Is it canceled yet? The COVID-19 coronavirus outbreak is the talk of the town this week. For some deal makers, that could mean travel restrictions or potential delays during annual meeting season. Read our coverage.
So healthcare aficionados, are there any sub-sectors with major potential impacts in sponsors’ portfolios that I should consider? In a worst-case scenario, the importance of telemedicine immediately comes to mind. Hit me up with your thoughts.
As GP’s continue to think through policies and contingency plans amid the uncertainty, I’m still planning to attend the MWE Healthcare PE Symposium next week in Miami. MWE is the same week of HIMSS in Orlando, one of the industry’s biggest health-tech events of the year. I’m expecting attendance will be down for both based on my conversations, so if you’re attending, let’s get together!
Women in PE: In advance of International Women’s Day this Sunday, it’s also the time of the year that Buyouts spotlights women rock stars and rising stars in private equity.
In years past, we’ve featured healthcare specialists such as Jen Mulloy of TA Associates and Elizabeth Betten of Madison Dearborn. Last year’s list included Thoma Bravo’s Tara Gadgil, who, having focused in tech – has played a role in some of the firm’s notable healthcare tech investments.
2020 winners included Jo Natauri, a partner in the merchant banking division of Goldman Sachs. Now the head of global healthcare investing, Natauri moved over from the investment banking side of GS about two years ago.
Natauri got an early start to her career – very early. She graduated from high school at the age of 16 with two years of college already finished. She ended up graduating from the University of Virginia with degrees in biology and economics, as well as completing pre-med course work.
“The last couple years I was in college I began to understand that the business side of healthcare was actually quite important to understand and ultimately I wanted to get into healthcare policy”, Natauri told Buyouts.
So, Natauri, 42, got into healthcare investment banking with the intent of transitioning into policy. But she found herself fascinated by the many aspects of the healthcare industry she could interact with on the finance side.
Since Natauri’s recent transition to PE, she’s played a key role in the firm’s purchase of MyEyeDr from Altas Partners in 2019, which I reported was valued at approximately $2.7 billion – marking the eyecare industry’s largest sponsor-backed in history. GS last year was also in the running for life sciences tools company Cole-Parmer, which its former investor, GTCR, ultimately bought back in a more than $2 billion deal, I reported.
Running money: I also got the chance to chat with many senior women for a deep dive into women’s low representation in PE. I’m told the big issue the industry is grappling with is how to prevent senior-level women from leaving their firms or retiring. Big picture? Power begets power.
Meghan FitzGerald, managing partner at healthcare-focused L1 Health, was among those that agreed more women running deal flow is crucial: “You need to figure out more ways for women to run the money. When you get women in a position to make the call, they’re going to be able to go to their rolodex and change the complexion of the teams and pick the executives”, she said.
Today less than 12 percent of females are employed in senior positions, Preqin said.
In a world where women make up half the population, many women are simply tired of being called a diversity candidate, FitzGerald has observed. “A lot of women running money are a little exhausted [by this characterization]. People are mystified. Isn’t it bad for business if you don’t have any women?”
Still, we are seeing indications of progress, with four of PEWIN’s members having closed a fund about a year ago within a span of six months, raising a total of $1.5 billion, said Krista Hatcher, co-president of PEWIN and partner of healthcare-focused Chicago Pacific Founders.
Although the level of women in senior roles is not where we would like to see it today, Hatcher commented, “I do feel that we are making a lot of progress. You haven’t seen that level of founder-led, women-led fundraising [in the past]. …Any change is slow, but it’s happening”.
Who are some other rock star women in private equity that I should know? Send me a note.
CCS Medical, a provider of home-delivered supplies that help manage diabetes, is seeking a buyer about a decade after emerging from bankruptcy, I reported.
Distributors of continuous glucose monitors – which in addition to CCS includes players such as Linden Capital’s Solara – are seeing explosive growth, sources said. Consider DexCom: the maker of continuous glucose monitors has seen its shares soar nearly 100 percent over the last 12 months.
There’s another big driver of growth on the horizon. Today these monitors are still a relatively new technology and only approved for Type 1 diabetes. Once Type 2 diabetics are approved for use, “then distribution goes through the roof,” one source told me. Read my story for financial deets and more info on the process.
In other news…Webster Equity Partners created the largest retina-focused PPM group in the country, leading a $350 million investment through its acquisition and marriage of multiple specialty practices, I learned.
North of the border: GI Partners is evaluating the sale of Logibec, one of Canada’s largest healthcare IT providers, according to several sources. For financial info, check out my full story.
That’s it for today’s rundown. As always, shoot me a note with any comments, tips or just to say hello.
Update: This story has been updated to clarify Fitzgerald’s comment that women are tired of being called a ‘diversity candidate’; Not tired or exhausted by the work.