The "old style" of healthcare private equity investment that relied heavily on "financial engineering and cost-cutting" is fading away, according to an Oct. 31 report from Pitchbook.
The report identifies healthcare private equity's new interest in "secular growth trends and operationally driven investment theses." Healthcare services private equity deals made up 11% of total private equity deals over the past five years.
So far, in 2023, healthcare specialist private equity managers have brought in $17.5 billion in funds.
The report found that healthcare PE investors have become more "sophisticated" investors as they turn toward value-based care.