Healthcare services accounted for more than half of the private equity investment in European healthcare year-to-date amid an overall decline in investments in the sector.
While dealmaking for healthcare services has slowed from 2023, it accounts for around 54% of the total PE deal value in the European healthcare sector, up from 46.3% in 2023.
Healthcare services—which includes clinics and outpatient services—saw €10.9 billion (about $12 billion) in deal value across 175 transactions as of Sept. 23.
The increased focus on healthcare services is happening amid a lower appetite for pharmaceutical and biotechnology deals. The vertical only took up 18.8% of deal value this year, down from 35.8% in 2023. It is the only segment to see its share of overall deal value shrink in 2024.
A larger share of capital also went to healthcare technology systems and healthcare devices and supplies, with the former increasing its share of deal value from 4.4% to 7.4%, while the latter has grown from 13.2% to 19.3%.
Within the healthcare industry sub-sectors, clinics and outpatient services saw the highest deal value with €3.6 billion raised this year.
The largest deal within the sub-sector this year was PAI Partners’ €600 million acquisition of a 67% stake in the rehabilitation unit of Austrian hospital service group Vamed.
Other deals include Ethemba Capital, Gryphion Capital Investments and MNL Nominees’ €55 million growth investment in Welbeck Health Partners, a specialist day surgery center based in London.
Cancer therapy outpatient clinic “Rosi” at Charité Hospital in Berlin.
Featured image by picture alliance/Getty Images
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