Healthcare Exits

How do exits differ within healthcare, specifically within life sciences as the modeling seems to be much more creative and not applicable to traditional buyout.

It seems like VC is ultra competitive and requires advanced degrees. Healthcare services just seems pretty boring.

16 Comments
 

VC is very hard but investment bankers do make it over at junior levels occasionally. Just don't expect it to be the norm. You odds are also higher at a traditional investment based VC firm rather than one of the ones that is basically an incubator now like Flagship. 

Dayman?
 

what firms do headhunters respect the most for VC? does the BB or EB tag matter?

 

I honestly have no idea. I don't really know how much headhunters do for healthcare VC, but of the few people I have seen make the jump from IB to HC VC, they have been from a range of firms including BB, EB, and a healthcare boutique. I am sure BB and EB get generally favored over MM and boutiques, as per usual. I would guess PE experience is valued a lot as well.

Dayman?
 
Most Helpful

Exits from healthcare are pretty broad. VC is possible, although not the norm. You work with a ton of early stage MedTech, biotech and HCIT companies so it’s easy enough to spin a story. GE is pretty common too. Traditional MF/UMM PE is the most common. Almost every PE fund has a healthcare focus and the skillset learned in most the verticals (HCIT, HC Services, MedTech) are very broadly applicable to other industries. Finally, you can exit to HFs—a lot value HC experience. Outside of the buyside, going to corp dev is pretty easy. 

Modeling a biotech company is fairly complex, but it makes modeling any other company a piece of cake. 
 

You can also exit to funds with a specific life sciences focus (Bain cap and blackstone) or maybe a place like Royalty Pharma. However, this isn’t very common. The funds listed are the only ones I really know of that take people post-IB. The majority of life sciences focused investment funds require advanced degrees. 

 

A lot of MM PEs who do a lot of HC services/HCIT. I'm sure there a handful of firms we haven't heard of. Person who started my department was one of the founders and recently started a 150+ million vintage LMM fund (a lot of the founders at my companies got huge 8 figure paydays, a few of the earliest founders including our former CEO left to work in growth/private equity).

 

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