Big private equity groups are back in the market and bagging big healthcare services groups. Bridgepoint has just announced the purchase of Care UK, the healthcare and care group, in the UK. Triton has just bought Ambea, the biggest healthcare and care group in the Nordic region.

Banks are willing to lend again. We hear that it is now entirely possile to get funding at 4.5 to 5 times EBITDA and mezzanine funding can take that to six times EBITDA. These are the levels of 2003-2004 before the market went slightly mad. Ambea was planning an IPO and Care UK is listed on the UK stock exchange so yet again it looks as though private equity will prove to be the prefered exit route.

It will be interesting to see who is not in fact purchased. Will we see a rescue for Euromedica, the troubled Greek diagnostics and clinic chain? Will Falck, the Danish ambulance, fire engine and clinic group, go through with its plans to float or will it too be snatched up by a private equity house. Some say that it will take 2-3 years before the private equity houses can raise the next tranche of funding for big deals. We disagree - there are plenty of highly competent private equity houses out there sitting on billions which they are itching to invest - outfits like Warburg Pincus and HG Capital, for instance.