| In case you missed them, our flagship US PE and VC reports were released last week: | | | | | |
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| What PE investors need to know before backing healthcare providers | | Healthcare services deals account for around 10% of US private equity buyouts.
But healthcare providers are unlike any other type of private equity investment due to the complex regulatory and revenue landscape.
Understanding these transaction considerations is essential for strategic decision-making in growing a private equity-backed healthcare provider, as they can have a profound impact on risk, revenue, and geographic expansion.
In a new analyst note, I draw on insights from leading experts to lay out the nuts and bolts of doing healthcare provider private equity deals.
Topics covered include: - Who can own healthcare practices (CPOM), and how these restrictions affect the structure of private equity-backed healthcare providers
- What firms should look out for when diligencing healthcare provider acquisitions, including violations of anti-kickback and self-referral laws
- How different transaction structures can affect payer (insurance) contracts—both government and commercial—and taxation
- How providers are valued in relation to physician compensation
The report aims to be a valuable resource for deal professionals looking to understand the nuances of executing healthcare provider transactions and for allocators seeking insight into the key risks and considerations that need to be addressed.
Read it for free: Understanding US Private Equity Healthcare Provider Transactions
In the future, I'll be diving further into healthcare services dealmaking and strategy—from specialty-level deal trends and exit opportunities to policy and reimbursement dynamics.
If you're involved in the healthcare private equity landscape or just want to learn more, please feel free to reach out.
| | | | | | | | | | European private equity races to a new annual peak | | With three months of the year left, European PE deal and exit activity have surged to new annual highs, underscoring PE as one of the hottest asset classes right now.
The first three quarters of 2021 saw the best environment for private equity dealmaking ever, characterized by strong leveraged lending markets, willing sellers, accommodative policy, heightened dry powder, and massive stimulus.
The strength in deal activity showed up across the board, with one in three deals closing in both the UK & Ireland region and the business products & services sector.
PE exit value also accelerated to a new annual top, driven by a large uplift in liquidity events greater than €2.5 billion, mainly from corporate acquisitions and public listings. In addition, exit activity in the IT sector is pacing to account for the bulk of PE exit value for the first time.
European PE fundraising activity slightly cooled from its explosive first half, with fund count pacing toward its lowest annual total since 2012.
On the other hand, year-end capital raised numbers are expected to be healthy at around the €100 billion mark. The sustained flight of LPs' capital to safety with established GPs explains the low total for fund count yet strong numbers for overall capital raised.
Looking ahead, risks including the prospect of higher long-term inflation and tightening policy, as well as an accelerating COVID-19 Delta variant, will likely slightly slow PE deal, exit, and fundraising activity in Q4.
That being said, with strong secular and cyclical PE tailwinds such as the low interest-rate environment, the potential for higher risk-adjusted returns, and public market volatility, we don't expect this PE party will stop any time soon.
Click to download our Q3 European PE Breakdown.
Feel free to email me or our institutional research team with any feedback or questions.
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Europe's three biggest quarters for VC deal value have all occurred in 2021.
Late-stage dealmaking has continued to drive the trend, thanks in large part to nontraditional investors, but there are signs of strength across the entire ecosystem.
Other highlights from our European Venture Report: - Exit activity has been relentless, as highly valued companies have fast-tracked exits to generate maximum value and outlier returns amid surging valuations.
- Quality investment opportunities and strong return profiles for VC funds have attracted more capital to the space, as fundraising is on pace for another strong year.
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Senior fintech analyst Robert Le weighs in on reports that PayPal is interested in buying Pinterest for around $45 billion:
"This highlights PayPal's ambitions to become a superapp, where financial services are used alongside ecommerce.
"The superapp model allows PayPal to develop a stronger relationship with its customers through increased engagement.
"This deal makes sense as Pinterest has a very large base of deeply engaged users where PayPal can cross-sell not only financial services but products and services from its merchants.
"There is currently a race to strengthen the network effects between consumers and merchants (for example, the Square and Afterpay deal), and PayPal will likely leverage its new superapp to onboard more merchants."
| | Robert Le
Senior Emerging Technology Analyst
Fintech | | | | | |
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Our insights and data featured in the press: - Venture returns keep climbing, mystifying some industry veterans. [WSJ]
- Another major consumer brand is offering same-day delivery: "There's increasing expectation for on-demand everything. Convenience is the next step." [CNN]
- A look into how 2021 has already shattered yearly records for startup funding. [Quartz]
- European PE firms are having a banner year. [Institutional Investor]
If you're a journalist interested in interviewing our analysts or requesting data, contact our PR team. | | | | | |
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Highlights from our other research published over the past couple of months:
Market updates Thematic research Emerging Technology Research (free previews) Coming next week (subject to change) - Global M&A Report
- The Future of Taxis Is Electric and Asset Heavy
- ETR: Climate Tech (we're launching new full-time analyst coverage!)
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| | Since yesterday, the PitchBook Platform added: | | 350 Deals | 1472 People | 414 Companies | 23 Funds | | | | | | |
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