New State Capital-backedFounder-owned dental support organizationis on the block with SVB Securities and UBS.Pamplona Capital-backed clinical trial solutions providerLee Equity-backed IVF provideris for sale in a closely watched Lincoln International-led process, which has been fairly quiet since the summer.PitchBook estimates 211 PE-led deals this quarter, down 10.6% from the same period last year.
PitchBook projects a total of 725 sponsor-led deals in health care services from Q1-Q3, down from a whopping 1,004 in 2021.U.S. private equity firms are sitting on some $62 billion in dry powder, translating to about $150 billion in cumulative company EV, PitchBook estimates.Last year was marked by sky-high valuations and a frenzy of dealmaking as investors sought to recoup losses from 2020.
That bull market has since reset itself, and private equity now faces competition from digital and brick-and-mortar retailers like Amazon, Walmart, Walgreens and CVS.PE deal activity in the lower middle-market remains strong, with platforms aggressively pursuing add-on buys, the report says.Without the promise of a rich price tag, sponsors aren't rushing portfolio companies to the auction block as they were last year, the report notes.
Combine that with the pinched debt markets, and it's no wonder health care services M&A has felt muted.Dealmaking sources have told Claire they're waiting until early 2023 to launch processes, in hopes that the syndicated loan markets recover — which may make for a sluggish Q4.