The healthcare industry looks poised for another busy year of dealmaking, amid an increase in both fundraising levels and the number of PE funds putting capital to work in the industry.
Year-to-date, 105 funds investing in healthcare held a final close for a combined value of approximately $103 billion, PEI Research data show.
Buoyed by an increase in mega funds, the average fund size in 2019 was approximately $981 million, as of Dec. 19, or more than triple the $242 million average fund size in 2018, according to PEI Research. Over the five years prior, healthcare fund averages have ranged from as low as $222 million in 2014, peaking at $440 million in 2017, the data shows.
Advent International led the pack as the largest fund investing in healthcare to hold a close in 2019, according to PEI Research.
The Boston buyout firm, which in addition to healthcare invests across multiple industries including industrials and technology, raised $17.5 billion in June for its ninth fund.
Advent, which put $2.3 billion to work this year in healthcare companies spanning home health to pharma services, is seeking opportunities for future investment in the U.S. healthcare payments arena and corporate carve-outs from Europe’s large cap drugmakers, senior investment members told PE Hub in November.
Other sizable funds investing in healthcare included TA Associates, whose 13th flagship fund closed on $8.5 billion; Genstar Capital, whose Fund IX raised $7 billion in committed capital; and CVC Capital Partners Strategic Opportunities, which collected EUR 4.6 billion (~$5.1 billion).
Broadly, 2019 also saw a surge in the sheer number of fund closures among those that invest in healthcare.
Including both healthcare-exclusive funds and funds that invest in healthcare among other industries, the 105 funds that closed in 2019 is nearly double the 57 and 65 funds raised in 2018 and 2017, respectively, PEI Research data shows.
Here’s a list of PEI’s Top 10 largest funds investing in healthcare that closed in 2019:
1. Advent International GPE IX: closed at $17.5 billion
2. TA XIII: closed at $8.5 billion
3. Genstar Capital Partners IX: closed at $7 billion
4. CVC Capital Partners Strategic Opportunities II: closed at EUR 4.6 billion
5. Summit Partners Growth Equity Fund X: closed at $4.9 billion
6. WCAS XIII: closed at $4.3 billion
7. Warburg Pincus China-Southeast Asia II: closed at $4.25 billion
8. CITIC Capital China Partners IV: closed at $2.8 billion
9. DCP Capital Partners I: closed at $2.5 billion
10. Ardian Co-Investment Fund V: closed at $2.5 billion