G Square closes £500M continuation fund for online pharmacy Pharmacy2U
What's the deal? G Square Healthcare Private Equity has closed a £500 million single-asset continuation fund for Pharmacy2U, the UK's largest online pharmacy. The vehicle was led by Coller CapitalDealroom has a profile for this one. Try Dealroom →, alongside a syndicate of institutional investors.
Who's committing? G Square Capital IV is co-investing alongside the continuation fund, joined by re-investing Pharmacy2U shareholders and continued commitments from the management team. The structure gives existing limited partners liquidity while letting those who want to stay in the company do so.
By the numbers: Since G Square first invested in 2018, Pharmacy2U has grown both revenue and EBITDA more than tenfold. It has completed and integrated six acquisitions since 2024.
What's the endgame? The fund provides capital for Pharmacy2U's next phase, including further M&A, investment in technology and dispensing automation, and expanded clinical services. The company's growth to date has been driven by proprietary technology, large-scale automation, and a buy-and-build strategy.
The signal: The deal ranks among the more notable GP-led secondary transactions in European health-tech. Continuation funds have become a favoured route for sponsors seeking liquidity without a full exit — a trend the Pharmacy2U close reflects as private equity holds assets longer in a slow deal market.
Read more: Proskauer
Image credit: Muffet
