Harnessing opportunities in healthcare


Healthcare is one of the largest and fastest-growing global industries and it has the power to transform living standards. Private equity firms have played an active role in the global healthcare sector for decades and it continues to provide a large and growing opportunity set for investment. The global healthcare market is estimated to expand to $9.9 trillion by 2030 and $14.4 trillion by 2050.

Several key trends are driving its current growth phase: shifting demographics, namely an increasing and ageing population; technological developments, such as electronic health records and smart medical devices; and the evolution of niche areas like pharmacogenetics. The industry is also characterised by the depth of its sub-sectors, from healthcare services to pharma to medtech, all with different underlying drivers and opportunities. Equally, there are distinct market dynamics at play across geographies.

Given the healthcare industry’s breadth and complexity, it is a challenging sector for investors to navigate. There are risks, such as a changing regulatory backdrop and ever-increasing public scrutiny. It is also extremely competitive, as healthcare’s historically high returns over other sectors continue to tempt new investors. Private equity healthcare deals entered since 2010, for example, delivered an impressive median internal rate of return (IRR) of 26.9%, which is 560 basis points higher than the median for other industries.

As ever, manager selection remains crucial for any potential investor to consider, as there is a significant dispersion of returns between the top and bottom-quartile funds in healthcare deals. Investors should also be aware of the material margin between the performance of specialist and generalist investors, both on a cost-multiple and IRR basis.

For these reasons, private markets experts Titanbay believe specialist healthcare investors with deep domain knowledge and industry expertise are best placed to harness the sector’s trends and support the development of healthcare solutions of the future.

To read the full report from Titanbay, click here.

Important Disclosures
This material has been prepared by Titanbay Ltd and its affiliates (together, “Titanbay”) and is provided for information purposes only. This document is directed at professional investors and qualified investors who have sufficient knowledge and experience to understand the risks of investing in private market investments.

This material should not  be construed as legal, tax, investment advice or an invitation, general solicitation, recommendation, an opinion regarding the appropriateness or suitability of any investment strategy, or offer to buy, sell, or hold any investments or securities offered on or off the Titanbay investment platform. The views, opinions and estimates expressed herein constitute personal judgments of certain members of the Titanbay team based on current market conditions and are subject to change without notice. This information in no way constitutes Titanbay research and should not be treated as such. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice.

All information presented herein is considered to be accurate at the time of production unless otherwise stated and has been prepared from sources Titanbay believes to be reliable. No representation or warranty or guarantee, express or implied, is given as to the truth, accuracy or completeness of the information or opinions contained herein and material aspects of descriptions contained in this material are subject to change without notice. No reliance may be placed for any purposes on the information or opinions contained in this material. Titanbay is not responsible for any error or omission in this material, nor do we accept liability for any losses arising from its use. Non-affiliated entities mentioned are for informational purposes only and should not be construed as an endorsement or sponsorship of Titanbay.

Investments in private placements and private equity investments via feeder funds in particular, are complex, highly illiquid and speculative in nature and involve a high degree of risk. The value of an investment may go down as well as up, and investors may not get back their money originally invested. Investors who cannot afford to lose their entire investment should not invest. Past performance, including simulated performance, is not a reliable indicator of future performance. For private equity investments via feeder funds, investors will typically receive illiquid and/or restricted membership interests that may be subject to holding period requirements and/or liquidity concerns. Investors who cannot hold an investment for the long term (at least 10 years) should not invest.

Titanbay Ltd is an Appointed Representative of Brooklands Fund Management Limited which is authorised and regulated by the Financial Conduct Authority with firm reference number 757575. Copyright Titanbay 2023.

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