MAIS 2024: Private equity investment trends in Medical Aesthetics
Earlier this month, we were invited to take part in the first ever MAIS conference, put together by the esteemed Dr Benjamin Ascher. It was a brilliant conference to attend, as it was by some of the leading decision makers and innovators in the Global facial injectable market.
We were asked to take part in a discussion centered around how PE investment is reshaping clinics and practices worldwide, and there were some great insights shared by industry leaders. For anyone who couldn’t attend, here’s a summary of the main points and key takeaways from the discussion.
The Role of Private Equity in Medical Aesthetics
Private equity (PE) has been increasingly active in the medical aesthetics space, transforming everything from clinical practices to patient experiences. Whether investing in entire companies or backing individual practices, PE funds are driving rapid changes within the industry. For example, as Benoit Chardon, a world-leading consultant in commercial excellence, highlighted, in 2021 alone, PE invested over $3.1 billion across 400 practices—a figure that’s only continuing to grow. Chardon also emphasised how PE is becoming a critical player in helping these practices scale and evolve.
The Challenges and Opportunities of PE-Backed Clinics
One of the key discussions at the conference revolved around the challenges PE-backed clinics face. A significant issue is the financial burden created by high debt levels, especially when PE firms over-focus on rapid expansion without solid long-term planning. Domonic Mazzone, an expert in medical aesthetic data, addressed the failure of certain clinics in an insightful piece, citing unsustainable growth as a major issue. Poor operational management and a lack of patient-centered approaches often lead to these failures.
That said, there are plenty of opportunities for growth if handled properly. Clinics that prioritise patient satisfaction, invest in technology, and focus on retaining skilled talent tend to thrive. Tracy Cohen Sayag CEO of Clinique des Champs Elysées, the leading aesthetic network in France, shared valuable insights about balancing growth with quality care. She emphasised that patient care must remain at the forefront, otherwise clinics run the risk of losing patients due to poor experiences.
Learning from Failure: Why Some PE-Backed Clinics Struggle
A few case studies were presented, analysing why certain clinics, despite being PE-backed, ended up going bankrupt. Dr Karamveer S Chhabra from Alivewellness Clinics, an expert panellist with vast experience in managing aesthetic practices, pointed out several critical reasons:
Over-expansion without sustainability – Some clinics open too many locations without ensuring each one is financially stable.
Neglecting operational costs – Focusing only on revenue while ignoring expenses like staff salaries and high-quality equipment can lead to financial instability.
Poor patient retention – Clinics that rely too heavily on aggressive marketing and discounts to attract new patients often struggle to maintain long-term patient loyalty, which is critical for sustainable growth.
What Makes PE-Backed Clinics Successful?
The panellists also highlighted strategies that have made PE-backed clinics successful. Ben Pask, from Rare: highlighted the types of metrics we are asked about when working with PE: Place (What's the local market opportunity), Product (What’s the proposition), Patient (How are the key customer loyalty metrics?), People (What’s the retention), Performance (How is the business performing?) We cover this in a separate blog post here
Global Trends and the Future of Medical Aesthetics
PE investment in medical aesthetics is not limited to the U.S.; it’s a global trend. Domonic Mazzone observed that we’re seeing significant activity in markets like Europe, Brazil, India, and Australia. The consolidation of clinics was a big topic of discussion—larger clinic chains are emerging as PE firms acquire smaller practices and standardise their operations, which increases efficiency but also raises questions about the diminishing presence of independent operators in the industry.
Another key trend is the increasing use of AI to enhance patient care and operational efficiency. Tracy Cohen Sayag elaborated on how her company has implemented AI to improve patient experiences and clinic operations, which has been instrumental in driving patient loyalty.
Conclusion: A Patient-Centric Approach is Key
The overarching takeaway from the conference was this: while private equity is helping drive growth and transformation in medical aesthetics, it only works when it keeps patient satisfaction at the centre. Clinics that prioritise long-term patient care over short-term gains are the ones most likely to succeed.
Private equity can be a powerful tool for growth, but only when combined with the right investments in people, technology, and patient experience. As Benoit Chardon summarised, the future of medical aesthetics will be shaped by those who understand how to balance profitability with providing exceptional patient care.
MAIS is a brilliant conference to attend for global decision makers in the Aesthetics Market and very much recommended.
