Private equity starting salary

[mjohnsonets]

Separate PE question. There are about 30-40 PE backed firms that are buying Ophthalmology/Optometry practices out there. The ultimate goal for these companies and vested Docs is to get that "2nd bite of the apple." But how many firms out there actually have the capability, especially in this current environment, are able to afford to buy someone with a 2nd bite? Goldman Sachs bought My Eye Dr for $2.7 Billion in 2019 but how many other places are willing to invest Billions$ into these other PE firms? 10-20? It has to be less than the total amount of actual Ophtho PE firms out there so that means there will be quite a few PE firms and vested Docs that won't ever get that 2nd bite.

We have yet to see one (that I'm aware of) but the other option is to take them public. I imagine GS will do that one day with My Eye Dr since they're one of the banks that actually helps other companies go public.

The other option is to sell them off to pension funds directly. Ontario Teachers pension fund manages their own investments instead of putting their money with a PE group.

Also, the money supply has gotten ridiculous. I just learned my local credit union in SW Virginia has $1bil under management. While they're not going to be buying companies, it goes to show just how much money/value is out there. Over the next few years the word billions will be seen much more often.

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[docdoc2012]

We have yet to see one (that I'm aware of) but the other option is to take them public. I imagine GS will do that one day with My Eye Dr since they're one of the banks that actually helps other companies go public.

The other option is to sell them off to pension funds directly. Ontario Teachers pension fund manages their own investments instead of putting their money with a PE group.

Also, the money supply has gotten ridiculous. I just learned my local credit union in SW Virginia has $1bil under management. While they're not going to be buying companies, it goes to show just how much money/value is out there. Over the next few years the word billions will be seen much more often.

An IPO can only happen if the PE's are large enough and stable enough like EYE Care partners. I'm assuming these are the 2nd and 3rd bite firms.
The q though is the smaller PE firms that made the initial sale, and there are quite a few of them. What happens to these docs and the practices when they can't sell

 

[MstaKing10]

CVP (Eye Care Partners) and Katzen Eye (Eye Care Service Partners) come to mind in terms of second bite.

As the saying goes, there’s always a bigger fish. Many firms with holdings both domestic and international invest billions. Now wether interest in ophthalmology ventures continues into the future is another question.

 

[LightBox]

I think there are more "2nd bites" out there than you realize. But yeah, definitely a gamble. But usually, these 2nd bites exit at 250-300% the initial rollover unit values after a 4-7 year holding period.

EDIT: if I was in an apparently successful PE mega-group that did not have its 2nd bite yet, I would buy a good amount of those rollover units if possible.

 

[mjohnsonets]

An IPO can only happen if the PE's are large enough and stable enough like EYE Care partners. I'm assuming these are the 2nd and 3rd bite firms.
The q though is the smaller PE firms that made the initial sale, and there are quite a few of them. What happens to these docs and the practices when they can't sell

Proper point, the only PE groups that would likely be eligible to go public would likely need private valuations of multiple billions of dollars.