PE HUB Healthcare Wire Highlights, 12.6.18

healthcare, private equity, medicine

Behavioral health tech: will investors bite?

Good morning, healthcare fanatics.

Well, it’s a few weeks out from year-end, and it appears you all are working hard to get deals signed or bids in before year end.

According to a report Preqin published just this morning, healthcare-focused private equity is poised for a record year. Through November, 585 healthcare-focused deals totaling $56 billion have been announced – putting the year on track to surpass the 619 deals worth a record $57 billion in 2017.

It’s also the fourth consecutive year healthcare-focused funds raised more than $20 billion, Preqin said.

Among those that have been active is Audax Capital, which I learned recently prevailed in the process for 3 Rivers’ Phoenix Rehab.

And there’s Linden Capital Partners, which, if you haven’t noticed, has been both a busy buyer and seller this year. The Chicago buyout shop agreed to put up a $309 million equity contribution to support its LBO of AvalignMoody’s said. The anticipated deal follows a William Blair-run auction for the maker of orthopedic implants, sources told me this week.

ICYMI, Linden made about 4x on its recent sale of SeraCare.

Elsewhere in Chicago, Vistria Group is buying Frontenac’s Behavioral Health Group, whose network of clinics offer medication-assisted treatment to individuals struggling with opioid addiction.

Another tack to investing behind behavior health? 


Behavioral Health Group, of course, is just the latest example of sponsors’ continued appetite for providers of behavioral health treatment generally speaking.

Activity involving groups of clinics that treat everything from substance abuse to intellectual development disorders and autism disorder ought to remain steady. But sponsors are showing interest in software and tech providers supporting these companies.


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