Persistence Capital Partners has closed its second investment vehicle, anchored by investment funds managed by Morgan Stanley Private Equity Secondaries, for MedSpa Partners Inc., a leading acquirer and operator of top-tier medical aesthetics clinics in North America.
PCP MSP II, L.P. raised over CDN $375 million or approximately US $275 million of capital commitments, exceeding the Continuation fund’s target size, and more than tripling the size of the initial investment vehicle for MSP (PCP MSP, L.P.) that was committed in 2019. MSP II was heavily oversubscribed and received strong support from new and existing LPs.
PCP MSP II, L.P. is led by General Partners, Stuart M. Elman and John Trang.
photo credit: PCP MSP
News Release
Persistence Capital Partners Exceeds Target and Closes on Over C$375 Million to Support MedSpa Partners Growth
TORONTO, Nov. 9, 2023 /CNW/ – Persistence Capital Partners (“PCP”), a leading Canadian private equity fund exclusively focused on high-growth opportunities in the healthcare field, is pleased to announce the closing of its second investment vehicle, anchored by investment funds managed by Morgan Stanley Private Equity Secondaries, for MedSpa Partners Inc. (“MSP”), the leading acquirer and operator of top-tier medical aesthetics clinics in North America.
PCP MSP II, L.P. (“MSP II” or the “Fund”) raised over C$375 million (~US$275 million) of capital commitments, exceeding the Continuation Fund’s target size, and more than tripling the size of the initial investment vehicle for MSP (“MSP I”) that was committed in 2019. MSP II was heavily oversubscribed and received strong support from new and existing LPs.
“PCP is thrilled to continue supporting the growth of MSP, which has successfully grown into North America’s leading platform for the medspa industry’s leading clinicians,” said John Trang, Partner at PCP and Chairman of MSP. “We are proud to continue our partnership with one of our best performing investments and look forward to supporting its future success.”
Speaking on the investment, MSP CEO Dominic Mazzone shared, “Partnerships are successful when diverse expertise, resources, and perspectives align together to create value for all stakeholders. This couldn’t be more evident than in our partnership with Persistence Capital. PCP has provided MedSpa Partners the ability to focus on acquiring, integrating, and growing the leading medical aesthetics practices in North America. Together, we have built the premier platform in the industry based on our shared philosophy of being a valued, profitable partner for both clinic owners and investors.”
The investment by PCP will help strengthen MSP’s ability to source and fund acquisitions, and invest in innovative initiatives.
“In making investments, we look for companies that are leaders in their industries. MedSpa Partners has a very clear passion to bring client centric premium aesthetic services to its clientele while partnering with the world’s leading clinicians and key opinion leaders. We are excited about supporting their mission as they grow,” said Yash Gupta, Partner at Morgan Stanley Private Equity Secondaries, an investment team within Morgan Stanley Investment Management, that is a leader in GP-led continuation vehicle transactions.
Stuart M. Elman, Managing Partner of PCP stated, “We are tremendously grateful for the confidence both new and existing investors have placed in us. In particular, we’re delighted to have the continued support from Morgan Stanley Private Equity Secondaries group, who have been highly constructive partners alongside us across multiple investment opportunities. Exceeding the Fund’s target amidst a highly challenging fundraising landscape is a strong endorsement of both MSP’s impressive investment performance as well as PCP’s investment strategy and value-add within the North American lower middle market.”
Harris Williams LLC served as exclusive placement advisor to PCP and MSP.
About Persistence Capital Partners
Persistence Capital Partners is Canada’s leading private equity fund exclusively focused on high-growth opportunities in the healthcare field. With deep healthcare industry expertise, PCP aims to create significant long-term capital appreciation for its investors by identifying and developing attractive investment opportunities in the healthcare market. PCP has offices in Toronto and Montreal. Additional information on PCP is available at www.persistencecapital.com.
About Morgan Stanley Private Equity Secondaries
Morgan Stanley Private Equity Secondaries, an investment team within Morgan Stanley Investment Management, seeks to deliver innovative private market solutions to a global client base. As part of a broader team of 50 dedicated private markets focused professionals, the secondaries business draws on decades of investment experience across private markets. For further information about Morgan Stanley Private Equity Secondaries, visit www.morganstanley.com/im/ashbridge.
About MedSpa Partners Inc.
MedSpa Partners is acquiring North America’s leading Medical Aesthetics clinics, with the goal of allowing our industry-leading partners to achieve their personal and professional aspirations by creating world-class customer experiences through support, collaboration, and community. MSP is a portfolio company of Persistence Capital Partners, the leading private equity fund exclusively focused on high-growth opportunities in the healthcare field. Additional information on MSP is available at www.medspapartners.com, or contact:
SOURCE MedSpa Partners Inc.
For further information: Nathaniel Barnes, 416-809-7553, Nbarnes@medspapartners.com