PE HUB Healthcare Wire Highlights, 11.21.19

Advent proves a force to reckon with in healthcare

Good morning!

It’s crunch time. Many firms are racing the clock to get their deals done before the holidays, while other assets have had great years and their owners are betting on the market remaining favorable for the foreseeable future. At this point, lots of folks are delaying launching processes until next year so they can get credit for 2020 Ebitda, I’m told.

Of course, not everyone is waiting around. Kohlberg & Co is pursuing a quick exit of SpecialtyCare, seeking a buyer only two years into its investment in the outsourced provider of intraoperative monitoring and perfusion services. Read my full story. 

Just inKKR clinched a deal to sell LGC Group to Cinven and Astorg. I first wrote in August the auction for the U.K. life sciences company was expected to produce a valuation north of $3 billion. Exceeding expectations, the deal commanded a valuation of approximately £3 billion, or about $3.9 billion, a source familiar with the matter told me this morning. Let the good times roll!

On the hunt: Advent remains hungry

Whether or not you tuned into last night’s Democratic debate, the reality is, an election year is looming. So I’ve gotta ask: Are firms—when underwriting new healthcare investments—spending significant time considering the “Medicare for All” legislation that presidential candidates Bernie Sanders and Elizabeth Warren are preaching?

I’m told that some investors and dealmakers truly believe a Medicare for All system is inevitable. In which case, if you’re buying an asset now, you might be looking down a stark single-payer reality.

Other prolific healthcare investors are taking a different view. If you ask Advent International Managing Partner John Maldonado, he’ll tell you: “No, because if you’re going to probability-weight Medicare for All, you’re investing in another industry. There are big changes being discussed, but that is probably a bridge beyond what can ever be achieved.”


Please note that in the “One the Move” section referenced in the full newsletter, the correct name of the firm is TPG Capital, not TPG Capital Partners. Also, the correct name of TPG’s dedicated sidecar is TPG Healthcare Partners and not TPG Healthcare.