Research by McKinsey & Company found that the U.S. health care sector has performed better than the overall market and the U.S. private equity industry.
The consulting company analyzed 140 private investments in the U.S. health care sector from 1995 to 2014. The research shows the returns in U.S. health care were “1.5 times higher than the broader public market and in five of eight subsectors outstripped the U.S. private equity industry.”
“An aging demographic has propelled the industry” states the report. “The scope for innovation and a steady supply of profitable businesses have made it a fertile market for private equity investors.”
Investors made 2.3 times their money in health care versus 1.7 times for all U.S. private equity.
