Health and medicine providers are beneficial to portfolios’ ESG scores, according to a new study.
The study by Bain & Company reveals that healthcare was the best-performing asset class in private equity between 2015-2021 in terms of internal rate of return (IRR).
In 2022, private healthcare equity remained strong despite geopolitical tensions, inflation, slumping stock markets and spiking interest rates.
Life sciences continue to attract interest from buyout funds, and there has been a shift towards healthcare information technology.
The study emphasized investment in private healthcare offers potential profits and contributes to social factors within environmental, social and governance (ESG) investing.
The healthcare sector accounts for roughly 10% of GDP in most European economies, making it a significant global industry.
Healthcare companies with diversified assets and healthy balance sheets appear attractive to investors looking for stability during a potential recession in 2023.
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