What You Should Know:
- The recent acquisition of Walgreens Boots Alliance by private equity firm Sycamore Partners is drawing scrutiny due to the high level of debt financing involved and questions surrounding Sycamore's equity commitment.
- According to a Securities and Exchange Commission (SEC) filing, 83.4% of the financing for the Walgreens buyout is debt, totaling $22.5B. This is more than double the average debt level (41%) used in private equity acquisitions last
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Healthcare Private Equity | PE | M&A| News, Analysis, Insights
Healthcare PE Firm Revelstoke Partners Invests in Omega Systems for Managed IT & Cybersecurity
What You Should Know:
- Omega Systems, a provider of managed IT and cybersecurity services, today announced a significant investment from Revelstoke Capital Partners, a private equity firm focused on healthcare growth-oriented businesses.
- With Revelstoke's support, Omega plans to accelerate its expansion strategy, enhance its robust security and compliance offerings, and further penetrate key regulated industries, including financial services and healthcare.
- The
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HGP Releases Health IT Private Equity Investment Trends for 2024
What You Should Know:
- Healthcare Growth Partners (HGP) and Eliciting Insights surveyed private equity investment professionals focused on the Healthcare and Health IT sectors.
- The 2024 Health IT Private Equity Survey aimed to capture the "new normal" of the market, considering the current point in the interest rate cycle, economic fluctuations, and the upcoming U.S. presidential election. Respondents included venture capital, growth equity, and buyout investors, providing a
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Zombie Investments: The State of Private Equity in Healthcare
Private equity (PE) firms, once eager investors in the healthcare services sector, are facing a chilling reality. A confluence of factors including challenges recruiting and retaining physicians, reimbursement headwinds, accelerating labor costs and restrictive antitrust policies, have resulted in a string of high-profile failures, and are casting doubt on the future role of PE in healthcare. This shift has profound implications across the healthcare delivery spectrum – from hospitals and health
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The Impact of Private Equity Consolidation in Healthcare
On a brisk 2023 October morning at St. Elizabeth’s Medical Center in Boston, Sungida Rashid and her husband Nabil held their newborn daughter for the first time. Rashid soon began to experience severe complications, including bleeding of the liver. This normally would be treated with embolization coils; however, the manufacturer had retrieved all coils at the hospital weeks before because Steward hadn't paid its bills. According to a lawsuit filed that same month by the manufacturer,
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Study: Private Equity Acquisitions Linked to Decline in Hospital Assets
What You Should Know:
- A new study has revealed a concerning trend in the healthcare industry: a significant decline in hospital assets following private equity acquisitions. The research, published in JAMA, analyzed data from 197 acquired hospitals and found a 24% decrease in total capital assets compared to a 9.2% increase in control hospitals over a two-year period post-acquisition. This decline is attributed to the sale of hospital assets, including land and buildings, to repay
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How Physician Groups Can Fight Back Against Private Equity
As a society, we should all be concerned about the increasing rate at which private equity firms are acquiring physician groups. Over the last decade, private equity firms have invested nearly $1 trillion in approximately 8,000 healthcare deals, encompassing a wide spectrum of medical services, from fertility clinics to neonatal care, primary care to cardiology, hospices, and everything in between.
The consequence? Healthcare has shifted towards a profit-driven model where physicians have
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How Private Equity Firms Raided Safety Net Hospitals, Leading to Closures, Layoffs
What You Should Know:
- A new investigation by the Private Equity Stakeholder Project (PESP) reveals, for the first time, private equity (PE) investors were behind a safety net hospital closure in the Chicago area after making broken promises to regulators.
- The report, “How private equity raided safety net hospitals: Volume 2—Pipeline Health,” written by PESP researcher Mary Bugbee, highlights the pitfalls of private equity ownership of hospitals, including the monetization of
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BVP Forge Invests in Quality Management Platform, Medisolv
What You Should Know:
Private equity firm BVP Forge has completed a strategic investment in Medisolv, a healthcare quality data measurement and reporting solution, to accelerate its growth. BVP Forge will also provide Medisolv access to the growth IP, talent network, and resources of Bessemer Venture Partners.Medisolv was founded in 1999 with the idea that software can unlock the intelligence buried in the chaos of healthcare data. Medisolv will benefit from ForgeEdge™, BVP Forge’s
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DW Healthcare Partners Closes $210M Fund to Invest in Healthcare Companies
What You Should Know:
- DW Healthcare Partners (“DWHP”), a healthcare-focused private equity firm, announced the closing of DW Healthcare Partners Small Cap, L.P. (“Founders Fund”), a $210M fund focused on lower middle market healthcare investments. This new fund brings DWHP’s total capital under management to USD $1.3 billion.
- The Founders Fund will invest in companies that are $3M to 6M EBITDA. The fund currently has two investments: TubeWriter and DermLite.
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