4 insights on PE in Q4 — Strong activity to continue

Private equity investors were highly active in the healthcare space to close out 2019, according to a quarterly report from Provident Healthcare Partners.

What you should know:

1. Investors were "highly active" in the fourth quarter of 2019, and analysts expect consolidation activity to continue at a similar rate into 2020.

2. Pharmaceuticals, gastroenterology and ophthalmology had the most quarterly investment activity.

3. Concerning gastroenterology, Dallas-based GI Alliance, the largest platform in the space, continued to expand by acquiring Indianapolis Gastroenterology and Hepatology. Miami-based Gastro Health, backed by Audax in 2016, also closed an acquisition. Analysts said Gastro Health "is well-positioned for a secondary transaction in the near future."

4. Provident expects investment activity to continue despite fears of a coming recession and an unstable political environment.

"While other industries outside of healthcare are observing the beginnings of microeconomic and external trends that may threaten their ability to grow and succeed in a dynamic global economy, the healthcare services market remains insulated from much of this current concern," the report said.

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