GTCR Announces Recapitalization of APS Healthcare

Chicago, June 6, 2007 – GTCR, one of the nation’s leading private equity firms, today announced it has teamed with Greg Scott, Jerry Vaccaro and other senior managers to recapitalize APS Healthcare (APS). H.I.G. Capital, APS’s previous majority investor, and other investors sold their interests in the company as a result of the transaction.

APS Healthcare is a leading specialty healthcare services company that provides a full range of outsourced healthcare solutions to government entities, health plans and employers. The company delivers an extensive portfolio of targeted Care Management and Behavioral Health programs that enable customers to reduce healthcare costs and improve the quality of care. APS has approximately 1,000 public sector and commercial customers in the United States and serves over 20 million members, making it one of the largest specialty healthcare services companies in the country. The company was founded in 1992 and was one of the first companies to enter the specialty healthcare sector.

“GTCR is excited about this opportunity to back the market leader in a high-growth, niche industry. APS’s strong client-focus has allowed them to build one of the premier companies in specialty healthcare,” said GTCR Principal Joe Nolan.

As part of the transaction, industry veteran Greg Scott, formerly Chief Financial Officer of PacifiCare, will succeed Eileen Auen as the Chief Executive Officer of the company. Joining Scott at the company will be Jerry Vaccaro, M.D., formerly President and CEO of PacifiCare Behavioral Health. Auen will serve in an advisory capacity as the GTCR-backed management team transitions into their leadership roles.

“I am excited to be joining APS as its Chief Executive Officer. Eileen is a respected leader in the healthcare industry and she has created strong momentum at APS. I look forward to continuing this momentum and working with GTCR to further APS’s market reach,” said Greg Scott. “GTCR’s financial expertise, strong experience in healthcare and their commitment to growth companies in attractive industries will be invaluable to APS.”

Eileen Auen commented, “I am extremely pleased; APS is fortunate to partner with a leading private equity firm such as GTCR. I look forward to working with Greg to ensure a seamless transition to his leadership. With GTCR’s backing, the leadership team will be well positioned to continue and accelerate APS’s strong growth.”

“Partnering with Greg, Jerry and the APS executives is an excellent fit with GTCR’s strategy of backing exceptional management teams. APS provides us with a significant entry into the care management and managed behavioral health areas of specialty healthcare, where we see tremendous opportunity for internal growth and select niche acquisitions,” added GTCR Principal David Katz.

The transaction highlights GTCR’s unique method of identifying and partnering with exceptional management teams to build leading companies in growth industries, a strategy which it pioneered and has implemented successfully for more than 25 years. Kirkland & Ellis LLP provided legal counsel to GTCR, while Merrill Lynch Capital provided debt financing for the transaction.

About APS Healthcare
APS Healthcare, headquartered in Silver Spring, MD, is a leading provider of specialty healthcare solutions that cover more than 20 million members in the United States and Puerto Rico. APS offers customized, integrated healthcare solutions across two major healthcare product lines – care management and behavioral health services. APS operates under the belief that managing healthcare for the mind and body improves overall health and reduces total healthcare spending. For more information, visit

About GTCR
Founded in 1980, GTCR Golder Rauner, LLC is a leading private equity investment firm and long-term strategic partner for outstanding management teams. The Chicago-based firm pioneered the investment strategy of identifying and partnering with exceptional executives to acquire and build companies through a combination of acquisitions and strong internal growth. GTCR currently manages more than $8 billion of equity capital invested in a wide range of companies and industries. More information about GTCR can be found at

About H.I.G. Capital
H.I.G. Capital LLC (“H.I.G.”) is a leading private equity and venture capital investment firm with more than $3.5 billion of equity capital under management. Based in Miami, and with offices in Atlanta, Boston, and San Francisco, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed manufacturing or service businesses. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding, H.I.G. has completed more than 75 transactions. The firm currently manages a portfolio of more than 50 companies with combined revenues of more than $7 billion. For more information, please contact Rick Rosen or visit the H.I.G. website at