2025-02-09-PitchBook-2024年四季度医疗保健服务PE更新（英）_6页_570kb

Q4 2024 Healthcare Services PE Update Summary

Core Content

This report provides an analysis of the healthcare services private equity (PE) deal activity in Q4 2024, highlighting trends, key players, and market conditions. It is part of a broader series of industry research reports from PitchBook, a Morningstar company that specializes in private market data.

Key Takeaways

• Deal Count: The estimated deal count for Q4 2024 was 143, slightly lower than Q3 but not unusual due to late reporting. The final count is expected to be close to the 177 deals reported in Q3.
• Deal Flow: The previous turning point call for PE healthcare services deal flow was premature. Deal activity is likely to remain flat for the next quarter or two before a potential rebound.
• 2025 Outlook: The sector is expected to show improvement in 2025, driven by easing interest rates and lower valuations that may spur more deal activity.
• Top Deal Categories: For full-year 2024, the top deal categories in healthcare services were dental, veterinary, dermatology, and home-based care.
• PE Activity Trends: Pharma services and healthcare IT have seen more activity than health services, with healthcare IT being highlighted by the $7.8 billion buyout of R1 RCM in November.
• Market Conditions: Buyers and sellers are still at odds over valuations, and deal timelines remain prolonged. Multiple contraction has slowed since the initial impact of higher interest rates.
• IPO Activity: No major IPOs were announced in Q4, following two in Q3 (Ardent Health and Guardian Pharmacy Services).
• Exit Routes: Sponsors are showing increased willingness to consider IPO exit routes, while regulatory pressures around PE in healthcare have decreased, as illustrated by California Governor Newsom's veto of AB 3129.

Main Points

• Market Uncertainty: Market participants have adjusted to the current rate environment and are using rate forecasts less for go/no-go decisions. The high uncertainty in Federal Reserve rate decisions makes it difficult to hold out for further rate cuts.
• Valuation Trends: Current valuations are at low levels, and if multiples stabilize, there may be significant upside.
• Key Buyers and Sellers:
  • Cardinal Health emerged as a top buyer, acquiring GI Alliance and Integrated Oncology Network.
  • Astrana Health acquired Prospect Health System for $745 million.
  • Cencora made a strong exit by acquiring Retina Consultants of America for $4.6 billion.
  • Carlyle Group and Cigna engaged in carve-out strategies, with Carlyle acquiring Vantive kidney care division from Baxter and Cigna selling its Medicare business to Health Care Service Corporation.

Appendix Highlights

Q4 2024 Healthcare Services PE Deals

Most Acquisitive PE-backed Healthcare Services Platforms (Since 2021)

Conclusion

The healthcare services PE market in Q4 2024 showed a moderate decline in deal count, with activity remaining subdued due to market caution, election uncertainty, and persistently high interest rates. Despite these challenges, the sector is expected to improve in 2025, with lower valuations and potential rate cuts offering opportunities for growth. Key subsegments such as dental, veterinary, and outpatient mental health continue to attract high levels of sponsor interest. The report also highlights notable transactions and ongoing trends, such as the increased use of IPO exit routes and the impact of regulatory changes.