Dermatology Private Equity | Market Update Fall 2022 | PGP

Dermatology Private Equity – Market Update

Fall 2022

Dermatology saw its first private equity investment in 2011, activity which sparked a decade-long wave of wide-spread, national consolidation in the space. With the early days of consolidation behind us and over 30 active PE backed platforms operating in the space, recent activity has seen consolidators coming together or recapitalizing for the next wave of growth. Most recently, Water’s Edge and Riverchase merged to form Aqua Dermatology, and Platinum and West Dermatology came together as well. Additionally, Forefront, Pinnacle, Epiphany, and Dermatologists of Central States (“DOCS”), some of the largest groups in the market, went through majority recapitalizations, while Schweiger Dermatology successfully closed a minority recapitalization.

The activity we’re currently seeing despite the state of the capital markets indicates continued, accelerated activity, specifically in terms of add-on acquisitions by strategic acquirers (PGP advised on a large dermatology transaction already this year and expects to close two more before year end). At the same time, existing sponsor backed groups continue to evaluate transacting – PGP is aware of two in the market that will soon do so to continue growth.

While dermatology has seen widespread activity, the recent trajectory has led to multiple proven, successful platforms with fresh pools of capital aimed at capturing the significant opportunity that still exists in dermatology as groups compete for key assets and market share. 

Interested in how private equity can be helpful in your practice?

Relevant Private Equity Transactions Over the Last Twelve Months

DateTargetPlatformPE SponsorState
July 2022MetroDerm*United Derm PartnersFrazier HealthcareGeorgia
June 2022Dermatologists of Central States (Recapitalization)Dermatologists of Central StatesSkyNight CapitalOhio
June 2022Platinum Derm / West Derm (Merger)Platinum DermatologySterling PartnersTexas
February 2022Epiphany Dermatology (Recapitalization)Epiphany DermatologyLeonard Green PartnersTexas
January 2022Dermatology Specialists of AugustaAnne Arundel DermatologyRidgemont EquityGeorgia
January 2022Atlantic DermatologyAnne Arundel DermatologyRidgemont EquityFlorida
December 2021Skin Physicians & Surgeons (Dr. Pimple Popper)Forefront DermatologyOMERSAlabama
December 2021Fairmont DermatologyGolden State DermatologySorenson CapitalCalifornia
December 2021Greenville DermatologyAdvanced Dermatology & Cosmetic SurgeryAudaxSouth Carolina
November 2021Pinnacle Dermatology (Recapitalization)Pinnacle DermatologyBayPineIllinois
October 2021LaserAway (Recapitalization)LaserAwayAres ManagementLouisiana
October 2021Mid-Cities DermatologyEpiphany DermatologyCI Capital PartnersTexas
October 2021The Derm GroupSchweiger DermatologyLNK PartnersNew Jersey
October 2021Warmuth Institute of DermatologySchweiger DermatologyLNK PartnersNew Jersey
October 2021Avail DermatologyEpiphany DermatologyCI Capital PartnersGeorgia
August 2021Summit DermatologyPinnacle DermatologyChicago Pacific FoundersTexas
August 2021Dermatology Associates of WV and MarylandPinnacle DermatologyChicago Pacific FoundersWest Virginia & Maryland
August 2021Teton DermatologyEpiphany DermatologyCI Capital PartnersWyoming
June 2021Sperling Dermatology*Forefront DermatologyOMERSNew Jersey
June 2021Goodman DermatologyWaters Edge/RiverchaseGryphon InvestorsGeorgia
*Represented by Physician Growth Partners

About Physician Growth Partners

  • Physician Growth Partners (PGP) is a transaction advisory firm which represents independent physician groups in transactions with private equity
  • Differentiated Healthcare Transaction Advisors:
    • Senior partner involvement at every stage of the process
    • Extensive dermatology transaction experience
    • Unmatched relationships with all key private equity and strategic buyers interested in Dermatology
    • Educational approach focusing on both partnership and cultural fit, while simultaneously achieving a market clearing 

Recent Relevant Dermatology Experience

The Ross Center Transaction
Psych360  Transaction
Hodari Tombstone
Mays N Schnapp Transaction
Urology associates transaction
NW Specialists Transaction

Learn More About Dermatology Private Equity

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