Investing in growth: Oak HC/FT backs Infusion for Health, FTV brings Vagaro’s valuation to $1bn

Oak HC/FT backs Infusion for Health and FTV investment values Vagaro at $1bn.

Good morning!

There appears to be a big growth opportunity in infusion therapy as this pocket of healthcare increasingly draws growth-oriented investors that see room to redefine the category.

In the latest such example, Oak HC/FT is investing behind a Los Angeles-based ambulatory infusion network called Infusion for Health with the aim of standing up its bigger vision around chronic disease management.

“The fact that the [ambulatory infusion] market is so nascent and fairly unsophisticated is driving savvy investors to say there’s a first-mover advantage to secure,” Infusion for Health CEO Dan McCarty told PE Hub. “A lot of centers are growing not because they’re doing it right, but because there are no good alternatives.”

In a market historically lacking optionality, there is real value in providing a more consumer-driven model (outside of the hospital) comprising modern clinics with perks like on-demand entertainment and snacks, particularly in chronic disease states where patients are on treatment for multiple years at a time, McCarty said.

Already on a fast growth track, the Thousand Oaks, California-based platform is growing at a north of 50 percent CAGR, with run-rate revenue north of $100 million and expanding rapidly on top of that, McCarty said.

Beyond checking the boxes around lower costs, higher quality and consumer experience, Oak HC/FT, which led a $50 million investment, is eager to solidify the platform’s position as a chronic disease management platform. “We think this is a pretty important first step to something more broad over time,” the firm’s Andrew Adams told PE Hub. Read my full report on PE Hub.

In other relevant deals of note, Great Hill Partners recently injected $100 million into IVX Health, looking to fuel its entry into new markets and support its strategic positioning. IVX already comprises 50 infusion centers across 16 markets. The investor joined Linden Structured Capital, McKesson Ventures, Health Velocity Capital, and Nueterra Capital.
In other big growth bets this morning, FTV Capital backed Vagaro, pushing its valuation to $1 billion.

Vagaro, a cloud-based business management platform for beauty, fitness and wellness businesses, will use the funding to continue to develop its tools for businesses to book appointments, manage inventory, collect rent, run payroll and more.

For FTV, the company’s resilience through the pandemic stood out: “Vagaro was able to pivot from helping businesses like fitness studios book in-person classes to enabling them to livestream more than 313,000 classes – a critical new revenue stream at a time when customers were not able to visit in person,” according to a Tuesday announcement. Read more on PE Hub.

Comms: If you’ve been following my coverage as of late, you know I’ve been writing about a flurry of medical communications agencies drawing private equity backing.

Another firm to put on your radar is Arsenal Capital, which is building out what it calls its Value Demonstration organization. This morning the PE firm said it acquired Guidemark Health, a healthcare marketing communications, training, and medical education agency with a focus on oncology and rare diseases.

Guidemark joins BresMed Health Solutions and Cello Health, which, each acquired in 2020, are also under the Value Demonstration umbrella. Read PE Hub’s brief on the deal.

In relevant activity to watch, I wrote in October that Court Square Partners had kicked off a sale process for Medical Knowledge Group, an analytics-driven medical communications agency. Read my report here.

That’s it for me! Have a great week ahead, and as always, write to me at springle@buyoutsinsider.com with any tips, gossip or feedback.