Fierce Healthcare February 12, 2024
Private equity firms have seen plenty of potential in the rapidly growing Medicare Advantage space, but deal volumes are slowing, according to a new report.
Analysts at the Private Equity Stakeholder Project dug into deal activity in MA between 2016 and 2023. The report (PDF) found that deals peaked in 2021 and have slowed in the years since as tighter regulations and nationwide inflation impact the sector.
The report found that there were 80 PE-backed deals—including leveraged buyouts, add-on acquisitions and growth investments—from 2016 to 2023. Of those, more than half (56.3%) were add-on acquisitions for platform companies.
The two busiest years for dealmaking were 2019 and 2021, with a likely pandemic-driven lull in between, according to the report. However,...
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