Author: John Matthews

On April 13, IFAS completed the acquisition of the practice of Dr. Michael Cherella, a five-location platform serving Mullica Hill, NJ, as well as Center City, South Philadelphia, Fairmount, and Upper Darby, PA. Dr. Cherella has built an exceptional reputation as a provider in the market, supported by longstanding patient relationships and his affiliation with Penn Presbyterian Medical Center. The acquisition deepens IFAS’s presence across Philadelphia, South Jersey, and the surrounding suburbs, further strengthening its reputation for high-quality patient care in the region.

In recent months, IFAS has also deepened its physician roster through new hires. In addition to Dr. Cherella, IFAS is pleased to welcome:

• Dr. Rhonda Cornell, recently named one of four 2026 Top Doctors in Philadelphia in podiatry, who brings nearly two decades of experience in diabetic limb preservation, wound management, and hyperbaric oxygen therapy and previously served as residency director at Crozer-Chester Medical Center.
• Dr. Jessica Charles, who trained at Temple University and completed her residency at Jefferson Health New Jersey.
• Dr. Suraj Hansalia, who focuses on conservative care and minimally invasive treatment across wound care, orthotics, and surgical management.
• Dr. Grace Kuzara, who trained at Temple University and has experience with leading regional institutions including Pennsylvania Hospital and Inspira Medical Center.
• Dr. Edward Piskorski, who trained at Temple University and completed his surgical residency at University of Medicine and Dentistry of New Jersey. Dr. Piskorksi joins us with over twenty years of private practice experience and prior surgery center ownership.
• Dr. Kirstyn Urbas, who trained at Temple University and completed her surgical residency at Virtua Health System with a concentration in rearfoot reconstructive surgery.
• Dr. Mark Wintersteen, who brings decades of experience in nonoperative care, diabetic and wound management, sports injuries, and custom orthotics.

Following these additions, the IFAS network now includes 31 providers operating across 27 locations in Pennsylvania and New Jersey. As the platform continues to grow, IFAS remains focused on working alongside its physicians to provide high-quality care and a seamless patient experience across the full spectrum of foot and ankle services.

IFAS continues to seek opportunities to expand its network. For physicians interested in joining the platform—or to learn more about potential partnership opportunities—please visit https://integratedfootandankle.com/join-our-network/.

We are pleased to provide a brief update on our activities over the past year. Headquartered in Conshohocken, PA, Mereo Capital Partners (“Mereo”) is focused on opportunistic and thematic investments in lower middle market companies which have the potential for operational improvement. Since founding Mereo in January of 2021, we have focused on the following:
• Building a brand consistent with our core values of integrity, technical excellence, teamwork, passion & perseverance, and humility.
• Sourcing less-competitive investment opportunities through our network of industry and advisory relationships and through boutique investment banks focused on the lower middle market.
• Closing new investments and partnering with management to implement value creation plans with the assistance of our operating advisors.

As described below, we spent the last year focused on accelerating capital distributions to our investors. We also continue to seek new investments within our core sectors: healthcare services, defense & government services, business services, and industrials. We are currently under an exclusive agreement to invest in our fifth platform which we expect to close soon. We are gratified to see that our operationally intensive strategy in the lower middle market is resonating with sellers, advisors, lenders, and investors.

At Mereo itself, we are proud to announce the promotion of Phil Cooke to Vice President. We are currently seeking to fill an Analyst role this summer.

Below are brief updates on our portfolio companies:

Swish Dental LLC

Swish Dental LLC (“Swish”) is a leading dental services organization founded by a prominent female dental practitioner, Dr. Viraj Desai in 2017. Swish provides its patients with the highest-quality clinical care in a tech-enabled, spa-like experience which caters to the growing affluent demographic of the greater Austin, San Antonio and Houston, Texas MSAs. Since Mereo’s investment in October 2021, Swish has grown from nine to twenty-three locations. The Company’s strategy of de novo-driven growth is benefiting from a consistent, repeatable process, leading to strong returns on investment. In 2025, the Company completed a debt financing with JP Morgan to provide a distribution to shareholders and additional growth capital for new locations. Mereo and management continued to implement an equity buy-in program for high performing dentists, building upon the Company’s retention initiatives. The Company finished 2025 with significant revenue growth, a sizable cash balance and modest debt, providing a solid foundation to sustain its growth trajectory in the Austin, San Antonio, and Houston corridors. Mereo and management recently engaged a major investment bank to commence a process to explore strategic options for the business.

Luna Labs USA LLC

In March 2022, Mereo made an investment to facilitate the corporate divestiture of Luna Labs USA LLC (“Luna”), from Luna Innovations Incorporated (NASDAQ: LUNA). Luna Labs conducts advanced technology research for government agencies such as the U.S. Department of Defense, National Institute of Health, Department of Energy, and for prime government contractors such as Boeing and Lockheed Martin.

Luna achieved two major milestones in 2025: a recapitalization in April, providing a meaningful distribution to investors, and the successful sale of the TrueClot and Dislotech product lines in October, enabling the full repayment of the Company’s term loan and providing a cash balance to support future distributions and growth investments. The Company demonstrated resilience amid SBIR timing disruptions, supported by a sizable awarded and in negotiation pipeline and a growing mix of non SBIR contracts. In addition, Luna advanced its commercialization strategy and increased engagement with strategic, industrial, and defense partners. In particular, GlassLock, its proprietary transparent armor glass sealant, recorded multiple purchase orders and continued progress in qualifications, while 3WAVES, its virtual motion system for aviation training, also recorded purchase orders from defense customers and received growing interest from outside investors. Overall, Luna exited 2025 with enhanced liquidity, a strong contract research backlog, and an expanding commercialization pipeline.

Integrated Foot and Ankle Specialists LLC

Integrated Foot and Ankle Specialists LLC (“IFAS”) is a multi-site podiatry and foot and ankle surgery organization established in 2022 to support the growth and integration of physician practices across the region. Backed by a 50/50 joint venture between Mereo and Avonwood Capital Partners, IFAS has expanded rapidly and is now a leading group practice with 23 locations and 27 providers across Pennsylvania and New Jersey.

Following the completion of six acquisitions between July 2024 and January 2025, along with a de novo launch in March 2025, IFAS and its sponsors shifted focus to optimizing the platform throughout the remainder of 2025. The organization enhanced its corporate leadership with the hiring of a new Chief Operating Officer, VP Finance, Director of Operations, and Controller. In February 2026, IFAS reached a meaningful operational milestone with the successful transition of its revenue cycle management function in house, increasing control over billing and collections and improving operating leverage as the platform scales. Throughout 2025, the platform also streamlined operations across several locations, built out its provider roster, and implemented various initiatives to improve patient care and back-office activity. Entering 2026, IFAS is a more integrated and efficient organization, well positioned to complete its operational initiatives, unlock incremental cash generation potential, and capitalize on its acquisition pipeline as it continues to build its standing as a leading podiatric care provider in the mid-Atlantic region.

Algus Packaging LLC

Algus Packaging LLC (“Algus”) operates at the intersection of packaging manufacturing and industrial automation, supplying plastic blister and clamshell packaging solutions alongside custom built, highly automated equipment that enables customers to package and seal their products on the factory floor. Since Mereo’s acquisition of the business in November 2022, Mereo has focused on reshaping the Company’s physical footprint, investing in organizational leadership, strengthening cash flow and balance sheet performance, and improving the efficiency of day to day operations.

In June of 2025, Algus completed a significant recapitalization of the Company and its affiliated real estate holding entity, resulting in a meaningful return of capital to Mereo’s investors. Over the course of the year, Mereo and Algus worked collaboratively to enhance working capital discipline, capital expenditure planning, and overall operational efficiency, while also strengthening sales visibility and forecasting capabilities. Additionally, Algus has deepened engagement with its customer base across several fronts, including the launch of a machine servicing and maintenance offering that is expected to scale significantly in 2026. Looking ahead, priorities for Algus include expanding the sales team to further develop its strong pipeline and build upon established customer relationships. Mereo continues to actively support the Company’s planning and preparedness efforts, with a focus on resilience under potential downside scenarios given ongoing global trade uncertainty, geopolitical tensions, and elevated input prices.

Swish Dental (“Swish”) began 2026 with the opening of its Post Oak location in Houston, further expanding its presence within one of Texas’s most dynamic metropolitan markets. The practice opened in January 2026 and is currently progressing through its initial ramp period.

The Post Oak launch reflects Swish’s focus on disciplined de novo expansion in high-demand submarkets aligned with the Company’s long-term growth strategy. With a strong foundation established across the Austin, San Antonio, and Houston MSAs, Swish continues to differentiate itself to its patients through its commitment to top-quality dental care in a comfortable, modern environment.

Texas-based Swish Dental (“Swish”) has continued its strong de novo growth throughout the second half of 2025, adding five new locations in the Austin, San Antonio, and Houston MSAs. This expansion brings Swish’s total footprint to 22 locations as the company finishes the year.

Building on momentum from earlier in the year, Swish launched Alamo Heights and Potranco in the third quarter, followed by Montrose and Kirby in October. The Company’s newest location, Midtown, is slated to open in December, further strengthening Swish’s presence in the Houston market.

Since its founding in 2017, Swish has remained focused on delivering exceptional clinical care in a tech-enabled, spa-like environment. Backed by Mereo Capital Partners since 2021, the Company continues to execute on its disciplined de novo growth strategy in attractive MSAs throughout Texas.

Luna Labs USA, LLC (“Luna Labs” or “Luna”) has announced the divestiture of its TrueClot and Dislotech product lines to Integrated MedCraft, LLC, marking another milestone in Luna’s commercialization efforts.

Since its inception at Luna Labs, TrueClot has been an innovator in bleeding control training. Developed through early SBIR-funded research, TrueClot introduced a patented blood simulant technology that elevated trauma education by providing realistic clotting behavior for wound packing and tourniquet application.  Over the years, Luna Labs expanded the TrueClot product line to include advanced task trainers and simulation kits, which were distributed globally to a loyal customer base of military medics, EMS professionals, and other first responders.

Meanwhile, the Dislotech product line focuses on anatomically accurate Joint Reduction Trainers (JRTs) designed for teaching proper reduction techniques of dislocated joints. The portfolio includes two core families—the Shoulder JRT and Finger JRT—each enabling hands-on simulation of joint dislocations and reductions.

This transaction provides a debt-free balance sheet for Luna and liquidity to its investors.  Luna will continue to prioritize technology monetization through a robust commercialization framework which will drive repeatable pathways for value creation.  Combining Luna’s leading contract research business with its commercialization initiatives position Luna as a trusted partner for government agencies and Fortune 500 companies seeking advanced solutions in the defense and healthcare.

We congratulate the Luna management team on a significant achievement.

On October 9th, 2025, Mereo Capital Partners hosted its third Annual Investor Conference at Philadelphia Country Club in Gladwyne, PA. The meeting brought together Mereo’s limited partners for a series of firm updates, including a review of investment activity since inception and a forward view on portfolio development and strategic priorities. Mereo is encouraged by the continued progress demonstrated across our four platform investments, the fund’s early return of cash to its investors, and the status of our investment pipeline as we approach the end of the year.

We thank Andrew Ford, VP of Sales at Algus Packaging; James Garrett, CEO of Luna Labs; and Ernie Lazos, CMO & Interim CEO of Integrated Foot and Ankle Specialists, for sharing updates from their respective companies. We look forward to continuing to work with them and their colleagues to strengthen operations and unlock growth in promising lower middle-market businesses.

During Virginia’s inaugural Life Sciences Week, James Garrett, CEO of Luna Labs (“Luna” or the “Company”) joined Governor Glenn Youngkin for a biotechnology roundtable focused on advancing Virginia’s leadership in life sciences innovation. The event convened key stakeholders from academia, industry, and government to discuss strategies for accelerating commercialization, supporting startup growth, and ensuring that innovative products reach the market efficiently and responsibly.

Garrett’s participation underscored Luna Labs’ commitment to transforming research into real-world solutions that improve lives and address national priorities. The Company continues to lead in life sciences innovation with a portfolio that spans both healthcare and defense technologies.

At Mereo, we view Luna Labs as a vital bridge between scientific discovery and practical application. Luna’s technologies—such as the 3WAVES flight simulation systems and real-time health monitoring sensors—address the unique challenges faced by military personnel. Meanwhile, Luna’s healthcare innovations, including TrueClot® bleeding control training systems and platforms like NanoVac and AeroVeil for vaccine delivery and post-operative care, further demonstrate the Company’s dedication to advancing human health and safety.

We are pleased to announce the recapitalization of Algus Packaging LLC and its affiliated real estate holding company (“Algus”), producing a substantial return of capital to our investors. Illinois Bank & Trust (“IBT”), a division of UMB Bank (“UMB”), provided financing for the transaction.

This transaction was made possible by Algus’s organic growth, operational improvements, and debt reduction since Mereo’s acquisition of the company in 2022. We’d like to thank the management team at Algus, our financing partners at IBT/UMB, and our investors in Mereo for the hard work, collaboration, and trust that enabled Algus to reach this milestone.

Swish Dental (“Swish”), a cutting-edge, modern dental service organization, recently secured a credit facility from J.P. Morgan, comprising a Delayed Draw Term Loan and a revolver. The transaction supports Swish’s ambitious expansion plans to open six new studios by the end of FY25, increasing its total footprint to 23 studios across Austin, Houston, and San Antonio MSAs.

Swish employs a systematic de novo build-out strategy, targeting prime locations to serve the young, affluent patient demographic with tech-enabled, wellness-lifestyle experiences. Since partnering with Mereo Capital Partners, Swish has expanded from 9 to 17 locations to date, establishing a preeminent brand in Austin, TX, with plans to grow into adjacent markets. It focuses on delivering exceptional dental care through a spa-like environment, encouraging brand loyalty, clinical excellence, and collaborative dentistry.

Algus Packaging (“Algus”) released a new video this month highlighting its machinery’s advanced capabilities for secure, shelf-ready, and sustainable folded paper packaging solutions. The equipment utilizes high-capacity chutes and heat-sealed corners to ensure efficient production runs and maintain structural integrity in transit. It also allows customized options for product off-loading and secondary package features such as product locators, inserts, labels, and RFID.

Algus’ custom paper folding machine—designed, engineered, and built in the USA—demonstrates the company’s technical prowess and its ability to meet the evolving demands of customers looking for alternative and environmentally-friendly packaging solutions. We congratulate the talented team of engineers who delivered this win for Algus and can’t wait to see what they create next.

See for yourself how Algus is advancing the future of packaging: Custom Paper Folding Machine | Eco-Friendly Packaging by Algus