Physician specialties such as gastroenterology, orthopedics and urology saw an uptick in private equity consolidation activity in the fourth quarter of 2018, according to Provident Healthcare Partners.
"With private equity interest continuing to accelerate across physician services, the space will benefit from increased competition during merger and acquisition processes, which will continue to drive strong valuations," Provident said in its Q4-2018 Physician Services Update.
Private equity activity in specialties newer to consolidation:
Gastroenterology
1. PE-backed organizations Jan. 1, 2018: 1
2. PE-backed organizations Jan. 1, 2019: 3
Notable transactions: Waud Capital recapitalized Southlake-based Texas Digestive Disease Consultants, and Atlanta Gastroenterology Associates partnered with Frazier Healthcare.
Orthopedics
3. PE-backed organizations Jan. 1, 2018: 3
4. PE-backed organizations Jan. 1, 2019: 7
Notable transactions: Trive Capital recapitalized Boca Raton-based Florida Spine and Joint Institute, and Bow River Capital recapitalized Tyler, Texas-based Precision Spine Care.
Urology
5. PE-backed organizations Jan. 1, 2018: 1
6. PE-backed organizations Jan. 1, 2019: 3
Notable transaction: Gahanna-based Central Ohio Urology Group and New MainStream Capital partnered, forming the specialty's third private equity platform.