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In today's Daily Pitch, you'll find: | | | | | |
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Debt costs drag on healthcare services dealmaking | | PE dealmaking for healthcare services companies slowed further in Q2 as some heavily leveraged platforms strain under the growing cost of debt and impending maturity walls. But as healthcare specialist firms continue successfully fundraising and the broadly syndicated loan market cracks open, PitchBook analysts expect deal activity to gradually recover in coming quarters. Our latest industry research breaks down PE trends and investment strategies in healthcare services, with spotlights on mental health services and medical spas, two of the sector's hottest investment categories. | | | | | | LPs seek recession hedge with PE healthcare funds | | | (picture alliance/Getty Images | | | "We moved from a recession to a pandemic to another potential recession," and those forces have boosted interest in specialty PE healthcare investors, says PitchBook analyst Rebecca Springer. That's evident in the fundraising data, as healthcare specialists avoid the slump that faces other PE firms in 2023. | | | | | | |
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PitchBook's 2023 Media Kit released | | With uncertainty across the private and public markets likely to continue, strong and insightful thought leadership is critical to your clients and prospects. By partnering with PitchBook Media, you will have daily opportunities to reach 1.5M+ industry professionals in our newsletter, and you can broaden exposure of your brand through our core industry reports. We also help clients create custom research to share data-driven insights on the market. Our 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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The looming venture capital deficit | | PitchBook's capital-demand-to-supply model illustrates how the immense amount of capital that entered the market in 2020 and 2021 impacted the dynamics of VC. Startups had previously come back to market on a regular schedule to raise new rounds, even as deal sizes increased. As the market shifts to efficiency, startups have stretched themselves further between rounds. Our latest analyst note lays out how to account for these mechanics in this new investment environment and how the era of market overcapitalization is over—for now. | | | | | | Corporate buyers lured by infosec discounts are on the scent for more | | | (Joey Schaffer/PitchBook News) | | | M&A, like all exit activity, had frozen over—but within information security, a thaw might be starting. Customers are hungry for cybersecurity protection and favor consolidation within the industry. All told, M&A activity is predicted to tick up this year, though for startups it comes at the expense of accepting lowering valuations. | | | | | | European startup bankruptcies lie low while new company creation stalls | | | (Fentino/Getty Images) | | | European VC-backed bankruptcies are on pace to fall below last year's total, but new startup formation could see its lowest annual figure in nearly a decade. Amid worsening funding conditions, managers are prioritizing existing portfolio companies over new investments, one explanation for the low failure and creation rates. | | | | | | | An "iconic" Andreessen Horowitz investor is turning heads in the defense tech sector. [The Information] Before a bot steals your job, it will steal your name. [The Atlantic] When researchers claimed to discover a room-temperature superconductor, it set off a brief but intense hype cycle among investors and entrepreneurs. [The Washington Post] | | | | | |
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| Since yesterday, the PitchBook Platform added: | 5 Deals | 99 People | 24 Companies | | | | | |
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The Daily Benchmark: 2017 Vintage Global Real Assets Funds | | | | | |
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PitchBook webinar: Improving behavioral health outcomes | | The demand for behavioral healthcare has never been greater. Providers and payers are turning to measurement-based care to capture and manage clinical outcomes to improve the delivery of behavioral healthcare and generate financial ROI. In this webinar, PitchBook lead healthcare analyst Rebecca Springer will speak with representatives from Aurora Mental Health & Recovery, Colorado Access, and Owl Health about the transformation of treatment and business models in the behavioral health industry. Register now to secure your spot. | | | | | | |
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CVC Capital Partners has raised more than $4.45 billion of a $6 billion target for its sixth Asia-focused fund, Reuters reported. | | | | | |
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