Private equity firm Warburg Pincus is considering various options for its investment in Modernizing Medicine (ModMed), a medical software provider that could be valued at over $5 billion, including debt. The Boca Raton, Florida-based company is currently collaborating with a financial adviser to gauge interest from potential buyers, which may include other private equity firms.

Sources familiar with the situation indicate that discussions are still in the early stages, and there is no certainty that a sale will occur. Warburg Pincus may decide to retain ownership or explore alternative options, such as selling a stake in ModMed. The firm had previously looked into options for ModMed in 2022, but those talks did not progress.

Founded in 2010 by Daniel Cane and Michael Sherling, ModMed specializes in healthcare technology, focusing on software for electronic health records and automating routine tasks for clinics. The company has raised over $332 million from investors and employs more than 1,200 people, serving over 40,000 healthcare providers.

Warburg Pincus manages assets exceeding $86 billion and has investments in over 230 companies across various sectors. The firm has a long history, originating from an investment banking firm established in 1939 by Eric Warburg.