Healthcare rewards the long view

Demand for healthcare is structural, long-dated and, across Asia in particular, still catching up with income. Few sectors offer that combination. Few sectors also punish impatience so reliably: regulatory timelines are long, evidence takes years to build, and reputations in healthcare are earned slowly and lost quickly.

This makes healthcare a natural home for permanent capital. A provider, a service or an enabling technology that needs five years to reach maturity is a poor fit for a fund with a five-year hold, and a good fit for an owner who does not need to sell. The firm looks for businesses with regulatory maturity, evidence-based products and management capable of building across markets, and is prepared to wait for them.

The views expressed are those of Tao Capital Management Limited and are general in nature. They do not constitute investment advice and do not refer to any particular holding.