Key trends for PE firms in healthcare and life sciences

Competition in healthcare is intense, but PE firms can succeed if they understand the post-covid ecosystem, say KPMG’s Kristin Pothier and Glenn Mincey.

Glenn Mincey

Glenn Mincey

Global & U.S. Head of Private Equity, KPMG

+1 212-954-8255

Kristin C. Pothier

Kristin C. Pothier

Global & National, HCLS Deal Advisory & Strategy Leader, KPMG US

+1 617 549 2779

In an interview with Private Equity International Magazine Glenn Mincey—global & U.S. Head of Private Equity, and Kristin Pothier—global and U.S. lead, Healthcare and Life Sciences Deal Advisory, discuss key trends emerging in the post Covid-19 healthcare and life sciences sector.

Key interview takeaways:

  • Post-Covid-19 innovation has dramatically changed the healthcare and life sciences landscape, requiring PE firms to get more creative to match the market, with smaller deals that maximize value but also play to a completely reshaped ecosystem.
  • Strategic buyers in healthcare often pay above what private equity firms will pay, putting additional strain on valuations. To compensate, PE firms seek value levers such as innovation to mitigate against the competitive landscape and other headwinds.
  • Success in this environment starts pre-diligence. The most successful PE firms are looking at their portfolio company growth strategy, market dynamics, and a number of asset options instead of setting their hearts on just a few way ahead of time.
Until recently, valuations were in the stratosphere – they were completely unreasonable.
— Glenn Mincey, global and U.S. head of Private Equity, KPMG
PE firms are competing directly with corporates and the race for the best assets is very intense.
— Kristin Pothier, global and U.S. lead, Healthcare and Life Sciences Deal Advisory, KPMG