Four data points before we begin:

1. Over the last eight years, private equity ownership of healthcare providers has grown more than 300% from the previous like period.
2. Nearly one in four medical procedures in the United States are delivered by a provider owned in significant part by a private equity firm or asset manager.
3. Pitchbook, Bain, Apollo and Blackstone all forecast a positive M&A environment for late 2024 and into 2025.
4. Overall healthcare capex is up over 20% through this private equity-fueled healthcare M&A cycle.

Given the essential nature of healthcare services and a demographic shift towards an older population, opportunities for this trend persist. However, while these acquisitions can create opportunities for equipment finance companies, they also present substantial risks, influenced by the broader implications of private equity’s role in healthcare. Here are some insights into why healthcare providers are attractive to private equity and what this means for the equipment financing industry.