Our investment in Silk Laser Clinics
SILK Laser Clinics is a clinic owner and franchisor system operator of non-surgical aesthetic clinics. SILK provides services including cosmetic injectables, laser hair removal, body contouring, and other advanced skin treatments and skincare products.
The Opportunity
Advent identified SILK as a promising platform to build a trans-Tasman network of aesthetic clinics. A partnership investment was made in January 2018, facilitating the exit of non-executive shareholders and early-stage investors and providing growth capital to support SILK’s expansion strategy.
Advent’s investment thesis centred on accelerating SILK’s growth by executing an ambitious clinic rollout strategy across both metropolitan and regional areas. This included the development of a nurse-led franchise model, broadening SILK’s service offering, greenfield site expansion, targeted acquisitions, and investments in brand development, technology, and senior talent.
Demonstrated Impact
Under Advent’s ownership, SILK’s clinic network expanded from 12 locations at the time of investment to 53 clinics by December 2020, when Advent facilitated an IPO of SILK on the ASX. As a significant post-IPO shareholder Advent supported further growth, which saw SILK ultimately expand to over 140 clinics. This growth was driven by a combination of greenfield development and strategic acquisitions.
Key achievements during the investment period included:
- Development of a detailed clinic network plan, including demographic and competitor profiling facilitating network growth
- Introduction of new service lines and geographic expansion
- Recruitment of key senior executives, including a COO and CFO
- Establishment of a Management Equity Plan to drive performance alignment
- Professionalisation of operations and reporting to support scalability and IPO readiness
- Origination and support of M&A, including the acquisitions of Laser Lounge, Aesthetics RX, Australian Skin Clinics, and The Cosmetic Clinic
Exit
Advent successfully led the IPO of SILK in December 2020, marking the beginning of a staged exit. Additional proceeds were realised through a series of secondary sell downs, with the final exit achieved in November 2023 following the 100% acquisition of SILK by Wesfarmers via a scheme of arrangement. The investment delivered a strong return, generating a final MOIC of 4.2x and an IRR of 50%.
