1.Healthcare investment growth. As healthcare became a more central part of the economy over the last decade, the arena has moved from a situation where boutique private equity funds and boutique lenders focused on the arena to a spot where all or most major lenders and private equity funds spend a great deal of time in the broader healthcare arena. According to KPMG, global healthcare private equity deals doubled from 2010 to 2011. Bain & Co.’s 2014 Global Healthcare Private Equity Report states more than 209 healthcare buyouts occurred in 2013, and strategic M&A deal value in the healthcare industry was up 30 percent, compared with 11 percent for all industries in the private equity market.
2. The scope of private equity investment in healthcare. In 2013, slightly more than $16 billion dollars were reportedly invested in healthcare by private equity funds in the form of healthcare buyout deals globally, according to Bain. North America led investment activity, with targets in the region accounting for seven out of the top 10 deals. There were no mega-deals in healthcare in 2013, and buyout deal value was down 23 percent.
Read the full article on Becker’s Hospital Review.
