L1 Health builds category-defining healthcare businesses through long-term investment and transformation. Our permanent capital base allows us to shape each investment around the opportunity rather than a fund-cycle calendar, and to support management teams through multi-year growth plans spanning strategy, innovation and operational excellence.
2025 was a year of progress across the portfolio and selective platform expansion. Despite a more challenging year at Remedica, each business advanced important priorities: Remedica reinforced its management team, operating processes and future pipeline; Sun Wave Group extended its run of profitable growth and strengthened its position as a leading Eastern European consumer health company; K2 HealthVentures delivered its most active origination year to date while continuing to stand out on realised outcomes; and Destination Pet returned its 4-Wall business to full-year profitability while Yourgi continued its evolution into a genuine pet-services marketplace.
In December, L1 Health also added Avid Bioservices as a minority investment, broadening the portfolio’s exposure to biologics Contract Development and Manufacturing Organisations (CDMO).
Remedica
In 2025, Remedica, the Cyprus-based generics CDMO platform, made meaningful progress in strengthening its operating foundations after a challenging period, positioning the business for more sustainable growth.
During the year, Remedica strengthened its management team, with new senior leaders bringing additional expertise, structure and discipline across key functions. It also advanced important manufacturing efficiency initiatives, including a state-of-the-art “factory-in-factory” initiative within its oral solids operations that increased output and quality through automation, accelerated changeovers and unlocked more advanced product formats, including triple-layer and tablet-in-tablet capabilities. Sales and operations planning was further embedded across the organisation, supported by a new centralised data platform consolidating six legacy sources and improved planning processes, contributing to faster order confirmation cycle times and more reliable customer responsiveness. Quality release, finance and cost-control processes were also strengthened, reinforcing operational resilience, cash discipline and accountability across the business.
Remedica advanced selected in-licensing and co-development opportunities with international partners, including in Asia, while continuing to invest in new molecules and pipeline assets tailored to the needs of its out-licensing customers. Together, these initiatives broaden Remedica’s future routes to growth and lay the groundwork for an expanded international footprint.
In 2026, Remedica will remain focused on manufacturing excellence, portfolio development and improved operational execution.
Sun Wave Group
Sun Wave Group (SWG) delivered another year of consistent, profitable growth. Net sales rose 8% year-on-year to €180mn and reported adjusted EBITDA grew 11% to €45mn, driven primarily by volume growth – a clear signal of brand portfolio strength and commercial execution.
The group achieved share gains in all three of its core markets – Romania, Serbia and Bulgaria – with volume-led momentum reinforcing SWG’s leadership positions, including becoming No 1 by volume in Serbia and the overall No 1 consumer healthcare company in Romania. SWG also broadened its reach by entering five new Central and Eastern European markets and completing two targeted acquisitions in Bulgaria and Romania. The newly established digital/direct-to-consumer (D2C) team made a strong debut, reaching €2mn of net sales within six months of launch, and a new non-executive director with deep international consumer marketing and D2C experience joined the Board in Q1 2026 to support the next phase of growth.
In 2026, SWG will focus on extending market share across existing and new geographies through organic and inorganic growth. It has also launched a series of cost optimisation initiatives to leverage its scale and improve operational efficiency.
K2 HealthVentures
K2 HealthVentures (K2HV), our US venture investment platform, had its most active year to date. A record 11 new investments closed across biotechnology, medical devices, tech-enabled services and healthcare technology, with approximately $330mn of new funding bringing loan principal outstanding to approximately $730mn at year-end, and cumulative commitments since inception to
$2.3bn across 57 investments. K2HV generated meaningful realised gains during the year – comfortably ahead of peers – supported by the acquisition of portfolio company 89bio by Roche, the announced sale of Colorescience, and the constructive resolution of several complex workout situations where K2HV’s active approach paid off for investors and companies alike. Core yield of approximately 13% and effective yield of more than 15% remained in line with or above peer benchmarks, while net realised gains significantly outperformed the peer set. The team continued to deepen its bench with senior hires from respected industry peers, and the K2 Foundation expanded its philanthropic activity, with more than $2mn now committed annually to underserved healthcare causes.
Looking ahead, K2HV is planning approximately $400mn of new funding in 2026, with priorities centred on maintaining structural discipline, preserving equity-linked upside in every deal and growing the reach of the K2 Foundation.
Destination Pet
For Destination Pet’s 4-Wall business, 2025 was the year the operational rebuild translated into results, returning to full-year profitability with revenue ahead of plan, driven by strong boarding volumes and tight expense discipline. Guest satisfaction scores climbed to a record 4.6 on Google’s five-star system. The M&A programme continued to perform, contributing meaningful accretive additions to the network.
The year was equally pivotal for Yourgi, Destination Pet’s pet-care app. Gross Booking Value (GBV) continued to grow at more than 100% year-on-year, with momentum accelerating into early 2026. Yourgi customers demonstrated materially higher engagement, with above-average spend per visit. More fundamentally, Yourgi crossed an important threshold in November 2025, transitioning from a branded e-commerce tool into a genuine two-sided marketplace connecting pet parents with trusted local professionals.
The 2026 agenda for Destination Pet is two-fold: to continue scaling a repeatable growth engine across the 4-Wall business – including further veterinary capacity expansion and selective, accretive M&A – while bringing Yourgi to national scale as the digital backbone of an integrated, connected pet-care experience.
Avid Bioservices
Avid Bioservices, a US-based biologics CDMO, joined the L1 Health portfolio in December 2025 as a minority investment alongside GHO Capital. Avid serves a diversified base of biopharmaceutical customers with mammalian-cell manufacturing capabilities. Early momentum has been encouraging, with a healthy bookings pipeline heading into 2026 and strong demand for additional mid-scale bioreactor capacity. The team is focused on converting bookings into revenue, evaluating capacity expansion to meet customer demand and evolving commercial terms to support a stronger long-term margin profile.