ModMed Seals Growth Investment with Clearlake Capital
Deal News | Mar 03, 2025 | Clearlake Capital
Clearlake Capital Group, a private equity firm with significant influence in the technology and healthcare sectors, has entered into a substantial growth investment with ModMed, a developer of AI-driven healthcare SaaS solutions. While financial specifics were not detailed, this investment marks a pivotal shift for ModMed, which aims to advance its healthcare technology platform servicing multiple specialties. ModMed’s leadership, including Co-CEOs Dan Cane and Joe Harpaz, emphasizes the alignment of Clearlake’s strategic growth capabilities with ModMed’s mission to improve healthcare through innovation. The partnership arrives on the heels of ModMed's formative years with Warburg Pincus, which supported significant scaling and milestones within the company. Advisors in this transaction included top financial and legal firms such as Morgan Stanley, J.P. Morgan, Goldman Sachs, and Sidley Austin LLP.
Sectors
- Healthcare Technology
- Private Equity
Geography
- United States – The central location of both Clearlake Capital and ModMed's major operations, influencing the investment and strategic business efforts.
Industry
- Healthcare Technology – ModMed operates as a healthcare SaaS provider focused on AI-powered solutions, demonstrating advancements in electronic health records and practice management.
- Private Equity – Clearlake Capital is a prominent private equity firm involved in this investment deal, bringing growth capital and operational expertise to ModMed.
Financials
- Not Disclosed – The financial specifics of the investment transaction between Clearlake Capital and ModMed were not publicly disclosed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ModMed | Target Company | Company | A healthcare SaaS platform providing AI-driven solutions to improve practice efficiency and patient care. |
| Clearlake Capital | Investor | Company | A private equity firm specializing in sectors such as technology and healthcare, focal to this growth investment. |
| Warburg Pincus | Previous Investor | Company | Prior growth partner of ModMed, having facilitated its earlier scaling efforts. |
| Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC | Financial Advisors | Company | Financial advisors for Clearlake in the transaction. |
| Sidley Austin LLP | Legal Advisor | Company | Legal counsel for Clearlake in this investment deal. |
| Goldman Sachs | Financial Advisor | Company | Exclusive financial advisor to ModMed. |
| Kirkland & Ellis LLP | Legal Advisor | Company | Legal advisor to ModMed for the transaction. |
| Paul, Weiss, Rifkind, Wharton & Garrison LLP | Finance Counsel | Company | Finance counsel to ModMed in this investment deal. |