HEALTHYHABITS
Creating value in healthcare
The Real Deals Healthcare Report 2024 examines the sector’s relative resilience in the face of challenging conditions.
The specialist will see you now
Proving resilience
Nurturing value
Maintaining momentum
New tricks
Digitalising healthcare
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The Real Deals Healthcare Report 2024
Despite the sector’s relative resilience, dealmaking in healthcare has struggled in the face of the challenging conditions confronting the entire private equity spectrum in the last two years.
Yet the long-term prospects for the sector remain bright.
Demographic trends and the increasing cost of caring for an ageing population create a demand profile that, while perhaps not immune, is less vulnerable to shifts in economic cycles.
Technological advances witnessed in areas such as mRNA vaccinations or the dramatic impact of GLP-1 drugs in tackling obesity hint at the potential rewards on offer for investors. Much anticipation surrounds the potential gains that investment in Generative AI could help unlock in healthcare.
As rising expenditure increasingly weighs on economies, governments are increasingly juggling efforts to increase access to healthcare while at the same time contain costs. As this year’s report identifies, that also opens up opportunities in areas such as healthtech.
Risks of course remain. There will be setbacks in trials or in securing regulatory green lights for innovative products. Equally there will be some exposed to the downstream effects of a giant advance in tackling conditions that have previously required extensive – and perhaps expensive – treatment. Identifying and reacting to those developments remains key.
Finally, as this year’s report highlights, talent remains a critical factor for private equity firms. That’s not confined to the expertise required in understanding and reacting to the latest advances in science and technology, but also in areas familiar to those across the private equity industry, such as operational efficiency, regulation and the impact of staff shortages in critical roles.
