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Temasek and Warburg Pincus are getting ready to place healthcare provide chain administration firm World Healthcare Change up on the market, aiming at a valuation of virtually $5bn, in response to individuals conversant in the matter.
GHX, through which the Singaporean government-backed funding fund owns a majority stake and the US non-public fairness group the rest, was working with advisers on a sale course of, which might lead to a partial or full- stake sale, the individuals mentioned. GHX is anticipating to obtain formal bids within the second half of the yr.
The public sale is the most recent instance of funding funds seeking to offload property in a push to grasp returns on investments. Temasek has been invested within the firm since 2017, whereas Warburg Pincus purchased a minority stake in 2021.
By mid-March, non-public fairness teams had offloaded a complete of almost $119bn in property globally this yr, by means of gross sales or public listings. That is the second-highest degree in 20 years however nonetheless beneath the identical level in 2021 when a growth in sponsor-backed deal exercise resulted in $211bn of exits, in response to a Bain evaluation of Dealogic knowledge.
The GHX sale course of was possible to attract curiosity from non-public fairness teams in addition to strategic consumers, however it may not lead to a sale if the funds determined to carry on to the corporate, the individuals mentioned. GHX offers cloud-based stock, provide chain and cost administration providers for healthcare suppliers and suppliers.
Temasek and Warburg Pincus declined to remark. GHX declined to touch upon “hypothesis” concerning the sale course of, including that the corporate was “targeted on delivering modern provide chain options that enhance effectivity and scale back prices for healthcare suppliers and suppliers”.
This yr, non-public fairness teams have managed to engineer some massive exits from software program firms. Warburg Pincus, alongside members of the founding administration workforce, totally exited a 90 per cent stake in digital well being information firm Modernizing Drugs, promoting to Clearlake Capital in a deal that valued it at $5.3bn, with the non-public fairness group realising an almost 10-fold return on its funding, in response to individuals conversant in the matter.
Thoma Bravo additionally struck a deal to promote power software program group Quorum to Francisco Companions for $2.4bn. Blackstone can be seeking to exit digital well being information firm HealthEdge.
Temasek purchased a stake in GHX from Thoma Bravo in 2017, valuing the enterprise at $1.8bn. Warburg Pincus injected $500mn into the enterprise in 2021, at which level Thoma Bravo totally exited its stake.
Temasek has $291bn of property in its international funding portfolio, whereas Warburg Pincus has $87bn in property underneath administration.