Roughly two-thirds of capital invested in Europe-based healthcare buyout deals in 2019 has been returned to investors, according to Preqin data

  • French private equity firm Archimed has sold Italian medical diagnostics company Diesse to London-based Fremman Capital, generating a 4.6x return on invested capital.

  • Archimed’s MED II, the fund which previously acquired Diesse, closed in 2018 at €315mn, 57.5% above target. The fund has since returned 2x capital to investors, despite deploying less than half of the initially raised capital. Med II had a net IRR of 33% as of March 31, 2024, according to Preqin data.

  • Fremman Capital is a UK-headquartered lower-mid-market private equity firm founded in 2020. Three of its founding partners worked together at PAI Partners. It closed its first fund in 2023 at €600mn.

  • ‘Over the past five years, we have invested more than 10% of our revenues into research and development, focusing on innovation in immune system diagnostics. With Fremman’s contribution, we aim to widely disseminate this innovation in the coming years,’ Massimiliano Boggetti, CEO of Diesse, said in an announcement.

January 29, 2025 (Preqin News) – The sale of Diesse netted a 4.6x return for Archimed after a five-year holding period. According to Preqin’s Transaction Intelligence dataset, the average TVPI of 67 Europe healthcare buyout deals in 2019 is 1.87x.

Overall, healthcare asset holders have recycled capital back to GPs at a slower rate than for European buyouts as a whole. Roughly two-thirds of capital invested in healthcare buyout deals in 2019 has been returned to investors (0.65x), compared with an average across all sectors in Europe of 0.82x.

Preqin estimated Diesse’s valuation at $130mn, using Entry EV/EBITDA for the most recent year’s benchmark and company financials. Archimed’s Chairman and Managing Partner, Denis Ribon, told the Wall Street Journal that the Diesse was sold for an enterprise value of €125mn ($130mn).

The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin providing the information in this content accepts no liability for any decisions taken in relation to the above.