Dermatology Private Equity – Market Update

Dermatology saw its first private equity investment in 2011 which sparked a decade-long wave of national consolidation in the space. Most recently, HEP Fund’s partnership with New York-based MD Alliance Solutions in August of 2020 brought the total PE-backed platforms in the space to over 30. 

We’re currently seeing strength in capital markets driving strong activity both in terms of add-on acquisitions (PGP has advised on two dermatology transactions already this year and expects to close two more before year end). At the same time sponsors are seeing an opportunity to transact in the market and currently OMERS-backed Forefront Dermatology is in the market and will soon transact with a larger private equity group to continue its growth trajectory.

While dermatology has been one of the more heavily consolidated specialties (seeing over 15 transactions in the last 6 months alone), there is still significant runway within the market as groups compete for key assets and market share.

Select Recent Private Equity Transactions in the Dermatology Space

Physician Growth Partners

Physician Growth Partners is a firm that recognizes and prioritizes the importance of clinically focused outcomes, first and foremost. The groups that allow us to advise them will attest to the fact that we always emphasize partnership over economics. When the highest level of care is delivered, financial success will always follow.