7 things to know from Bain's 2016 healthcare private equity report

Private equity firms made a strong showing in the healthcare market in 2015, according to Bain & Company's 2016 Global Healthcare Private Equity and Corporate M&A report.

Below are seven private equity trends to know, according to the report.

1. Globally, total healthcare deal volume by PE firms rose by 6 percent, from 188 deals in 2014, to 199 deals in 2015. The number of deals worth more than $1 billion increased from five deals in 2014, to eight deals in 2015.

2. Globally, PE firms took advantage of favorable exit conditions in 2015, making it a record year for exits. The number of exits rose 8 percent year over year to 145 in 2015.

3. North American and European healthcare markets continued to attract the bulk of PE interest in 2015, however deal value in both regions declined.

4. North America saw the greatest number of deals globally, with 116 PE deals totaling $9.4 billion last year. Four deals were worth more than $1 billion.

5. Private equity investment in the provider and related services sector surged in 2015. In the U.S., the provider sector accounted for five of the top 10 largest PE deals. In one of those deals, Welsh, Carson, Anderson & Stowe and Cressey & Company partnered with Mechanicsburg, Pa.-based Select Medical Holdings to purchase Concentra from Humana. Pamplona Capital Management's $2.75 billion acquisition of MedAssets was another top deal.

6. Low-risk sectors such as health IT, revenue cycle management solutions and alternate site IT were popular spaces for PE investment.

7. Some investors were willing to take on reimbursement risk in healthcare-heavy sectors. For instance, KKR acquired air ambulance company Air Medical Group Holdings from Bain Capital for $2 billion in 2015.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars