Private Equity Healthcare Acquisitions – June 2023

In light of the growing investor interest in healthcare and the risks associated with private equity ownership of healthcare companies, the Private Equity Stakeholder Project is tracking private equity-backed healthcare acquisitions. Below is a list of private equity healthcare buyouts, growth investments, and add-on acquisitions completed or announced during June 2023. We will continue to track acquisitions on a monthly basis.

See May 2023 acquisitions here.

See all our 2022 acquisitions updates here.

June 2023 was a busy month for private equity firms investing in the healthcare sector. There were 78 deals in total: 12 buyouts (15.4%), 45 add-on acquisitions (57.7%), and 21 growth investments (26.9%). June’s breakdown is in line with broader trends in 2023. According to data provider PitchBook, 2023 has seen a greater percentage of private equity growth and expansion investments versus buyouts in the first half of 2022, with growth and expansion investments accounting for 22.2% of deals, leveraged buyouts accounting for 17.1%, and add-on acquisitions accounting for 60.7%.[1] The rise in growth and expansion investments versus buyouts is partially due to financing challenges and disagreements on company valuations, according to PitchBook.[2]

Private equity maintains a steady pace of deals in the outpatient care sector
At 20 deals, outpatient care deals accounted for 25.6 percent of total deals for the month, including three in eye care, three in cardiology, and three in dental care.

In cardiology, Webster Equity Partners and MedEquity Partners acquired Shore Heart Group[3] and Bay Area Cardiology Associates[4] via their platform company, Cardiovascular Associates of America (CAA).[5] CAA has 91 locations, concentrated in the eastern U.S., with some Midwest and Southwest locations.[6] Earlier this year, CAA acquired Deerfield Management-backed Novocardia and merged it with CAA.[7]

Private equity firm Assured Healthcare Partners also acquired Colorado Springs Cardiology with its platform company, Heart & Vascular Partners.[8]

Analysts, researchers, and healthcare journalists have recently noted private equity’s increased interest in cardiology.[9] With over 40% of Americans considered medically obese and an aging population, demand for cardiology services is high while cardiologists are in short supply. Further, the industry is still fragmented, offering opportunities for investors to use a consolidation strategy to generate profits.[10]

Private equity’s incursion into the aesthetics/cosmetics industry
June saw six private equity investments in the medical aesthetics industry, including Princeton Equity Group’s acquisition of Genesis MedSpa to its platform company Princeton Medspa Partners.[11]Aesthetics Partners made a growth investment in Columbus Aesthetic and Plastic Surgery. Notably, Trinity Capital made a $30 million growth investment in Revelle Aesthetics, a company that has an FDA-cleared device that reportedly helps reduce the appearance of cellulite.[12]

Medical aesthetics, which includes medspas, plastic surgery, injectables, and aesthetics-oriented laser and ultrasound technologies, is a growing industry that is seeing increased private equity activity. According to Boston Consulting Group (BCG), “15 million Americans have had an aesthetics procedure, but the pool of potential consumers is nearly six times that amount –roughly 80 million people.”[13] BCG projects double-digit growth rates for the medical aesthetics industry through 2027.[14]

Buyouts

Add-on acquisitions

Growth Investments*
*some investments have undisclosed investors

[1] Hamlin, Jessica. “IT Buyout Giant Thoma Bravo Makes Healthcare Growth Play | PitchBook.” News & Analysis, July 17, 2023. https://pitchbook.com/news/articles/thoma-bravo-healthcare-acquisition-bluesight-medacist.

[2] Hamlin, Jessica. “IT Buyout Giant Thoma Bravo Makes Healthcare Growth Play | PitchBook.” News & Analysis, July 17, 2023. https://pitchbook.com/news/articles/thoma-bravo-healthcare-acquisition-bluesight-medacist.

[3] Cardiovascular Associates of America. “Cardiovascular Associates of America Expands NJ Footprint with Acquisition of Shore Heart Group.” Accessed July 21, 2023. https://cvausa.com/news/cvausa-expands-nj-shore-heart-group.

[4] Cardiovascular Associates of America. “Cardiovascular Associates of America Extends Reach into Tampa Bay and Surrounding Area with the Addition of Bay Area Cardiology and Vascular Associates.” Accessed July 21, 2023. https://cvausa.com/news/cvausa-extends-reach-tampa-bay-area-cardiology.

[5] medequity.com. “Our Portfolio.” Accessed July 21, 2023. https://medequity.com/portfolio/cardiovascular-associates-of-america/; Webster Equity Partners. “Portfolio.” Accessed July 21, 2023. https://websterequitypartners.com/our-portfolio/.

[6] Cardiovascular Associates of America. “CVAUSA Partner Practices.” Accessed July 21, 2023. https://cvausa.com/our-cardiovascular-partners.

[7] Cardiovascular Associates of America. “Cardiovascular Associates of America Merges with Novocardia and Announces Strongest Cardiovascular Network in America,” April 18, 2023. https://cvausa.com/news/cvausa-novocardia-merger.

[8] “Heart & Vascular Partners, LLC Announces Partnership with Colorado Springs Cardiology.” Heart and Vascular Partners, May 30, 2023. https://heartandvascularpartners.com/colorado-springs-cardiology/.

[9] Fenne, Michael. “Private Equity Health Care Acquisitions – April 2023.” Private Equity Stakeholder Project (blog), May 22, 2023. https://pestakeholder.org/news/private-equity-health-care-acquisitions-april-2023/. ; “Private Equity and Cardiology at ASCs.” Accessed July 21, 2023. https://www.beckershospitalreview.com/podcasts/becker-s-cardiology-podcast/private-equity-and-cardiology-at-ascs-96714260.html; Epstein Becker & Green, P.C. “On-Demand Webinar: The Rise of Private Equity Partnerships with Cardiology Groups: What’s Going On and Why?,” November 9, 2022. https://www.ebglaw.com/insights/the-rise-of-private-equity-partnerships-with-cardiology-groups-whats-going-on-and-why/; Strode, Roger. “Cardiology: The New Darling of Private Equity Investment | Foley & Lardner LLP.” Healthcare Law Today (blog), February 6, 2023. https://www.foley.com/en/insights/publications/2023/02/cardiology-new-darling-private-equity-investment; Lou, Nichole. “Private Equity Has New Love for Cardiology. Should Doctors Take the Deal?” MedPage Today, February 16, 2023. https://www.medpagetoday.com/special-reports/exclusives/103144; Springer, Rebecca. “PE Finds a New Healthcare Play in Cardiology | PitchBook.” News & Analysis (blog), May 13, 2023. https://pitchbook.com/newsletter/pe-finds-a-new-healthcare-play-in-cardiology-Ftr.

[10] Strode, Roger. “Cardiology: The New Darling of Private Equity Investment | Foley & Lardner LLP.” Healthcare Law Today (blog), February 6, 2023. https://www.foley.com/en/insights/publications/2023/02/cardiology-new-darling-private-equity-investment.

[11] PRWeb. “Princeton Medspa Partners Acquires Genesis Medspa of Colorado Springs.” Prweb.com, June 13, 2023. https://www.prweb.com/releases/princeton_medspa_partners_acquires_genesis_medspa_of_colorado_springs/prweb19391300.htm; “Princeton Medspa Partners | Princeton Equity Group, LLC.” Accessed July 21, 2023. https://princetonequity.com/companies/princeton-medspa-partners/.

[12] “Trinity Capital Inc. Provides $30 Million Growth Capital to Revelle Aesthetics,” June 1, 2023. https://www.prnewswire.com/news-releases/trinity-capital-inc-provides-30-million-growth-capital-to-revelle-aesthetics-301840653.html.

[13] Rossi, Sergio, Christine Barton, and Andrea Agnolio. “Medical Aesthetics Is Resilient, Growing, and Attracting Investors.” BCG Global, May 8, 2023. https://www.bcg.com/publications/2023/medical-aesthetics-industry-growth-attracting-investors.

[14] Rossi, Sergio, Christine Barton, and Andrea Agnolio. “Medical Aesthetics Is Resilient, Growing, and Attracting Investors.” BCG Global, May 8, 2023. https://www.bcg.com/publications/2023/medical-aesthetics-industry-growth-attracting-investors.