COVID-19 disrupted private equity investment in the gastroenterology space but as the year comes to a close, practices are flocking to PE money establishing new platforms and growing established platforms.
1. Since October, eight deals have closed in the space. In the nine months before that only five deals closed.
2. One new platform has been established over the last 90 days. H.I.G. Growth Partners entered into a partnership Dec. 1 with Rochester Hills, Mich.-based The Center for Digestive Health creating Pinnacle GI Partners, a new investment platform in Michigan.
3. A second-platform is expected to be established before the year ends.
4. Add-on transactions were the name of the game over the last 90 days. Miami-based Gastro Health kicked off the post-COVID-19 investment, when it partnered with Cincinnati-based Ohio Gastroenterology & Liver Institute and Woodbridge, Va.-based Associates in Gastroenterology in two separate deals.
5. Dallas-based GI Alliance has been the most active over the time period. The platform closed three deals that built on its existing market presence and expanded into Mississippi. GI Alliance, now, has a presence in eight states.
6. Finally, while US Digestive Health made its first add-on acquisition earlier in the year. The platform closed two deals to end the year expanding its Pennsylvania platform further.
What do you think about the current state of PE investment in GI? Email eoliver@beckershealthcare.com to share your thoughts.