Oxford Finance Expands Capital Base with $460 Million Commitment From Sumitomo Corporation of America and Welsh, Carson, Anderson & Stowe

Apr 25, 2011, 15:04 ET from Oxford Finance LLC

ALEXANDRIA, Va., April 25, 2011 /PRNewswire/ -- Oxford Finance LLC ("Oxford"), a specialty finance firm that provides senior debt to life science and healthcare services companies, today announced that Sumitomo Corporation of America ("SCOA") and Welsh, Carson, Anderson & Stowe ("Welsh Carson") have jointly committed $460 million to expand Oxford's capital base.  Oxford will use the additional equity capital to support its origination and portfolio growth.

SCOA, and its parent company, Sumitomo Corporation, a $75 billion global trading company, has held Oxford as a majority-owned subsidiary since 2004.  Welsh Carson, a $20 billion private equity firm with a primary focus on the healthcare industry, has invested alongside SCOA in Oxford.  Going forward, Oxford will be jointly held by both entities.

As part of this transaction, Oxford established a new board of directors.  The new board includes: J. Alden Philbrick of Oxford; Ted Eguchi, Kentaro Hori and Rishi M. Gaind of SCOA; and Sean M. Traynor, Christopher W. Solomon and Thomas A. Scully of Welsh Carson.

"We are very excited to have Welsh Carson join as an investor with our long-time owner and partner, SCOA," said J. Alden Philbrick, president and chief executive officer of Oxford.  "Welsh Carson is a highly regarded investor in healthcare-related businesses and brings a deep understanding of the unique dynamics of this industry.  The Welsh Carson investment philosophy and approach aligns well with Oxford's focus and position in our marketplace.  This expansion of our capital base gives us the platform to grow into a multi-billion dollar enterprise."

Ted Eguchi, senior vice president and general manager of Business Investment for Americas for SCOA said, "We are pleased to bring on Welsh Carson as our partner in this investment and look forward to funding Oxford's growth through its expanded capital base."

"Oxford Finance is a leading specialty healthcare finance company with a long and successful track record," said Sean M. Traynor, general partner at Welsh Carson.  "We believe that the healthcare finance market offers very attractive opportunities, and look forward to partnering with Oxford's experienced management team and SCOA."

Macquarie Capital acted as exclusive financial advisor to Oxford Finance on this transaction.

About Oxford Finance LLC

Oxford Finance ("Oxford") is a specialty finance firm providing senior secured loans to public and private life science and healthcare services companies worldwide. For over 20 years, Oxford has delivered flexible financing solutions to its clients, enabling these companies to maximize their equity by leveraging their assets.  In recent years, Oxford has originated over $1.5 billion in loans, with lines of credit ranging from $500 thousand to $40 million. Oxford is headquartered in Alexandria, Virginia, with additional offices in California, Illinois, Massachusetts and North Carolina. For more information visit www.oxfordfinance.com.

About Sumitomo Corporation of America

Sumitomo Corporation of America, with consolidated assets of $6.4 billion, is a wholly owned subsidiary of Sumitomo Corporation, Japan, a leading general trading company, with 150 locations in 70 countries throughout the world. Sumitomo Corporation consists of nearly 900 companies and more than 60,000 personnel. The Sumitomo Corporation business is continuously expanding into a diverse range of products and services. Its core business units are Metal Products; Transportation & Construction Systems; Infrastructure; Media, Network & Lifestyle Retail; Mineral Resource, Energy Chemical & Electronics; General Products & Real Estate; and Financial & Logistics. For more information, visit www.sumitomocorp.co.jp/english/.  

About Welsh, Carson, Anderson & Stowe

Welsh, Carson, Anderson & Stowe ("Welsh Carson") was formed in 1979 and has focused its investment activities in two industries, information/business services and healthcare. Welsh Carson manages $20 billion in capital and has a current portfolio of thirty companies. Welsh Carson's strategy is to buy growth businesses, partner with outstanding management teams, and build value for its investors through a combination of operational improvements, internal initiatives, and strategic acquisitions. For more information visit www.welshcarson.com.

SOURCE Oxford Finance Corporation