Pictet Alternative Advisors today announced the launch of a new private equity fund that will invest primarily in healthcare assets.
This portfolio will be the second in Pictet’s thematic private equity range, following the technology fund that closed at a hard cap of $350m (£260m) last September after exceeding its initial goal by $50m within a year of launching.
Pictet said that the new portfolio will invest in biotech and healthcare themed venture capital, growth, and private equity funds and diversify its holdings across therapeutics, diagnostics, digital health, medical technology, and health care and services providers.
The new fund of funds aims to take advantage of the sector’s popularity as many governments around the globe upgrade their healthcare systems to combat ongoing Covid outbreaks.
Although it has been increasingly important to the world, however, the sector’s returns have not matched that of the wider market. Indeed, the MSCI World Health Care index has lagged the broader MSCI World index over the past one and three years.
Total returns of indices over three years
.png)
Source: FE Analytics
Yet over the longer term, the health sector has outperformed, beating wider global stocks over five and 10 years, suggesting that the near-term weakness may correct in the coming years.
Yann Mauron, investment manager for the fund, said: “Health is a major priority for society as a whole. We are at an inflection point for medical breakthroughs: investment is growing, regulation is becoming more supportive, and technology is able to offer more potential solutions.
“As illustrated by the recent vaccine successes, it’s a fertile time for healthcare. What could have taken scientists 10 years to complete was accomplished in less than one.”