Chart of the week: Healthy healthcare fundraising

Investment into healthcare-specific private equity vehicles rises as investors are attracted by the stability of the industry.


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Cinven’s healthcare principal Matt Norton told Private Equity International’s sister title Private Healthcare Investor this week that his firm’s move from “asset-heavy” healthcare services, towards “asset-light” medtech and pharmaceutical firms, can give it an edge over more generalist rivals.

Cinven, whose sixth fund is nearing a €7 billion close, has invested around 30 percent into healthcare across its last two vehicles, as part of a wider trend where vehicles focused exclusively on the sector have gathered increasing levels of interest, according to data from PEI Research & Analytics.

Largely resistant to macroeconomic instability, healthcare-focused funds are seen as a stable investment, particularly at a time when some fear the approach of an economic slowdown.

In 2015, $8.54 billion was raised from the close of 24 vehicles, more than double a year earlier in terms of capital and funds.

Frazier Healthcare Growth Buyout Fund VIII is the largest private equity healthcare-focused vehicle to have held a final close in 2016 to date, collecting $542.61 billion in March.