Why Invest in Physician Practices

Specialized Investing

Mid-Market Healthcare Funds Consistently Deliver Superior Returns

From 2015 -2020, nearly 30% of top-quartile funds were mid-market healthcare – double their share in the bottom quartile. For investors seeking outperformance, healthcare mid-market funds have consistently led the pack. See Figure below.

Source: Bain & Company, Global Healthcare Private Equity and M&A Report 2024

Proven Performance

Success of Mid-Market Healthcare Funds

Mid-market healthcare private equity funds are consistently outperforming larger funds, this is driven by several factors:

Robust Market Fundamentals

The healthcare sector is underpinned by strong, long-term trends and increasing demand for services. This provides a stable and growing environment for investments. Mid-market deals remained active even as global PE deal volume declined and raised nearly 40% more capital in the last three years than the three years prior.

A Shift Towards Specialization

Mid-market firms are excelling by developing deep, specialized knowledge in niche areas like healthcare IT, biopharma services, and specific provider segments. This expertise allows them to identify and execute on unique deals that generalist firms might miss. Healthcare IT has grown at a 36% annual rate since 2022.

Fragmented Landscape

Many physician practices are still independent, creating opportunities to partner equitably with owners and help them grow through expansion and collaboration.

Beyond Scale

While buy-and build strategies continue to drive success, today’s top-performing managers are also creating value through centralized infrastructure, operational efficiency, and new service lines. For example, physician groups are adding ancillary services like surgery centers or radiology, alongside improving billing, IT, and procurement – enhancing both patient experience and profitability.

Market Opportunity

Key Market Dynamics Creating Opportunity

An array of intersecting socio-economic factors is currently creating an opportunity for private equity investment in physician practices and other inter-related healthcare businesses. Rising levels of student debt have reduced the ability of junior physicians to purchase or establish their own practices. The average medical school graduate has $216,000 in student loan debt. Simultaneously, with 45% of practicing physicians over the age of 55, many are seeking partners to facilitate the transition of their practice into retirement.

Growth Strategy

Our Value Creation Framework

Organic Growth

We provide capital to sustainably drive accelerated growth and scale existing business segments. This includes developing ancillary revenue services and establishing new clinics in underserved locations.

Strategic M&A

We source proprietary, high-quality M&A opportunities with untapped growth potential. These "bolt-on" acquisitions allow our platform practices to expand their footprint and market share rapidly and efficiently.

Operational Optimization

We partner with practices to streamline operations, build robust referral channels, participate in clinical research studies, and implement targeted marketing to increase patient capture, while enhancing profitability and patient outreach.

Ready to Invest in the Future of Healthcare?

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