Auxo Firm Directory · Independent Research Profile

Persistence Capital Partners

Persistence Capital Partners states that it invests exclusively in high-growth Canadian healthcare opportunities. Its stated approach includes acquisitions, management buy-outs, growth capital, healthcare consolidations, and roll-ups.

Key takeaway

What stands out about Persistence Capital Partners

Persistence Capital Partners publicly targets established and profitable Canadian-based or Canadian-operated healthcare companies with high-growth characteristics, experienced entrepreneurial management teams, and typical EBITDA between C$1 million to C$15 million. It also states that investments above that range are possible when co-investing partners are involved.[1][2][5][10]

What does Persistence Capital Partners invest in?

Persistence Capital Partners states that it was founded in 2008 by Dr. Sheldon Elman and Stuart M. Elman and is a private equity fund exclusively focused on high-growth opportunities in Canadian healthcare.

PCP states that it acquires private companies, supports management buy-outs, provides growth capital, and leads healthcare industry consolidations and roll-ups.[1][2]

PCP states that it works actively with portfolio companies on strategic plans, organic growth, management support, M&A opportunities, capital structures, and regulatory matters.

Its publicly stated transaction and investment approaches include acquisitions, management buy-outs, growth capital, consolidations, and roll-ups.[2]

Owners evaluating a financial buyer can compare the offer with independent valuation analysis, understand how acquirers approach transactions through Auxo’s buy-side M&A process guide, and consider whether a full or partial sale best fits their objectives.

EBITDAPublicly stated range
Lower published point$1MILLION
Upper published point$15MILLION

Published criteria: PCP states that its typical investment profile includes EBITDA between C$1 million to C$15 million. Investments above that range are possible when PCP involves co-investing partners. It also seeks established and profitable Canadian-based or Canadian-operated healthcare companies with high-growth characteristics and experienced entrepreneurial management teams.[2]

What should a business owner evaluate before considering a transaction with Persistence Capital Partners?

An owner evaluating PCP can compare the company’s stated Canadian healthcare focus, profitability and EBITDA criteria, entrepreneurial-management preference, and use of growth capital, acquisitions, management buy-outs, consolidations, and roll-ups with the characteristics of the business and the proposed transaction.

Because the official strategy page does not publish a general enterprise-value range, ownership-percentage target, or standard equity-check range, those points should be clarified directly for a proposed transaction.

PCP’s strategy and transaction materials do not establish its expected investment horizon, exit approach, management incentive structure, governance rights, leverage parameters, or follow-on acquisition funding terms.[2]

01

What ownership percentage and rollover-equity structures would apply to a proposed transaction

The official strategy page does not publish an ownership-percentage target, so the ownership structure should be clarified directly.[2]
02

What EBITDA, enterprise-value, valuation, and equity-check parameters apply to the current investment opportunity

PCP publishes a typical EBITDA range of C$1 million to C$15 million, with investments above that range possible when co-investing partners are involved, but the official strategy page does not publish a general enterprise-value range or standard equity-check range.[2]
03

How does PCP distinguish platform investments from add-on investments

PCP publicly describes platform investments, consolidations, and roll-ups. PCP’s strategy and transaction materials do not establish its distinction between platform and add-on investments.[2][5][6]

What companies does Persistence Capital Partners target?

PCP seeks Canadian-based or Canadian-operated healthcare companies that are established and profitable, address high-growth market opportunities, and have experienced entrepreneurial management teams.

PCP states that its typical investment profile includes EBITDA between C$1 million to C$15 million. Investments above that range are possible when PCP involves co-investing partners.[2]

PCP states that healthcare is all it does. Its stated focus is high-growth healthcare opportunities in Canada.[1][2]

PCP states that Canada is the market it knows and seeks Canadian-based or Canadian-operated healthcare companies.

A PCP transaction announcement identifies offices in Toronto and Montreal.[2][3]

PCP publicly describes platform investments, healthcare consolidations, and roll-ups. For example, PCP announced an investment in Summit Veterinary Pharmacy as its fourth platform investment for PCP Fund III, and MedSpa Partners launched an acquisition platform with PCP and acquired Cosmedica and SpaMedica.

PCP’s strategy and transaction materials do not establish how it distinguishes platform investments from add-on investments.[2][5][6]

PCP’s current portfolio page identifies Anova Fertility & Reproductive Health, Neighbourly Pharmacy, LMC, and MedSpa Partners as current investments. The same page lists exited investments including EnvironeX, MCA Dental Group, mdBriefCase, Medisys, Medvue, Summit, Warnex, and FunctionAbility.[4]

The latest dated item displayed on PCP’s official news archive is a November 9, 2023 announcement that PCP MSP II raised over C$375 million of capital commitments to support MedSpa Partners’ growth.

Other publicly identified examples include PCP’s April 14, 2020 announced investment in Summit Veterinary Pharmacy; the December 5, 2019 launch of the MedSpa Partners acquisition platform with acquisitions of Cosmedica and SpaMedica; the June 27, 2019 announced partnership with Anova Fertility & Reproductive Health; and on October 31, 2018, PCP announced the sale of EnvironeX Group Inc. to Eurofins Scientific.[3][5][6][7][8][10]

What is not clear from Persistence Capital Partners's public investment criteria?

The official strategy page states an EBITDA criterion but does not publish a general enterprise-value range, ownership-percentage target, or standard equity-check range.

The official Summit Veterinary Pharmacy announcement states that the terms of that transaction were not disclosed.

The official about, strategy, portfolio, and news pages do not state a current firm-wide assets-under-management figure.[1][2][5]

Questions to ask when evaluating Persistence Capital Partners as a buyer or investment partner

What ownership percentage and rollover-equity structures would apply to a proposed transaction?
The official strategy page does not publish an ownership-percentage target, so the ownership structure should be clarified directly.[2]
What EBITDA, enterprise-value, valuation, and equity-check parameters apply to the current investment opportunity?
PCP publishes a typical EBITDA range of C$1 million to C$15 million, with investments above that range possible when co-investing partners are involved, but the official strategy page does not publish a general enterprise-value range or standard equity-check range.[2]
How does PCP distinguish platform investments from add-on investments?
PCP publicly describes platform investments, consolidations, and roll-ups. PCP’s strategy and transaction materials do not establish its distinction between platform and add-on investments.[2][5][6]
What investment horizon and exit approach would apply to a new platform investment?
PCP’s platform and roll-up activity is publicly described, but its strategy and transaction materials do not establish an expected investment horizon or exit approach.[2][5][6]
How would management incentives, governance rights, leverage, and follow-on acquisition funding be structured?
PCP states that it works with portfolio companies on management support, M&A opportunities, and capital structures; the specific terms for a proposed transaction should be clarified directly.[2]
Which current fund or investment vehicle would invest, and what capital is available for the proposed transaction?
PCP has publicly identified investments by fund or vehicle in certain announcements, including the statement that Summit Veterinary Pharmacy was the fourth platform investment for PCP Fund III. PCP’s cited fund and transaction materials do not establish the applicable current vehicle or available capital for a new transaction.[5]

Sources & research notes

Public-source research
  1. Official website / firm overview
  2. Services / capabilities
  3. Geography / market coverage
  4. Transaction / portfolio evidence
  5. Transaction / portfolio evidence
  6. Transaction / portfolio evidence
  7. Transaction / portfolio evidence
  8. Transaction / portfolio evidence
  9. Structure / regulatory context
  10. Public disclosure information
Prepared and reviewed by: Auxo Capital AdvisorsEvidence standard: Public-source verification

How this profile was researched

Auxo profiles are prepared from publicly available primary and authoritative sources and reviewed for entity identity, factual support and disclosure consistency. When a fact cannot be supported by the reviewed public record, the profile identifies it as something to confirm directly rather than inferring it.

Independent profile & regulatory context

Independent research profile

This profile was prepared by Auxo Capital Advisors from publicly available information believed to be reliable and is provided solely for informational and educational purposes. It is not an endorsement, recommendation, ranking, solicitation, or representation regarding the profiled firm, its services, qualifications, transaction experience, regulatory status, financial condition, or suitability for any particular person, company, transaction, or investment.

Information obtained from third-party and public sources may be incomplete, inaccurate, outdated, or subject to change, and Auxo Capital Advisors makes no representation or warranty, express or implied, as to its accuracy, completeness, or timeliness. Readers should conduct their own independent diligence and consult appropriate professional advisers before engaging any advisor, intermediary, investor, lender, acquirer, or other transaction counterparty.

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