Canadian private equity firm Penfund has invested US$47 million of second lien debt and equity in Forefront Dermatology, a provider of practice management services to dermatology clinics. The investment was made in support of OMERS Private Equity‘s previously announced acquisition of the Manitowoc, Wis.-based company from Varsity Healthcare Partners. Toronto-based Penfund, a provider of junior capital to mid-market companies in the United States and Canada, has partnered with OMERS in the past. In late 2013, Penfund extended a loan to Caliber Collision Centers Inc shortly after its acquisition by OMERS.
Penfund Announces US$47 Million Investment in Forefront Dermatology
TORONTO, ONTARIO–(Marketwired – Feb. 17, 2016) – Penfund, an independent provider of junior capital to middle market companies located in the United States and Canada, announced today the completion of a U.S. $47.0 million second lien debt and equity investment in Forefront Dermatology (“Forefront” or the “Company”) in support of an acquisition by OMERS Private Equity (“OPE”).
Headquartered in Manitowoc, Wisconsin, Forefront provides practice management services to Dermatology Associates of Wisconsin (“DAW”), a large specialty group practice comprising community-based board certified specialists that provide best-in-class dermatology care. DAW was founded in 2001 by Dr. Kenneth H. Katz and began operating under the Forefront name in 2014. Today, Forefront operates more than 80 clinics across 11 Midwestern and Mid-Atlantic states. The Company’s operational infrastructure includes centralized support services and advanced information technology, which enable dermatologists to focus on delivering exceptional patient care. Forefront has grown to include over 90 board-certified dermatologists and has delivered a consistent track record of clinical excellence, highlighted by exceptional patient satisfaction scores and high employee retention rates.
Jeremy Thompson, a partner at Penfund, commented, “We are delighted to be able to support OMERS again and are excited to partner with Forefront. We believe the acquisition will enable Forefront to continue its rapid expansion strategy and maintain its clinical leadership.”
About OMERS Private Equity
OMERS Private Equity invests globally in private equity assets on behalf of the OMERS pension plan. Investments are aimed at generating strong returns to help deliver secure and sustainable pensions to OMERS members. OPE has offices in Toronto, New York, and London. OMERS is one of Canada’s largest pension funds with net assets of CAD$72 billion.
Penfund is a leading provider of junior capital to middle market companies throughout North America. The firm is owned by its management team and is currently investing its most recently established fund, Penfund Capital Fund V. Penfund manages funds sourced from Canadian pension funds, insurance companies, banks, family offices and high-net-worth individuals and has invested more than $3 billion in over 225 companies since its establishment in 1979. Assets and capital under management presently amount to about $1 billion.
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