Consumer-focused private markets firm L Catterton held the close of its continuation fund transaction for its portfolio company PatientPoint Health Technologies, a leading tech-enabled point-of-care patient engagement provider.
The transaction sees the $33 billion firm maintaining its position in PatientPoint and includes investments from funds advised by Neuberger Berman (lead investor) and funds advised by Fortress Investment Group (co-lead investor).
Littlejohn & Co., who partnered with L Catterton following PatientPoint’s merger with Outcome Health in 2021, will retain its ownership.
“Over the course of our investment, PatientPoint has transformed into a leading digital patient engagement platform improving health outcomes for patients, and we believe the business continues to have opportunities to accelerate its growth,” said Andrew Taub, a managing partner in Greenwich, Conn.-based L Catterton’s Flagship Fund. “We are excited to continue our partnership through a transaction that not only provides new capital to PatientPoint to support product expansion, but also presents an attractive liquidity option to L Catterton’s existing investors.”
With the combination with Outcome Health, PatientPoint is now an industry-leading platform serving roughly 140,000 healthcare practitioners and impacting over 750 million patient visits each year across the U.S. The company educates patients through the national largest interconnected network of digital devices in healthcare practice.
“We look forward to continuing to work with PatientPoint’s talented team to strengthen the company’s value proposition during its next phase of growth,” Taub added.
The deal indicates the continuation trend where private equity firms including Insight Partners, One Equity Partners and Morgan Stanley are holding portfolio companies for longer is still popular as exit transactions slow down. The size of the fund was not disclosed by L Catterton.
Mike Collette, founder and CEO of PatientPoint, said that the additional investment will be used to fuel growth initiatives and the partnership with L Catterton validates the company’s momentum that it has generated.
“We have been impressed both by LCatterton’s consumer expertise and PatientPoint’s opportunity to leverage their expansive HCP network to offer a full set of digital solutions across the patient care journey,” said Peter Bock, managing director at Neuberger Berman. “This transaction provides the company with the time they need to execute their value creation strategy and offers a compelling liquidity opportunity to existing investors.”
Greg Getschow, managing director at Fortress added, “On behalf of our investors, we are pleased to establish this partnership with L Catterton, which provides PatientPoint with the additional capital that they need capitalize on significant growth initiatives that are ahead for the business.”
Evercore served as financial advisor to L Catterton on the transaction. Kirkland & Ellis served as legal counsel.