Veterinary Private Equity – Market Update

The veterinary / animal health space is an industry with a long history of private equity investment with more than 20 PE backed platforms active across the United States. However, despite the high number of active platforms, more than 85% of vet clinics remain independent. This high level of white space paired with the tailwinds in the sector, significant growth in demand driven by pandemic pet buyers, such as favorable cash pay environment, and an opportunity to onboard a wide array of ancillary services, streamline operations, and centralize infrastructure makes the animal health space highly attractive to investors.

Over the past year, there has been a high level of deal volume in animal health. The majority of this activity has been driven by VetCor, backed by Harvest Partners and Cressey & Company.  Since June, VetCor has made more than 20 acquisitions in an extremely aggressive acquisition strategy. VetCor isn’t the only active investor in the space, however. In the past year, two new platforms have been formed: Chicago Pacific Founders, a healthcare focused private equity firm formed Pieper Veterinary and Gryphon Investors purchased Vetnique Labs, a pet supplement company. Pieper Vet has shown to be acquisitive, closing off Q3 2024 with two acquisitions, and has maintained that momentum into Q4.

Outside of platform investments, more new capital has entered the space via two growth equity investments: in September, General Atlantic made a strategic investment into GoodVets and in March, Tyree & D’Angelo Partners infused an additional round of capital into its portfolio company, Western Veterinary Partners.

Overall, the market outlook in the veterinary / animal health space is expected to remain strong and private equity partnerships continue to be an attractive option for owners looking to achieve their goals and succession plans. Private equity investors have continued to show an appetite to invest in the animal health space through the formation of new platforms, and existing platforms have remained highly acquisitive. It is expected that the ample whitespace and opportunity to drive value through ancillary services and centralized operations & infrastructure will continue to drive a high level of investor excitement.

When evaluating a potential private equity partner, it is critical to consider cultural fit, as well as value, as strategy differs highly from platform to platform. Key aspects such as clinical autonomy, operational support, management fees, and governance must be considered to ensure a fruitful partnership. Physician Growth Partners works with founders to maximize both in a transaction process.

Recent Veterinary Transactions

About Our Firm

Physician Growth Partners (PGP) Physician Growth Partners (PGP) is an advisory firm working exclusively with independent physician groups in transactions with private equity.

PGP has completed 15+ transactions in the last 12 months. Our firm is differentiated by:

• Senior partner involvement at every stage of the process
• Extensive physician practice transaction experience
• Unmatched relationships with all key private equity and strategic buyers interested in Nephrology
• Educational approach focused on partnership and cultural fit + achieving a market-clearing valuation