WHY DOES THE NIKOS KARAMOUZI'S FUND INVEST IN PET AND VETERINARY SERVICES

A series of investments in the pet medical care sector, aiming to create the largest player in the second opinion clinics in this sector, providing beds, hospitalization and surgical units with modern technological infrastructure, has recently been carried out by SMERemediumCap of Nikos Karamouzis.

This move cannot be considered as a coincidence as it is a sector with significant growth potential. We have to recall that it has already acquired a majority stake in Plakentia Veterinary Clinic. In fact, the fund's plan is to proceed with other acquisitions around Greece, having at the beginning of its investment cycle a total of 143 million euros to be allocated. Also, activities already positioned outside veterinary services are food, facility management, the hotel sector.

In the planning of Karamouzi’s group is also to cooperate with all insurance companies that have insurance programs for pets and with veterinarians, with the aim of acquiring a shareholding in the company. The aim is to create a company with 20 clinics nationwide with modern equipment, CT scanners and all specialties.

The role of insurance companies

At the level of insurance companies, an indicative example is the company Europe Insurance, which provides a compensation programme for pet dogs in the event that the animal is injured in a traffic accident - if, for example, it is hit by a car - or in an accident where it may be injured after a fall. For the car accident, the compensation for medical care coverage is up to €2,000, and in the case of an accident, €500. While if the animal dies the compensation is 500 euros and the company pays another 100 euros to a pet welfare organisation nominated by the owner of the animal. Coverage by the insurance industry at the same time looks forward to covering high costs that pet owners might not otherwise be able to pay.

Why the fund is interested in veterinary clinics

There are several reasons why the fund is particularly interested in this sector. They are mainly related to the fact that in Greece the existing pet care infrastructure is often of limited efficiency, while the services offered are considered to be quite substandard by a significant proportion of businesses related to the provision of veterinary services to pet owners.

A key reason, however, is the fact that there is an increasing number of pet owners in our country. Where, due to the low birth rate and the decrease in births from year to year, many people, especially younger, are acquiring a companion animal. Suffice it to say that in 2023 the number of births in Greece compared to 2022 was down by 83,000 babies.

The Animal Hospitals and Veterinary Clinics service market includes facilities primarily engaged in providing medical, dental and surgical veterinary services for animals. This includes diagnosis, treatment and prevention of diseases and injuries in animals, as well as medical advice and surgical procedures. Veterinary clinics can offer a range of services including routine check-ups, vaccinations, emergency care and specialist treatments such as orthopaedic surgery or oncology. With the increasing emphasis on pet care and growing awareness of animal health, the demand for veterinary services continues to grow. In addition, advancements in veterinary medicine, including diagnostic technologies and treatment modalities, are contributing to the expansion of services offered by animal hospitals and veterinary clinics.

Pets as part of the family

Both in Greece and internationally, opportunities in the market for animal hospital and veterinary clinic services are abundant, driven by a number of factors. We mentioned the increasing pet ownership rates worldwide, particularly in urban areas, which are fuelling the demand for veterinary services. As pets are increasingly considered part of the family, owners are willing to invest in their health and well-being by making increased expenditures on veterinary care. In addition, the increasing prevalence of chronic and age-related diseases and conditions in pets requires specialized medical care, creating opportunities for veterinary clinics to offer advanced treatment options. On top of this, the trend toward preventative healthcare among pet owners underscores the importance of regular checkups and vaccinations, providing a steady revenue stream for veterinary practices.

The role of technology and telemedicine

Indeed, the integration of technology into veterinary services, such as telemedicine and digital health records, appear to have paved the way in recent years for improving efficiency and expanding market reach. By sector, the market can be categorized based on the type of services offered, including general veterinary care, emergency services, specialized services, and preventive care, catering to the different needs of pet owners and animal lovers.