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Andrea Auerbach: Private company valuations are on the local train; plus, TPG backs Monogram Health

Good morning dealmakers! Aaron Weitzman here on the Wire.

Several healthcare deals have been announced this week. We’ll take a quick look at some in just a moment.

But first, we’ve got a new segment of our ongoing Q&A series.

Waiting game. To gain insights on the current climate for private equity deals, PE Hub and PE Hub Europe reporters have been asking a wide range of sources to share their outlooks for 2023. 

Today, we’re featuring PE Hub editor-in-chief MK Flynn’s interview with Andrea Auerbach, head of global private investments at Cambridge Associates.

“The first six months of 2023 may be eerily similar to the last six months of 2022 in terms of deals done and pace,” Auerbach said. “There are too many factors in motion at the moment to jumpstart overall transaction volume, particularly for new platforms. That said, the public-to-private trend will continue and portfolio company add-on activity will persist.”

Here’s more from the interview:

What will be the most important trends affecting dealmaking in 2023? 

There is an expectation that 2023 will be a great year to deploy capital, provided there is price capitulation by sellers. While the public market has been on an express train to correction, private company valuations are on the local train and could take potentially another year to fully reflect the impact of broader macroeconomic factors.

You can read the whole story here.

Healthcare heartbeat. And now let’s explore some recent healthcare deals.

Monogram Health, avalue-based specialty provider of in-home evidence-based care and benefit management services for patients living with polychronic conditions, received a $375 million growth capital raise to help support continued expansion.

The money raised came from various investors, including CVS Health, Cigna Ventures, Humana, Memorial Hermann Health System, and SCAN, as well as from both new and existing financial investors including TPG Capital, Frist Cressey Ventures, Heritage Group, Pura Vida Investments, and Norwest Venture Partners.

Separately, Q Healthcare Partners (formerly called NovaQuest Private Equity, announced it has invested in COPILOT, a “digital-first” patient-centric reimbursement hub services platform intended to support the relationship between patients, healthcare providers and pharmaceutical and device manufacturers.

Speaking of healthcare, I know a lot of investors are out in San Francisco for the JPM healthcare conference. If you’re attending, I’d love to hear from you. Feel free to reach out to me at aaron.w@peimedia.com.

Environment, health and safety. Another deal announced today that caught our collective eye:New York-based Bregal Sagemount made a strategic growth investment in Enhesa, a provider of regulatory and sustainability intelligence, in a deal covered by PE Hub Europe’s Nina Lindholm.

As part of the transaction, Sagemount will acquire ICG’s minority stake in Enhesa, with existing investor CGE Partners retaining its majority stake in the company. Enhesa has its global headquarters in Brussels and its US headquarters in Arlington, Virginia.

You can read the whole story here.

That is a wrap for today.  Chris Witkowsky in on deck for tomorrow, MK Flynn will be with you on Thursday, and I will be back on Friday as per usual. Until then…

Cheers,

Aaron

Read thefull wire commentaryon PE Hub …

Also of note (may require subscriptions)

A recent secondary deal run by Harvest Partners garnered what some market participants see as a sluggish level of limited partner sales, throwing into question whether LPs are ready to sell their stakes for ready cash. (Buyouts)

Goldman Sachs’ Sustainable Investment Group, part of the bank’s asset management unit, has held a final close on its climate and environment-focused growth fund at $1.6 billion, it said on Tuesday. (New Private Markets)

The Kentucky Public Pensions Authority approved a $75 million commitment to an open-end farmland vehicle managed by South Bend, Indiana-headquartered Ceres Partners. (Agri Investor)

What will the transport sector look like in 10 years’ time? Three managers of transportation assets offer their predictions. (Infrastructure Investor)

Fidelity Investments has launched Fidelity Private Credit Fund, a $1 billion, non-traded, perpetual life business development company that will be offered to retail investors through financial advisers and other intermediaries in 43 states. (Private Debt Investor)

In her latest op-ed, Kana Inagaki writes on FT that "the Japanese market is not immune to the forces leading to a global slowdown in deal activity. How the Toshiba buyout concludes could be a harbinger of the year ahead" for private equity.

"Russia’s Lukoil has agreed to sell its Sicilian refinery to an Israeli-backed private equity fund that has partnered with commodities trader Trafigura in a last-minute bid that gazumped an offer from US-based Crossbridge Energy Partners and oil trader Vitol." (Financial Times)

"Money managers for the ultra-wealthy are eschewing traditional private equity funds and betting directly on upstart companies. That’s according to a new report by Dentons, which found that 63% of family offices use direct investments and an additional 22% are interested in doing so." (Bloomberg)