Rachel Laureno’s Post

Private equity, private capital, venture capital and sovereign capital all play an essential role in healthcare. Sovereign and private capital play crucial roles in advancing healthcare infrastructure by providing the necessary funding and resources for growth and innovation. Sovereign capital, often through government initiatives or public funds, can drive large-scale projects that build essential infrastructure, such as hospitals, clinics, and research facilities, especially in underserved regions. This investment can also support public health initiatives and enhance healthcare accessibility on a national scale. Private capital, on the other hand, brings flexibility and innovation to the table. Venture capital (generally essential in driving innovation in the start-up world) and private equity (which tends to lean towards later stage, more established companies in growth mode) can accelerate the development of cutting-edge technologies, new treatment modalities, and advanced healthcare facilities. By investing in startups and innovative projects that have traction, private investors can drive rapid advancements and improve efficiency within the healthcare system. Together, sovereign and private capital can create a robust healthcare ecosystem that leverages both public responsibility and private innovation. This is a great piece from Hamad Al Hammadi: https://lnkd.in/gssZ97ft #HealthcareInfrastructure #Investment #PublicPrivatePartnerships

$750 million for healthcare bets Last week, General Catalyst announced it has raised $8 billion in fresh capital via Fund XII, of which $750 million will be allocated for healthcare investments. Here's a quick breakdown: - $4.5 billion for funds dedicated to seed and growth equity - $1.5 billion for creating new companies - $2 billion for "separately managed accounts" No clarity was provided as to how the funds for healthcare will be distributed between investment and creation, yet they have already announced the planned acquisition of Summa Health in Ohio, as well as plans to partner with a number of health systems. This is in addition to their continual investment in Health Tech, AI, etc. Will we see other traditional VC's start investing in hospitals? Physician-led ventures? Physician-Led Healthcare for America (PHA) PhyCap Fund #venturecapital #healthcareinvestment #physicianled

Multi-strategy funds and private equity firms are pivotal in driving innovation and scalability, especially in #Healthcare. These investors are strategically navigating the complexities of the sector, capitalizing on its potential for growth and transformation. #MultiStrategy #MedTech

Private Equity in Healthcare: Resilience Amidst Volatility In a recent McKinsey report on global private equity volatility, healthcare remains a lucrative sector despite macroeconomic challenges. While concerns like lower multiples and a 60% drop in VC funding persist, the silver lining lies in a staggering $3.7 trillion in dry powder with the rapid adoption of AI and technology poised to rebound the market by 2025. In my opinion, key factors driving PE investments in healthcare include: Geography: Targeting regions with favorable business conditions or deep market knowledge helps navigate regulatory and economic challenges effectively. Company Size: Smaller companies often have untapped growth potential and operational efficiencies ripe for enhancement. Fragmented Sectors: Consolidation opportunities in fragmented markets allow PE firms to create value through mergers, acquisitions, and expanding market share. Synergies: Investments aligned with existing portfolios or expertise enhance value creation and operational success. Case in Point: Blackstone's Investment in Medline Industries (2021) In one of the largest private equity deals in healthcare, Blackstone, along with Carlyle Group and Hellman & Friedman, acquired a majority stake in Medline for $34 billion. Leveraging its operational expertise, Medline saw substantial revenue growth within a year. Looking ahead, the medical supply firm is now targeting over $5 billion through a 2025 IPO to be valued at $50 billion, signaling continued momentum. With robust fundamentals and innovation reshaping the landscape, healthcare PE stands out as a resilient and dynamic investment avenue. What are your thoughts on the future of PE in healthcare? Let’s discuss. 🚀

Healthcare presents unparalleled opportunities for growth-stage investments. Here’s why: 1. Sector-Specific Expertise: Healthcare-focused funds provide the deep technical knowledge required to navigate this complex landscape effectively. 2. Strong Exit Potential: Healthcare buyouts surged last year, making it the second-largest sector for deals, with sovereign funds and family offices driving exits. 3. Innovation at Scale: Growth-stage healthcare companies are primed to scale rapidly, often reaching IPO maturity within 5–6 years. Our Healthcare Opportunities Fund is building a balanced portfolio across high-growth sub-sectors, including: 1. Diagnostics and medical devices. 2. Healthtech companies driving digital transformation. 3. Single-specialty services delivering targeted expertise and superior outcomes. What’s our approach? We focus on minority investments, empowering visionary entrepreneurs while providing capital and strategic support. With a mix of B2B and B2C plays, we’re also open to collaborations with buyout funds for platform-based opportunities. Read more from Tarun Sharma, Fund Manager, Healthcare and Consumer at 360 ONE Asset, in his exclusive interview with VCCircle: https://lnkd.in/dhtP--wz #360ONE #HealthcareInvestments #GrowthStage 360 ONE

The Bloom Burton & Co. Healthcare Investor Conference recently brought together premier healthcare companies and investors from Canada and around the world. Aaron Sonshine and Kim Lawton summarize highlights from a high-caliber panel discussion on investing in R&D-stage healthcare companies. #Lifesciences #HealthLaw #MergersAndAcquisitons

Private Equity rollup strategies in HealthTech to focus on the 'Forgotten MidTier' in next 18 months https://lnkd.in/eWJPyBXB Private equity firms have traditionally focused on investing in large, high-growth healthcare technology companies. However, there is a growing opportunity for private equity firms to tap into the midtier of the healthtech landscape. These midtier companies have demonstrated a proof of concept, have won flagship customers, and are consistently profitable. However, they are unlikely to reach billion-dollar valuations. This makes them attractive targets for private equity firms that are looking for companies with the potential for double-digit growth. Some of the benefits of investing in midtier healthtech companies include: > Lower risk: Midtier healthtech companies are less likely to fail than the largest healthtech companies. This is because they have already demonstrated a proof of concept and have won flagship customers. > Double-digit growth: Midtier healthtech companies have the potential for double-digit growth. This is because they are still in the early stages of their development and have a lot of room to grow. > Expertise: Private equity firms can bring their expertise to help midtier healthtech companies scale and grow. This can include providing access to capital, strategic guidance, and operational support. Nelson Advisors work with Founders, Owners and Investors to assess whether they should 'Build, Buy, Partner or Sell' in order to maximise shareholder value. > Healthcare Technology Thought Leadership from Nelson Advisors – Market Insights, Analysis & Predictions. Visit https://lnkd.in/ezyUh5i > HealthTech Corporate Development - Buy Side, Sell Side, Growth & Strategy services for Founders, Owners and Investors. Email lloyd@nelsonadvisors.co.uk > HealthTech M&A Newsletter from Nelson Advisors - HealthTech, Health IT, Digital Health Insights and Analysis. Subscribe Today! https://lnkd.in/e5hTp_xb > HealthTech Corporate Development and M&A - Buy Side, Sell Side, Growth & Strategy services for companies in Europe, Middle East and Africa. Visit www.nelsonadvisors.co.uk https://lnkd.in/eWJPyBXB

The recent acquisition of Augmedix by Commure for $2.25 per share underscores the ongoing disconnect between public company valuations and overall Health IT market sentiment. This all-cash deal represents a significant premium (169% 30-day VWAP) to Augmedix's pre-announcement share price, but remains below its 52-week high. More importantly, the acquisition values Augmedix at 2.3x revenue, a substantial increase from its prior 0.6x multiple. This trend of taking public Health IT companies private continues. Vista Equity Partners, a major enterprise SaaS investor, recently announced the acquisition of Model N, adding to their growing list of go-private deals. We believe this trend suggests potential for a rebound in Health IT valuations. As acquirers recognize the underlying value in these companies, market multiples could adjust to reflect this disconnect. You can check out our latest Health IT valuation trends in the Healthcare Growth Partners Momentum Index: https://lnkd.in/gn9wtzsu #HealthIT #mergersandacquisitions #goprivate #valuations

Nelson Advisors Partner and HealthTech M&A Advisor Lloyd Price sharing his thoughts on the Healthcare Technology IPO market - candidates, timings and sub sectors to watch, with the team at MergerMarket https://lnkd.in/eqDypnd2 'Lloyd Price, a partner at Nelson Advisors who specializes in healthcare, referred to a “corrective IPO market” and said listing candidates in the health tech and digital health sectors should boast, at least, USD 100M EBITDA. This is an increase on the previously acceptable USD 60m to USD 70m EBITDA to list on either Nasdaq or NYSE, he said. He concurred that strong candidates for IPOs in healthcare technology need long-term provider contracts which cannot be easily replaced, making both predictable revenue streams as well as being able to address value-based care models. Price mentioned, among possible IPO candidates, Kaia Health, Sword Health and Hinge Health, all of which operate in a massive addressable market and have developed new care delivery platforms with AI to predict better outcomes. They also benefit from the tailwinds of the musculoskeletal market post-pandemic and a shift to working-from-home. Other potential candidates Price mentioned include Aledade, a primary care platform for clinical decision support, and Omada Health, which is tapping into the chronic disease management market with both online and offline support channels. Founders, Owners and Investors to assess whether they should 'Build, Buy, Partner or Sell' in order to maximise shareholder value.   > HealthTech M&A - Buy Side, Sell Side, Growth & Strategy services for companies in Europe, Middle East and Africa. Visit www.nelsonadvisors.co.uk   > HealthTech M&A Newsletter from Nelson Advisors - HealthTech, Health IT, Digital Health Insights and Analysis. Subscribe Today! https://lnkd.in/e5hTp_xb   > HealthTech Corporate Development - Buy Side, Sell Side, Growth & Strategy services for Founders, Owners and Investors. Email lloyd@nelsonadvisors.co.uk   > Healthcare Technology Thought Leadership from Nelson Advisors – Market Insights, Analysis & Predictions. Visit https://lnkd.in/eeX9Bcwa #HealthTech #DigitalHealth #HealthIT #NelsonAdvisors #Mergers #Acquisitions #Growth #Strategy https://lnkd.in/eqDypnd2

https://lnkd.in/e4aFVBBa NaviMed Capital Closes Fund III, at $450M NaviMed Capital, a Washington, DC-based private equity firm focused exclusively on the healthcare industry, closed its third fund, NaviMed Partners III, at $450M. NaviMed will continue to focus on control investments in fast growing lower middle-market healthcare companies. NaviMed Capital invests in fast growing lower middle-market healthcare businesses. Its investment strategy focuses on healthcare business process outsourcing and specialty healthcare service providers. It targets profitable private companies with up to $10M of EBITDA and double-digit revenue growth. NaviMed’s senior investment team has a track record of value creation spanning, in the aggregate, dozens of investments and more than $11 Billion of enterprise value created over the course of their combined careers. Since mid-2021, NaviMed has completed the sale or majority recapitalization of six of its portfolio companies including Argos Health, CenterPointe Behavioral Health System, The CM Group, Lighthouse Lab Services, Lucent Health, and Velocity Clinical Research. With the new fund, NaviMed now manages more than $850M of capital commitments.