Starting things off today we have a debut feature from PE Hub Europe’s Irien Joseph, who takes a look at the opportunities for private equity investment in the healthtech sector.
Next up we have some people news, as Verdane hires a partner for its new Munich office, Keensight Capital appoints an M&A director and Permira adds a senior advisor for healthcare.
Healthtech
PE Hub Europe’s Irien Joseph spoke to a range of private equity industry figures to find out their outlook for the healthtech sector, which of its sub-sectors are particularly attractive and whether valuations are changing.
A requirement for digitisation and cost efficiency is propelling growth, according to Anders Petersson, managing partner, healthcare sector lead at London-based private equity firm IK Partners.
Petersson added that “the aging population and rising healthcare demand are compelling growth drivers, making the healthcare sector attractive to us”.
The covid pandemic has helped drive that, according to Jean-David Herld, senior associate at Paris-based sustainable growth investor Revaia. “Covid-19 has accelerated the adoption of digital health technologies, with telemedicine, remote monitoring, and other digital health solutions experiencing increased demand as healthcare providers and patients seek to reduce in-person interactions.”
One prominent factor driving healthtech growth, according to Amit Karna, partner at Paris-based private equity firm Keensight Capital, is that specialised companies are beginning to overcome hurdles such as heightened regulatory requirements across the value chain. These hurdles had made the healthcare industry slower to adopt new technology.
Another major factor is that technological advancements have led to healthtech products and services achieving demonstrable value that has enabled steady growth for B2B companies, Karna noted.
There is plenty of private equity money to chase that growth, said Gareth Down, European head of healthcare investment banking at investment bank William Blair. “High-levels of dry powder for both private equity funds and strategic acquirers mean there is a lot of capital to be put to work, with investors remaining confident in the healthtech sectors, given the supportive trends at play.”
Read the full interview for more insights on the sector, including opportunities in pharma software and where valuations are headed.
German growth
Verdane has expanded its presence in Germany by opening an office in Munich – alongside its existing office in Berlin – and has appointed Dominik Schwarz as a partner.
Schwarz previously worked at EMH Partners, where he served as partner and worked on growth investments in software, healthcare and technology companies including Brainlab, Cleverbridge and Native Instruments.
Verdane’s team in the Munich office includes Sebastian Wintgens, who joined as principal in January 2023. The Munich-based team also includes Christina Schrettle and Judith Kottutz.
Verdane’s offices in Berlin and Munich now comprise 23 team members.
Other private equity firms have also been upping their presence in Germany. Blackstone opened a new office in Frankfurt back in March, for instance.
Portfolio
We’ve been hearing a lot that the higher cost and lower availability of debt, plus the uncertain economic outlook, is making some private equity firms double down on their existing investments.
Keensight Capital today said it had bolstered its portfolio performance team by appointing Rafe Hafeez as M&A director.
Hafeez was previously a vice-president in the investment banking team at JP Morgan covering technology. He also worked at Barclays Investment Bank within its TMT and FIG sector teams.
He will be responsible for M&A and bolt-on investments for existing and new businesses within Keensight’s portfolio.
Healthcare advice
Switching back to healthcare, and Permira has appointed David Floyd as a senior adviser to its global healthcare team.
Floyd previously served as worldwide president at DePuy Synthes.
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