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RiverGlade, InTandem see add-on potential in infusion services; BCLP’s Schwartz on healthcare dealmaking scrutiny in '25

Morning Hubsters,

Happy Fri-yay! John R. Fischer here in the New York newsroom, coming to you with the US edition of the Wire, which is chalk full of healthcare investment news today.

First up, a 6-deal listicle on a high-margin healthcare sector that has attracted the likes of RiverGlade Capital, InTandem Capital Partners and Frazier Healthcare Partners.

One of the questions on investors’ minds lately has been how the regulatory landscape will look for dealmaking under the incoming administration. David Schwartz, a partner at the law firm Bryan Cave Leighton Paisner (BCLP), shared a few insights with PE Hub on what that may entail.

Finally, let’s head into the weekend with a Harris Williams M&A market report on physical therapy, a segment that has caught the eye of Abris Capital Partners, Avathon Capital and Partners Group.

Infusing private equity

A robust pipeline of new infusible and specialty drugs, an increase in chronic diseases and more patients looking for care outside of hospitals have turned ambulatory and in-home infusion care into a high-margin market. This has not gone unnoticed by private equity, with several firms vying for investments and platform add-ons in the healthcare subsector.

I rounded up six deals to show how busy the sector has been in 2024.

Premium subscribers can see the full list.

Keeping close watch

With no word yet on who will lead the Federal Trade Commission (FTC) under the next administration, private equity investors say there's a lot of uncertainty around the healthcare dealmaking landscape for 2025.

Upgrade to the premium version of the Wire to learn more.

Rehabilitating M&A

Aging populations looking for more active lifestyles and less invasive, affordable care that does not include opioid use are leading to a greater need for physical therapy (PT), according to Harris Williams’ Physical Therapy Market Overview Q4 2024 report.  

Become a subscriber to the premium version of the Wire to learn more.

That’s it for me. If you have any questions, thoughts or want to chat, please email me at [email protected].

Nina Lindholm will write to you on Monday with the Europe Wire, and MK Flynn will be on US duty.

Cheers,

John

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Also of note (may require subscriptions)

Novacap is back in the market with a seventh flagship fund for mid-market buyouts in the technology, media and telecom sectors. The Montreal manager is seeking $2.75 billion for Novacap TMT VII, according to Arkansas Teacher Retirement System documents, 48 percent larger than the vehicle’s 2020-vintage predecessor. (Buyouts)

EQT launches new energy transition fund: The new strategy could raise close to €5bn. It will deploy capital to help scale up ‘the infra of the future’, Asís Echániz, head of Transition Infrastructure Europe, tells Infrastructure Investor.

Will there be more Kodak moments in the secondaries market? The Kodak-Mastercard Foundation transaction suggests further corporate sellers may come to the secondaries market as they go through structural shifts. (Secondaries Investor)

Ares Management has stepped up as buyer on an LP-led transaction run by French insurer AXA, Secondaries Investor has learned.

Decarbonization initiatives in real estate are starting to show early signs of paying off, according to investors at the PEI Group Women in Private Markets Summit in London this week.

After a difficult couple of years for private markets, LPs are beginning to see green shoots of recovery. Private Equity International’s LP Perspectives 2025 Study – an annual study of institutional investor sentiment towards the asset class – paints a picture of general optimism among LPs, particularly when it comes to private equity’s projected performance.

Partners Group’s real estate push goes up two gears with Empira deal: As well as providing a significant boost to Partners’ direct real estate business, the merger of the two Swiss firms will add real estate credit to the manager’s offering. (Private Equity Real Estate)

Miami-based H.I.G.Capital announced the final close of Bayside Loan Opportunity Fund VII, with $1 billion of capital commitments. (Private Debt Investor)

They said it

“I also think certain red state governments may take action to regulate private equity investments in healthcare increases...For a lot of these governments, protecting rural access to healthcare is a high priority, and many times insufficiently rural hospitals are what get cut or consolidated in a private equity merger.”

— David Schwartz, partner, Bryan Cave Leighton Paisner