Private equity firms have invested just under €9 billion (about $10 billion) in Europe’s healthcare services sector this year—after a sharp decline in 2023—and there are hopes of a recovery.
Deal activity overall has remained steady, with €8.88 billion transacted across 154 deals this year, according to PitchBook data. Through the end of June, there were 125 deals in the sector worth a total €7.08 billion, compared to the €5.76 billion transacted across 129 deals during the same period last year.
Deals have been smaller, partly due to macroeconomic uncertainties making it harder to secure financing for larger transactions. The average deal size in H1 2024 was around €3.5 billion, far below that of 2021 and 2022 when healthcare investments peaked in the wake of the pandemic.
The largest PE deal recorded in European healthcare services this year is PAI Partners’ roughly €600 million purchase of a 67% stake in Vamed, an operator of a rehabilitation businesses across Europe.
While the global picture appears bleak—PitchBook’s latest Healthcare Service Report shows that global healthcare services deal activity slipped a further 16.5% in Q2—PitchBook analysts are predicting a recovery for the sector as interest rates come down.
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