ModMed: New Growth Phase with Clearlake Capital Investment
Deal News | Apr 30, 2025 | Clearlake Capital
Clearlake Capital Group, a private equity firm, has completed a majority investment in ModMed, a company that specializes in healthcare SaaS technology. This transaction allows ModMed to continue its growth trajectory by leveraging Clearlake’s expertise in business expansion and innovation. ModMed, founded in 2010, provides AI-powered healthcare software solutions aimed at enhancing clinical efficiency and patient engagement. The company has partnered with Clearlake to further develop its platform, with a shared vision for growth, focusing on AI-enabled software solutions. Financial details of this transaction were not released, but the strategic move highlights a commitment to expanding ModMed's offerings across medical specialties and improving the patient-provider experience. Previous investors in ModMed include Warburg Pincus, Pentland Capital, and Summit Partners. The deal was advised by several financial and legal advisors, including Morgan Stanley, J.P. Morgan, and Sidley Austin for Clearlake, while Goldman Sachs and Kirkland & Ellis advised ModMed. Clearlake, holding over $90 billion in assets under management, seeks to apply its operational improvement approach to strengthen ModMed's market presence.
Sectors
- Healthcare Technology
- Private Equity
- Software as a Service (SaaS)
Geography
- United States – ModMed is based in the United States, and Clearlake Capital, with its headquarters in Santa Monica, is also an American firm.
- Global – Clearlake Capital operates globally, with offices and affiliates in multiple countries, including the UK, Ireland, UAE, and Singapore.
Industry
- Healthcare Technology – ModMed operates within the healthcare technology industry, providing SaaS solutions that enhance healthcare workflows and patient experiences.
- Private Equity – Clearlake Capital is a private equity firm, which is involved in this transaction by acquiring a majority stake in ModMed.
- Software as a Service (SaaS) – ModMed delivers SaaS solutions specifically aimed at the healthcare sector, emphasizing AI and data-driven enhancements.
Financials
- Not Disclosed – Financial terms of the Clearlake Capital investment in ModMed were not disclosed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ModMed | Target Company | Company | A provider of specialty-specific healthcare SaaS technology, focused on improving healthcare workflows and patient experiences. |
| Clearlake Capital | Bidding Company | Company | A private equity firm with over $90 billion in assets under management, focused on partnering with dynamic businesses for growth. |
| Warburg Pincus | Investor | Company | Previous investor in ModMed, contributing to its early-stage growth. |
| Pentland Capital | Investor | Company | Previous investor in ModMed, involved in its growth and development. |
| Summit Partners | Investor | Company | Former investor in ModMed, supporting its growth journey. |
| Morgan Stanley & Co. LLC | Financial Advisor | Company | Served as financial advisor to Clearlake for this transaction. |
| J.P. Morgan Securities LLC | Financial Advisor | Company | Assisted Clearlake as a financial advisor for the investment deal. |
| Sidley Austin LLP | Legal Advisor | Company | Provided legal advisory services to Clearlake for the transaction. |
| Goldman Sachs | Financial Advisor | Company | Served as exclusive financial advisor to ModMed in this transaction. |
| Kirkland & Ellis LLP | Legal Advisor | Company | Acted as legal advisor to ModMed. |
| Paul, Weiss, Rifkind, Wharton & Garrison LLP | Finance Counsel | Company | Provided finance counseling to ModMed during the deal. |