By Published On: April 10, 2021

The Attraction Continues

There are now thirty private equity firms with investments in dermatology practices and surgery centers. The number of private equity firms actively investing in dermatology practices increased dramatically from five to twenty-eight during the four-year period from 2015-2018. Then, after three quarters of no new entries, two new firms entered … one in the third quarter of 2019 and another in the first quarter of 2020.

These new entries are an indication that investors continue to see opportunity in dermatology practices and surgery centers.

PE Firms Investing in Dermatology 2012 – 1Q20

Making Sense of all the Names

Private equity firms usually create a subsidiary Practice Management Company within their portfolios to acquire and manage dermatology practices and ambulatory surgery centers. Most transactions include some equity ownership in that parent management company.

The combination of the private equity firm names and their practice management company names can be confusing and is simplified below.

To learn more about our healthcare investment banking services or to discuss your specific situation with no obligation please feel free to call.  We are happy to share our knowledge and help you understand your options. All conversations are strictly confidential.

Photo: Eric YetterEric Yetter

FOCUS Managing Director and Healthcare Team Leader

Direct: 615-477-4741

Eric Yetter is an investment banker focused on healthcare. His practice includes healthcare provider services, home health and hospice, and behavioral health. Mr. Yetter has completed a variety of healthcare transactions, many with private equity firms and PE-backed companies. His past clients include leading physician groups, healthcare facilities, and institutional healthcare investors. Mr. Yetter founded Physicians First in 2016, recognizing the emerging need for investment banking and advisory services for owners of physician practices, surgery centers and clinical businesses. The next four years saw record levels of physician-owner M&A activity and Physicians First became one of the nation’s most active advisors for transactions between private equity firms and medical practices. In 2021, Mr. Yetter agreed to merge Physicians First with FOCUS and lead the firm’s healthcare team. Mr. Yetter also has healthcare operating and investing experience. He was an early executive at Covenant Physician Partners (previously Covenant Surgical Partners), an acquirer and operator of ambulatory surgery centers and physician practices. The company built and operated an outsourced laboratory, an anesthesia business, and a revenue cycle management company. Covenant has grown into a major player in healthcare services and is currently backed by private equity firm KKR. Prior to Covenant, Mr. Yetter held operating roles at Volkswagen Group of America and Brainlab, Inc., an image guided surgery company. While at Brainlab, Mr. Yetter worked with leading neurosurgeons and hospitals to implement cutting edge technology and improve patient outcomes. Mr. Yetter is a licensed attorney (currently inactive) and earned JD and BS degrees from Vanderbilt University, graduating with high honors. He is a FINRA licensed investment banker.