People have invested a lot in dermatology, dental and other areas and are now looking for the next sector. In this episode of The Corner Series, McGuireWoods’ Geoff Cockrell is joined by Mitch Stern, managing director and head of healthcare at Dresner Partners, to discuss plastic surgery and medical spa investing.

The discussion delves into the growing private equity interest in these sectors and compares various operating models. Stern addresses considerations for potential sellers in plastic surgery, emphasizing the need to avoid key man risk and highlighting the attractiveness of practices that have boosted the percentage of their business from med spa. The conversation covers both the opportunities and risks inherent in these sectors, with Stern expressing optimism for the market in 2024.

Thomas H. Lee Partners (THL) will take portfolio company Agiliti private, according to a news release.

THL is currently Agiliti’s majority shareholder. The firm will acquire all outstanding shares of Agiliti common stock for $10 per share in cash, implying an enterprise value of approximately $2.5 billion.

Agiliti, founded in 1939 and based in Minneapolis, is a national provider of medical technology management and service solutions to the healthcare industry.

THL, based in Boston, is a private equity firm investing in middle market growth companies in three sectors, including healthcare. Founded in 1974, the firm typically targets companies with enterprise values between $250 million and $2.5 billion.

Argosy Healthcare Partners (AHP) has announced the recapitalization of Command Medical Products.

Command, based in Ormond Beach, Fla., and founded in 1987, provides contract manufacturing services for medical devices sold by original equipment manufacturers and other device providers. 

AHP, based in Wayne, Pa., is a lower middle market private equity investor focused exclusively on healthcare. A division of Argosy Capital, AHP typically pursues majority control transactions in U.S.-based, founder-owned healthcare businesses with $1 million to $3 million of EBITDA.

Terms of the investment were not disclosed.

Avista Capital Partners has announced it has acquired Terrats Medical from Miura Partners.

Terrats, based in Barcelona, Spain, is a provider of dental prosthetics. The company sells into more than 50 countries.

Avista, based in New York, makes control buyout investments in middle market healthcare companies. Founded in 2005, the firm focuses on the following healthcare subsectors: pharmaceuticals, medical devices, outsourced pharmaceutical services, distribution and consumer-driven healthcare.

Miura Partners, based in Spain, is a private equity firm focused on investing in small and medium-sized family-owned and entrepreneurial companies.

Terms of the acquisition were not disclosed.

KKR has acquired a stake in Cotiviti from Veritas Capital, according to a news release. The deal is valued at around $11 billion, according to WSJ.

Cotiviti, based in South Jordan, Utah, is a healthcare data and technology business. Founded in 1979, the company states it works with more than 180 healthcare payers to deliver payment accuracy, risk adjustment, quality improvement, network and clinical analytics, and consumer engagement programs. Cotiviti also supports the retail industry.

The private equity platform of Kohlberg Kravis Roberts (KKR) & Co., which is based in New York, considers investments in all industries, including healthcare. Founded in 1976, the firm prefers to invest in a range of debt and public equity investing and may co-invest, seeking a controlling ownership of a company or a strategic minority position.

Veritas, founded in 1992 and based in New York, is a private equity firm that primarily targets technology or technology-enabled solutions for several sectors, including healthcare.

Under the agreement, KKR and Veritas will be co-sponsors with equal ownership stakes in Cotiviti. 

Terms of the transaction were not disclosed.

Coalesce Capital has announced the closing of its inaugural fund with more than $900 million in commitments.

The fund, Coalesce Capital Fund I, was oversubscribed, exceeding its $750 million initial target.

Coalesce, based in New York, is a middle market private equity firm focused on investing in human capital and technology-enabled business services companies. The firm primarily makes control investments in companies with at least $5 million of EBITDA and $25 million of revenue.

The physician practice management (PPM) arena is a mixture of tailwinds, including the ability to expand ancillary services, and headwinds, including more expensive labor costs and antitrust pressures.

On this episode of The Corner Series, McGuireWoods’ Geoff Cockrell speaks with Andrew Colbert, senior managing director at Ziegler, a privately held investment bank, capital markets and proprietary investments firm. Andy joined Ziegler in 2006 as a founding member of its healthcare investment banking practice. He advises healthcare services and healthcare information technology companies on a spectrum of strategic and financing alternatives.

Tune in to hear Geoff and Andy talk about the PPM environment and areas of opportunity, including the future of value-based contracting, the impact of a rising senior population, avoiding patient-acquisition expenses, potential around women’s healthcare, and what 2024 will bring to the PPM space.

Whistler Capital Partners has invested in AmeriPro Health, according to a news release.

AmeriPro, based in Atlanta, is a provider of patient logistics and last-mile healthcare delivery services. Founded in 2018, the company serves health systems and communities across Georgia, Florida, Mississippi, Indiana, Kentucky and Tennessee.

Whistler Capital, founded in 2021 and based in Nashville, is private equity firm focused on growth equity and growth buyouts in healthcare and related tech-enabled services verticals.

Terms of the investment were not disclosed.

3 Boomerang Capital has announced it has closed its flagship private equity fund with more than $375 million.

The fund, 3 Boomerang Capital I, was oversubscribed, exceeding its $350 million target.

3 Boomerang, based in Greenwich, Conn., is focused on lower middle market healthcare companies in North America and Western Europe. Founded in 2023, the firm focuses on biopharma outsourcing, medical device and diagnostic manufacturing, information technology and tech-enabled services, and alternate site care. 3 Boomerang has a flexible investment structure and targets companies with EBITDA of $4 million to $14 million.

Trinity Hunt Partners has announced it has closed a new fund, Trinity Hunt Partners VII, at its hard cap of $700 million.

The fund was oversubscribed.

Trinity Hunt, based in Dallas, is a growth-oriented private equity firm that targets small-cap companies in healthcare and a few other industries. Founded in 1993, the firm typically invests between $15 million and $50 million in companies with between $4 million to $25 million of EBITDA.