Women's Health Private Equity - Physician Growth Partners

Women’s Health Private Equity – Market Update

Winter 2024

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Despite ongoing global economic challenges and macroeconomic headwinds facing the healthcare industry, the women’s health sector continues to remain active as private equity continues to partner with and invest into practices building density in their core markets throughout 2023 and into 2024. The past four years have seen deal values resemble that of a roller coaster, with 15 deals in 2020, 8 in 2021, 14 in 2022, and 7 in 2023 (through November), according to internal PGP data. Not surprisingly, women’s health deal activity in the trailing 24 month period has been dominated by three private equity firms, Atlas Partners (Unified Women’s Healthcare), Shore Capital Partners (Together Women’s Health), and BC Partners (Women’s Care Enterprises).

These strategic platforms continue to acquire practices, allowing them to build regional density and economies of scale in concentric markets such as the northeast, southeast, and southwest parts of the United States. In an area dominated by a small number of players however, there is still keen interest by private equity firms looking to enter the women’s health space by making their first platform investment. As new private equity firms enter the space, competition will increase for attractive women’s health practices in the marketplace, not only in areas where platforms already exist but also “between the coasts”, where there appears to be a lot of white space.

From a thesis perspective, investor appetite is bolstered by technological enhancements, an increasing need for services such as reproductive health, maternal health, and personalized medicines, and a specialty that hasn’t had the robust M&A seen in other specialties since the early onset of private equity investment in healthcare – dermatology, eye care, and dental – to name a few.

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, integration, management fees, and governance must be considered to ensure a strong go-forward partnership.

Women's Health Map

RECENT WOMEN’S HEALTH TRANSACTIONS

Date  Target PE Sponsor Platform State
November 2023 Trio (CA) KKR IVI RMA N/A
November 2023 Boston IVF (US) KKR IVI RMA MA
August 2023 The Advanced IVF Institute Altas Partners Unified Women’s Healthcare IL
June 2023 The Association for Women’s Health Care* Altas Partners Unified Women’s Healthcare IL
April 2023 New Hope Center for Reproductive Medicine Altas Partners Unified Women’s Healthcare VA
January 2023 Women’s Health Consulting Shore Capital Partners Together Women’s Health IL
January 2023 Midwest Center for Women’s HealthCare Altas Partners Unified Women’s Healthcare IL
December 2022 OB/GYN South Shore Capital Partners Together Women’s Health AL
September 2022 Camelback Women’s Health Altas Partners Unified Women’s Healthcare AZ
August 2022 A New Beginning OBGYN BC Partners Women’s Care Enterprises AZ
August 2022 University Obstetrics & Gynecology BC Partners Women’s Care Enterprises AZ
August 2022 Mesa Obstetricians & Gynecologists BC Partners Women’s Care Enterprises AZ
August 2022 Sunrise Women’s Healthcare BC Partners Women’s Care Enterprises AZ
August 2022 Desert Rose OBGYN BC Partners Women’s Care Enterprises AZ
August 2022 Arizona Women’s Health Partners BC Partners Women’s Care Enterprises AZ
August 2022 North Shore Associates in Gynecology and Obstetrics Shore Capital Partners Together Women’s Health IL
August 2022 Northwestern Specialists for Women* Shore Capital Partners Together Women’s Health IL
August 2022 Palm Valley Women’s Care BC Partners Women’s Care Enterprises AZ
August 2022 Bella Women’s Care BC Partners Women’s Care Enterprises AZ
April 2022 Paint Creek Ob/Gyn Shore Capital Partners Together Women’s Health MI
April 2022 Obstetrics & Gynecology Associates Shore Capital Partners Together Women’s Health MI
September 2021 Valley Women for Women Altas Partners Unified Women’s Healthcare AZ
* – PGP provided transaction advisory services

 

About Our Firm

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

Differentiated Healthcare Transaction Advisors:

  • 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 Eye Care
  • Educational approach focusing on both partnership and cultural fit, while simultaneously achieving a market clearing valuation