Physician & Private Equity Alignment: Kentucky Eye Institute and EyeSouth Partners
Introduction
In October 2024, Kentucky Eye Institute (KEI) entered into a private equity partnership with EyeSouth Partners (“EyeSouth”), a leading national eye care platform backed by Olympus Partners. Based in Lexington, KY, KEI has established itself as a premier eye care practice serving the broader Eastern Kentucky market, in both its primary markets as well as its rural markets. The practice provides a full suite of services from primary eye care and optical, to surgical eye care, as well as tertiary care by providing access to retinal sub-specialists.
Client Background
The practice started thinking about exploring strategic private equity partnerships in 2021. As the group started researching healthcare private equity and investment banking transactions, coincidentally they were also receiving direct outreach from private equity backed eye care platforms. As a result of Physician Growth Partners’ experience representing eye care practice owners, KEI shareholders decided to move forward with the PGP team as their exclusive investment banking advisor. After a couple of introductory and educational discussions, the goals the group had set out to accomplish were:
- Assess whether healthcare private equity or another strategic option was worth exploring as part of maximizing practice value and their broader succession plan without sacrificing clinical quality or access
- Determine the valuation of the practice and the healthcare private equity buyer universe that would have an appetite to partner with KEI
- Understanding if the offers from private equity were fair and reasonable from a macro perspective while also achieving the shareholders’ goals
KEI ultimately sought a partnership for many of the same reasons shared by other independent practices: to allow shareholders to realize liquidity, strengthen market positioning, professionalize operations, and expand ancillary offerings – with the backing of a scaled and reputable capital private equity partner.
Transaction Overview
PGP ran a targeted, strategic private equity investment banking process on behalf of KEI, engaging the full range of potential partners across the eye care landscape. KEI’s clinical reputation, focus on accessible care in underserved communities, and growth potential were clearly showcased through comprehensive financial modeling and customized marketing materials.
The process generated substantial interest from top-tier private equity-backed platforms, allowing KEI’s physician-owners to evaluate a range of qualified partners. After thoughtful, in-depth meetings, KEI selected EyeSouth Partners – a group whose Southeast regional focus, operational alignment, and commitment to clinical quality stood out.
PGP supported KEI throughout every step of the transaction. Every practice has a unique story, and PGP ensured this one ended in a partnership positioned for long-term success – for both patients and providers.
Outcome and Impact
Since closing the transaction 6 months ago, KEI’s opportunities for growth have been bolstered by the EyeSouth affiliation, aligning with the practice’s goals of improving back-office support, revenue cycle management capabilities, and streamlining the credentialing process for its new providers. Additionally, KEI plans to use EyeSouth’s scale and resources to drive growth in providers, locations, and services offered.
Conclusion
For physicians looking for further assistance in the ever challenging market of independent practice, a strategic partnership can help grow the practice by improving operations, aggregating scale, and sharing resources, while allowing the physician shareholders to focus on maintaining and improving patient care. This can translate to further growth and success for the practice, their patients and the community.
If you’re a founder or shareholder of an independent physician practice wondering what the value of your practice is or would like some help to confirm/deny if a strategic partnership is an avenue worth exploring, please fill out the form below and one of our healthcare M&A advisors will be in touch.
