Private equity firm Blackstone and Canadian pension fund Omers are both seeking to offload healthcare services investments in multi-billion dollar deals, according to a report by the Financial Times citing unnamed sources familiar with the matter.
Blackstone has enlisted advisers to explore the sale of its majority stake in HealthEdge, a health insurance software provider, with a potential deal expected to value the company at over $2.5bn, according to multiple sources.
Omers, one of Canada’s largest pension funds, is similarly working with advisers to sell Premise Health, a major provider of direct-access care networks in the US. The sale is targeted at a valuation of around $2bn, sources noted.
These two auction processes come amid an industry-wide push by private equity firms to exit healthcare investments. After a period of high interest rates that limited sponsor-backed deals, many firms are now focusing on monetising their healthcare portfolios.
Both Blackstone and Omers declined to comment on the sale processes, while HealthEdge and Premise Health did not immediately respond to requests for comment.
According to a report by Bain & Company, as of November last year, private equity funds were holding investments in over 2,700 healthcare companies for six years or more, up from 2,100 companies five years prior. This accumulation of long-held investments sets the stage for a rise in sponsor exits, particularly in 2025.
Sources cautioned that both sales are in the early stages and may not ultimately lead to transactions. However, both companies are likely to attract interest from other private equity groups.
