Private Equity Investment in Healthcare Sector on the Rise

Private equity investments in the healthcare sector, as a percentage of total PE platform transactions, have effectively doubled over the last 20 years.

The sharp upturn in 2020 reflects both the healthcare sector’s ability to weather the economic effects of the coronavirus, (even benefitting from it in some cases), as well as the fewer number of private equity transactions completed in other sectors in recent months.

Sample Recent Transactions

May 2020 – Waterland Private Equity acquired a significant majority stake in Integrated Medhealth Communication (London, England).

Integrated Medhealth Communication (IMC) provides healthcare communication and consulting.

May 2020 – MVM Partners closed a growth investment in MDxHealth (Irvine, CA).

MDxHealth is a healthcare company that provides molecular diagnostic tests for prostate cancer.

May 2020 – Parthenon Capital made a significant investment in RxSense (Boston, MA).

RxSense is a healthcare technology company developing pharmacy benefit management solutions.

April 2020 – Hammond, Kennedy, Whitney & Company completed the acquisition of Infab, LLC (Camarillo, CA).

Infab is a provider of personal protective equipment for the healthcare industry, including x-ray shielding materials, aprons, glasses, barriers, gloves, and cleaners.

April 2020 – Veronis Suhler Stevenson and NewSpring Health Capital invested in BRC Recovery Family of Programs and the formation of BRC Healthcare (Austin, TX).

BRC Healthcare is a provider of addiction treatment services.