How much of US healthcare does PE really own?

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The Daily Pitch: VC

July 9, 2024

The Daily Pitch is powered by PitchBook’s industry-defining research and best-in-class data

In today's Daily Pitch, you'll find:

PE owns less of the US healthcare provider market than many would assume—so just how big is its slice?

After Labour's big win, the UK's finance chief offers hope to private markets, but few details

In a mixed year for cybersecurity, we've identified 10 startups most likely to go public

EnCap notches another exit with a new sale of oil assets

Today's Top Stories

IPO Watchlist: The cybersecurity startups most likely to go public

(Thomas Samson/Getty Images)

It's been a mixed year for the cybersecurity industry. 2024 started off strong, with publicly listed leaders trading up and the investment bank rumor mill whirring about Snyk and Cato Networks' impending IPOs.

But after Palo Alto Networks adjusted its revenue forecast in March, the security leader's stock price plummeted, dampening industry comparables.

Here are 10 US venture-backed unicorns with a high likelihood of going public.

see the list

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PE owns less than 4% of US healthcare providers by revenue

Private equity looms large over public debates around the US healthcare system, but it represents a smaller slice of the market than many would assume, PitchBook lead healthcare analyst Rebecca Springer explains in her latest analyst note.

The report lays out the scope of PE investment in healthcare providers to inform future discussion.

PE-backed providers represent an estimated 3.3% of the US healthcare provider ecosystem by revenue.

Healthcare providers have long been a part of PE portfolios, but growth in the total number of PE-backed companies has slowed over the past six years.

Deals for hospitals and skilled nursing facilities are currently rare, and there has not been a major PE investment in a US hospital or health system since 2018.

read it now

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UK's new finance minister offers hope to private markets

Newly appointed British Chancellor of the Exchequer Rachel Reeves (Jonathan Brady - Pool/Getty Images)

New UK finance minister Rachel Reeves on Monday set out her plans to boost UK growth by investing alongside private capital.

Investors that are eager to have a regulatory environment that would see more institutional capital unlocked are cautiously optimistic after the Labour Party's election win.

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Since yesterday, the PitchBook Platform added:

10

VC valuations

1859

People

630

Companies

25

Funds

See what our data software can do

The Daily Benchmark:
2021 Vintage Global Secondaries Funds

Median IRR

23.90%

Top Quartile IRR Hurdle Rate

34.20%

0.08x

Median DPI

Select top performers

Mantra Secondary Opportunities III

Capital Dynamics Global Secondaries VI

Sturbridge Diversified Private Equity III

*IRR: net of fees

31 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

People

London-based PE firm Permira has named Anish Patel partner and new co-head of climate. Patel formerly worked at Kerogen Capital and JP Morgan Cazenove.

VC Deals

Hebbia, which uses AI to sort through documents, raised $130 million in a round led by Andreessen Horowitz. The company is now valued at about $700 million, which was previously reported by TechCrunch.

Myricx Bio, a UK-based biotech company, raised a £90 million Series A led by Novo Holdings and Abingworth.

Planqc, a Munich-based startup developing quantum computers, raised a €50 million Series A led by family office Catron Holding and Germany's DTCF.

Flux Marine, a startup building electric boat motors, raised $50 million, Axios reported.

Sola Security, a new cybersecurity startup founded by Cider Security founder Guy Fletcher, raised a $28 million seed round led by S Capital, Calcalist reported.

Polystyvert, a Montreal-based plastics recycling company, raised a $16 million Series B.

PE Deals

Vantive, a spinoff of Baxter International focused on kidney-related medical devices, may be acquired by The Carlyle Group in a transaction worth upward of $4 billion, Reuters reported.

Grifols, a Spain-based pharmaceutical company, will be delisted following a takeover bid by Brookfield and the Grifols family, Reuters reported.

Audit firm Grant Thornton UK is considering selling a stake to PE investors.

Nestlé's baby food brands and franchises in France have been acquired by FnB Private Equity.

Capri-Sun, a company known for its juice pouch beverages, is exploring a minority stake sale which could attract PE buyers, Bloomberg reported.

Archwest Capital, a real estate financing services provider, received a growth investment from Bain Capital.

Exits & IPOs

Moj eRačun, a Croatian company developing software for administrative and document management processes, was acquired by Visma, marking the Norwegian company's first extension into Croatia.

SciAps, an electronic scientific instruments maker, will be acquired by Spectris for up to $260 million.

Fundraising

Norwest Capital Advisors, a Minneapolis-based investment firm, has raised $1.4 billion across two funds, Norwest Equity Partners XI and Norwest Mezzanine Partners V.

MetLife's asset management firm, MetLife Investment Management, has closed its Private Equity Partners Fund II on $1.2 billion.

Orion Infrastructure Capital, a New York-based investment firm, has closed its inaugural Infrastructure Growth Fund on $370 million.

Nuveen, a Chicago-based asset manager focused on climate investments, raised $200 million for its second climate inclusion PE strategy.

JF Lehman & Company has closed a continuation vehicle for Puris, which develops wastewater and stormwater infrastructure.

Corporate M&A

Morphic, a Massachusetts-based biopharmaceutical company developing drugs for bowel disease, will be acquired by Eli Lilly and Company for $3.2 billion.

Chart of the Day

Source: Q1 2024 European VC Valuations Report

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How much of US healthcare does PE really own?

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