In the second year of Covid-19, healthcare private equity activity showed remarkable resilience to the widespread disruption, posting a record year for both deal volume and disclosed value. This stemmed partly from a pandemic-induced backlog of parked deals, as well as the revival of megadeals. Competition looks set to intensify, following the record number of healthcare-focused funds initiated in 2021 and total capital raised. Major trends include these:
- the consumerization of care;
- digital solutions that improve operational efficiency;
- a willingness to take on drug development risk;
- large transactions in European biopharma and life sciences tools; and
- an even higher baseline for deals in Asia-Pacific.