Silver Economy Fund’s Acquisition of The Private Clinic

OakNorth provided a £14.3 million loan in support of the acquisition. 

The Private Clinic is a UK-based network of private clinics that provide advanced cosmetic treatments to a client base of over 15,000 new patients each year, with around 10,000 procedures performed annually. 

Silver Economy Fund (SEF) is an Italian private equity fund that was launched in 2021 and has since become the only Italian PE fund to invest in European and US-based companies that offer bespoke products and services specifically tailored to the over-50s age group. The merger advances The Private Clinic’s growth strategy and strengthens Silver Economy Fund’s own market presence in the UK and international markets. 

KWM advised Quadrivio Group with a team led by London corporate partner Barri Mendelsohn, corporate senior associate Jenny Willcock and corporate associates Jonathan Forrest and Roshni Gotecha, senior real estate associate Nick Impey, associate Daniel Jones and others. 

Following the announcement in July of the signing of a collaboration agreement between KWM (China) and Eversheds Sutherland (International) (ESI), the KWM London team will be moving to the London office of ESI. The cooperation agreement is driven by a shared commitment by both firms to provide the best client service for increasingly diverse and complex legal needs.  

An Interview with Barri Mendelsohn, Corporate Partner at King & Wood Mallesons:

Can you tell us any more about this transaction and the role that your team played in it?

The KWM London team advised SEF and the Quadrivio management team from the start to the finish of this exciting deal. We played a key role in supporting the team through the initial auction process, with some key strategic, pricing and legal decisions to be made, through the offer letter stages and in agreeing exclusivity. Thereafter, it was ’full steam ahead’ with a full group diligence exercise, restructuring to ready the target group for the sale and negotiation of the deal SPA and acquisition financing documentation. Throughout the process, the broader team was involved in complex problem-solving and management of a multi-faceted transaction and documentation process, to ultimately best meet the needs of our client, the financing parties and others involved – a true team effort. 

Why was The Private Clinic an attractive prospect for investment on the part of Silver Economy Fund?

SEF believe in the strong equity story of TPC based on its high-end positioning and high-quality elective surgeries and cosmetic medical services. SEF are attracted by the cashflow generation and the resilience of the business despite the overall UK economic and business environment. TPC further presents an attractive ‘buy and build’ strategic option given the fragmentation of the UK sector for these surgeries, and SEF also see an opportunity to expand service and product lines, particularly into dermatology. Ultimately, TPC fits well within the fund’s overall aim to invest in ’healthy longevity’, focussing on goods and services for consumers older than 50 years. 

Were there any notable challenges involved in the acquisition? If so, how did you resolve them?

We worked with SEF, the target, management and their advisers to agree three ’bolt on’ acquisitions to complete, and be funded, at the same time as the broader TPC deal. This added another layer of complexity – I recall that there were days where we were reviewing principal documents or diligence reports for two or three separate deals at once, but fortunately the targets had distinct names, which helped us! We also tried to apply the same core negotiating stance, drafting and requirements to close across all deals, which was ultimately the right decision.  

This all came to a head when we needed to satisfy all of the conditions to close everything all at once. Thankfully, the entire client and advisory team pulled it off to achieve a well-deserved close.  Although, as SEF reminds us, now the real work starts…