LDC’s Aziz Ul-Haq and Aylesh Patel discuss how healthcare businesses can unlock value through strategic partnerships with private equity

As featured in Investors in Healthcare.

Over the last decade, the UK’s healthcare landscape has evolved rapidly. There is now a growing focus on community-based solutions as a pathway to better patient outcomes, and there’s a real opportunity for businesses to seek the support of an investment partner to help them deliver on this ambition.

A good example of this is LDC-backed RDi, the UK’s leading automated, data-led healthcare fulfilment specialist. In April, RDi acquired Inicio Health (Inicio), a specialist provider of healthcare interoperability, automation and AI solutions, marking a key milestone in its strategy to deliver smarter, more accessible people-centric pathways for screening, diagnostics, and preventative healthcare.

IHH editor, Nick Herbert, recently caught up with LDC partners Aziz Ul-Haq and Aylesh Patel to discuss the strategic rationale behind RDi’s latest acquisition, the trends shaping the future of healthcare delivery, and how the support of an investment partner can accelerate innovation.

What is RDi’s long-term strategic vision, and how does the buy-and-build approach support that?

Aylesh Patel (AP): RDi’s vision is to become a leading provider of preventative, patient-centred healthcare services, supporting both public and private sector delivery. The management team’s strategy combines organic growth with carefully selected acquisitions that enhance technological and operational capabilities.

The acquisition of Inicio is a good example of this approach. As a pioneer in healthcare automation, AI and interoperability, Inicio has brought sophisticated data capabilities and AI-driven insights that enhance RDi’s fulfilment services, especially in enabling better patient tracking, which is crucial for care in community settings.

The buy-and-build model enables RDi to integrate complementary businesses like Inicio without compromising on culture or focus. Importantly, Inicio’s founders have remained in the business, as Chief Technology Officer and Chief Clinical Officer at RDi, and will now be able to lead further innovation within a larger platform.

What capabilities are you looking to add next, and how do you evaluate acquisition targets?

AP: While RDi’s capabilities in the UK are well established, there are exciting opportunities to expand internationally. We evaluate acquisition targets based on their potential to enhance RDi’s strategy, extend geographic reach, and align with the team’s vision for sustainable, impactful growth. It’s about finding businesses that complement RDi’s strengths and share the commitment to improving patient outcomes.

How is the market evolving? Have valuations increased?

AP: The market for community-based healthcare services is becoming increasingly competitive. Investors are drawn to businesses that demonstrate measurable outcomes, operational excellence and scalable delivery models. While valuations can vary, companies that integrate technology and positively influence the patient journey often command a premium.

Businesses that enable healthcare providers to scale efficiently while improving care outcomes are especially attractive.

Why is delivering healthcare services in the community so important?

AU: Delivering appropriate healthcare services within the community is essential for improving accessibility, efficiency and supporting patient outcomes.

By moving non-acute and routine care away from hospitals, it allows secondary care providers to focus on routine appointments while giving patients – particularly older and less mobile individuals – quicker, more convenient access to care. This approach supports earlier diagnoses, encourages preventative healthcare, and plays a key role in reducing NHS backlogs through more localised service provision.

How important are NHS and other partnerships? What do you do to achieve the scale required?

AP: Partnerships with the NHS and other healthcare organisations are built around delivering measurable value – whether that’s improving efficiency, ensuring regulatory compliance or enhancing patient outcomes.

AU: Strategic partnerships are crucial to scaling community healthcare services. Whether collaborating with public systems, private providers, or technology platforms, partnerships allow businesses to broaden their reach and deliver services more effectively. As investors, our role is to empower management teams with the resources, guidance, and networks they need to build and manage these partnerships successfully.

How can private equity support the healthcare sector?

Aziz Ul-Haq (AU): Private equity plays an important role in fostering innovation and enabling growth in healthcare businesses. Beyond providing capital, investors offer strategic insight and operational expertise that help businesses with their growth ambitions. At LDC, we have years of experience supporting businesses that deliver community-based services – helping them to boost productivity, harness technology, and enhance patient outcomes, all of which are key priorities for the UK’s healthcare system.

Private equity investor LDC has a strong track record in the healthcare sector. Over the last decade, it has invested more than £400m into 18 healthcare businesses, helping management teams expand through organic growth, pursuing a buy-and-build strategy, developing new products or expanding overseas.