Why Waud Capital Partners Bets Big on Software, and What Other PE Firms Can Learn
Waud Capital Partners is known primarily for healthcare. The firm’s founder, Reeve Waud, built Acadia Healthcare from a startup into a publicly traded behavioral health company with more than 260 facilities. But WCP’s second major vertical, software and technology, has quietly produced some of the firm’s sharpest returns.
The software portfolio operates on the same principles as the healthcare side: take a controlling stake, install strong operators, and pursue add-on acquisitions. Where the two differ is in speed. Software companies don’t need to add proportional headcount or physical infrastructure to grow revenue, which compresses the timeline between acquisition and exit.
iOFFICE: A Case in Compressed Growth
iOFFICE, a workplace management software company, offers the cleanest illustration. Under WCP’s ownership, the company’s revenues quintupled in roughly two and a half years. Waud Capital Partners then sold iOFFICE to Thoma Bravo in 2021, a buyer whose portfolio consists almost entirely of enterprise software.
The outcome wasn’t accidental. WCP brought in experienced software executives through its in-house talent team, expanded iOFFICE’s product suite through bolt-on acquisitions, and invested in the sales infrastructure needed to convert a mid-market product into a larger enterprise platform.
Science Exchange and the Life Sciences Bet
WCP’s acquisition of Science Exchange in September 2024 moved the firm into a different corner of the software world. Science Exchange operates a supplier orchestration platform for life sciences companies, essentially a technology layer that helps pharmaceutical and biotech firms manage their networks of contract research organizations, testing labs, and other external partners.
The deal signaled that Reeve Waud sees software opportunity not just in traditional enterprise categories but in highly specialized verticals where the buyer base is narrow and the switching costs are high. Life sciences procurement is notoriously complex, and a platform that simplifies it has a natural moat once it reaches sufficient adoption.
How Software Fits the Overall Picture
Across both healthcare and software, Waud Capital Partners manages $4.6 billion in assets and has completed more than 450 acquisitions. Average revenue growth across the portfolio exceeds 400%. The software side of the house has recently added leadership depth with the arrivals of George Ahn and Mark Layden, both veteran software investors who now hold senior roles at the firm.
Reeve Waud hasn’t published a formal breakdown of returns by sector. But the pace of software deal activity (iOFFICE, Science Exchange, and an expanding team dedicated to the vertical) suggests the firm is increasing its allocation to technology relative to its historical healthcare weighting.
