TowerBrook Capital Partners LP and Ascension Health Alliance exploited their control over R1 RCM Inc. to engineer a take-private deal that cashed out public investors at a discount, according to a lawsuit unsealed Thursday.
A group of pension funds are challenging the November 2024 buyout, which handed the medical revenue giant to affiliates of TowerBrook, Ascension, and New York private equity firm Clayton, Dubilier & Rice LLC. TowerBrook and Ascension wielded their 35.6% stake, board influence, and key veto rights—and threats based on Ascension’s status as R1’s top customer—to make the company an offer it couldn’t refuse, the suit ...