Recent News and Announcements from Centre Partners

July 22, 2008

Centre Partners Announces Investment in Covenant Care LLC

Middle Market Private Equity Firm Partners with Management Team to Invest in Leading Operator of Skilled Nursing Facilities

Los Angeles, Calif. (July 22, 2008): Centre Partners, a leading middle market private equity firm with offices in New York and Los Angeles, today announced it has completed its investment in Covenant Care LLC. The investment was concluded in partnership with Covenant Care’s senior management team who will retain a significant stake in the business and continue in the same executive capacities with the company.

Covenant Care, founded in 1994 and based in Aliso Viejo, California, is an operator of long-term care centers through its network of facilities, with over 5,000 licensed beds located throughout seven states. The company’s 43 skilled nursing facilities (SNFs) and three residential care facilities (RCFs) provide nursing, rehabilitative, and health-related services 24 hours-a-day with an emphasis placed on rehabilitative therapies.

Covenant Care is the second significant healthcare services investment by Centre Partners in the last two years. In 2006, Centre Partners acquired over 100 dialysis clinics from Fresenius Medical Care and Renal Care Group in a $550 million transaction. That investment was made through Centre Partners’ portfolio company, DSI Holdings, which is involved in the acquisition, development and operation of kidney dialysis clinics throughout the U.S.

Covenant Care Chief Executive Officer Bob Levin said, “I am very pleased to be entering into this new partnership with Centre Partners. Its financial support and expertise should enable us to accelerate our growth plans for the business while allowing us to maintain our focus on Operational Excellence. This transaction is a clear endorsement of the strength of our dedicated Team of healthcare professionals who are committed to providing the highest level quality of care to our residents across the country.”

Centre Partners’ Senior Partner Bob Bergmann added, “We’re equally excited to become partners with the Covenant Care Team. The company’s leadership at both the corporate and facility level is extraordinary, as is management’s dedication to deliver the highest level quality of care. We look forward to supporting Covenant Care as it expands its base of facilities.”

About Centre Partners

Centre Partners, founded in 1986, is a leading private equity firm with a middle market focus that seeks to make acquisitions and equity investments alongside management teams who have or desire a meaningful economic stake in the future success of their businesses. Centre Partners’ Managing Directors have invested over $3 billion in more than 90 companies, partnering with management teams across a broad spectrum of industries. Centre Partners provides those teams with access to its unique resources, which include an extended network of experienced and proven operating executives. Centre Partners has offices in New York City and Los Angeles. The firm is currently investing through its fifth fund, which has approximately $880 million of committed capital. Centre has deep investment expertise covering consumer, healthcare, industrial products and services, financial services, energy, media, restaurants, retail, and aviation services. Additional information is available at

About Covenant Care LLC

Covenant Care, with headquarters in Aliso Viejo, CA, operates a diversified portfolio of high quality SNFs and RCFs in seven states. The Company’s 43 SNFs provide nursing and rehabilitation services to the rapidly growing elderly population in the U.S., while the Company’s wholly-owned therapy business provides each facility with state-of-the-art rehabilitation programs and personnel. Covenant Care’s systems, culture and operating model are contributors to the Com

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