It was a wild year for healthcare investors, with the central drama being—no surprise to anyone—the continued assault of Covid-19. The pandemic has shaken virtually every industry, none more than healthcare. Yet $151 billion of private equity capital surged into healthcare globally in 2021, more than double the prior year, and the number of deals soared 36% to 515. Did the industry post these records despite Covid-19 or because of it? It’s a bit of both.
The pandemic further tips the balance in favor of private markets, because systemic disruption requires a rapid, nimble response that private ownership better affords. More broadly, the longer time horizon taken by private investors, not metered by quarterly earnings, affords investment in the innovations needed to inflect change in a system. Read more.
