A US-based private equity firm, Ampersand Capital Partners, announced on Thursday that it has bought Protein Technologies. The private equity firm didn’t announce the financial details of the deal, but the firm has plenty of expertise in investing on the healthcare sector.
The Acquisition Announcement
Protein Technologies company works in the field of peptide synthesis instrumentation and has been a market leader in the field for a number of years. The official statement of the acquisition detailed the company’s plans to expand its business operations, as Protein Technologies continues to seek a stronger global market presence.
Furthermore, the company’s current president and chief executive officer, Nate Cosper, PhD, will continue in his position. Doctor Cosper said in the statement, “Protein Technologies has a longstanding history of providing high quality synthesizers, and our employees are dedicated to delivering exceptional support to customers in the peptide synthesis community.”
The company was founded in 1985. It has since grown to provide peptide synthesisers and reagents to leading medical universities as well as biotechnology and pharmaceutical companies both in the US and around the world.
According to GEN News, “Square 1 Bank has provided working capital financing concurrent with Ampersand’s investment”.
Ampersand Capital Partners Continues to Focus on Healthcare Sector
The private equity firm is well equipped to provide more support for Protein Technologies, as it has a healthy investment background in the healthcare sector. The private equity firm, which has previously managed $1 billion in private equity partnerships, was happy about the recent deal.
David Parker, general partner at Ampersand Capital Partners, said in the official statement, “Ampersand is partnering with the Protein Technologies team to further advance the Company’s innovative instrument and reagent solutions for the global peptide community.”
In its previous ventures, the firm has provided a unique mixture of pure equity and operating support to help increase value and boost long-term performance of the company.
Healthcare Sector Continues to Attract PE Firms
Healthcare sector continues to be an attractive sector for private equity firms. Already this year, healthcare-focused funds have raised $12 billion, with North America-focused funds attracting the most capital.
Furthermore, 50% of the funds raising equity have already managed to hit their targets and moved beyond, with only 28% of funds being below targets.
So far, 28 funds have stopped raising money and the total capital raised is only slightly behind the $12.9 billion healthcare-focused funds managed to fork up last year.
Nonetheless, the most recent Private Equity Spotlight by Preqin showed the buyout funds exclusive focused on healthcare rank as bottom-quartile performers. According to Preqin, their data “highlights the range in quartile rankings of healthcare-focused buyout funds and therefore the importance of fund selection for investors”.
While most deals and fundraising efforts in the sector are still taking place in North America and Europe, there’s plenty of interest towards the healthcare sector in the emerging markets as well. For example, Preqin’s data shows 53% of LPs are interested in opportunities in Asia.
With a number of healthcare sector deals being completed this year, it is likely fundraising in the sector will also continue its strong performance.