MSD Partners taps co-head of Growth, Vista's MindBody buys ClassPass

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The Wire

Oct. 14, 2021

Sixth Street injects $500m into Mindbody amid ClassPass acquisition, Michael Dell's MSD Partners builds out growth platform

Good Morning!

MSD Partners, the family office for Michael Dell, is getting into the growth game.

The firm tapped Victor Hwang to co-head the investment firm’s newly formed growth arm alongside Dan Bitar, an 18-year veteran of the firm. MSD Growth yesterday announced it had led an $800 million-plus investment into GoodLeap that valued the sustainable home solutions marketplace at $12 billion. MSD Growth is focused on investing in rapidly growing, founder-led, private companies, principally in the technology and healthcare industries. Read more on PE Hub.

Fitness behemoth: Two companies helping folks like me work out and boutique fitness studios power their operations and schedule classes are joining forces.

Vista Equity Partners’ MindBody, which provides online scheduling and other business management software for fitness studios and gyms, is buying ClassPass, a subscription service that connects consumers with fitness classes, all the while scoring $500 million strategic investment from Sixth Street. Read PE Hub’s brief here.

Growing: Elsewhere, Wellspring Capital Management’s RAYUS Radiology has inked its largest and eighth acquisition to date, taking a piece of the growing South Florida market through its purchase of Diagnostic Centers of America, or DCA.

Adding around $30 million in EBITDA with the deal, DCA takes RAYUS to some $140 million in EBITDA, a source with knowledge of the deal said. Read it here.

That’s it for me! Have a great rest of your day. Hit me up at springle@buyoutsinsider.com with any good tips, gossip or just to say hello. Don’t forget to use our anonymous tip box on PE Hub or Buyouts.

Read the full wire commentary on PE Hub...

Also of note (may require subscriptions)

Tension: Tenex Capital Management, led by former executives with Cerberus Capital Management, wrapped up a third mid-market buyout fund ahead of its original cap. Tenex Capital Partners III, launched last year, raised $1.2 billion in a final close in September, sources told Buyouts. Read more here.

Listen: Mike Custar and Jake Stuiver of White Plains-based secondaries advisory M2O discuss the return of the LP market as a counterweight to GP-led deals. Tune into the podcast on Secondaries Investor.