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Avista, BC Partners, Hamilton Lane bet on generic pharma; Changes to US healthcare market already in motion, says Stout

Morning Hubsters,

Happy Fri-yay! John R Fischer with the US Wire from the New York newsroom.

Increased consumer demand and improved production efficiency have made generic pharmaceutical businesses a popular investment target. The sector has attracted the likes of Avista Healthcare Partners, BC Partners, Hamilton Lane and Kartesia. We start with a 5-deal listicle that explores private equity’s interest in the segment.

Next, we have insights into healthcare M&A in 2025 from Stout’s 2025 Healthcare Investment Outlook report. Tony Crisman, a managing director at the investment bank, shares his views on how the current administration’s policies may affect dealflow.

KKR this week agreed to acquire an India-based oncology hospital chain from CVC Capital for $400 million. We’ll delve into the transaction and the trends driving increasing deal volume in India, as part of our Friday Focus.

We’ll finish with some exciting news about the PE Hub’s Deal of the Year winner announcement.

As prescribed

Rising healthcare costs and expirations on blockbuster pharmaceutical patents are generating greater consumer demand. In turn, private equity interest in generic pharmaceuticals – sold at a fraction of the cost of their branded counterparts – is on the rise. This includes prescription and over-the-counter pharmaceuticals.

To learn more, take a look at the premium Wire here.

Check out the full piece for more generic pharma deals.

Too early to tell
Healthcare services M&A activity is expected to pick up in the coming months as plans under the new administration become more transparent, according to investment bank and advisory firm Stout’s 2025 Healthcare Investment Outlook report.

To learn more, PE Hub senior reporter Michael Schoeck turned to Tony Crisman, managing director and head of healthcare at Stout. 

To read Crisman's commentary, check out the full Wire coverage here.

Opportunities in India

Earlier this week, KKR agreed to acquire a majority stake in Healthcare Global Enterprises (HCG), an India-based oncology hospital chain, from CVC Capital Partners, for $400 million.

For more on the deal, as well as a wider look at India, take a look at the premium Wire here.

Awards ahead

Be sure to tune in on Monday when PE Hub will announce the winners of the 35th annual Deal of the Year Awards, as we honor exceptional buyouts realized in 2024.

Set your reminders – you won’t want to miss the stories featuring winners in all categories, available on the PE Hub website from 6:00 am EST. US Wire readers will also get highlights from the awards.

That’s it for me. As always, if you have any questions, thoughts or want to chat, please email me at john.fischer@pei.group.

Nina Lindholm will bring you the Europe Wire on Monday, and MK Flynn will write to you with the US one.

Cheers,

John

Read the full Wire commentary on PE Hub ...

Also of note (may require subscriptions)

Cinven still sees opportunities akin to its US expansion of fashion brand Kurt Geiger, despite potential tariffs on imports by the new US administration. But the political shift means focusing on brand resonance is more important than ever, Maxim Crewe, partner and head of consumer at the London-based firm, told PE Hub.

Charlesbank Capital Partners is running a process to extend its hold over one of its relatively younger assets, Action Behavior Centers, which it acquired in 2022, three secondaries market sources told Buyouts.

Private Equity International recently caught up with Joan Solotar, global head of private wealth solutions at Blackstone, to discuss its progress in tapping private wealth capital at scale and where it sees opportunities for future growth. Solotar is one of the speakers at PEI Group’s NEXUS 2025 conference in Orlando on 10-12 March.

On the heels of committing $2.8 billion into private equity over the past two years, the New Mexico State Investment Council is bracing for a sizable J-curve impact. (Buyouts)

Are real estate allocations at risk? Industry executives are concerned Donald Trump's energy policies could further steer investor capital away from the asset class to infrastructure. (PERE)

Small-cap secondaries funds are punching above their weight from a distribution to paid-in capital perspective – a performance metric closely monitored by limited partners allocating into private markets at a time where realisations have slowed. (Secondaries Investor)

A counter-intuitive approach to AI training in the US could sidestep Jevons paradox, bring data centres online faster and save the industry billions of dollars every year. (Infrastructure Investor)

Schroders Greencoat, the infrastructure business of Schroders Capital, has launched a long-term asset fund designed to give wealth clients access to energy transition investments. (New Private Markets)

A nearly three-year fundraise for Neuberger Berman’s latest real estate secondaries vehicle has ended with a $1.05 billion haul, beating its target by over $200 million, albeit with the help of an undisclosed amount of employee contributions as well as its own capital. (PERE)

Advent International is seeking $26 billion for Advent International GPE XI, according to materials prepared for the Massachusetts Pension Reserves Investment Management Board’s February 27 board meeting. (Private Equity International)

Luxembourg-headquartered Quilvest has promoted Daniel Toledano to the newly-created role of global head of sustainability, the firm will announce Friday. (New Private Markets)

Deals

They said it

“With numerous healthcare growth drivers being accelerated coming out of covid and being on the precipice of an AI revolution, many changes to the US healthcare market are already in motion, regardless of the administration.”

— Tony Crisman, managing director and head of healthcare at Stout, on the current administration’s expected impact on healthcare dealmaking

Today's letter was prepared by John R Fischer

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