Pharos Capital Group has acquired a controlling position in Dermatology and MedSpa, Inc. Pharos intends to grow the company by acquiring and consolidating other dermatology practices in the eastern United States.
Dermatology and MedSpa (DMS) is a provider of medical, surgical and cosmetic dermatology services across multiple locations in the Maryland/Washington, DC metropolitan areas. The company employs 11 board certified dermatologists and one board certified plastic surgeon. DMS does business as “The Dermatology Center” (www.dermskin.com).
To launch this platform, Pharos is partnering with Steve Straus, an experienced dermatology and skin care operating executive. Mr. Straus, who previously managed American Laser Skincare, will serve as Chief Executive Officer, and Dr. Roberta Palestine, The Dermatology Center’s founder, will serve as Chief Medical Officer while continuing to practice medicine.
“Pharos has identified dermatology as a key area of interest for investment, with attractive demographic trends and a growing opportunity to improve outcomes for both patients and payors,” said Bob Crants, Co-Founder and Managing Partner at Pharos. “Demand for dermatology services is outstripping supply, and we believe there is significant opportunity for consolidation in the sector. We are confident that this is the first of many dermatology investments for Pharos.”
The buy of DMS is the fourth portfolio investment from Pharos Fund III, following Pharos’ acquisition of behavioral health services provider Seaside Healthcare; Employee Benefit Solutions, a provider of healthcare cost containment services; and Motion PT, a provider of physical therapy and occupational therapy services.
Pharos Capital Group invests $25 million to $50 million in companies seeking later stage funding for internal growth, acquisitions, management buyouts or recapitalizations. The firm invests across many sectors but has a particular interest in healthcare and business services. Pharos has offices in Dallas and Nashville (www.pharosfunds.com).
© 2016 PEPD • Private Equity’s Leading News Magazine • 1-6-16