The size of the average healthcare private equity deal rose 25 percent, to $78.9 billion, in 2019, according to Bain and Company's ninth Global Healthcare Private Equity and Corporate M&A Report.
Six other findings from the consulting firm's report:
1. The increasing size of healthcare deal value in 2019 stemmed primarily from large buyouts, including the biggest buyout in the last decade: EQT and Abu Dhabi Investment Authority's $10.1 billion acquisition of Nestle Skin Health.
2. In 2019 there were 27 deals valued at more than $1 billion, compared to 18 deals valued at more than $1 billion in 2018.
3. The total number of deals reached globally in 2019 hit 313, slightly down from the 316 deals completed in 2018.
4. North America remained the largest market for healthcare private equity. Deal values in 2019 jumped about 58 percent to $46.7 billion in 2019, compared with $29.6 billion in 2018. Deal count in North America also increased, from 149 in 2018 to 159 in 2019.
5. In North America, the provider sector remained the most active sector for private equity deals, with 96 deals in 2019.
6. More private equity funds are investing in healthcare in part because of its resiliency during the last recession, according to the report. Bain reports that healthcare private equity investments made during the last recession had a multiple on invested capital nearly 50 percent higher than other industries.
Access the full report here.