healthcare growth trends while potentially reducing exposure to reimbursement volatility that affects some healthcare providers.
Reeve Waud’s systematic approach to healthcare investing has consistently identified consolidation opportunities within fragmented markets. The firm’s successful exit from GI Alliance, valued at approximately $2.2 billion in 2022, validated this approach’s effectiveness in building market-leading healthcare service companies.
The Chicago private equity ecosystem has produced several successful healthcare investors, but Waud Capital Partners’ focus on operational partnerships and long-term value creation distinguishes its approach from purely financial buyers. Reeve Waud’s hands-on involvement in portfolio companies reflects this commitment to fundamental business building rather than financial engineering alone.
“I’m excited to partner with Waud Capital to identify and help build what we hope will be an industry-leading business that supports and improves the overall healthcare supply chain,” Mixon stated, acknowledging the value of Waud Capital Partners’ ecosystem resources and dedicated healthcare investing experience.
