Goldman Sachs Asset Management and Charlesbank Capital Partners to Acquire Majority Ownership of MDVIP from Leonard Green & Partners and Summit Partners
Boca Raton, Fla. – August 19, 2021 – MDVIP, the national leader in personalized membership-based healthcare, today announced that the Private Equity business within Goldman Sachs Asset Management (“Goldman Sachs”) and Charlesbank Capital Partners (“Charlesbank”) have entered into a definitive agreement to acquire majority ownership of MDVIP from Leonard Green & Partners (“LGP”) and Summit Partners.
Founded in 2000, MDVIP leads the market in membership-based healthcare with a national network of over 1,100 primary care physicians serving 357,000 patients. In the MDVIP model, doctors have smaller practices compared to those in traditional, high-volume medicine. This allows them to spend more time with patients and provide attentive, individualized care with an emphasis on preventive health and wellness. MDVIP has achieved unrivaled patient satisfaction scores, which in addition to its annual membership renewals, consistently exceed 90 percent.
“The past 18 months have been a catalyst for Americans to become more engaged in their health, and many are recognizing the need for better prevention and coaching from a primary care doctor who really knows them,” said MDVIP Chairman and CEO Bret Jorgensen. “For 21 years, MDVIP has built and scaled its physician practice model to meet this consumer demand, and the market for our services will continue its momentum. This investment by Goldman Sachs and Charlesbank speaks to the strength and resiliency of our business model, and we are excited to partner with them as we embark on our next phase of growth.”
As part of its growth strategy, MDVIP is continuously expanding its portfolio of services to meet the needs of new customer segments. For example, the company is working with hospital systems to incorporate the MDVIP model into their primary care offering. To address the unique health concerns of women, the company has introduced a Women’s Health Program that pairs gynecological health with preventive primary care. These are in addition to the company’s existing partnerships with employers to offer an executive health program as a benefit to employees.
“MDVIP has an impressive track record of delivering business growth to investors and proven healthcare outcomes that benefit patients, physicians and the healthcare system at large,” said Jo Natauri, Partner and Global Head of Private Healthcare Investing within Goldman Sachs Asset Management. “The company’s history and ability to adapt to a rapidly changing healthcare environment make it a strong addition to our investment portfolio, and we look forward to partnering with Charlesbank and the MDVIP management team.”
“MDVIP has a proven and innovative business model that represents the best in membership medicine,” said Brandon White, Managing Director at Charlesbank. “We are excited to back this talented management team as they build on their historical track record of outstanding services for physicians and members alike.” Added Josh Beer, also a Charlesbank Managing Director, “We look forward to working with Goldman Sachs to help MDVIP accelerate its growth and further solidify its position as the market leader in this consumer-driven healthcare landscape.”
Over time, the MDVIP primary care model has improved patient outcomes as demonstrated by clinical data published in ten peer-reviewed studies. The research shows that patients in MDVIP-affiliated practices have fewer heart attacks and strokes, better chronic care management of diseases like diabetes and high blood pressure, and more preventive screenings including regular colonoscopies, mammograms and bone density scans. Compared to patients in traditional practices, MDVIP members have also experienced reduced hospitalizations, lower hospital readmission rates and fewer visits to urgent care centers and emergency rooms, which have led to significant cost savings to the healthcare system.
Alyse Wagner, Partner at LGP, commented, “MDVIP continues to transform primary care for Americans across the country. It has proven to be a successful model for both doctors and patients, and we have great confidence in the future of its business.”
MDVIP Chairman and CEO Bret Jorgensen added, “This is a pivotal moment for U.S. healthcare companies, and we appreciate the support we received from Leonard Green & Partners and Summit Partners. We also thank our community of physicians, members and employees who every day are advancing MDVIP’s purpose of ‘making healthier lives happen.’”
The transaction is expected to close in Q4 following receipt of customary regulatory approvals. Financial terms were not disclosed.
MDVIP leads the market in membership-based healthcare that goes far beyond concierge medicine services with a national network of over 1,100 primary care physicians serving 357,000 patients. MDVIP-affiliated physicians limit the size of their practices, which affords them the time needed to provide patients with more individualized service and attention, including an annual, comprehensive preventive care program and customized wellness plan. MDVIP, which celebrated its 20th anniversary last year, has been a Great Place to Work-Certified® company since 2018 and is recognized by Fortune as one of the 2021 Best Workplaces in Healthcare. For more information, visit www.mdvip.com or follow on LinkedIn.
About Goldman Sachs Asset Management Private Equity
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2.3 trillion in assets under supervision worldwide as of June 30, 2021. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Established in 1986, the Private Equity business within Goldman Sachs Asset Management has invested over $75 billion since inception. We combine our global network of relationships, our unique insight across markets, industries and regions, and the worldwide resources of Goldman Sachs to build businesses and accelerate value creation across our portfolios. Follow us on LinkedIn.
About Charlesbank Capital Partners
Based in Boston and New York, Charlesbank Capital Partners is a middle-market private investment firm with more than $15 billion of capital raised since inception. Charlesbank focuses on management-led buyouts and growth capital financings, and also engages in opportunistic credit and technology investments. The firm seeks to build companies with sustainable competitive advantage and excellent prospects for growth. For more information, please visit www.charlesbank.com.
About Leonard Green & Partners
LGP is a leading private equity investment firm founded in 1989 and based in Los Angeles with over $50 billion of assets under management. The firm partners with experienced management teams and often with founders to invest in market-leading companies. Since inception, LGP has invested in over 100 companies in the form of traditional buyouts, going-private transactions, recapitalizations, growth equity, and selective public equity and debt positions. The firm primarily focuses on companies providing services, including consumer, business and healthcare services, as well as retail, distribution and industrials.
About Summit Partners
Founded in 1984, Summit Partners is a global alternative investment firm that is currently managing more than $28 billion in capital dedicated to growth equity, fixed income and public equity opportunities. Summit invests across growth sectors of the economy and has invested in more than 500 companies in technology, healthcare and other growth industries. Summit maintains offices in North America and Europe, and invests in companies around the world. For more information, please see www.summitpartners.com or follow on LinkedIn.
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