Sanjay Panchal is a partner at Livingbridge, a leading international growth capital investor, where he specialises in healthcare. In this episode he speaks to Ross Butler about the opportunities for private equity investors across the healthcare sector.

Investing in Healthcare – Sanjay Panchal on Fund Shack’s Private Equity Podcast

Sanjay Panchal, Partner at Livingbridge discusses the dynamics and opportunities in the healthcare sector from an investor’s perspective. He explains how Livingbridge focuses on thematic investing, identifying long-term trends like aging populations and technology adoption. Sanjay emphasizes the importance of improving healthcare outcomes and the role of private equity in driving innovation and efficiency in the sector.

Key Highlights:

Healthcare Investing Approach:

• Thematic Investing: Identifying key growth trends and focusing on businesses driving change in healthcare outcomes.
• Mid-Market Focus: Investing in UK mid-market businesses and helping them scale, targeting areas with growth rates significantly above GDP.

Investment Philosophy:

• Outcome-Driven: Partnering with businesses focused on improving healthcare outcomes, believing that commercial success follows quality care.
• Employee Focus: Emphasizing the importance of recruiting and retaining skilled staff, crucial for sustainable healthcare businesses.

Service vs. Capital-Intensive Businesses:

• Service Models: Primarily investing in service-oriented businesses, including technology services, rather than capital-intensive sectors like hospitals.
• Examples: Investments include businesses like Helping Hands (home care services) and Nourish Care (digital record management for elderly care homes).

Changing Healthcare Trends:

• Ten-Year Truths: Identifying long-term trends such as aging populations and shifts in care from hospitals to the community.
• Technology Adoption: Significant focus on healthcare technology to improve service delivery and patient outcomes.

Life Sciences and Biotech:

• Complex Drug Pipelines: Trends towards more specific, complex drug developments targeting smaller patient populations.
• Outsourcing in Pharma: Increasing reliance on third-party providers for drug discovery, clinical trials, and commercialization.

Geographic and Sector Focus:

• International Presence: Investments in various geographies, including the US and Australia, with a focus on scalable, specialized healthcare services.
• Consumer Healthcare: Noting a shift towards greater consumer control and visibility over health, though the private pay sector still has growth potential.

Sanjay Panchal’s insights highlight Livingbridge’s strategic approach to healthcare investing, emphasizing thematic investing, improving healthcare outcomes, and leveraging technology. The firm focuses on scalable service models and recognizes the critical role of private equity in driving innovation and efficiency in the healthcare sector.

#HealthcareInvesting #PrivateEquity #ThematicInvesting #HealthcareOutcomes #LifeSciences #HealthcareTechnology

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