Private equity investors targeting Europe’s healthcare are putting more focus on organic growth, as higher capital costs make it harder to pursue buy-and-build strategies. The number of healthcare add-ons—where a firm makes an acquisition through an existing portfolio company—peaked in 2022. Deal value hit close to €20 billion (around $21.7 billion) across 392 deals, according to PitchBook data, driven by both low interest rates and increasing appetite for healthcare investment in the wake of the pandemic. Total add-on investment activity slowed to €13.6 billion last year, while there have been only €8.3 billion in deals this year, partly because of central banks in Europe and elsewhere raising interest rates to tackle inflation.
Read the full article: Why PE Investors in European Healthcare Are Rolling up Their Sleeves //
Source: https://pitchbook.com/news/articles/why-pe-investors-in-european-healthcare-are-rolling-up-their-sleeves