Nephrology Private Equity | Kidney Care Private Equity | PGP

Private Equity Investment in Nephrology Practices

Overview

Driven by market inefficiency, ancillary opportunity, and broader economic headwinds, healthcare private equity consolidation has been a leading force of change within healthcare for over a century. Starting in the late 1990’s, the primary entity behind this consolidation has been outside investors specifically, healthcare private equity investors, looking to partner with clinically strong providers and create regional and national platforms. Leveraging size and scale, these private equity funds invest alongside providers in medical specialties such as nephrology practices to help grow in existing and new markets.

Intrigued by a fragmented market and the potential for scalability, private equity firms are turning to nephrology practices for new investment opportunities. There is no question that healthcare is heading away from quantity of service and into quality and value. With kidney care, nephrology’s core disease state, impacting more Americans than most other specialties, private equity groups are trying to figure out how to play that.

Among the platforms created in the specialty over recent years are Panoramic Health (Audax Group), Renal Care 360 (Pharos Capital Group), and Evergreen Nephrology (Rubicon Founders). PGP anticipates continued sponsor-backed capital will fuel new nephrology platforms and bolt-on investments over the next 12-24 months.

The Physician Growth Partners healthcare investment banking team has successfully guided hundreds of independent healthcare providers through private equity processes, with a strong focus on helping our clients find a partner that will set the practice up for long-term success in their healthcare private equity journey.

Our team at Physician Growth Partners focuses on a number of key areas to ensure our clients are successful in the pursuit of a healthcare private equity partner:

  • Develop the appropriate financial modeling to position maximized cash flow and future “credit” for ongoing initiatives that are driving growth
  • Determine the right mix of potential buyers (including both strategic acquirers and private equity groups) and implement a strategy to reach them
  • Managing buyer marketing, bid solicitation, and negotiation
  • Position the client to meet relevant potential buyers with strong offers that address cultural fit, strategy, and alignment
  • Manage the transaction process to maximize leverage with potential buyers
  • Assist client in running a full due-diligence process on buyers to ensure the best partner is selected
  • Negotiate key economic and structural deal terms, leveraging PGP experience within the Provider-Led healthcare services space
  • Facilitate all pre-closing due diligence to ensure a seamless process that does not take away from the day-to-day business while ensuring the highest probability for a successful close


Recent Relevant Transactions

Client Testimonial

As a medium-sized group of urologists, we had our doubts about the added value of using an investment banker in our process. When we met with PGP, we were impressed by their experience and willingness to work with us on compensation arrangements. They added tremendous value to our deal and were incredible at helping us navigate the large volume of work that went into the process. I would recommend PGP to any group looking into private equity opportunities.

Dr. Ramesh Unni

Urologic Specialists of Northwest Indiana

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