Key Takeaways
- • BlackRock will acquire a majority stake in Humana's CenterWell Senior Primary Care clinics in a transaction valued at approximately $2.8 billion, buying out the majority position held by Welsh, Carson, Anderson & Stowe (WCAS).
- • The CenterWell network comprises roughly 150 Medicare Advantage-focused primary care clinics, and Humana said the capital will fund existing clinic operations, new clinic openings and other strategic acquisitions over the next two years.
- • WCAS has invested at least $1.8 billion in the venture since 2020, and its exit comes more than six years after its initial CenterWell investment.
- • The new joint venture is majority owned by BlackRock with CenterWell as minority owner, replacing the existing CenterWell and WCAS joint ventures; BlackRock holds no put option requiring Humana to repurchase its share.
Summary
Humana announced on Tuesday that BlackRock will buy out the majority stake held by private equity firm Welsh, Carson, Anderson & Stowe (WCAS) in its CenterWell Senior Primary Care clinic network, in a transaction valued at $2.8 billion, according to STAT. The network consists of about 150 clinics focused on Medicare Advantage patients.
According to Humana's announcement, the transaction is structured as a new strategic joint venture. The venture will be majority owned by BlackRock and minority owned by CenterWell, and it will replace the existing CenterWell and WCAS joint ventures. Under the new agreement, BlackRock does not hold a put option, meaning it cannot force Humana to buy out its share. Over the next two years, Humana said the capital would help fund existing clinic operations, add new clinics and support other strategic acquisitions.
WCAS first invested in CenterWell more than six years ago and has contributed at least $1.8 billion to the venture since 2020, according to STAT. The exit timing is consistent with a typical private equity holding period. Humana's broader clinic expansion plans are substantial: the company has previously indicated it expects to invest $2.5 billion to $3.5 billion from 2026 to 2030 on clinic expansion.
The transaction marks a change in Humana's clinic strategy, replacing a private equity sponsor with an asset manager as its primary financial partner for the network. Full details of the deal terms beyond those disclosed in the announcement were not available in the source material.
According to Humana's announcement, the transaction is structured as a new strategic joint venture. The venture will be majority owned by BlackRock and minority owned by CenterWell, and it will replace the existing CenterWell and WCAS joint ventures. Under the new agreement, BlackRock does not hold a put option, meaning it cannot force Humana to buy out its share. Over the next two years, Humana said the capital would help fund existing clinic operations, add new clinics and support other strategic acquisitions.
WCAS first invested in CenterWell more than six years ago and has contributed at least $1.8 billion to the venture since 2020, according to STAT. The exit timing is consistent with a typical private equity holding period. Humana's broader clinic expansion plans are substantial: the company has previously indicated it expects to invest $2.5 billion to $3.5 billion from 2026 to 2030 on clinic expansion.
The transaction marks a change in Humana's clinic strategy, replacing a private equity sponsor with an asset manager as its primary financial partner for the network. Full details of the deal terms beyond those disclosed in the announcement were not available in the source material.
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