FTC’s Khan Targets Private Equity ‘Roll-Up’ Tactic in Court (1)

Federal Trade Commission Chair Lina Khan is going after a common acquisition strategy for private equity firms, putting the industry on notice with a new lawsuit that US regulators are scrutinizing “roll-up” deals involving small companies that compete in local markets.

The FTC sued US Anesthesia Partners Inc. and its private equity partner Welsh Carson Anderson & Stowe LP on Thursday, alleging they engaged in a scheme to monopolize the market for anesthesiologists in Texas using the “roll-up” strategy. It’s the first time the agency has targeted such deals, which usually are small enough to avoid antitrust review.

Welsh Carson ...