Private Equity Portfolio Trends – Healthcare and Pharma

I previously wrote about the trend of declining private equity investments in manufacturing companies, (as a percentage of the total number of platform portfolio companies acquired). So, where is the focus shifting? The next few blog posts will aim to answer this question by looking at investment trends in different sectors.

This post is about private equity firms investment trends in Healthcare & Pharmaceutical companies.

The chart below shows PE platform investments in healthcare companies steadily increasing.

While not as obvious on this scale, PE investments in pharmaceutical companies have also increased significantly, approaching 4% of total PE platform transactions.

Not only are private equity firms making more investments overall (because there are more of them with larger funds), but a greater percentage of the growing pie is being allocated to healthcare- and pharma-related investments.