HBI Deals+Insights / M&A/IPOs

New HBI pipeline tool reveals long-held investments 

Nearly a third of all health care businesses currently owned by private equity houses in Europe have been held for at least five years, according to the new HBI Deals Pipeline tool. That suggests many private equity houses are struggling to sell on their investments.

In total 32.7% or 80 investments have been held for five years or longer, 9.8% for 4-5 years, 13.9% for 3-4 years, 18.9% for 2-3 years and 24.6% for under 2 years. It should be noted that these figures do not include investments which have been recently sold to strategic buyers, or have been fully exited by their PE owners through an IPO.

Certain countries have aged particularly badly. In Turkey, over 71% of investments are over 5 years old and in Russia the figure is nearly two-thirds.

The research also highlights that some investors have long-in-the-teeth portfolios. For example, Bridgepoint’s two big investments – Diaverum and Care UK – have an average life now of around a decade. NPM Capital in the Netherlands has three investments with an average lifespan of seven years. Of course, this doesn’t equate to failure. Bridgepoint, for instance, successfully exited UK dental chain Oasis and French hospital group C2S.

You can easily spot all health care assets in Europe that are likely to sell in the next year using the HBI Deals Pipeline tool using a mix of algorithms and human intelligence. “We assign an 80% probability of a sale to any asset held for over five years and our analysts and journalists show operators who are known to be likely to sell at 90% and those already in a sales process at 95%,” said chief executive Julian Turner. The pipeline currently covers nearly 250 private equity-owned operators in Europe. Over the next month, it will be rolled out to also cover 100+ listed companies, major family-owned businesses as well as investments held by family offices, infrastructure funds and development banks.

The pipeline will be available in Beta version from Monday, November 4. It can be accessed by HBI Intelligence and HBI Connect members only. Over the next few weeks we will be adding further investor types.

HBI Deals and Insights member can upgrade to HBI Intelligence and gain access to the tool, plus a dozen detailed sector reports and a database of the top 3,500 operators across Europe and Emerging Markets for just £3,860. To get a demo, just click here.

Your feedback on the pipeline is, as always, welcome. Email david@healthcarebusinessinternational.com with your thoughts and suggestions.

We would welcome your thoughts on this story. Email your views to Max Hotopf or call 0207 183 3779.