Platform Exit  |  November 18, 2020

Gauge Capital Signs Definitive Purchase Agreement to Sell Miami Beach Medical Group

Southlake, TX – Gauge Capital (“Gauge”), a leading middle market private equity firm, has announced that it has entered into a definitive purchase agreement to sell Miami Beach Medical Group (“MBMG”) to an affiliate of Sun Capital Partners, Inc. (“Sun Capital”).  The transaction is expected to be finalized prior to year end.

Headquartered in Doral, FL, MBMG provides primary care, specialty care, and ancillary services to Medicare Advantage and Managed Medicaid members under global “at‐risk” contracts. Since Gauge partnered with Dr. Rodolfo Dumenigo, MBMG’s founder, in December 2016, the business has grown from less than $15 million in EBITDA to approximately $40 million in EBITDA in 2020.

“We invested in MBMG believing they delivered better health outcomes at a lower cost than alternatives. MBMG’s model is a win for providers, payors, and patients, and we’re grateful to Founder Dr. Dumenigo, CEO Efrain Duarte, and the rest of the management team for scaling the business to deliver its benefits to more people,” said Drew Johnson, co-Founder and Managing Partner at Gauge Capital.

“Dr. Dumenigo and the Miami Beach management team have been great partners over the last four years,” said Stan Dennis, Managing Director at Gauge Capital. “This has largely been a growth story, and we are confident that Sun Capital and management will have continued success.”

“We are excited about the outcome of this transaction, which we believe is great for our current shareholders while also providing a great opportunity for our new sponsor, Sun Capital,” said Dr. Dumenigo, Founder, Chairman of the Board, and Chief Medical Officer of MBMG. “Gauge was a phenomenal partner and helped provide the financial and strategic resources necessary to achieve the vision we laid out four years ago.”

“I am very appreciative of the financial and strategic support Gauge provided the past four years,” said Efrain Duarte, Chief Executive Officer of MBMG. “While we have enjoyed our partnership with Gauge, we’re excited about the opportunity to work with Sun Capital and continue making MBMG the market leader in Florida and beyond.”

Oppenheimer & Co. Inc. is acting as exclusive financial advisor to MBMG in this transaction. Blalock Walters, P.A. is serving as legal counsel to Gauge and MBMG.

About Miami Beach Medical Group (www.mbmedicalgroup.com)
Founded in 1995 by Dr. Rodolfo Dumenigo, MBMG partnered with Gauge Capital in 2016.  The medical group focuses on the Medicare Advantage and Medicaid population and provides care for over 12,000 members in 19 full-service medical and wellness centers throughout Central and Southern Florida.  MBMG also operates an MSO that supports an additional ~2,000 members.

About Gauge Capital

Gauge Capital is a private equity firm that partners with founders, managers and equity stakeholders of successful middle market companies to maximize their potential. Gauge invests in rapidly growing services and technology-enabled companies in the healthcare services, business services, industrial, consumer and food sectors. For more information, please contact Andrew Peix, Principal and Director of Business Development at apeix@gaugecapital.com.