Private equity (PE) groups have experienced a decline in deal activity throughout 2024. There have been 664 deals completed by a PE (PE) firm and/or a portfolio company. This accounts for nearly 34% of the 1,943 healthcare transactions announced since January 1, 2024. This is a decrease from 2023 when PE transactions accounted for more than 35% of healthcare acquisitions (774 out of 2,199). In 2024, the sector that experienced the most PE investment was Physician Medical Group with 270 transactions.
Here are five of the top PE transactions of 2024
KKR & Co. and Verital Capital acquire Cotiviti
On February 14, KKR & Co. L.P. and Veritas Capital announced that they acquired Cotiviti, a healthcare analytics company, for $10.5 billion. The firms will also allocate significant capital to accelerate innovation and fund growth investments related to commercial expansion, new product development and technology-related opportunities. This represents the largest PE transaction announced in 2024 by purchase price.
Rural Healthcare Group acquires Stewardship Health for $245 million
Rural Healthcare Group, backed by Kinderhook Industries, acquired Stewardship Health, an Ohio based internal medicine practice, from Steward Health Care. The seller is currently going through bankruptcy proceedings. Stewardship Health has a network of more than 1,700 physicians. The $245 million purchase price represents the largest Physician Medical Group price of the year.
OneOncology Inc. acquires United Urology Group
In August, OneOncology, Inc., which is a portfolio company of TPG Capital and AmerisourceBergen, announced that it acquired United Urology Group (UUG) for an undisclosed price. UUG supports approximately 250 physicians and advanced practice providers across Arizona, Colorado, Delaware, Maryland and Tennessee. It is the second largest transaction of 2024 (behind the acquisition of Stewardship Health) in terms of most providers on staff.
General Atlantic purchases Ujala Cygnus
General Atlantic acquired a significant majority stake of Ujala Cygnus. Based in India, Ujala Cygnus is a leading healthcare provider in Northern India with a network of 21 hospitals serving Tier-II and Tier-III cities. It has 2,500 hospital beds, marking the largest hospital system (in terms of individual beds) to be acquired in 2024. The seller was not disclosed.
TowerBrook Capital Partners and Clayton Dubilier & Rice acquire R1 RCM Inc. for $8.9 billion
TowerBrook Capital Partners and Clayton Dubilier & Rice acquired R1 RCM Inc. for $8.9 billion. This purchase price is the second largest disclosed price of 2024. R1 RCM Inc. is a leading provider of technology-driven solutions that transform the patient experience and financial performance of healthcare providers.
