ModMed Announces Significant Investment from Clearlake Capital
Deal News | Mar 03, 2025 | Clearlake Capital
ModMed, a healthcare SaaS platform, has announced a significant majority growth investment from Clearlake Capital, acquiring the company from Warburg Pincus. ModMed develops AI-powered technology for medical practice management, focusing on enhancing efficiency and patient-provider interactions. Clearlake Capital, known for investments in technology and healthcare, aligns with ModMed's mission to improve healthcare experiences through innovation. Clearlake's investment aims to fuel ModMed's growth and maintain its position as a leader in ambulatory healthcare software. The investment reflects long-term trends favoring innovative healthcare software. The firms involved in the transaction include Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Sidley Austin LLP, Goldman Sachs, Kirkland & Ellis LLP, and Paul, Weiss, Rifkind, Wharton & Garrison LLP, acting as financial and legal advisors for both Clearlake and ModMed.
Sectors
- Healthcare Technology
- Private Equity
Geography
- United States – ModMed is headquartered in Boca Raton, Florida. Clearlake Capital has its headquarters in Santa Monica, CA.
Industry
- Healthcare Technology – ModMed develops AI-powered SaaS for medical providers, enhancing clinical and operational efficiencies.
- Private Equity – Clearlake Capital's investment showcases the involvement of private equity in expanding healthcare technology firms.
Financials
- Not Disclosed – The financial terms of Clearlake Capital's majority investment in ModMed.
- $90 billion – Assets under management by Clearlake Capital.
- $87 billion – Assets under management by Warburg Pincus.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ModMed | Target Company | Company | A leading healthcare SaaS platform providing AI-driven solutions for medical practices. |
| Clearlake Capital Group, L.P. | Bidding Company | Company | An investment firm focused on private equity, technology, and healthcare sectors. |
| Warburg Pincus LLC | Selling Company | Company | A global growth investor previously owning ModMed. |
| Morgan Stanley & Co. LLC | Financial Advisor | Company | Advisor to Clearlake Capital for this transaction. |
| J.P. Morgan Securities LLC | Financial Advisor | Company | Advisor to Clearlake Capital for this transaction. |
| Sidley Austin LLP | Legal Advisor | Company | Provided legal counsel to Clearlake Capital. |
| Goldman Sachs | Exclusive Financial Advisor | Company | Provided financial advice to ModMed. |
| Kirkland & Ellis LLP | Legal Advisor | Company | Provided legal counsel to ModMed. |
| Paul, Weiss, Rifkind, Wharton & Garrison LLP | Finance Counsel | Company | Provided finance counsel to ModMed. |