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VSS: Covid accelerated technology adoption in healthcare; new deals from KKR, TPG and Eir

Good morning, dealmakers! Aaron here with the Wire.

Today, we’re honing in on healthcare.

To kick things off, VSS shares insights on the sector, including accelerated adoption of technology.

Then, we’ll look at a few deals in the sector that have caught our collective eye this week.

They include activity from KRR, TPG and Eir Partners.

Healthcare heartbeat. Continuing with PE Hub and PE Hub Europe’s outlook Q&A series, we have some fresh thoughts from Eric Kim, principal of VSS Capital Partners.

Here’s an excerpt from our Q&A with Kim:

How do you expect the first six months of PE dealmaking in 2023 to compare with the last six months of 2022?

In our pipeline, we saw more deals in 2022 than in 2021, and we expect that to continue into 2023. Our structured capital offering is particularly appealing in the type of dislocated market we are currently in and where there are potentially wide bid/ask spreads in the market. We provide flexible equity and debt capital from the same fund, and we work with founders to find the most suitable capital structure to meet both the company’s strategic growth plans and the founder’s needs.

You can read the whole Q&A here.

Imaging investment. Speaking of leveraging tech, last year saw lots of diagnostic imaging deals, and yesterday there was a new deal in the space.

Novant Health Enterprise and TPG, announced an innovative new partnership to expand MedQuest Associates across the country. TPG’s investment in the partnership is being made through TPG Growth, the firm’s middle market and growth equity platform.

MedQuest owns diagnostic imaging facilities with a network of more than 50 centers under management.

We expect to a wave of more imaging deals this year. Click here to read the whole story.

Cataract treatment. A subsidiary of Bausch + Lomb has acquired AcuFocus, following a merger transaction with the parent company of AcuFocus, which is a KKR-backed ophthalmic medical device maker.

The Irvine, California-based company produces the IC-8 Apthera EDOF Intraocular Lens (IOL), which was approved by the US Food and Drug Administration last year and is currently available in Australia, New Zealand, Singapore and select markets across Europe.

Virtual health. ReviveHealth, a whole health and integrated care company backed by Eir Partners, has acquired SwiftMD, a virtual care services company with a physician network.

“Through our partnership, ReviveHealth is in a strong position to innovate, scale, and create lasting transformative value,” said Howard Buff, ReviveHealth executive chairman.  “Along with our recent acquisitions of ManifestRx, iSelectMD and now SwiftMD, ReviveHealth has rapidly advanced its contemporary approach to the traditional healthcare delivery system by offering a broader suite of on-demand health services previously unavailable.”

Based in Miami, Eir Partners invests in high growth healthcare companies.

Schedule note. As MK Flynn mentioned yesterday, today is my last time writing the Wire. I want to thank everyone for waking up and reading and welcoming me to the community.

Buyouts’ Chris Witkowsky will write the Wednesday Wire, as usual, and MK will be back on Thursday.

PE Hub reporter Obey Martin Manayiti will make his debut writing the Wire on Friday.

Cheers,

Aaron

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Genstar Capital launched an 11th mid-market buyout fund (seeking $11 billion) amid expectations of a tougher fundraising market in the year ahead. (Buyouts)

PSP Investments, the pension manager of Canada’s Public Sector Pension Investment Board, is optimistic that the end of ultra-low interest rates will be positive for the industry. (Private Equity International)

LPs including AP6, Hamilton Lane and Harvard tell the Principles for Responsible Investment they are looking more carefully at how general partners manage ESG risks internally and within their portfolio companies. (New Private Markets)

Market volatility caused by the war in Ukraine, high inflation and rising interest rates have curtailed the opportunities available to exit existing investments. That means relative newcomers unable to put up realized carry are having to borrow in order to meet their own fund commitments, fund finance sources tell Private Funds CFO.

Seattle-headquartered Silver Creek Capital Management has hired an investment director from University of California Investments to serve as a managing director, with a focus on expanding private credit and real assets investments. (Agri Investor)

"Los Angeles Mayor Karen Bass has declared a state of emergency on homelessness, and Deborah La Franchi of SDS Capital Group thinks private equity dollars can make a big dent in the crisis by building housing faster and cheaper than the public sector." (The Real Deal)

"The global head of RSM, the world’s sixth-largest accounting firm, has said she is open to merger talks with rivals as the profession gears up for a potential wave of consolidation or private equity buyouts." (Financial Times)

"Blackstone is in talks to sell around half of its stake in India's largest real estate investment trust Embassy Office Parks to private equity firm Bain Capital, two sources said, in a deal worth up to $480 million at current prices." (Reuters)

"Goldman Sachs Group Inc's asset management arm will significantly reduce the $59 billion of alternative investments that weighed on the bank's earnings, an executive told Reuters."

"Longshore Capital Partners has backed the merger of digital marketing companies Blue Wheel and Retail Bloom to capitalize on the continuing e-commerce boom by offering companies and brands a one-stop shop." (WSJ Pro)