RAYUS

Private Equity Manager (GP)

Case study

About the company

RAYUS (formerly known as CDI) is a leading provider of high-quality diagnostic imaging and interventional radiology. The company operates through a network of imaging centres, ambulatory surgery centres and mobile imaging solutions.

Investment Rationale

• The diagnostic imaging industry has experienced a payer-driven shift in scan volume to non-hospital image centres which typically cost three to five times less than hospital options.
• RAYUS has a strong M&A track record and is well positioned to take advantage of a large consolidation opportunity within the US diagnostic imaging market, which comprises of over 6,500 imaging locations and where most competitors are small operators with only one to five centres.
• The company achieved a quick recovery after the COVID-19 lockdowns as volumes were largely deferred rather than lost altogether.

Our relationship

• Pantheon has a well-established relationship with Wellspring Capital Management (“Wellspring”), dating back to 2008.
• PIP is a primary investor with Wellspring and has completed two co-investments alongside the manager.

Active management and value creation

• Healthcare is one of Wellspring’s core investment verticals and the private equity manager has built an attractive track record in the space.
• Wellspring plans to continue executing the M&A strategy that it has successfully employed since investment.
• The manager will pursue new strategic growth opportunities in existing geographies to continue to build leverage with regional payers.