Business Case Studies & Business Publications

Have Your ClerkMD and Sell It Too

Loutskina, Elena, ...

Case

Have Your ClerkMD and Sell It Too

Loutskina, Elena; Rayaji, Abanikash

F-2122 | Published November 25, 2025 | 18 Pages Case

Collection: Darden School of Business

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Set in June 2025, this case follows Christie Carpenter, managing director of private investments at DRC Partners (DRC), as she evaluates a proposed continuation vehicle (CV) for ClerkMD Inc. (ClerkMD), a high-performing health information management company in Evermore Capital Partners' (Evermore's) Fund III portfolio. After a $265 million sale prospect unexpectedly collapsed, DRC and Evermore explored using a CV to extend ownership, provide additional capital for ClerkMD’s next growth phase, and offer existing limited partners—including DRC—the option to take liquidity or reinvest. Although CVs had become increasingly common in private equity, neither DRC nor Evermore had previously executed one, and Carpenter remained concerned about conflicts of interest, valuation challenges, and the need for alignment among multiple stakeholder groups. Were Carpenter and DRC ready to sail ClerkMD's ship into the next frontier of private equity financial innovation? This case pairs well with the technical note "An Introduction to Private Equity Secondaries" (UVA-F-2123), which outlines the mechanics of transactions led by both limited parters and general partners, the creation and operation of CVs, and the sources of conflict and information asymmetry that are central to Carpenter’s decision.