Private Equity in Healthcare: what next?
Private Equity in Healthcare: what next?
Proprietary insights based on our research with investors
3 reasons why Private Equity will play an outsized role in healthcare in post-2020
PE firms are sitting on ‘dry powder’ (uninvested capital) of over $ 2.5 trillion. Healthcare is a non-cyclical sector – likely to perform better post-Covid19.
Many sectors within healthcare offer growth potential, buy-and-build opportunities & require capital. Specific opportunities in Europe.
Access to public markets will remain choppy; owners/CEOs having lived through this crisis are more open to PE investment.
Which Healthcare sub-sectors offer opportunities for Private Equity firms in Europe?
1. Healthcare Services: Including outpatient clinics, diagnostic labs, specialty practices
Key Drivers: Fragmented markets, Economies of scale, Opportunity to digitalize & improve efficiencies
2. Pharma/MedTech services: medical communications, regulatory services, supply chain
Key Drivers: Companies looking for outsourcing non-core activity, improving productivity
3. MedTech: Including family firms delivering products, services & contract manufacturing
Key Drivers: Owners more open to access PE, MDR regulatory burden, market/buyer consolidation
4. Digital Healthcare: Including patient-provider platforms, practice management software, e-CROs
Key Drivers: Higher adoption of digital, improving reimbursement & market access in Europe
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