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Healthcare PE Deals Poised for Record Year, Shows Data

Global healthcare-focused private equity is on the brink of a record year with buyout deals seeing year-on-year increase in aggregate deal value, showed a recent report by alternative assets data tracker Preqin. As of November, 585 healthcare-focused deals worth USD 56 billion were announced in 2018, putting the year on track to surpass the 619 deals worth a record USD 57 billion seen in 2017. Deal activity looks set to increase as the industry holds USD 56 billion in dry powder, pushing total assets under management (AUM) to USD 199 billion, the report said. Although just 84 healthcare-focused private equity funds have held a final close as of November, they have raised USD 22 billion, making this year the fourth consecutive year in which the industry has raised over USD 20 billion.

This also puts the year on track to hit similar levels to those seen in 2017, when 140 funds raised USD 26 billion, Preqin said in the report. “The private equity healthcare industry is booming: strong fund-raising, record levels of dry powder available to invest, and record numbers of deals in the sector. It is a testament to the healthcare industry’s growing importance for private equity. It’ll be interesting to keep an eye on the US market in particular, as the country is experiencing fast-paced regulatory changes in its healthcare coverage, which may provide further opportunities for investment,” said Christopher Elvin, head of private equity at Preqin. – Livemint