Persistence Capital Partners (PCP) saw its exclusive investments in the Canadian healthcare sector pay off. The private equity firm based in Montreal focused its second fund solely on growing healthcare businesses for the past five years, and the strategy has apparently succeeded.PCP pooled more than USD 90 million in April with the first-round closing of its Persistence Capital Partners II from institutional investors in Canada as well as those who have backed its first fund. It is targeting more than USD 225 million for the final closing of its partnership.
Stuart Elman, managing partner of PCP, told peHUB Canada that greater demand for healthcare is driven by higher standards of living, aging population, and other factors. As a result, institutional investors want to put their stakes to mature businesses in the healthcare niche. He said this is where PCP can help. The private equity company invests in private enterprises that operate in sectors that only have a small or even no public payer risk. Elman said the fragmentation that exists in these sectors offers a lot of opportunities for growth and consolidation.
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