Blackstone to Acquire Majority Stake in Chartis from Audax PE

Although specific financial details were not made public, sources familiar with the matter suggested the deal could value Chartis at around $1.4 billion, including debt.

Blackstone, a global investment firm, has planned to acquire a majority stake in The Chartis Group, a healthcare consulting and advisory firm, from Audax Private Equity. 

Although specific financial details were not made public, sources familiar with the matter suggested the deal could value Chartis at around $1.4 billion, including debt. The deal is expected to close by the end of 2024.

Since Audax Private Equity’s initial investment in Chartis in 2019, the firm has undertaken significant expansion, acquiring and integrating seven companies into its operations. 

The acquisition will also allow Chartis to leverage Blackstone’s resources to further its mission of improving healthcare delivery.

Notably, in March 2024, Chartis acquired HealthScape Advisors, a consulting firm focused on payers, which was seen as a strategic move to bolster its presence in the payer segment of the healthcare industry.

The acquisition by Blackstone is expected to further enhance Chartis’s ability to expand and innovate within the healthcare sector. Blackstone’s investment is part of its core private equity strategy and includes continued equity participation from Audax Private Equity.

The transaction process saw a host of financial advisors involved. Chartis and Audax were advised by Lincoln International and Bank of America Corp., while Blackstone enlisted the services of Goldman Sachs Group Inc. to guide them through the acquisition.

This acquisition adds another significant company to Blackstone’s extensive portfolio, which currently includes more than 230 companies. 

Future Goals

Chartis has been focused on helping clients improve healthcare delivery across the United States. Cofounders Ken Graboys, CEO, and Ethan Arnold, managing partner, expressed optimism about the future with Blackstone's backing. 

“Looking to the future, we are excited to do even more. Blackstone shares our commitment to supporting industry leaders across the healthcare landscape as they strive to make care in the US more accessible, more affordable, more reliable, more equitable, and more human for patients and caregivers,” the cofounders said in a joint statement.

Founded in Chicago, Chartis has been a key player in the healthcare consulting space, advising a wide array of clients including providers, payers, technology firms, retail companies, and investors. 

With approximately 1,000 employees, the firm serves over 900 clients, making it one of the prominent advisory firms in the healthcare sector.