Biotech PE vs Healthcare PE

I know that historically healthcare buyout PE firms have focused on HCIT or HC Services. Recently have seen biopharma PE more often particularly with the life sciences divisions of many MFs. Curious if this is more a growth/VC arm or are traditional buyouts becoming more common in the biopharma space? In terms of recruiting do they look for M.D.s or people with PhDs in biotech or is that an option for anyone working in Biopharma IB? Would appreciate any insight on this!

 
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There are definitely some PE firms that play in biotech, but for the most part it’s a capital intensive industry with a binary outcome profile - you’re going to burn a shit ton of cash and either make a ton of money or lose it all, with minimal middle ground. You do see the more advanced stages hit the buyout space (once there’s an existing product) or occasionally going to royalties-focused funds
 

PhD (or MS / MD) is a leg up and required at some funds, but it’s also possible to do if you come from life sciences banking (or, rarely, equity research)

 

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