Houlihan Lokey Advises Gryphon Investors

Houlihan Lokey is pleased to announce that Gryphon Investors has acquired Water's Edge Dermatology, Inc. (Water's Edge). The transaction closed on May 31, 2018.

Founded in 1998 and headquartered in Palm Beach Gardens, Florida, Water's Edge is a leading provider of comprehensive dermatology services, including general and cosmetic dermatology, vein health, Mohs surgery, and radiation oncology services, in over 30 locations throughout Eastern and Central Florida. More than 400 clinical experts and administrative staff provide medical, surgical, and cosmetic dermatology, dermatopathology, and skincare services to patients with skin diseases, acne, sun damage, skin cancer, and vein health issues, as well as to those seeking cosmetic and plastic surgery.

Founded by Dr. Ted Schiff in 1998, the company has grown through a successful de novo growth strategy to be one of the largest dermatology platforms in the United States. Water's Edge providers have established a strong reputation for clinical excellence with a focus on providing comprehensive dermatology care for their patients.

Based in San Francisco, Gryphon Investors is a leading private equity firm focused on profitably growing and competitively enhancing middle-market companies in partnership with experienced management. For 23 consecutive quarters, Gryphon has been ranked in Preqin's prestigious quarterly PE report as one of North America's top-decile buyout firms based on consistency of strong investment returns. Managing over $4 billion of equity investments and capital since 1997, the firm has an extensive track record of leading equity investments of $50 million to $200 million per portfolio company with sales ranging from approximately $100 million to $500 million. Gryphon prioritizes investment opportunities where it can form proactive partnerships with owners and executives to build leading companies, utilizing Gryphon's capital, specialized professional resources, and operational expertise. Gryphon closed its fourth private equity buyout fund, Gryphon IV, L.P., in November 2016 at $1.1 billion and raised a $100 million captive mezzanine fund, Gryphon Mezzanine Partners, L.P., in August 2017.

The acquisition of Water's Edge affirms Houlihan Lokey's leadership position in the dermatology sector and represents another successful transaction for the firm in the physician practice management healthcare sector. The transaction is one of the 11 physician practice-management and multi-site healthcare transactions that Houlihan Lokey has advised on over the past 12 months. Houlihan Lokey's Healthcare Group is among the largest dedicated healthcare investment banking groups in the country. In 2017, the group ranked as the No. 1 advisor for all U.S. healthcare M&A transactions under $1 billion by Thomson Reuters. Since 2014, Houlihan Lokey's Healthcare Group has closed more than 125 M&A healthcare transactions.

Houlihan Lokey served as the exclusive financial advisor to Gryphon in the Water's Edge transaction.