Liverpool Partners may seek backer for Genea

Sources believe Liverpool Partners needs a funding partner.

Speculation is mounting that Genea could be the next healthcare business to hit the market, with owner Liverpool Partners likely to be looking for a financial backer.

In 2022, Healius sold its Adora Fertility business for $30.5m to Liverpool Partners, which also purchased IVF provider Genea IVF and Fertility Clinics for $215m, excluding debt.

However, the challenge for IVF providers has been the departure of doctors, which Liverpool Partners has been wrestling with, losing doctors to Vitus Group, owned by BGH Capital, and Monash IVF has benefitted from doctor departure from other rivals.

Sources believe Liverpool Partners probably doesn’t have the capital to inject into Genea and would be in search of a funding partner.

According to IBISWorld, Genea is the country’s third-largest player in the IVF industry with 11.7 per cent behind Virtus Health with 37.3 per cent and Monash IVF with 31.2 per cent. It generates $810m of annual revenue, with 64 per cent of the market women aged between 35 to 44.

Genea has locations in Adelaide, Brisbane, Canberra, Sydney and Perth.

Liverpool Partners’ investments have included companies such as Zenitas, Baby Village and Simplyai.

It paid 16.5 times earnings before interest, tax, depreciation and amortisation for Genea in 2022.

That was more than BGH Capital paid for Virtus Health, which was 14 times forecast ­EBITDA or 29 times profit, but more than the 8 times rival Monash was trading on the ASX at the time.