Healthcare

As the sector sustains market interest through wider volatility, GPs are sharpening their investment theses and building deeper sector and operational expertise to remain competitive.

The convergence of tech and biology is creating a compelling investment environment for the sector, say Brett Zbar and Mark Stevenson at General Atlantic.

Demographic shifts and the rising cost of care in Asia have boosted interest in the market, according to the sovereign wealth fund’s head of life sciences for direct investments in America.

Buoyed by growth trends, buyouts in the lower mid-market offer significant opportunities for value creation, says Vesey Street Capital Partners’ Adam Feinstein.

Healthcare-focused funds gathered $14.5bn last year, with a larger average fund size helping to offset a drop in the number of vehicles closed.

Healthcare-related assets make up a significant chunk of potential dealflow in the GP-led secondaries market given the sector’s characteristics and outlook.

Addressing the needs of underserved groups provides an opportunity to boost returns and achieve impact.

Pharma services is creating cross-border opportunities, but GPs should be aware of regulatory and structural issues at play in different jurisdictions, say McDermott Will & Emery’s Kristian Werling and Ellie West.

Healthcare is still the most cited area of increasing LP activity, according the placement agent and advisory firm's six-monthly LP survey.

The healthcare-focused firm has more than doubled its firepower for its latest buy-and-build-focused vehicle.