Walnut Hill Physicians' Hospital

Dallas, Texas
Investment Amount: $10,000,000
Investment Date: September, 2013
CapX moved quickly, understanding our financing needs and providing us with thoughtful solutions, allowing us to keep our focus on the myriad of other issues we had to tackle for an on-time hospital launch. Having a financing partner that does what they say is incredibly valuable to us. We look forward to working with CapX on other projects." Eddie Alexander, President and CEO, Surgical Development Partners

Investment Situation

Walnut Hill Physicians’ Hospital, LLC (“Physicians’ Hospital”) is a 100-bed acute care start-up hospital being developed in Dallas, TX. The hospital project is a strategic partnership between local physicians, Medistar Corporation, and Surgical Development Partners. Physicians’ Hospital will have 82 physicians with multiple specialties invested in the project and will be heavily focused on cardiology. Physicians’ Hospital’s equity sponsor, Surgical Development Partners, approached CapX to provide equipment financing for the new hospital to be opened in Dallas. The equity sponsor had a strong, proven track record of having already developed ten healthcare facilities. Physicians’ Hospital was their eleventh project and extension of their continued strategy. Physicians’ Hospital secured real estate and equipment financing to provide turnkey capital for the development of the hospital. After several participating equipment lenders were unable to extend additional financing for a unique list of equipment assets, the sponsor was in a situation to either provide additional equity for the equipment or procure equipment financing.

The CapX Solution

CapX was able to recognize the sponsor’s ability to identify geographical areas with high healthcare demand and their skill to execute on both project development and operations. CapX provided a $10,000,000 equipment lease facility to help Physicians’ Hospital acquire new equipment to open its eleventh healthcare facility. CapX worked well with both Physicians’ Hospital and existing capital providers to craft an equipment financing that worked for all parties involved.

“Closing a transaction that involves multiple lenders and dozens of vendors is always a challenge. Surgical Development Partners managed the process extraordinarily well, and we are thrilled to be working with them” stated Eric Starr, Partner, CapX Partners.