Michael Dal Bello is an investment partner in the Los Angeles office of Pritzker Group Private Capital and president of the Healthcare Private Equity Association. Pritzker Group, led by Tony and J.B. Pritzker, invests its permanent, proprietary capital primarily in family- and entrepreneur-owned middle-market businesses in the health care, manufactured products and services sectors.
Q. HEALTH CARE IS A LARGE AND GROWING SECTOR OF THE ECONOMY. HOW ACTIVE OF A SPACE HAS IT BEEN FOR PRIVATE EQUITY?
Health care represents a $2.9 trillion industry in the United States alone and has proven to be “defensive” or resilient during periods of global and national downturns. As a result, health care continues to be a very active space for private equity investors.
One of the trends we’re seeing now is a relative scarcity of health care companies for prospective private equity investment, which has contributed to higher valuations. This doesn’t necessarily signal a slowdown. In fact, there are more than 50 members in the Healthcare Private Equity Association with assets under management of more than $400 billion, and an estimated $16 billion was invested in more than 200 health care companies in 2013. It appears that 2014 may have been even more active.