A new report from Leadtech Investments shows that emerging market economies could offer compelling investment opportunities in healthcare
Online PR News – 31-May-2016 – Leadtech Investments, a financial advisory firm that specializes in investment management, has released a new report that looks at the opportunity for private equity investors in emerging markets healthcare. While emerging markets have weakened in recent months causing some investors to leave, healthcare stands out as a sector within these economies that remains largely uncorrelated to macroeconomic slowdown.
According to the report, within BRIC countries, the aggregate revenues from these healthcare markets are greater than $850 billion and compound at a rate of 9.1 percent significantly greater than the aggregate GDP growth rate of those countries. When the BRICs are combined with emerging and frontier markets, the healthcare industry represents more than $1.3 trillion and is growing at a rate of 6.8 percent.
Even at that size, access to healthcare and the healthcare industry itself in these areas remains significantly fragmented, creating opportunity for investment.
On a comparison basis, healthcare in the US, which has a developed middle class, represents a $2.9 trillion (and growing) industry. A variety of factors are influencing the growth in emerging markets healthcare, explains David Kwan, managing director at Leadtech Investments and one of the authors of the report in an interview with Private Equity International.
We are seeing more and more people in these countries develop lifestyle based illnesses like we see in the US. Diabetes is on the rise, heart disease is on the rise, and a lot of this is driven by dietary and lifestyle changes in the middle class that create a new demand for providers trained to treat these types of illnesses. We are also likely to see consolidation opportunities.
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