Healthcare private equity outperformed other asset classes in 2018, with disclosed deal values surging almost 50 per cent to USD63.1 billion, topping last year’s level of USD42.6 billion, and deal count rising to 316 in 2018 from 265 in 2017.
That’s according to Bain & Company’s eighth Global Healthcare Private Equity and Corporate M&A Report, which reveals that strong investment activity across all regions and in sectors such as healthcare IT (HCIT), provider and biopharma included 18 deals greater than USD1 billion each in disclosed deal value, pushing larger assets to levels that are out of reach for most buyers.
“Last year was an incredible year for healthcare deals,” says Nirad Jain, co-head of Bain & Company’s global Healthcare Private Equity and Corporate M&A practices. “Despite an especially volatile fourth quarter for both global markets and certain political landscapes that contributed to a strong sense of unease among most investment professionals, healthcare’s sturdy fundamentals and track record of strong performance were a beacon for investors seeking a safe haven. When combined with a glut of dry powder, increased fundraising and higher fund allocations, competition for healthcare assets intensified throughout the year—and, even today, shows no signs of abating.”
