L1 Health looks for acquisition opportunities that occupy a critical and strategic role in the healthcare value chain.
L1 Health plans to invest up to USD $3 bn in healthcare opportunities over the next three years. Our approach focuses on long-term value creation, providing L1 Health with 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.
Based in New York, L1 Health has recruited a strong team of deal professionals and industry executives.
L1 Health looks for individual acquisition opportunities that are characterised by stable mid-single-digit revenue growth and an attractive cash flow profile. They must occupy a critical and strategic role in the healthcare value chain by increasing access, improving quality or reducing costs.
L1 Health’s long-term capital and operational expertise can support partnerships that create lasting shareholder value.
Healthcare is undergoing a paradigm shift
L1 Health is focused on investments that are aligned with the strongest growth currents in the global healthcare industry: a rapidly ageing population, a growing middle class in emerging markets, innovation in healthcare delivery, technology and data analytics, and the rapid advance of biopharmaceutical and genomic science.
Focus on growth sectors with healthcare
L1 Health is currently focusing on:
Pharmaceutical Services Sector: Contract research organisations and contract development and manufacturing organisations are large and growing markets – USD $31 bn and USD $36 bn respectively – benefitting from big pharma’s drive to expand research, development and manufacturing by outsourcing. Fragmentation in these markets, with top-tier players controlling only a quarter of revenues, has created attractive acquisition opportunities.
Life Science Tools: The life science sector benefits from diversified end markets across academic and government institutions, applied markets, biopharma, hospitals and clinics. While innovation is largely incremental in this sector, fragmentation provides considerable opportunity for consolidation amid pressure for better product pricing.
Healthcare Distribution: Distributors are a large and growing component of the healthcare industry, offering access to global healthcare services and products through more efficient network capabilities. The low capital requirements of distribution lead to high free cash flow generation, while significant savings opportunities could be achieved through consolidating networks.