Prime Highlights-
- Healthcare stands out as a top private equity target, according to Rothschild and Co’s latest conference insights.
- Investment capital rotates back toward healthcare as global buyout funds rebalance away from software and technology.
Key Facts-
- US and international private equity firms increase investment in European healthcare assets.
- Aging populations and rising demand for preventive care support long term healthcare sector growth.
Background-
Rothschild and Co’s healthcare team opened the Investors in Healthcare conference with a positive outlook on private equity activity in the sector.
The team said deal activity is recovering after a quieter stretch, noting that transactions delayed in recent months are now moving forward.
US and international private equity firms are increasing investment in European healthcare, citing the sector’s relative stability compared with other markets. Buyout funds shifting portfolios away from software and technology are adding further interest in healthcare assets.
Pharmaceutical companies are revising their strategies in response to changes in US drug pricing policy, with deals now built around closer scrutiny of pricing and supply chains.
Rothschild and Co said dealmaking remains active despite these changes, driven by companies strengthening their pipelines and steady demand for new treatments, particularly in rare disease therapies.
Artificial intelligence has become a key factor in how investors value healthcare businesses, with companies seen as well positioned on AI attracting stronger buyer interest.
Rothschild and Co said public markets have not yet reflected this shift, leaving many private healthcare assets trading at higher valuations than listed companies in the sector.
Capital continues moving into healthcare, with technology focused investment firms increasing their exposure to the sector. Rothschild and Co pointed to ageing populations, rising demand for healthcare services and growing interest in preventive care and outpatient treatment as factors supporting continued growth.
The firm added that financing remains readily available for well positioned healthcare businesses, supported by favourable lending conditions.
