Investment funds managed by Morgan Stanley Global Private Equity (MSPE) have completed an investment in Pathway Partners Vet Holding.
Founded by Dr Jasen Trautwein in Austin, Texas and led by CEO Shawn McVey, Pathway is a veterinary hospital owner and operator.
MSPE is partnering with Trautwein, McVey and the management team, who will remain in place and retain a significant minority stake in the company.
Pathway owns over 30 general and specialty veterinary hospitals. It seeks to be a partner of choice for veterinarians wishing to realise some personal liquidity while retaining a minority interest in a rapidly-growing and vet-friendly holding company. The company provides systems and processes to enhance productivity and improve medical services while maintaining the practice’s local culture and community identity.
Pathway and MSPE intend to grow in the coming years through organic and acquisition-driven growth. Additionally, as part of the transaction, Pathway is acquiring a majority interest in Thrive, a new veterinary clinic concept focused on affordable and convenient care.
Aaron Sack, co-head of Morgan Stanley Global Private Equity, says: “We are excited for the opportunity to partner with Pathway. Morgan Stanley Global Private Equity has a history of investing in founder-owned companies in attractive industries. Trautwein and his talented leadership team represent one of the highest quality platforms in the fragmented yet consolidating veterinary services space.”
Gary Matthews, managing director and operating partner of Morgan Stanley Global Private Equity, adds: “The company’s strong culture and dedication to patient care have positioned Pathway as an industry leader. We look forward to collaborating with Pathway’s talented management team to drive organic and acquisition-fuelled growth.”
Trautwein says: “We are excited to partner with Morgan Stanley Global Private Equity and enter a new phase of growth. We are proud of the platform we have established and expect this new partnership to deliver significant value as we expand. Our unique value proposition combined with our unmatched network of relationships with leading veterinary practice owners makes Pathway the partner of choice in a rapidly consolidating marketplace.”
