PE-owned healthcare saw surge in 2023 bankruptcies, report says

April 17, 2024

Lauren Coleman-Lochner, Bloomberg

Private equity-owned businesses accounted for a high number of bankruptcies in the healthcare sector last year, and another wave of distress looms, according to a new report from an advocacy group that monitors the sector.

PE-backed firms accounted for at least 17, or about a fifth, of the 80 bankruptcies of healthcare companies last year, the Private Equity Stakeholder Project said in a report due to be released Wednesday. It called 2023 a “record year” for large health-care bankruptcies. Also, venture-capital backed companies made up another 12, or 15%, of the filings, it said in a study that looked at companies with liabilities of more than $10 million.

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