Private equity invested $132 billion into during the first quarter of 2017, led by a sharp increase in healthcare sector, according to the American Investment Council’s (AIC) 2017 Q1 Industry Investment Report.
Business Products and Services (B2B) received $35 billion in private equity investment in the first quarter, followed closely by Healthcare and Information Technology, which attracted $29 billion and $26 billion worth of investment, respectively.
Healthcare investment jumped from $17 billion in the fourth quarter to $29 billion in Q1 2017. This is the highest level the healthcare sector has seen since 2011.
“In a positive sign for the economy, private equity funds continue to support sectors critical to sustained growth,” AIC President and CEO Mike Sommers said. “The industry’s investment helps American businesses thrive and promises strong returns for our retirees, public servants, and university endowments.”
The report also shows that investment volumes and the number of deals in Consumer Products and Services (B2C), Financial Services, and Materials & Resources dipped compared to Q4, but remain in line with historical averages. The total number of health care deals was comparable to 2016 levels.
“With $132 billion in Q1 investments, private equity firms have continued to deploy capital in a competitive environment,” AIC Vice President of Research and Investor Relations Bronwyn Bailey said. “While dry powder is at record highs, year-over-year private equity investment remains robust.”