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A table depicting health care private equity fundraising in North America and Europe. One column shows the total amount of capital committed by year, with 2023 seeing the highest amount at $19.1 million. The other column lists the deal count for each year, with 2021 seeing the highest deal count at 49.

Health care private equity fundraising activity in North America and Europe

Fundraising by health care-focused private equity funds outpaced their venture capital peers in the first half of 2024, driven by LP interest and increased competition, per a PitchBook report.

Why it matters: Private equity health care managers are on pace to match the record fundraising levels of 2023 while venture capital is seeing a market reset.

The big picture: Life sciences venture capital fundraising slowed in the first half of the year, putting it on track to fall below $10 billion for 2024 and reflecting the sector's continued post-pandemic contraction, while other health care venture capital saw an even bleaker landscape.

The venture sector still holds interest, but managers want to see liquid dollars coming back to investors. Many digital health startups have gained traction but lack the momentum needed for an acquisition, IPO or significant venture financing, the Wall Street Journal reported.

By the numbers: Notable closures among health care and life sciences venture funds were:

Amplitude Ventures closed its second fund in May at C$263 million focused on precision medicine.

Columbus Venture Partners closed its fourth fund in May at $160.7 million.

Foresite Capital closed its sixth vehicle at $900 million in June.

Seroba Life Sciences closed its fourth fund in February at $134 million.

Between the lines: Increased competition in health care private equity is pushing specialists to embrace more advanced investment and operational strategies, PitchBook reported.

Specialists have also gravitated toward investing thematically in order to develop their own market insights and gain an edge in less crowded corners of the market.

State of play: Nine PE funds closed by June 30, 2024, totaling $8.9 billion.

Avista Healthcare Partners in March closed a $1.5 billion sixth fund.

Chicago Pacific Founders closed its third fund last September at $848 million.

InTandem Capital Partners in June closed its third fund at $715 million.

Latticework Capital Management closed its second fund in May at $345 million.

The bottom line: Fundraising remains concentrated among a few larger funds on both the VC and PE sides.

Private equity funds eclipse venture capital in H1 2024

Venture capital funds stalled on a market reset.

Health tech deals

A table depicting health care private equity fundraising in North America and Europe. One column shows the total amount of capital committed by year, with 2023 seeing the highest amount at $19.1 million. The other column lists the deal count for each year, with 2021 seeing the highest deal count at 

Fundraising by health care-focused private equity funds outpaced their venture capital peers in the first half of 2024, driven by LP interest and increased competition, per a <a class="gtmContentClick" data-vars-link-text="PitchBook report" data-vars-click-url="https://files.pitchbook.com/website/files/pdf/H1_2024_Healthcare_Funds_Report_17319.pdf#page=1" data-vars-content-id="f6144a7e-fe63-48ae-85ea-4b7d29db9f61" data-vars-headline="Private equity funds eclipse venture capital in H1 2024" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://files.pitchbook.com/website/files/pdf/H1_2024_Healthcare_Funds_Report_17319.pdf#page=1" target="_blank">PitchBook report</a>.Why it matters: Private equity health care managers are on pace to match the record fundraising levels of 2023 while venture capital is seeing a market reset.

Private equity funds eclipse venture capital in H1 2024

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