News Article

Private equity specialist G Square Capital has closed a £500 million single-asset continuation fund for Pharmacy2U, the UK’s largest online pharmacy.

This transaction represents one of the most notable GP-led secondary deals in the European health-tech sector. Coller Capital acted as the sole lead investor, partnering with a syndicate of blue-chip institutional investors, reinvesting shareholders, and Pharmacy2U’s management team.

Since G Square’s initial investment in 2018, Pharmacy2U has expanded rapidly, driven by massive investments in proprietary technology, centralised automated dispensing facilities, and a robust buy-and-build strategy. Over the last 24 months, the company has completed and integrated six acquisitions, including Lloyds Direct and Care Quality Pharmacy, establishing a dominant physical and digital footprint.

More than 1.8 million patients across the UK utilise the platform to manage their prescriptions

For healthcare operators and private equity investors, this transaction highlights the growing maturity of secondary market vehicles to support scaled digital health platforms. The continuation fund provides immediate liquidity to existing limited partners whilst supplying the company with fresh capital for its next growth phase.

This capital will fund further M&A activity, technological upgrades, and the expansion of Pharmacy2U’s clinical services, which already include digital GP consultations and wellness tools.

As European healthcare systems increasingly prioritise digital-first, preventative, and community-based care models, scale-ups like Pharmacy2U are highly attractive to institutional capital. This fundraise ensures the business has the capitalisation and runway to continue leading the market.

For investors looking at the sector, the deal proves that GP-led secondaries can successfully prolong ownership of high-performing healthcare assets while aligning new and existing stakeholders.