Pediatric Private Equity - Physician Growth Partners

Pediatric Private Equity – Market Update

Spring 2023


The private equity market in the Pediatrics arena is witnessing an impressive surge of interest. Traditionally, private equity firms in the healthcare industry have been inclined towards single specialty providers in retail or surgically driven verticals (Dermatology, Eye Care, Orthopedics, Urology, etc.) where profitability is high and operational efficiencies that can be achieved through consolidation are extensive. However, as the shift to value-based reimbursement models continues to accelerate alongside a huge uptick in demand, Primary Care, and particularly Pediatric Primary Care, has become a specific area of interest due to the unique ability to impact the broader healthcare system through demonstrable, exceptional outcomes.

While only two pure-play Pediatrics platforms exist today, interest in entering the space has grown to new heights as investors look to leverage their experience and strategies from other PPM investments in this unique, evolving, and incredibly fragmented environment.

Most recently, Webster Equity Partners, one of the most experienced physician practice investors, partnered with Pediatric Affiliates in New Jersey through a transaction led by PGP. Pediatric Affiliates’ value-based model (capitation, shared savings, and incentive bonuses) from a reimbursement perspective, coupled with unmatched accessibility and a comprehensive service offering (including new behavioral health services) reflects the evolution of a rapidly changing space that maintains massive upside for those that can innovate effectively.

Increasing demand for high-quality assets is creating a situation where forward-thinking, proactive groups have an opportunity to bring in outside capital and operational experience to redefine the Pediatric care delivery model. We expect 2023 will serve as the starting point of widespread activity in this space.

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

Recent Pediatric Transactions

2023Pediatric Affiliates*Webster Equity PartnersInitial Platform: Pediatric AffiliatesNew Jersey
2021Pediatric AssociatesTPG (Minority Recapitalization)Pediatric Associates Florida
2019Pediatric AssociatesSummit PartnersInitial Platform: Pediatric AssociatesFlorida
1995Pediatrix (FKA Mendax)Initial Public Offering (NYSE: MD)Pediatrix (FKA Mendax)Florida
1994Pediatrix (FKA Mendax)Summit PartnersInitial Platform: Pediatrix (FKA Mendax)Florida
* – PGP provided transaction advisory services

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 Physician Practice Transaction Expertise

Learn More About Pediatrics Private Equity