IVF

Ivf Infographic 1

Market drivers

Demand for IVF services has risen significantly due to rising rates of infertility, delayed family planning and changing work/life styles.

Against the backdrop of constrained government budgets, we have seen increasing take-up of private treatment. In the UK, research by Fertility Fairness has found that 87% of CCGs (Clinical Commissioning Groups) do not offer the recommended three cycles of IVF treatment to women under 40, so more women are seeking private treatment. A recent BBC report showed women over 34 are being refused IVF treatment in certain clinical commissioning groups. Some CCGs offer no funded IVF treatment at all such as Herts Valley, Cambridgeshire and Peterborough, Croydon, South Norfolk, Basildon and Brentwood, mid-Essex and North East Essex.

Investment thesis

The global IVF market is expected to reach £13.8bn by 20201, mainly driven by the rising rate of infertility. The market is also being driven by medical tourism with developing economies increasingly offering couples advanced treatments at more favourable costs to those in the West.

The market is fragmented and requires consolidation, thereby creating a significant opportunity to grow a pan-European IVF clinic.

Trade activity

  • Virtus Health (Australia) acquired Complete Fertility (UK), Sims Clinic (Ireland) and Fertilitetsklinikken Trianglen Aps (Denmark) - Virtus Health is Australia’s largest assisted reproductive services provider. These deals support the international growth strategy that has been set in place by the board of Virtus Health. The acquisition of Complete Fertility will enable Virtus to provide fertility treatments to both NHS and private patients in the UK.
    Complete fertility - EV: £5.6m, EBITDA: 7x
    Sims Clinic - EV: £4.3m, EBITDA: n.a
    Fertilitetsklinikken Trianglen Aps - EV: £24m, EBITDA: n.a

Sponsor backed platforms to note:

  • Sponsor: Bowmark
    Company: Care Fertility
    Country: UK
    Revenue: £29.9m
    EBITDA: £3.6m
    Date invested: Jun 2016
  • Sponsor: White Cloud
    Company: The Fertility Partnership
    Country: UK
    Revenue: c.£21.6m
    EBITDA: c.£5.7m
    Date invested: Nov 2013
  • Sponsor: CBPE
    Company: ARGC
    Country: UK
    Revenue: £25.4m
    EBITDA: £10.3m
    Date invested: May 2012
Ivf Infographic 2
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