Information on the Target

Gyrus Capital has successfully completed a GP-led secondary transaction with the StepStone Group, focusing on two high-performing assets in the healthcare and business services sectors: dss+ and Essential Pharma. Initially acquired in 2019, both companies are poised for further growth, and this transaction aims to provide existing investors with liquidity while enabling capital investment for future expansion.

The transaction was solely funded by StepStone through a single-asset continuation vehicle set up for Essential Pharma, highlighting Gyrus Capital’s commitment to bolster the long-term growth strategies of both dss+ and Essential Pharma.

Industry Overview in Switzerland

Switzerland boasts a robust healthcare sector, known for its innovation and high standards of medical services. The country ranks among the top in healthcare expenditure per capita, and its industry is characterized by a mix of pharmaceutical, biotech, and healthcare service companies. With a strong regulatory framework, Switzerland promotes research and development, making it a favorable environment for investment in healthcare.

In recent years, Switzerland has also seen an increase in sustainable business practices, aligning with global trends towards environmental responsibility. The demand for sustainable healthcare solutions has surged, providing further opportunities for companies that prioritize corporate social responsibility (CSR) and environmental, social, and governance (ESG) criteria.

The business services sector in Switzerland complements the healthcare industry, focusing on operational efficiency and risk management. Firms like dss+ play a crucial role in helping organizations enhance their operational processes, which is increasingly important as companies face new challenges related to sustainability and compliance.

Overall, the convergence of healthcare and sustainability in Switzerland creates a ripe landscape for investments in companies that unleash innovation and drive efficiency across these interconnected sectors.

The Rationale Behind the Deal

This transaction represents a strategic move for both Gyrus Capital and StepStone Group, allowing Gyrus to offer liquidity to its existing limited partners while simultaneously securing investment for the ongoing development of dss+ and Essential Pharma. By continuing to fund these companies, Gyrus Capital underscores its commitment to fostering businesses that tackle pressing societal needs in healthcare and sustainability.

The bespoke liquidity solution crafted in collaboration with StepStone is designed to strengthen Gyrus’s investment strategy and align with the long-term growth goals of its portfolio companies. This strategic partnership amplifies the synergy between both parties, creating a pathway for sustained expansion and competitive positioning.

Information About the Investor

Gyrus Capital is a reputable European investment firm based in Geneva, focused on transformational investments in healthcare and sustainability sectors. The firm specializes in complex transactions, particularly corporate carve-outs ranging from €50 million to €500 million, and prides itself on its hands-on investment approach supported by a network of experienced partners and industry specialists.

StepStone Group Inc., a global leader in private markets investment solutions, is known for its ability to tailor investment portfolios to meet the distinctive goals of its clients. With approximately $682 billion of total capital under its purview, StepStone's diverse clientele includes public and private pension funds, sovereign wealth funds, and private wealth clients. This extensive experience positions StepStone to provide critical operational insights and support to Gyrus Capital.

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The recent transaction appears to be a robust investment opportunity, reflecting strategic alignment between Gyrus Capital and StepStone Group. With a focus on organizations that address significant societal and environmental challenges, Gyrus Capital’s investment framework is well-positioned to create long-term value.

Moreover, the healthcare sector's resilience and consistent demand for innovative solutions underscore the appeal of dss+ and Essential Pharma as safe bets within a fluctuating market. Both companies are strategically poised to capitalize on current trends in healthcare efficiency and sustainability, making them attractive targets for investors focused on future growth.

This deal not only provides liquidity options for existing investors but also signals the commitment of both Gyrus and StepStone to the inherent value of their investment thesis. Given the ongoing enhancements in operations and portfolio expansion, the partnership is likely to yield positive outcomes.

Overall, this transaction reflects a smart investment choice, leveraging the distinctive strengths of both firms while paving the way for potential growth and success in their respective sectors.

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