Palatine acquires majority stake in private healthcare business
Palatine’s Impact Fund has acquired a majority shareholding in The Mole Clinic, a private healthcare business which screens and detects skin cancer at an early stage.
The acquisition, for an undisclosed sum, will see Palatine target significant expansion of The Mole Clinic over the next few years. The business currently has clinics in London, Manchester and Edinburgh.
The investment will also seek to repeat the success Palatine enjoyed with the roll-out of Veincentre, a chain of clinics treating varicose veins, which grew from 9 clinics to 22 over the investment period, after investing in digital marketing, which saw online inquiries increase 270% and revenue by 180% over the course of the investment.
The Mole Clinic was founded in 2003 by former lawyer Iain Mack after he was diagnosed with melanoma skin cancer in 2002, and is aimed at patients worried about new or changing moles or skin lesions offering mapping and screening services not available on the NHS.
Iain Mack will remain as The Mole Clinic’s CEO and has invested in the company alongside Palatine.
Mack helped develop The Mole Clinic Screening Nurse Training Programme, accredited by the Royal College of Nursing. He has also developed the UK’s first skin cancer screening App using AI. The App is also used by NHS GPs, reducing NHS waiting times and costs. The App received recognition at the UK Patient Safety Awards and was exhibited in the London Science Museum.
The Mole Clinic has a team of over 50 people based at four sites offering affordable, rapid consultations and results. The growth plan will see the number of clinics grow to over 10 in the next three years.
Alistair Armstrong, Impact Fund Partner at Palatine, said: “The Mole Clinic is a best-in-class healthcare provider with a mission to detect skin cancer early and save lives. As a purpose-driven investor we are thrilled to be working with Iain and the team, with whom we share many common values.
“Palatine Impact has significant experience in working with founders to scale their businesses while generating a commercial return with purpose. We look forward to supporting Iain as we help The Mole Clinic broaden its geographical reach so more individuals can access its affordable services benefiting their health and wellbeing.”
The transaction is the fifth investment from Palatine’s Impact Fund II, following Inclusive Employers, Anthesis, Papilo and Isle Utilities.
Iain Mack added: “The Mole Clinic team and I are delighted to be working with Palatine. The ethos of their Impact Fund, in building commercially successful businesses which also improve people’s lives, aligns perfectly with ours. With their support, we look forward to expanding to meet the continually increasing demand for our life-saving services.
Advisers to Palatine included: EY (Tim Vance, Tom Harvey, Benjamin Leach), Gateley (Dan French, Kate Richards, Adam Noble), CIL (James Silk, Craig Abrahams, Edward Selman), RSM (Colin Smyth, Anna Howarth, Jake Hodgson), Quinn Partnership (Mike Styles, Paul Quinn) and Lockton (Kevin Stout, Michael Teague).
The vendors to the transaction were advised by Andrea Jakes and Richard Fleming of Alvarez & Marsal.
