PE taps into reimbursement drivers of cardiometabolic health

Private equity firms are observing a growing opportunity within the cardiometabolic disease (CMD) sector. As GLP-1s and other weight-loss drugs become more affordable, doctors have a stronger tool for treating obesity, a factor closely linked to CMD. CMD refers to a group of conditions including heart attack, stroke, circulatory diseases, diabetes, insulin resistance, hypertension and liver disease. Concurrently, reimbursement changes are pushing more cardiovascular care out of hospitals and into outpatient settings.

Private equity has taken notice and sees opportunities across the CMD market, from pharmaceuticals and medical technology to weight-loss, cardiology, and vascular care providers.

General Catalyst Partners invested $450 million in Function Health, a blood testing services provider, in July. ArchiMed took biopharma firm Esperion Therapeutics private for $1.1 billion. Furthermore, THL Partners, through its portfolio company Headlands Research, acquired Clinical Trials Research. These deals demonstrate private equity's interest in the cardiometabolic space.