The rapidly growing fertility market has created several attractive investment opportunities. We are particularly bullish about the consolidation play around fertility clinics and business models that improve customer experience and choice.
Private equity investment into fertility clinic chains is an established global trend. Consolidation is a sound value play. Typically, increased revenues flow from a more centralized approach to marketing and customer acquisition, while a corporate brand commands a price premium. Chains are alsoable to drive cost reductions by training pools of lower-cost nurses and lab professionals to take on more routine labs and clinicals. Meanwhile, physicians are freed up to focus on customer interaction and reputation-building for the network.
In the U.S., Prelude Fertility — funded by Lee Equity Partners — acquired Reproductive Biology Associates of Atlanta (the largest IVF practice group in Georgia) and Vivere Health (with a U.S.-wide network). Prelude now has estimated revenues of