Dermatology Private Equity | Healthcare Private Equity | PGP

State of Dermatology Private Equity

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.

Dermatology Private Equity Market Update

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

DateTargetPlatformPE SponsorState
June 2021Sperling Dermatology*Forefront DermatologyOMERSNew Jersey
June 2021Goodman DermatologyWaters Edge/RiverchaseGryphon InvestorsGeorgia
May 2021Village DermatologyForefront DermatologyOMERSAlabama
May 2021Spectrum DermatologyPinnacle DermatologyChicago Pacific FoundersArizona
April 2021Ariano DermatologyPinnacle DermatologyChicago Pacific FoundersIllinois
February 2021Advanced Dermatology Associates*MDAllianceHealth Equity PartnersNew York
January 2021Carolina Skin CareAnne Arundel DermatologyRidgemont Equity PartnersFlorida
January 2021Sunflower DermatologyEpiphany DermatologyCI Capital PartnersTexas
January 2021Virginia Dermatology & Skin Care Center Pinnacle DermatologyChicago Pacific FoundersVirginia
December 2020DeSoto DermatologyEpiphany DermatologyCI Capital PartnersTexas
December 2020Nielson DermatologyAdvanced Dermatology & Cosmetic SurgeryAudax Private EquityFlorida
December 2020Colorado Dermatology SpecialistsAdvanced Dermatology & Cosmetic SurgeryAudax Private EquityColorado
October 2020Harkaway Center for Dermatology and AestheticsSchweiger DermatologyLNK PartnersNew Jersey
October 2020Dermatology Associates of MontgomeryAdvanced Dermatology & Cosmetic SurgeryAudax Private EquityAlabama
September 2020Dermatology & Plastic Surgery*Forefront DermatologyOMERSFlorida
September 2020SkinSmart DermatologyDermCare Management    Hildred Capital ManagementFlorida
August 2020MD AllianceMD AllianceHealth Equity PartnersNew York
August 2020SkinCare ColoradoEpiphany DermatologyCI Capital PartnersColorado
July 2020Dermatology & Cosmetics Surgery AssociatesAnne Arundel DermatologyNMS CapitalMaryland
June 2020Skin and Laser Specialists of NY & NJSchweiger DermatologyLNK PartnersNew York & New Jersey
*Represented by Physicians Growth Partners

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.

Discuss Dermatology Market Activity With Our Team: