Since 2017 eye care has quickly become one of the largest areas for private equity investment in the entire healthcare market. As of 2022 as many as 8% of the nation’s ophthalmologists are now working in partnership with a private equity-backed platform. This recent investment boom is driven by major fragmentation within the market, an aging population that needs eye care, and significant economic success within the sector.
So far in 2022, there have been more than 60 ophthalmology transactions with a wide range of platforms around the US. With consolidation in the sector happening faster than ever, eye care physicians may partner with a growing number of private equity-backed platforms to reap the benefits of scale. That said, with the maturation of the sector following this wave of consolidation, there will likely be fewer new private equity groups entering the eye care space. Additionally, rising interest rates and widespread belief that a bear market will last into 2023, has led to a softening of credit markets and has begun to impact valuations.
In conclusion, the eye care market has seen record activity in the past 12 months. The maturation of the sector and success of existing platforms gives independent groups more routes than ever to find the right partner and achieve scale. The PGP team continues to advise many eye care practices that are taking advantage of the proven private equity growth model.
Interested in how private equity can be helpful in your practice?
