March 3, 2013
Interviewed by: David Snow
Video Clip
Login to view full video

Deal Story: Orbis Education

Mitchell Hollin of LLR Partners discusses his firm’s 2012 investment in Orbis Education, which creates, markets, and manages collaborative healthcare education solutions that help alleviate workforce shortages for hospitals and healthcare systems.

Mitchell Hollin of LLR Partners discusses his firm’s 2012 investment in Orbis Education, which creates, markets, and manages collaborative healthcare education solutions that help alleviate workforce shortages for hospitals and healthcare systems.

Mitchell Hollin, LLR Partners: Orbis is a very interesting education services business based in Indianapolis. The company really provides an opportunity to train and educate nurses, and they really work in partnership with universities, accredited universities, and help them expand their ability to educate nurses.

And in particular, the education of nurses is a very difficult and very expensive proposition in the United States. It requires both lots of class training, and it requires a lot of clinical support where nurses need on the job training in hospitals. And so as a result of that, it becomes a very expensive proposition for traditional universities to train nurses.

Orbis partners with accredited universities and helps train those nurses really through a variety of incremental means where they can work in partnership with those universities. They can bring to bear an online educational curriculum. They’ll work with the local hospitals to develop the clinical base to allow those nurses to work, and in particular focus on a very specific niche, which is they work with a student that has already received a bachelor’s degree but now has an interest in becoming a nurse.

Privcap: What trends informed the investment thesis?

Hollin: Well, a number trends, but probably the biggest of which is just the overwhelming nursing shortage that is present today in  the United States, both today and what we think is going to be over the next 10 to 20 years, that’s going to drive the need for more nurses. Also, the tremendous pressures that educational institutions are under to manage their own costs. And so, that limits their ability to expand their own nursing programs to address that, because generally, these nursing programs are loss leaders for universities because of how expensive it is to provide that clinical training.

So Orbis provides a better way to train those nurses, and also provides a more cost-effective solution for the universities as well. And then lastly, it really does address the hospital’s needs for that nursing shortage that I started with.

Privcap: How is LLR working with the company?

Hollin: It’s a typical role for us. We look to back the management team that is in the business today, but we’re trying to compliment that. We’ve brought in place a new CFO that we’re able to identify. We’ve brought in place an executive chairman who’s an operating partner of ours with significant education experience. And really working with them, that at this point in time, they’ve got a proven business model. They are operating in five separate settings with five different universities, and the plan is to scale this over the next five years over our investment horizon to 20 plus universities.

And so, how they go about executing that is something that, whether it comes from how to become better experts at marketing to attract students to the university, how they make sure that they have optimal outcomes so that people are getting a good education and then getting excellent placement after they come out of the graduation. So it really is affecting the execution in a better way.

Register now to watch this video and access all content.

It's FREE!

  • CHOOSE YOUR NEWSLETTERS:
  • I agree to the Privcap terms of use and privacy policy
  • Already a subscriber? Sign In

  • This field is for validation purposes and should be left unchanged.