PE Perspectives
private equity

Triple Tree and Bain & Co are two very sharp private equity firms and when they put out content we pay attention.

As 2024 gets kicked off, both firms have offered insights into healthcare and they are worth reading whether you are an investor, physician or entrepreneur.

Here is a glimpse into the Bain & Co. Report:

“Stubborn inflation, high interest rates, geopolitical and economic uncertainty, and labor shortages exacted a toll on private equity markets in 2023, and healthcare private equity was not immune. Healthcare buyout values fell but despite those challenges were in line with pre-Covid norms, as demographic trends and the wave of innovation unleashed during the pandemic fueled deal activity. Now there are signals that momentum is picking up, as evidenced by a rising deal volume relative to 2022. Buyers and sellers have a vested interest in bridging valuation gaps to make 2024 a year for catching up.

This year’s report focuses on the forces creating major opportunities for investors and their portfolio companies, from generative AI to the burgeoning Indian market to innovation in life sciences.”

Here is a glimpse into the Triple Tree Report:

“As we look back at 2023, we saw markets begin to rebound from 2022 where M&A activity had slowed resulting from high inflation, a bear market triggered by the Fed tightening credit policies, pandemic hangover, and increased diligence from investors and buyers. Last year, TripleTree was fortunate to be one of the most active investment banks in healthcare, advising on more than 20 closed transactions. Across the continuum of closed healthcare services and technology transactions, the market favored companies with demonstrable solutions, sound business fundamentals with strong management teams, and continued upside and opportunity to scale as innovative companies addressed some of healthcare’s long-standing challenges: quality, affordability, and accessibility.

For 2024, we center our perspective around the patient – as the patient is what drives the business of healthcare. That said, we take a more expansive view of the patient, broader than the traditional view of ‘patient-centered healthcare’ or patient centeredness, and focus on the services, technology, and pharma sectors that will advance a more holistic, longitudinal, and personalized healthcare system. As we think about healthcare M&A activity in the coming year, we are focused on several themes transforming how healthcare is administered, managed, and delivered – and creating a less fragmented system that can better serve the individual person engaging with it.”


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