New rankings: Which investors were most active in Q3? Our new Global League Tables break down the top PE & VC firms by region, industry, deal type, and more, along with rankings for advisers, acquirers, and law firms. Check them out.
Research news: Our news team published a handful of articles this week that leverage and build upon the data and insights in our research. Here are a few: | | | | | |
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| A new guide on PE strategies and deal trends in healthcare services | | Healthcare services—in-person healthcare provision in hospitals, clinics, residential facilities, and homes—account for roughly 10% of US PE deal activity by value. Payments to US healthcare providers exceeded $3 trillion in 2021 and are expected to reach $4.9 trillion in 2030 as the US population ages, according to CMS. And private market participants are looking to healthcare as a recessionary hedge: In a recent survey, 30% of LPs indicated they intend to increase healthcare allocations. Our new quarterly Healthcare Services Report is your guide to navigating PE investment trends in this critical industry. In the report, sponsored by UnitedHealthcare, we unlock deal trends across 26 provider categories—from applied behavior analysis (ABA) to oncology to home health—and give deep-dive analysis into the key market, reimbursement, and technological themes shaping PE strategies.  | | We've mapped out key firms and companies in the report. |
PE deal activity in healthcare services has remained resilient, especially in the middle market. Estimated deal count between Q1 and Q3 2022 already exceeds 2020's full-year number.
The industry does face headwinds. Staffing shortages have become endemic among healthcare providers, with hospitals and skilled care businesses most acutely affected. And dealmaking above the $1 billion or so threshold is currently hampered by sputtering syndicated loan markets.
We have also seen deal activity slow in some categories that garnered high valuations in 2021, including ABA and Medicare Advantage-focused primary care.
Nevertheless, activity in most categories remains at historically healthy levels. For instance, infusion deals are up and to the right, driven by the swelling specialty drug pipeline and the cost savings and staffing efficiencies of the ambulatory infusion center model.
 | | We have dozens of charts on PE activity by category. | And while roll-ups in established categories like dentistry, dermatology, and vision continue, PE firms are also employing more sophisticated strategies—entering niche provider categories, pursuing value-based contracts, and building out care models for patient populations with higher Medicaid spend. To read more, download the free 50-page report here: Q3 2022 Healthcare Services Report PitchBook clients can also interact with 3,600+ curated company profiles via the PitchBook Platform and utilize direct access to our analysts to dig deeper. Finally, look out for the launch of our Healthcare IT and Digital Health reports in March 2023. Please feel free to email me with questions or to learn more about PitchBook's healthcare coverage. | | | | | | | |
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Analysis of Public PE Firm Earnings in Q3
As the fundraising environment got tough for other private equity firms, publicly traded investment managers attracted strong inflows in Q3 2022—adding to already high levels of dry powder.
The breadth and depth of portfolios at those mammoth firms somewhat insulated them from headwinds like elevated interest rates and slumping valuations.
|  | | Public PE firm performance was a mixed bag in Q3. | | | |
Bright spots included credit arms that benefited from higher interest rates on floating-rate loans.
Our latest note offers a by-the-numbers look at the financial performance of firms including Blackstone, Apollo Global Management, KKR, Ares, and The Carlyle Group: | | | | | |
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| Morningstar Equity Research | | |
Telecom Americas: Third Quarter 2022
The market sell-off earlier this year sent the valuations of telecom companies plummeting, as the mature and stable sector grappled with the reality that pandemic-era growth was unsustainable.
The silver lining is that the stocks of those same companies are now increasingly attractive, according to a recent Morningstar report.
Growth is likely to continue weakening, but analysts see an opportunity in the sector's stable cash flow and sensible prices: | | | | | |
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How is this crypto bear market different from past downturns?
What are investors avoiding in this market? And where do they see opportunities?
We're hosting a live discussion on all things crypto on Dec. 14, where you can hear several viewpoints on risk management, security flaws, regulation, and other trends amid this difficult period for the industry:
Register here | | | | | |
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Senior tech analyst Brendan Burke weighs in on Palo Alto Networks' agreement to acquire application security startup Cider for about $250 million, including $195 million in cash, per regulatory filings.
"This acquisition announcement continues Palo Alto Networks' commitment to application code security and demonstrates the complexity of building a horizontally integrated cloud-native application protection platform.
"The deal also ends the acquirer's self-pronounced hiatus on large acquisitions that began in August 2021.
"In the application security segment, Palo Alto Networks previously bought Twistlock for $378.1 million, PureSec for $36.8 million, Aporeto for $144.1 million, and Bridgecrew for $156.9 million.
"We highlighted Cider in our Q1 2022 Information Security Report for its application security operating system product, which offers a breadth of integrations that we believe is missing from other orchestration solutions in the market.
"In practice, Cider Security's scanning of DevOps deployment pipeline configurations enables its product to complement Palo Alto Networks' other acquisitions in code review and production monitoring.
"This acquisition value is the largest we have tracked in information security since May 2022, suggesting that incumbent appetite for significant acquisitions may be reviving."
| | Brendan Burke
Senior Emerging Technology Analyst
Information Security | | | | | |
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Our insights and data featured in the press: - "If we move into more [of] a recession macroeconomically, investors are likely going to be looking at healthcare and trying to understand where they can park cash." [Institutional Investor]
- Strained debt markets and staffing shortages have tamped down private equity-led activity in healthcare services. [Axios]
- In a total of 25 take-private deals announced since early June in the US and Europe, none were funded by banks. [Bloomberg]
- Emerging VCs are struggling to fundraise as investors prioritize backing big-name firms. [Forbes]
- VC investment in foodtech recorded quarterly declines of 63% in deal value and 28.5% in deal count. [TechCrunch]
If you're a journalist interested in interviewing our analysts or requesting data, contact our PR team. | | | | | |
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Highlights from our other recent research:
Market updates
Thematic research
Emerging Technology Research
Coming next week (subject to change) - European VC Valuations Report
- Quantitative Perspectives: When the Tide Goes Out
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| A message from PitchBook Media | | |
| PitchBook's 2023 Media Kit released | | Year to date, PitchBook's newsletters have over 161 million impressions and over 744,000 report downloads. Partnering with PitchBook Media is a way to feature your firm's insights in one of the most popular venues for timely and relevant PE and VC articles, news, asset class reports and custom white label reports.
The brand-new 2023 Media Kit contains all the details to help your firm position itself in front of a VC or PE audience.
Click here to download it today or to speak to someone on the media team. | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 326 Deals | 1972 People | 520 Companies | 27 Funds | | | | | | |
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