Pictet Alternative Advisors (PAA), the Pictet Group’s wholly owned alternative investment business, has announced the launch of a second thematic private equity strategy, exclusively focused on health investments.
The strategy complements PAA’s existing thematic private equity franchise, initiated with the successful fundraising of its first fund dedicated to technology, which has been closed at a hard cap of USD 350 million in September 2021.
The new strategy aims to invest in best-in-class biotech and healthcare-focused VC, Growth, and PE funds globally and will dedicate a substantial allocation to co-investments within its covered segments of high conviction.
The strategy aims to take advantage of strong macro drivers as governments, businesses and individuals prioritise the improvement of health across society. The strategy will look to target high conviction investments in five key segments (therapeutics, diagnostics, digital health, medical technology, and health care and services providers) to create a diversified portfolio of private health care companies.
Yann Mauron, Investment Manager for the strategy explains: “Health is a major priority for society as a whole. We are at an inflection point for medical breakthroughs: investment is growing, regulation is becoming more supportive, and technology is able to offer more potential solutions.”
“As illustrated by the recent vaccine successes, it’s a fertile time for healthcare. What could have taken scientists 10 years to complete was accomplished in less than one.”
Pierre Stadler, Head of Thematic Private Equity, adds: “From a private equity standpoint, the five areas provide opportunities across the full spectrum of company maturities. Deal flow in therapeutics, digital health and diagnostics is particularly strong in early and growth stages. Medtech and care providers, meanwhile, tend to be more attractive at buyout stage.”
“PAA’s expertise in building diversified portfolios, which include investments in health companies of all stages (from seed to late-stage VC, Growth Equity or LBO) will enable PAA to build its Health strategy with a mitigated risk approach.”
Since its debut, almost 30 years ago, Pictet has committed to more than 150 private equity funds and participated in 155 co-investments of which 90 were realised, generating a multiple of 2.70x on invested capital.