Although 2017 began with the uncertainty of a repealed Affordable Care Act, private equity could still count on two key drivers in the healthcare space providing investment opportunities, an aging population with increased prevalence of chronic disease and a generation of consumers that enjoy the convenience and high expectations that the digital age provides.
These two key drivers are responsible for the continuous development of innovative direct consumer health products and services, robotics, medical devices, drugs, telemedicine and more. However, because healthcare is still a fragmented market and has an inefficient delivery system we will continue to see opportunities for innovation, disruption, consolidation and investment.
VC’s, hedge funds and PE funds have long seen healthcare’s compelling investment opportunities. As a result healthcare private equity had another great year with a disclosed deal value that reached over $40 billion in 2017, the highest level since 2007.
PE Funds continued to make large investments in areas that have historically produced rich returns, including retail health, healthcare IT, and contract services for pharma and medtech.