Healthcare has been an attractive sector for private credit for some time, and companies offering healthcare technology — whether physical or digital — have come to represent a huge chunk of that market.

Society is contending the impact of aging populations, spurring greater demand for healthcare services. At the same time, labour costs are rising, making cost efficiency a greater focus in healthcare systems across Europe. This is a tailwind for so-called ‘medtech’ companies.

“There is a clear and obvious need for greater efficiency in health care systems,” said Paul Tomasic, head of European healthcare at Houlihan Lokey. “The public systems are just struggling to deliver that care.”