Prospitalia

Invested:
February 2007

Exited:
August 2014

Return:
3.0x MoC / IRR 18%

Sector:
Healthcare

Stage:
Mid (core strategy)

Headquarters:
Ulm, Germany

Region:
Germany

Business:
Group purchasing service provider

Business at time of investment

Prospitalia was one of the leading Group Purchasing Organisation (“GPO”) in Germany, providing procurement services to hospitals and healthcare facilities across the country to help lower the cost of goods purchased

Investment rationale

Whilst the German healthcare market was the most advanced user of ‘Group Purchasing Organisation’ services in Europe, it still significantly lagged the US.  At the time of investment, the majority of acute hospitals did not use GPO services.  Palamon invested with the thesis that significant additional market penetration was inevitable as pressures on healthcare budgets would necessitate cost saving measures

Company at exit

Prospitalia was the leading Group Purchasing Organisation (“GPO”) in Germany, providing procurement services to more than 900 hospitals and healthcare facilities across the country to help lower the cost of goods purchased.  The Company reported a pooled purchasing volume of €1.2 billion.