Blue Sky spinout backs Australia cosmetic medical business

Fortitude was established in 2019 to make growth capital investments across Australia and New Zealand, writing checks of A$10-50 million ($7-35 million). The partners are Nick Dignam, formerly head of growth capital for Blue Sky Private Equity, and Nick Miller, previously an investment director in the same division.

The private equity firm has committed primary capital to Aura. Combined with a senior secured loan from Longreach Credit Investors, this will enable the company to pursue an M&A strategy.

Aura is building a network of clinics that provide non-surgical services and medical-grade skin treatments including dermatology, cosmetic medicine, hair transplant therapies, and skin cancer care. The goal is to partner with existing operators, bringing the benefits of consolidation while allowing them to retain their local branding and independence.

The company has two brands listed on its website: Brisbane Skin, which has four clinics in Brisbane; and Epiclinic, which has a single facility in Adelaide.

“We’re seeing an increase of non-surgical aesthetic medical clinics in the market looking to expand into their next stage of growth while streamlining their corporate operations and providing enhanced services for their clients,” said Chantelle Pior, founder, director, and head of acquisitions at Aura.

Dignam added that Fortitude would apply to Aura some of the knowledge accrued as an investor in Better Medical, a family practice medical center operator that expanded from six to 35 clinics in South Australia, Queensland, Victoria, and Tasmania. It was sold to Livingbridge in January.

The private equity firm has about a dozen active investments spanning IT services and consulting, food and beverage, consumer brands, and tourism and hospitality.

Blue Sky, a listed investment manager with exposure to private equity, real estate, real assets, and hedge funds, was targeted by a short sellling firm in 2018, which alleged financial mismanagement. Three regulatory breaches were disclosed regarding incorrectly charged fees to wholesale private equity and real estate funds. Institutional funds and mandates were not impacted.

Oaktree Capital provided a structured debt rescue package after Blue Sky’s stock price collapsed and various privately-held investments were written down in value. Nevertheless, the firm went into administration in 2019 and was subsequently delisted.

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• Topics
• Australasia
• Expansion
• Healthcare
• Australia
• Growth capital
• Fortitude Investment Partners
• Blue Sky Private Equity