While it is true that the healthcare sector offers many investment opportunities, it is important to understand the breakdown between listed and unlisted markets, as well as the areas of complementarity between them.

Elena Coluccelli notes that “Pharma and Biotech firms dominate the public exchange, seeking to raise funds on the market due to their extensive capital requirements. Their risk exposure drives them to launch IPOs to fund their development, thus creating contingencies and sometimes disillusionment for investors.”

Another prominent publicly traded segment is Patient Care², which covers patient services such as clinical networks and medical labs. “This sector, which has long enjoyed the benefits of consolidation momentum, recently took a hit on the stock market, largely due to pressures on costs and regulatory uncertainties,” stresses Elena Coluccelli.

Private markets offer opportunities that are less accessible on exchanges, particularly in Medtech, diagnostics and pharma services. “There are very few listed companies in these fields, especially in Europe,” she points out. A combined investment strategy gets you the best of both worlds. Private investment offers diversification by gaining access to less volatile, often specialised segments, whereas public markets offer more liquidity and exposure to sector trends.

Investment in the healthcare sector, and particularly in unlisted companies, calls for three investment focuses: betting on technological innovation, consolidating the market via buy-outs⁴ and international expansion. Combining these three strategies can maximise corporate growth and profits while meeting the specific needs of the market

Organic growth is rooted in a company’s internal development, drawing on its know-how, technologies and market positioning. In the healthcare services and technologies sector, this calls for strong innovation capacity, robust sales development and progressive upscaling.

Companies that successfully implement this strategy often possess advanced scientific expertise and extensive technological differentiation.

The Buy & Build strategy is based on the acquisition and consolidation of other companies in a bid to strengthen a market position. This model is especially prevalent in the healthcare services sector, where CROs⁵ and CDMOs⁶ play a central role. By outsourcing key functions such as clinical research and drug manufacturing, these organisations allow pharmaceutical and biotech companies to accelerate their development.

Internationalisation is a critical investment focus when it comes to taking regional champions and turning them into global players. “More than three-quarters of our portfolio companies have operations in the US”, says Claire Zarouk, illustrating the importance of gaining exposure to the top two healthcare markets in the world.

This type of Transatlantic M&A deal is a strategic priority for both GHO and Lauxera. “These two markets are the most mature and most developed. That is where the clients are found, so that is why it is so important to establish a structural presence there” notes Claire Zarouk. This dynamic significantly increases a company’s strategic value and secures a truly international positioning

The valuation of companies providing healthcare services and technologies depends significantly on where they sit on the technological scale and their growth potential.

Tech company valuations are mainly based on revenue growth, with high multiples sometimes exceeding 5x revenue or 15x to 20x EBITDA. Service companies are subject to more varied multiples, depending on their degree of specialisation and growth rate. Buy & Build strategies optimise valuations by including targets with lower multiples, thus generating a gradual increase in value through synergies put in place.

The composition of investment teams plays a key role in success, given the complexity and demands specific to this sector. Companies with diversified teams and a solid network of experts are not only able to better address the market’s specifications, but also to maximise value creation and effectively drive growth.

As explained by Pierre Moustial: “Our investment teams boast a wide range of profiles: from conventional investment bankers and consultants to former CEOs of companies in the healthcare market. They offer expertise in terms of corporate management and strategic vision, which helps us tremendously in securing deals and subsequently contributes massive added value to our portfolio companies.”

Claire Zarouk had this to add: “We have a network of experts outside GHO. They possess the necessary expertise to identify risks, ask the right questions and figure out what is really important.” These diversified teams contribute substantial added value, not only when it comes to winning deals but also to executing plans.

Thus far in 2025, the healthcare sector has continued to prove its resilience and counter-cyclical properties, attracting strategic buyers ready to invest. Large groups, particularly American ones, are ready to pay high premiums for key acquisitions, thus greasing the wheels of the negotiation process. Valuations are still high, especially in the more innovative segments of the market.

On the geopolitical front, Donald Trump’s return to office may well redefine certain dynamics. His stated goal of firmly renegotiating with major pharmaceutical firms could bring pressure to bear on drug prices. However, companies positioned in differentiating technologies, which are less dependent on regulated reimbursement prices, enjoy some protection against such fluctuations. Furthermore, as vectors of productivity and efficiency, healthcare products are less sensitive to price variations and are thus able to remain competitive.

In addition, deregulation policy (notably through the Breakthrough Therapy Designation programme) fast tracks the approval of medical treatments in the United States, a key factor for Healthtech.

Finally, geopolitical tensions - especially in Asia - run the risk of intensifying competition in Europe. Under growing pressure, European Medtech firms, will be encouraged either to strengthen their presence on the US market or to improve their competitiveness in order to stand out in an increasingly contested environment.