Healthcare finance
Does anyone know of any healthcare specific venture capital, private equity, or ib firms?
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Doesn't directly answer your question, but I know that Orbimed is a top-notch healthcare focused hedge fund.
Also, UBS had a stellar healthcare franchise for some years but a little while back, nearly the entire team left for Jefferies. From all accounts, things didn't go so smoothly there but I haven't heard if anyone has returned to UBS; I doubt it.
Also interested. I think CIT Group is also known for healthcare M&A.
OrbiMed, Abbingworth, Leerink Swann, Cain Brothers, Water Street, MTS Health... lots more..
too many to list.
you can also look for places like novartis ventures etc.. where its a fund within one of the giant healthcare sector companies.
Provident Healthcare Partners is another well-known healthcare boutique (not on the level of Leerink Swan however).
Cain Brothers
Any based in the midwest?
roundtable healthcare partners, linden llc
just use capiq to vet the list
There's a whole Healthcare Private Equity Association: http://www.hcpea.org/member-firms
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http://www.chrysalisventures.com/
HC VC/PE on top of my head... Aisling Capital Frazier HC Ventures Canaan NewSpring Capital Navimed Orbimed Abingworth Safeguard Scientifics Fidelity Biosciences Lux Capital Polaris Kleiner Perkins (although they are shutting down life sciences in the US) Sequoia Ascension Health Advent Ascent Biomedical Ventures Chrysalis NewSpring Capital New Venture Partners New Enterprise Associates TPG Biotech... Ans obviously the mega shops that have a healthcare team (Apax, KKR, Blackstone, Bain Capital, Cinven, Silver Fleet Capital, etc).
HC banks:
Big Ones: GS, MS, JPM, Citi, BAML, DB, UBS, Barcap, etc
Big shots, smaller shops: Evercore, Centerview, etc.
MM known for their HC teams: Jefferies, Needham, Piper Jaffray, Stifel, etc.
Top boutiques: Leerink Swann, Cain Brothers, Aquilo, etc.
Tiny but good: Edgemont Capital Partners
Could you talk a little about HC VC/PE handle hiring? (ex. Orbimed, etc). Do they hire out of undergrad? And is there a way to obtain an internship at those places before graduation as a undergrad?
I'm really interested in HC and would definitely appreciate any information.
HC VC/PE funds hire headhunters to go look for the best and brightest. For a pre-MBA Analyst/Associate, at least 2-3 years in HC investment banking (or HC consulting/banking if the shop is a bit more early stage) is required. Biz Dev or startup experience also works. A scientific undergrad degree (biochem, bio-eng, etc) is not required for buyout shops, but strongly preferred by VCs. Although there are some Econ degree who just learn the industry inside out during their years in banking and can break into VC as well.
VC funds will almost never (and I mean 98% of the time) consider someone out of undergrad. The 2% of the time, these candidates: - have started and even exited businesses during their undergrad years and are just geniuses - get hired by the family friend's second/third tier small fund.
If you want to work at a legitimate fund, you'll need to get your training and deal/case experience at the health care group of a reputable bank, biz dev group or consulting firm (or go work at a startup that will teach you a lot). You'll be glad you'll have gone through it. Here's my experience:
I got an internship at a HC VC fund after my junior year. It was designed for MBAs, but I happened to write my senior thesis in the area they were focusing on, so I signed up, got the interview and the summer job. I was able to add value quickly and tried as hard as I could to have them consider me against the other MBAs for an offer post-graduation (I was very clearly told that I would not be considered for a full time offer before being given the internship offer -- I didn't care as I was there for the experience). I was considered and obviously turned down. Offer went rightfully to a PhD doing his MBA and who had started his second company. I got an offer from a BB bank about 6 weeks later, went to their healthcare group, got my hard skills perfected (modelling especially) and got tons of deal exposure.
No offense, (and I speak from personal experience) but, as an undergrad, no matter how hard you work, you never realize how little you know, how inefficiently you work, how little attention to detail you have, and how poor the quality of your output is until you start working for a major investment bank or consulting firm. A-minus type work doesn't fly there, everything has to be absolutely right and spotless, and everything is due yesterday. The beginning is a bit painful, but once you "graduate" from one of these programs, and if you do well, you become a highly valued commodity... by then you've become such an efficient and perfectionist work machine that your day job at a fund will be painless (much more intellectually challenging though).
You can try to squeeze your way into a fund after undergrad, but you'll spend a lot of time and energy (which could be spent on on-campus recruiting this fall), and you will likely regret it later as you'll be a lot less marketable upon your next move than your friends who have the large investment bank / consulting firm stamp on their foreheads.
Again, it's tough to bring something to the table at those funds. I would say theres probably an alumni hooking up those stern kids. That or the kids are fucking smart (adds value). For example, I know theres one kid who went straight from OrbiMed -> Soros. I guess I just repeated exactly what the guy on top said...
Just curious, how much is a Needham experience worth?
I'm curious to that too, but I've always thought highly of Rodman & Renshaw and MLV
Needham built a good name in HC through its research arm (I read Elliott Wilbur's research on spec pharma often, very insightful), not too familiar with the latest deals they've done though. IQ there is high, but not sure about pay.
.
Any in Canada?
Tiers of Healthcare IB (Originally Posted: 04/06/2015)
Can someone that works in Healthcare IB, or that is familiar with the sector give me information about the different "tiers" between the banks? What are the tiers at each level (BB, MM, and boutique)? Has deal flow slowed down at all since December/ January?
bump
Healthcare is unique in that it gives no name boutiques an opportunity in the market. The majority of deal flow stems from M&A advisory (primarily dominated by BB, MM) and public equity or debt offerings, which give the aforementioned boutiques a chance for market share. Many HC companies, unlike traditional companies, raise multiple rounds of funding, usually through the equity markets. Because there are so many HC companies boutique banks serve as co-managers on the offerings. Don't really know what you mean by "tiers". Different sub sectors include pharma, medtec, life sciences, specialty pharm, medical devices, etc.
I think he means Rank a Bank in the Healthcare space. So, what are the best banks for HC in order for Bulge, MM, EB, and so on.
Can only speak for BB firms. JPM takes the highest market share of all fees (debt, equity, and M&A). GS is top M&A advisory closely followed by JPM and MS. BAML and JPM compete closely on the debt side. Not sure what the rankings look like on the equity side.
Can only speak for BB firms. JPM takes the highest market share of all fees (debt, equity, and M&A). GS is top M&A advisory closely followed by JPM and MS. BAML and JPM compete closely on the debt side. Not sure what the rankings look like on the equity side.
You could almost say this for any group. JPM gets fees due to debt / balance sheet, GS/MS win advisory. All are top 3. And BAML has been doing well lately.
Jefferies also very good in HC. Took the UBS team with them post recession. RBC's also building their HC team pretty well.
There are multiple sub-sectors of HC, but if I had to rank HC overall I would say:
JPM > GS > BAML > MS > CITI > BAR > JEF (and throw LAZ somewhere in there..I have no idea where though)
Every HC group is literally a sweatshop, no matter where you go. It's such a big industry and so much is happening there will always be deal flow. HC is a very balance sheet focused business because it relies on debt. The amount of risk a bank can take on from loans/revolvers is what drives business.
Yeah that's a great point, I would say JPM/MS/Centerview are top 3 in pharma. That's an area where I think BAML tends to get left in the dust relative to the other top HC banks
Even if you think BAML has the slight edge in HC over MS (not convinced they do), you would probably still be better off going for MS. There is no guarantee you will end up in HC and the brand name will carry more weight for you in the long-term. Just my 0.02.
Don't think BAML HC is better than MS HC...
Overall it's JPM and GS by a mile over the nearest competitor which is probably MS. Also, the industry is has too many verticals to really be summed up by a lot of these sweeping statements. Services and big pharma are balance sheet verticals, relying on debt for acquisitions and general financings. But biotech and medtech are the exact opposite and rarely carry any debt at all, relying solely on equity raises. Centerview has had a good run recently, but JPM and GS are king in healthcare, the other bulges aren't really even close tbh. Just look at the recent big deals; there have been at least 5 over $10bn in the last 6 months or so... That'll give you a good feel for who dominates
HC is like a 3x3. You have Pharma/Biotech, Med Tech and Services as industry subverticals, and M&A/Debt/Equity as product verticals and different banks are strong in different areas. JPM and BAML have the largest group and basically neck and neck in total revenue. They are very strong in services and debt sides, and can be seen in most buyside M&A and IPOs. GS in lot of sell side M&As along with IPOs. JPM was in most of the big pharma transactions last year (which btw is the wrong way to look at who is strongest in HC. Can't just go look at top 5 headline grabbing deals to find the strongest group. JPM wasn't even on Valeant/Allergan/Actavis until Actavis came in last minute or you'd have DB in top deal of the year). MS team shrunk a lot and much weaker than others. Barclays probably 4th after JPM/BAML/GS. Jefferies does well for a MM, but not at Top 3 tier. Outside of your $50B pharma deals, there are lot of stuff happening at $500mm - $5B range, with both publicly traded companies and sponsors, which creates the sweatshop life.
This is a pretty spot-on response, with the one caveat being that I don't think DB advised Valeant / Allergan (if that's what you were implying).
JPM / BAML definitely have the biggest groups and are on most large deals. GS is definitely up there with Barclays trailing those three. MS hasn't been very strong in the past, though they're doing better - would not put them in the top 5 HC banks (exit opps aside).
Hasn't MS been on most of the largest HC deals so far this year? I know this is a short time frame, but it clearly looks like they have outcompeted JPM/GS so far... I am not so convinced that JPM/GS are so far ahead of MS, especially when their analysts place as well as they do.
MS is generally #3/4 in HC with BAML Saw a dealogic M&A note for Healthcare as of March 6th JPM #1 in HC M&A announced YTD 2015 with 60.8bn, MS #2 with 39.2bn and Centerview #3 with 36.3bn so far
I forgot who exactly was advising Valeant when they were going after Allergan (not one of the top groups). DB did advise Valeant on Salix.
Does anyone know how the MM/ elite boutiques rank? which ones have a strong presence?
Jefferies, Leerink, Cowen, Piper lead the pack in MM. Stifel isn't bad either.
Centerview very strong in pharma. Very very strong.
Could some knowledgeable people comment on Barclays healthcare group? Deal-flow; sub-industry strengths/weaknesses; exit opps?
Deal flow is like most healthcare groups: very strong at the moment. I don't think analysts are lacking significant M&A experience. They're probably strongest in spec pharma and services, decent in devices and not particularly strong elsewhere. Exit opps are good - a couple analysts go to MF each year and the rest go to decent MM PE, if that's what they're looking for.
Heard several senior bankers left BAML Healthcare - is HC still a strong group at BAML?
also interested
This is true. Joe Kohls leaving in February was definitely one of the mainstream catalysts, but the problems goes beyond that. Basically, BAML HC had a killer year in fees last year but senior guys were very very very disappointed about comp (note there wasn't an issue with comp at the junior level). I know some of them followed Kohls to Guggenheim (who has been recruiting very aggressively; e.g. even offering HC analysts paid out bonuses at a premium), a few others went over to CS, and not sure about the rest. Biotech/pharma and Medtech verticals have taken huge hits from this exodus. I think the one vertical that remains largely intact is Services, but I can't confirm that. What this means for the group going forward is also something I am not particularly sure of either.
Some solid smaller shops (mid-tier/regionals) that play in the vertical as well, Cowen, Leerink. On the capital markets side deal volume seems to be moving along. In terms of sales & trading etc, healthcare coverage would be tiered by sector i.e. medtech, biotech, pharma and also at some places by market cap i e. >500MM, 500MM-2B, 2B+ etc.
mogulsandmushrooms dot com
BAML HC is traditionally stronger in services. Basically BAML Med Device guys teamed up with JPM Med Device guys and went to Guggenheim. JPM also lost their main services guys (both in IB and research). MS lost bunch of MDs (and at least one director) from their HC team last year. Guess pent up demand and high dealflow made it an attractive year to jump ships.
Healthcare focused PE (Originally Posted: 10/29/2009)
does anyone have a list of private equity funds that are either healthcare focused or have a substantial healthcare practice and their relative size/prestige.
most of the top healthcare funds will not take undergrads full-time. Some hire interns. I know Orbimed takes on a few interns from NYU. Keep in mind it's probably even harder to get an internship at those places than your typical BB investment banking group.
It's very hard to bring value into a healthcare fund as an undergrad because healthcare is an extremely diverse industry each that requires a very specific and unique knowledge base (healthcare reform vs. FDA approval vs. patent laws vs. pre-clinical research)
If you really want healthcare, try medschool/grad school, get industry experience, or start out in healthcare investment banking / consulting
Thank you for your response. I really appreciate it.
I've looked on linkedin for NYU interns at orbimed etc. A couple at Stern actually. Do you by chance know how do these undergrads that go to school in cities obtain these internships? I know they may be exceptions (ex. connections, networking, alumni?), but im sure they still did it some way.
Don't forget Orbimed has several strategic funds (hedge fund, mutual fund, royalty fund in addition to the PE/VC funds they have). If you want to get into VC, make sure the job is in the right fund. The job description should clear this out.
I know this is an old thread but does anyone have a list of Healthcare PE firms located in NY or access to Capital IQ and could run a quick search then share the list with WSO community?:-) It would be very helpful. Thanks!!
Healthpoint Orbimed
Sorry, Orbimed is now Caduceus (I think)
http://www.hcpea.org/about-hcpea
RoundTable Welsh Carson Water Street
just to name a few...
Thanks guys! Anyone has access to CapIQ and can provide the full list?
waud capital in chicago. just raised their 3rd fund
Healthcare boutiqueIBs (Originally Posted: 08/10/2011)
Do any of you know of any top healthcare shops in the U.S?
something comparable to FTP, qatalyst, gc Savvian...but in healthcare/pharma/biotech?
Thanks
futurectdoc, this thread is for you. Now to the OP, have you checked out FBR?
Don't think they're top tier but I've heard shops like Leerink Swan and Cain Brothers are supposed to be pretty well respected for healthcare.
Provident Healthcare Partners is a pretty good boutique firm in Boston, MA.
Here is the website:
http://ww2.providenthp.com/
Rodman & Renshaw does a lot of follow-ons for public biotechs
bump
Sorry to go all Associate on you, but I'm compelled to point out that your comps are flawed.
1.) Qatalyst is arguably harder to get into than any BB (including GS/MS) or Elite Boutique. By that logic, if a Healthcare equivalent to Qatalyst existed (it does not) and you felt yourself and eligible candidate, you wouldn't have to be looking at small boutiques, because you would by default also be on the level of all the top shops' HC groups.
2.) It's GCA Savvian, not gc.
3.) What is Savvian supposed to exemplify in this case? I kinda (though unforgivably) understand FTP, in that even though they aren't elite like Qatalyst, they are hyper specialized and have a one sector focus in the same way QP does. However, Savvian has multiple industry groups and even though they're solid in the tech space, they're by no means a superlative in the category (especially when the category superlative is mentioned next to it).
4.) I hate the prestige whores as much as everyone else on this site. That being said, you should NEVER EVER include QP and FTP on the same list. FTP has developed a niche and you've probably heard of them because they do small deals in high volume. You can mention them in the same breath when FTP's average deal size starts to approach $1B; QP's is fucking $2.6B.
Regional Healthcare Investment Banks (Originally Posted: 11/06/2009)
Who are the main players in terms of regional healthcare investment banks? And how do they rank? Some names I can think of Houlihan Lokey, Jefferies, Cain Brothers, etc....
Any thoughts?
2:57am on a Friday night, trolling the boards from NYC. Way to go bud.
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