30 November 2023
Advent is delighted to announce the successful conclusion of the exit of its investment in SILK Laser Clinics (‘SILK’), a market leader in the non-surgical aesthetic industry, following the company’s acquisition by Wesfarmers (ASX:WES), a A$60 billion market capitalised ASX conglomerate. This event marks the realisation of Advent’s final remaining 12.5% stake in SILK.
Advent partnered with SILK in January 2018 by acquiring a majority stake, when the business had 12 clinics predominantly in South Australia. During Advent’s ownership, the network grew quickly to 53 clinics, leading to SILK’s listing on the ASX in December 2020. Advent stayed on as a significant shareholder after the IPO and continued to support the company’s expansion, which saw it grow to over 140 clinics by the time of the Wesfarmers transaction. Advent’s investment was instrumental in transforming SILK from a small, promising enterprise, into a national market leader in the non-surgical aesthetic industry.
During the investment period, key achievements included the recruitment of senior executives, developing a comprehensive clinic network plan to support expansion, launching new service lines and entering new geographic markets. The team also originated and supported several strategic acquisitions, including the Laser Lounge, Aesthetics RX, Australian Skin Clinics, and The Cosmetic Clinic.
The investment in SILK has resulted in a final return of 4.2x MOIC and an IRR of 55%. Advent extends its gratitude to the SILK team for their partnership, dedication and excellence. We look forward to continuing to build market leaders and delivering outstanding results.
Martin Preleman, Founder of SILK Laser Clinics, stated: “We always believed in the potential of our business but having a partner as a sounding board to debate the big decisions gave us the confidence to pursue our potential. Advent bought science to our decision making, from demographic analysis of catchment areas, finessing the clinic ownership model, structuring our reporting, and driving us to improve our BI. Advent helped and pushed us to go to the next level.”
For further information, please contact Partners: Brad Lynch and Robert Radcliffe-Smith on +61 3 9690 9566.
