Veritas Capital and Carlyle Group Inc. have ended their talks for the Washington-based alternative asset manager to take a stake in health-care technology firm Cotiviti Inc., according to people with knowledge of the matter.
(Bloomberg) — Veritas Capital and Carlyle Group Inc. have ended their talks for the Washington-based alternative asset manager to take a stake in health-care technology firm Cotiviti Inc., according to people with knowledge of the matter.
Veritas Capital, which took Cotiviti private in 2018, began notifying its limited partners of the development on Tuesday, said one of the people, who asked not to be identified discussing confidential talks. Carlyle attempted to negotiate a lower price before ultimately deciding not to move forward with the investment due to market conditions, another of the people said.
Representatives for Carlyle, Veritas and Cotiviti declined to comment.
Bloomberg News previously reported Carlyle’s proposal, valuing Cotiviti at around $15 billion with debt, included what would have been the largest-ever private credit deal. Private credit firms including Apollo Global Management Inc., Blackstone Inc., HPS Investment Partners and Oak Hill Advisors had proposed a $5.5 billion financing package to back the transaction.
Carlyle’s fundraising for its flagship private equity strategy has progressed more slowly than expected, Bloomberg News reported last year. When asked about progress on that effort in February, Chief Financial Officer Curt Buser said the firm remained optimistic.
Read more: JPMorgan Plays Both Sides in Battle Over Cotiviti Buyout Loan
(Updates with Cotiviti’s response in third paragraph)
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