DuPage Medical Group Announces Investment from Ares Management Private Equity Group

$1.45 Bil­lion Trans­ac­tion Helps DMG Fuel Expan­sion, Main­tain Physi­cian Independence

August 16, 2017

DOWN­ERS GROVE, Ill. and LOS ANGE­LES — August 16, 2017- DuPage Med­ical Group, one of the nation’s largest inde­pen­dent, mul­ti-spe­cial­ty physi­cian groups, announced the clos­ing of a strate­gic part­ner­ship with funds man­aged by the pri­vate equi­ty group of Ares Man­age­ment, L.P. (NYSE: ARES), the glob­al alter­na­tive asset man­age­ment firm. The invest­ment by Ares will enable con­tin­ued sup­port for growth ini­tia­tives across the entire orga­ni­za­tion, includ­ing DMG’s prac­tice man­age­ment com­pa­ny, DMG Prac­tice Man­age­ment Solu­tions, and DMG’s sub­sidiary, Bon­cu­ra Health Solu­tions. The $1.45 bil­lion trans­ac­tion closed on August 15, 2017.

Under the terms of the trans­ac­tion, DMG’s physi­cian group, DuPage Med­ical Group Ltd., will remain 100% physi­cian-owned-and-direct­ed, and DMG physi­cians will retain a sig­nif­i­cant own­er­ship stake in the prac­tice man­age­ment com­pa­ny. As part of its invest­ment, Ares also acquired Sum­mit Part­ners’ stake in DMG Prac­tice Man­age­ment Solu­tions, and Sum­mit will exit as an invest­ment partner. 

As DMG con­tin­ues to grow in size and scale, it is crit­i­cal­ly impor­tant for our orga­ni­za­tion to remain inde­pen­dent and physi­cian-led,” said DMG CEO Mike Kasper. Ares under­stands and sup­ports our core mis­sion, which is to main­tain and enrich our patient-focused, doc­tor-direct­ed cul­ture. This part­ner­ship, which will par­tic­u­lar­ly ben­e­fit our sub­sidiary Bon­cu­ra, pro­vides unprece­dent­ed access to cap­i­tal and strate­gic back­ing for DMG’s growth ini­tia­tives, such as pop­u­la­tion health, expan­sion into new geo­gra­phies and addi­tion­al ser­vice offer­ings. We believe this endeav­or will ulti­mate­ly enhance our abil­i­ty to reach and treat patients. This is our path forward.” 

Mr. Kasper spec­i­fied that DMG patients should expect to see addi­tion­al ser­vice lines, sites of care and physi­cians as a result of the part­ner­ship. This growth will allow DMG to enhance its inte­grat­ed out­pa­tient deliv­ery mod­el and fur­ther enhance its efforts to pro­vide qual­i­ty, effi­cien­cy and access to patients. 

We are extreme­ly excit­ed to wel­come Ares as our part­ner, as DMG con­tin­ues to grow to become the best group for all physi­cians and patients both with­in the Chica­go area as well as nation­al­ly,” com­ment­ed Dr. Paul Mer­rick, Pres­i­dent and Chair­man of DMG. Our part­ner­ship with Ares will allow us to main­tain our physi­cian-ori­ent­ed cul­ture and clin­i­cal auton­o­my. More impor­tant­ly, we are well posi­tioned to expand and enhance our man­age­ment ser­vice offer­ings and con­tin­ue pro­vid­ing our patients the high­est qual­i­ty care.”

About DuPage Med­ical Group

Found­ed in 1999, DuPage Med­ical Group is the largest inde­pen­dent, mul­ti-spe­cial­ty physi­cian group with more than 600 physi­cians in over 80 sub­ur­ban Chica­go loca­tions. DMG is a patient-cen­tered orga­ni­za­tion focused on improv­ing access to con­ve­nient, qual­i­ty health care using the lat­est tech­nol­o­gy and treat­ment options. For more infor­ma­tion, vis­it www​.duly​healthand​care​.com.

About Bon­cu­ra Health Solutions

Since its incep­tion in 2011, Bon­cu­ra Health Solu­tions has remained a physi­cian-owned and direct­ed orga­ni­za­tion aimed at improv­ing patient out­comes, effi­cient­ly man­ag­ing at-risk pop­u­la­tions to reduce unnec­es­sary health­care costs, deliv­er­ing ser­vices in a cost-effec­tive man­ner, and pro­vid­ing unique and con­ve­nient ways for patients, providers, and clients to access key sup­port ser­vices. Its exper­tise allows hos­pi­tals and health sys­tems, inde­pen­dent physi­cian groups, and account­able care orga­ni­za­tions to pro­vide val­ue-based care through effi­cient and intel­li­gent admin­is­tra­tive and clin­i­cal ser­vices. Today, Bon­cu­ra serves more than 5,500 physi­cian providers and part­ners, man­ag­ing upwards of 350,000 lives, and pro­cess­ing more than sev­en mil­lion claims annually. 

About Ares Man­age­ment, L.P.

Ares Man­age­ment, L.P. is a pub­licly trad­ed, lead­ing glob­al alter­na­tive asset man­ag­er with approx­i­mate­ly $104 bil­lion of assets under man­age­ment as of June 30, 2017 and more than 15 offices in the Unit­ed States, Europe, Asia and Aus­tralia. Since its incep­tion in 1997, Ares has adhered to a dis­ci­plined invest­ment phi­los­o­phy that focus­es on deliv­er­ing strong risk-adjust­ed invest­ment returns through­out mar­ket cycles. Ares believes each of its three dis­tinct but com­ple­men­tary invest­ment groups in Cred­it, Pri­vate Equi­ty and Real Estate is a mar­ket leader based on assets under man­age­ment and invest­ment per­for­mance. Ares was built upon the fun­da­men­tal prin­ci­ple that each group ben­e­fits from being part of the greater whole. For more infor­ma­tion, vis­it www​.ares​mgmt​.com.