Partners Group invests in Forefront Dermatology

Structured as a secondary institutional buyout, the definitive acquisition agreement formalizes the transfer of Forefront Dermatology from exiting sponsor OMERS Private Equity to the incoming global investment manager Partners Group AG. Announced in February 2022, the financial architecture of this corporate transaction values the targeted clinical network at an enterprise value of €1–10bn. Following the close of the transaction scheduled for the early second quarter of 2022, the existing executive leadership team and the affiliated network of medical physicians will explicitly retain an ownership stake in the newly recapitalized structure. Furthermore, the exiting sponsor OMERS Private Equity intends to strategically reinvest a portion of its proceeds to remain a minority shareholder alongside Partners Group AG. This divestiture concludes a highly successful six-year holding period for OMERS Private Equity, during which the pension fund arm supported the medical platform in doubling its geographic footprint and clinician base, ultimately generating a lucrative capital event for the 525,000 members of the OMERS pension plan under the strategic supervision of Global Head Michael Graham and Managing Director Mark Van Wart. To orchestrate this healthcare transaction, the selling consortium assembled an extensive advisory roster. OMERS Private Equity and Forefront Dermatology exclusively retained the investment banking firm Harris Williams to pilot the competitive financial auction, with Ernst & Young handling the specialized financial and accounting due diligence. Legal structuring and regulatory compliance for the sellers were jointly coordinated by the law firms Sidley Austin and McDermott Will & Emery. Conversely, the acquiring sponsor Partners Group AG secured buy-side financial advisory services from Deutsche Bank and comprehensive legal representation from Ropes & Gray.

The acquisition of Forefront Dermatology is part of the growth strategy of Partners Group, which already has several external growth operations under its belt, notably Atnorth in 2022.