In Healthcare Today, John Newton Outlines Why Private Equity Investment in Healthcare is Set to Rise

In Healthcare Today, John Newton, co-lead of the European private equity transactions practice, observes that UK healthcare M&A activity in the first half of the year was stable but restrained, as following a surge in investment two or three years ago, firms have been focusing on meeting complex compliance requirements and getting management teams in order.

However, John indicates that he expects activity levels to rebound, noting that private equity investment is inherently cyclical, and while funds shift between sectors, most will be committed to allocating capital to healthcare and life sciences over time. He also explains that, due to where many firms are in the investment cycle, they have now completed much of the work strengthening their portfolios following prior investment. They are now positioned to focus on growth in preparation for future exits, while looking ahead to the next generation of investments.