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For Immediate Release

Waud Capital Exits Its Investment in Cogent Healthcare

Chicago, IL, December 22, 2014 – Sound Physicians, a leading hospitalist and post-acute care organization, with more than 1,200 hospitalist and post-acute providers caring for patients in more than 100 hospitals and post-acute centers, completed the acquisition of Cogent Healthcare ("Cogent"), a successful hospitalist and intensive care organization and portfolio company of Waud Capital Partners ("WCP"). Cogent has more than 650 providers who deliver hospitalist and intensivist services to more than 80 hospitals throughout the United States. Combined, the expanded Sound Physicians organization will now serve more than 180 hospitals in 35 states with more than 1,850 providers including physicians and advanced care practitioners.

WCP's investment in Cogent began in September 2006 when it acquired a controlling interest in Hospitalists Management Group ("HMG") from Emergency Medicine Physicians, a leading provider of emergency medical services. From September 2006 to April 2010, HMG quadrupled its revenue, all on an organic basis, making it one of the largest and fastest-growing hospitalist companies in the United States. Having achieved its five-year financial and operational investment objectives in just over three years, WCP determined it was an appropriate time to pursue a recapitalization of the business to realize a portion of the substantial value that had been created. Accordingly, in April 2010 WCP sold a controlling interest in HMG to AEA Investors, while electing to rollover a portion of its sale proceeds in the recapitalized business.

Following the recapitalization, HMG continued its impressive growth trajectory, including completing several strategic acquisitions. Most notably, in April 2011 HMG merged with Cogent to form one of the largest private hospitalist companies in the United States and rebranded to become Cogent Healthcare.

David Neighbours, a Partner of WCP, commented, "The sale of Cogent to Sound Physicians marks the completion of a great investment for WCP. Over the course of our investment, Cogent's revenue increased 11-fold, enabling us to exceed our investment objectives at the time of our initial 2006 investment. We are extremely proud to have helped build Cogent into an industry leader and grateful for the contributions from management along the way. Similarly, we have enjoyed working with AEA Investors over the past several years since ceding control in 2010."

About Waud Capital Partners
Waud Capital Partners is a private equity investment firm founded in 1993 that partners with exceptional management teams to invest in middle-market growth equity investments, buyouts, industry consolidations, and recapitalizations. The firm seeks to invest $20 million to $100 million in private companies and focuses on healthcare services and business and related services. Typically, the companies in which WCP invests have enterprise values between $30 million and $300 million. The firm has successfully completed more than 160 investments since its founding and currently has approximately $1 billion of capital under management.

For additional information on WCP, visit www.waudcapital.com.

For Further Information:
David Neighbours, Partner
Waud Capital Partners
312-676-8400
dneighbours@waudcapital.com

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