VetEvolve, a Richmond firm that offers a business platform for veterinarian practices, has received a shot in the arm from Los Angeles private equity firm Varsity Healthcare Partners.
Varsity, which focuses its investments in lower-middle market health care services firms, said this week it has completed a strategic growth investment in VetEvolve. Terms of the deal were not disclosed.
VetEvolve said the new funding will be used to expand its regional presence and grow into new areas. Today, the company employs more than 100 doctors of veterinary medicine across 32 clinics in Virginia, Maryland, Tennessee, West Virginia and Pennsylvania. VetEvolve execs told us in 2022 the company expected to close that year with $70 million in revenue.
Varsity said Nick Lodestro, co-founder and CEO of VetEvolve, will continue to lead the company. VetEvolve said in an announcement it expects to make “several strategic hires” to accelerate the growth of its program.
“We have cultivated a supportive and wide-reaching network of teams that are passionate about delivering world-class care for pets,” Lodestro said in a statement. “We knew immediately that, in Varsity, we found a counterpart that fully upholds our vision to build a premier platform serving as the employer of choice for veterinary service professionals while maintaining our commitment to growing our VetEvolve practices to levels they never thought were possible on their own.”
The company’s model focuses on running business operations for private veterinary practices. Many vets have little interest in running the business end of their practice, which is where VetEvolve comes in. It manages bookkeeping, staff, inventory, real estate and more. When it buys a practice, VetEvolve does not change the name, because it wants to keep the connection to the local community.
