NEW YORK–Zenyth Partners, a leading healthcare-focused private equity firm, has announced the successful completion of a significant continuation fund transaction, reinforcing its position in the healthcare investment landscape. The transaction, finalized recently, involves a continuation fund co-led by prominent investment firms BlackRock Funds and Manulife Investment Management, with additional backing from Newbury Partners. This strategic move highlights the strong performance of Zenyth Partners’ portfolio and sets the stage for future growth.
This continuation fund was specifically structured to facilitate the purchase of minority stakes in three high-performing portfolio companies from Zenyth Partners, LP, a 2018 vintage permanent capital vehicle. These companies, collectively referred to as the “Sale Portfolio,” were all founded by the Zenyth team, showcasing their operational expertise from inception.
The transaction has yielded substantial returns for Zenyth Partners, LP and its affiliates, effectively more than fully returning the invested capital in the Sale Portfolio at a valuation exceeding 4x Multiple on Invested Capital (MOIC). Demonstrating strong confidence in the continued success of the Sale Portfolio, the Zenyth General Partnership has reinvested all capital investment and realized proceeds from this transaction, alongside committing additional new capital.
Spotlight on the Sale Portfolio Companies
The Sale Portfolio encompasses three thriving businesses within the healthcare sector, each demonstrating leadership in their respective markets:
- The Smilist Management (“Smilist”): Established in 2014, Smilist has grown into a premier dental support organization (DSO) with a dominant presence in the New York and Philadelphia metro areas. Starting with a single practice, Smilist now supports over 50 offices and employs over 1,000 professionals, providing comprehensive dental services.
- ReFocus Eye Health (“ReFocus”): Founded in 2018, ReFocus has rapidly become a leading ophthalmology practice management company across New England and the Mid-Atlantic regions. Beginning with its first practice, ReFocus has expanded its network to over 30 offices, offering advanced eye care services.
- Helping Hands Family (“HHF”): Launched in 2019, HHF is a fast-growing provider of applied behavioral analysis (ABA) and related services for children with autism spectrum disorder. From its initial clinic, HHF now serves 22 markets, addressing the increasing need for specialized autism care.
This strategic transaction provides Zenyth’s evergreen fund with substantial new capital, which will be strategically redeployed into promising new investment opportunities. Simultaneously, the additional capital raised in the continuation fund is specifically earmarked to fuel the ongoing expansion and development of the Sale Portfolio companies.
Executive Perspectives on the Transaction
Rob Feuer, Managing Partner at Zenyth Partners, commented on the milestone achievement: “This transaction marks a significant milestone for the Zenyth Partners franchise. We are excited to welcome the support of new, blue-chip institutional partners.” He further emphasized the firm’s pride in the performance of Smilist, ReFocus, and HHF, stating, “We believe this transaction validates our operationally-focused model of building sustainable patient- and provider-centric healthcare businesses. By leveraging consumer and tech-enabled concepts, we drive industry-leading KPIs. We look forward to continuing to drive long-term value for all stakeholders with our supportive new partners.”
Sean Hayes, Partner at Zenyth, added, “We are extremely pleased by the strong market endorsement of our strategy and portfolio, especially amidst a challenging economic environment. This transaction signifies not only a new growth phase for our portfolio companies but also for Zenyth Partners itself. We are eager to deploy additional capital across our existing companies and new platform investments, expand our investment and operations teams, and scale our platform. We are confident in our continued ability to make a positive impact alongside management teams, benefiting the patients and providers we serve.”
Jefferies acted as the exclusive financial advisor for this transaction, through a collaboration between its Private Capital Advisory and Healthcare teams. Legal counsel was provided by Debevoise & Plimpton for Zenyth, and Akin Gump served as legal counsel for the lead investors.
About Zenyth Partners
Zenyth Partners stands out as an operationally focused investment firm committed to developing leading healthcare organizations. With a long-term capital perspective, Zenyth fosters enduring partnerships aimed at building sustainable healthcare businesses that prioritize the success of all stakeholders – patients, clinicians, and administrative staff. Zenyth’s active involvement in building successful healthcare businesses includes The Smilist Management, ReFocus Eye Health, Helping Hands Family, Schweiger Dermatology Group, and Renal Care 360. For more detailed information, please visit www.zenythpartners.com.
About BlackRock Alternatives
BlackRock Alternatives is a premier provider of alternative investment solutions, catering to investors seeking enhanced performance across real estate, infrastructure, private equity, credit, hedge funds, and alternative solutions. As of June 30, 2022, BlackRock manages $320 billion in alternative investments and commitments globally. For further details, please visit www.blackrock.com.
About Manulife Investment Management
Manulife Investment Management is the global asset management division of Manulife Financial Corporation, leveraging over a century of financial expertise. Serving individuals, institutions, and retirement plan members worldwide, Manulife Investment Management boasts leading capabilities in both public and private markets, supported by a global investment footprint across 19 geographies. Committed to responsible investing, Manulife Investment Management actively promotes sustainable practices and financial well-being. For more information, please visit www.manulifeim.com.
About Newbury Partners
Newbury Partners, established in 2006, is a specialist in the secondary private equity market. Managing over $6.2 billion of capital commitments for approximately 300 limited partners globally, Newbury Partners has completed over 300 secondary and co-investment transactions since its inception. For additional details, please visit www.newbury-partners.com.
Contact Information
Zenyth Partners
Sean Hayes
[email protected]
