DOTmed September 27, 2024
Healthcare has historically been one of private equity’s preferred industries for investment. Many consider it “recession-resistant” because there is permanent demand for healthcare services, amplified by an aging population with a chronic disease burden. And many subsectors within healthcare are fragmented and ripe for consolidation, which is a favored quality of private equity investment targets. Private equity has invested over $1 trillion in the US health sector over the last decade.
But what exactly is private equity? Private equity is a type of investment class that buys private companies by pooling investors’ capital together, often in conjunction with substantial debt, in order to restructure them and sell them for a profit four to seven years down the road. Private equity-owned...