Medical Aesthetics Private Equity - Physician Growth Partners

Medical Aesthetics Private Equity – Market Update

Spring 2023


Following a wave of consolidation across various provider-led healthcare specialties, private equity investors have now targeted the historically overshadowed Medical Aesthetics industry, which includes Medical Spas (“MedSpas”), Cosmetic Dermatology, and Plastic Surgery practices.

The Medical Dermatology segment has seen heavy consolidation in the last decade, with more than 20 platforms now active across the country. Their focus has been on services that are reimbursed by government or commercial carriers. Historically, there has been hesitation by sponsors to invest in aesthetically focused groups (i.e., the Medical Aesthetics industry) given perceived cyclicality and the risk associated with customers bearing 100% of the service costs.

However, we have seen that tide begin to turn in earnest as sponsors are recognizing the significant market fragmentation and attractive macro/micro dynamics existing in the Medical Aesthetics space. The industry boasts a market size of $17.5 billion with a 5-year CAGR of ~10%. Additionally, Medical Aesthetics practices have proven to be resilient and have continued to see strong growth throughout recessionary periods in which other general discretionary spending has declined.

As private equity investors and existing strategic consolidators begin to recognize the growth potential within the Medical Aesthetics space, we anticipate continued sponsor-backed capital will fuel new platforms and bolt-on investments to the 15+ existing Medical Aesthetic platforms.

Over the last 12-18 months, PGP has seen a surge of new private equity platform investments established, including Advanced Medaesthetic Partners (Leon Capital Group), Alpha Aesthetics Partners (Thurston Group), Princeton Medspa Partners (Princeton Equity Group), Athenix (Latticework Capital), and Inspire Aesthetics (Hidden Harbor Capital Partners), further illustrating interest in Medical Aesthetic groups and the expanding market for acquisitions.

PGP expects the attractive investment dynamics and tailwinds associated with the Medical Aesthetics space to continue for the foreseeable future, creating a significant opportunity for independent owners and operators to capitalize on and utilize investor expertise to scale and grow their practices in this rapidly expanding segment.

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

Recent Transaction Activity in Medical Aesthetics

April 2023Esthetics CenterAlpha Aesthetics CenterThurston GroupCalifornia
April 2023Faces of South TampaMedSpa PartnersPersistence Capital PartnersFlorida
March 2023SkinjectablesPrinceton MedSpa PartnersPrinceton Equity GroupArizona
March 2023Destination AestheticsAdvanced Medaesthetic PartnersLeon Capital GroupCalifornia
February 2023SkintasticPrinceton MedSpa PartnersPrinceton Equity GroupFlorida
February 2023Dr. Shino BayMedSpa PartnersPersistence Capital PartnersFlorida
February 2023The Aesthetic CliniqueAdvanced Medaesthetic PartnersLeon Capital GroupFlorida
February 2023Main Line Center for Laser SurgeryAdvanced Medaesthetic PartnersLeon Capital GroupPennsylvania
February 2023Advanced Skin & Body SolutionsMedSpa PartnersPersistence Capital PartnersWashington
February 2023Dr. Dorris DayMedSpa PartnersPersistence Capital PartnersNew York
February 2023Reflections Center for Cosmetic MedicineAdvanced Medaesthetic PartnersLeon Capital GroupNew Jersey

About Physician Growth Partners

  • Physician Growth Partners (PGP) is a transaction advisory firm that represents independent physician groups working with private equity
  • We are Healthcare Transaction Advisors differentiated by:
    • Senior partner involvement at every stage of the process
    • Extensive physician practice transaction experience
    • Unmatched relationships with all key private equity and strategic buyers interested in eye care
    • Educational approach focused on partnership and cultural fit, while achieving a market clearing valuation

Relevant Aesthetic Transaction Expertise

Learn More About Medical Aesthetics Private Equity