NEW YORK–(BUSINESS WIRE)–Zenyth Partners (“Zenyth”), a healthcare-focused private equity firm specializing in consumer-facing and tech-enabled healthcare services, announced today the successful completion of a transformative continuation fund transaction. The continuation fund is composed of both secondary and primary capital commitments, co-led by funds managed by BlackRock (“BlackRock Funds”) and Manulife Investment Management with support from Newbury Partners, which funded the purchase of minority stakes in three portfolio companies (the “Sale Portfolio”) from Zenyth Partners, LP, a 2018 vintage permanent capital vehicle. Each of the Sale Portfolio companies were founded by the Zenyth team.
The transaction represents a strong outcome for Zenyth Partners, LP and affiliates by more than fully returning capital invested in the Sale Portfolio at a valuation representing over 4x MOIC. The Zenyth General Partnership reinvested the entirety of its capital investment and proceeds realized from the transaction and committed additional new capital given its continued conviction in the Sale Portfolio.
The Sale Portfolio includes:
- The Smilist Management (“Smilist”), founded in 2014 with its first practice, is a leading dental support organization focused on the New York and Philadelphia metro markets with over 50 offices and 1,000 employees;
- ReFocus Eye Health (“ReFocus”), founded in 2018 with its first practice, is a leading ophthalmology practice management company with over 30 offices in New England and the Mid-Atlantic; and
- Helping Hands Family (“HHF”), founded in 2019 with its first clinic, is a rapidly growing provider of applied behavioral analysis and related services to children impacted by autism spectrum disorder serving 22 markets.
The transaction will provide Zenyth’s evergreen fund with new capital to be opportunistically redeployed in new investment opportunities while raising additional capital in the continuation fund to support the continued growth of the Sale Portfolio.
“This is a significant milestone for the Zenyth Partners franchise. We welcome the support of new blue-chip institutional partners,” said Rob Feuer, Managing Partner of Zenyth. “We are proud of the performance of the Smilist, ReFocus and HHF, and we believe this transaction validates our operationally-focused model of building sustainable patient- and provider-centric healthcare businesses leveraging consumer and tech-enabled concepts to drive industry leading KPIs. We look forward to continue driving long-term value for all stakeholders with supportive new partners.”
Sean Hayes, Partner of Zenyth, added, “We are extremely pleased by the profound support of our strategy and portfolio by the market in the midst of a challenging environment. This transaction not only marks a new chapter of growth for our companies, but also for Zenyth. We look forward to deploying additional capital across the current companies and new platform investments, building our investment and operations teams and scaling our platform. We have no doubt that we will continue to make a positive impact alongside management teams on behalf of the patients and providers we serve.”
Jefferies served as exclusive financial advisor through the partnership of its Private Capital Advisory and Healthcare teams, with Debevoise & Plimpton serving as Zenyth legal counsel. Akin Gump acted as legal counsel for the lead investors.
About Zenyth Partners
Zenyth Partners is an operationally focused investment firm focused on building leading healthcare organizations. With long-term capital, Zenyth establishes lasting partnerships centered around building sustainable healthcare organizations and ensuring success for all stakeholders: patients, clinicians, and administrative staff. Zenyth has been active in building healthcare businesses including The Smilist Management, ReFocus Eye Health, Helping Hands Family, Schweiger Dermatology Group and Renal Care 360. For more information, visit www.zenythpartners.com.
About BlackRock Alternatives
BlackRock Alternatives serves investors seeking outperformance in real estate, infrastructure, private equity, credit, hedge funds and alternative solutions. BlackRock manages $320 billion in alternative investments and commitments on behalf of clients worldwide as of June 30, 2022. For more information, please visit www.blackrock.com.
About Manulife Investment Management
Manulife Investment Management is the global brand for the global wealth and asset management segment of Manulife Financial Corporation. We draw on more than a century of financial stewardship and the full resources of our parent company to serve individuals, institutions, and retirement plan members worldwide. Headquartered in Toronto, our leading capabilities in public and private markets are strengthened by an investment footprint that spans 19 geographies. We complement these capabilities by providing access to a network of unaffiliated asset managers from around the world. We’re committed to investing responsibly across our businesses. We develop innovative global frameworks for sustainable investing, collaboratively engage with companies in our securities portfolios, and maintain a high standard of stewardship where we own and operate assets, and we believe in supporting financial well-being through our workplace retirement plans. Today, plan sponsors around the world rely on our retirement plan administration and investment expertise to help their employees plan for, save for, and live a better retirement. Not all offerings are available in all jurisdictions. For additional information, please visit www.manulifeim.com.
About Newbury Partners
Newbury Partners was established in 2006 by an experienced team of senior investment professionals focused on the secondary private equity market. The firm manages more than $6.2 billion of capital commitments on behalf of approximately 300 limited partners worldwide. Since the firm’s inception, the Newbury team has completed more than 300 secondary and co-investment transactions. For more information, please visit www.newbury-partners.com.