Private equity firms have long used ASCs as investment vehicles, which they have wrapped into larger portfolios and marketed to pension funds and other big institutional investors. But across the market, those institutions are reaching their capacity for such investments, Becker’s reports.
Enter the physician.
Private equity firms, especially those that are publicly traded, are creating new kinds of investment portfolios aimed at people with $1 million to $5 million in investable assets. Those worth at least $1 million held nearly $80 trillion globally in investable assets in 2020, and private equity firms want more of that total than the current clip of 5 percent invested with them.
With 56 percent of physicians owning a net worth of at least $1 million in 2021, they are squarely within private equity’s target audience for the new line of investment portfolios. It is an alignment that appears to be growing, too; in 2020, only 50 percent of physicians owned $1 million or more, according to Medscape’s 2021 Physician Wealth and Debt Report. Read more.
