WEBVTT

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In current market conditions,

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private equity funds and
strategic corporates

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are looking toward alternative
deal structures to make

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or cash in on investments across the

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healthcare and life sciences sectors.

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Investors are expanding their investment scope from

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mature, cash-generating assets

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toward earlier-stage opportunities
with built-in platform potential,

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creating more flexible approaches
to structuring and exits.

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These strategies increasingly involve
partnership-driven instruments,

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such as licensing or royalty
deals and continuation vehicles,

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rather than the traditional company
or asset sale or an IPO.

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Deal flow remains hindered by a

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continued gap between
buyer and seller valuations.

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This may be due to regulatory changes or uncertainty,

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like the political discussions
in Germany

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on the role of financial investors

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in the outpatient sector or the German
hospital and nursing home reforms.

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Further, sanctions and tariffs result
in uncertainty and affect businesses

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and their strategies.

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Partnership-driven instruments
allow potential investors

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to more precisely target
the investment

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and avoid large upfront payments.

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Secondary funds and
continuation vehicles

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enable general partners
to stay invested

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in high-growth companies

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while offering
liquidity to limited partners.

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These structures allow funds
to tap into

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a global healthcare and life sciences private equity market

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that reached an estimated
$115 billion in 2024,

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the second highest deal
total on record.

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Healthcare and life sciences sectors,

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from service providers
to medical devices,

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constantly evolve, with regulation
often following innovation.

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At Latham, we advise clients
on the full spectrum of

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alternative investment
and exit strategies

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and determine the deal structure

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best suited to succeed in the market
and achieve business objectives.

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I’m Christoph Engeler,
a partner in Latham’s Hamburg office.

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For over 20 years I have advised
clients on transactional, commercial

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and regulatory matters at all stages
of the business or product lifecycle.