L1 Health looks for international acquisition opportunities that occupy a critical and strategic role in the healthcare value chain. As healthcare costs continue to balloon globally, L1 Health is looking to invest in companies that increase access, reduce cost from the system or improve the quality of care.
L1 Health is well positioned to capitalise on growth opportunities
L1 Health plans to invest up to USD $3 bn to buy and build leading assets in the healthcare sector. In order to build these leading platforms, we focus on a long-term vision and have the ability to underwrite hold periods longer than a typical private equity fund.
In addition, we have the flexibility to own majority control positions, acquire minority stakes and invest in public equities or structured products. This flexibility and long-term focus – combined with our deep sector expertise – allow us to support partnerships that create lasting shareholder value.
First-class investment team in place
The L1 Health team and Advisory Board have extensive experience in healthcare private equity, banking, operations, policy, strategy and M&A, as well as first-hand experience of healthcare delivery.
The L1 Health Advisory Board consists of internationally respected senior healthcare executives, including Dr Franz Humer, former CEO and Chairman of Roche Holding Ltd, Rolf Classon former CEO and President of Bayer Healthcare LLC and Peter Wilver, former CFO of Thermo Fisher Scientific.
US Healthcare continues to evolve
We see three trends in the US healthcare market.
First, as the Trump Administration has focused on deregulation, the FDA has become more business friendly. This has had the effect of driving generic competition, which is leading to faster approval times. Additionally, the FDA has put a premium on innovation, facilitating creative, new methods of bringing valuable products to market. These developments at the FDA have been generally well received by both sides of the political aisle.
The second healthcare trend is consolidation. The unwinding of the Affordable Care Act (aka Obamacare) has led to confusion among providers and insurers. Given this regulatory uncertainty, healthcare players are taking advantage of the strong financing and stock markets to consolidate and control as much of the health delivery system as possible. By doing so, they can adapt and protect themselves in a volatile regulatory environment. Recent examples of this consolidation include the announced merger agreement for CVS to acquire Aetna and the announced partnership between Berkshire Hathaway, Amazon and JP Morgan to leverage their considerable resources to bring improved healthcare to their employees.
The third trend we see are signs of increasing innovation in both life sciences and the delivery of healthcare. This is evident through rapid breakthroughs in biologic sciences in the biopharmaceutical industry but also through the use of modern-day technology (smart phones, wearables, etc.) to allow consumers to have greater control over their own health.
What do these trends mean for L1 Health?
Our strategy is to invest in companies that benefit from these currents in the healthcare industry. We are focused on building leading assets that occupy a critical and strategic role in the healthcare value chain by developing or supporting new technologies, increasing access to care, improving care quality or reducing care costs.