MARKET INSIGHT: Capital Markets Update
This Market Insight report takes a comprehensive look at the current macroeconomic landscape and emerging trends poised to impact markets broadly, and the Healthcare space specifically, all presented in a digestible format.
- Mounting uncertainty is thrusting global recessionary concerns to the forefront as US and global inflation soars
- Public Markets have been crippled by these concerns, causing all major indices to sell-off 20% – 35% YTD, eliminating the IPO market, and rising rates have shuttered credit markets
- Private Markets have fared much better than Public Markets, largely due to the mass amount of Dry Powder support, totaling $1.2T for both Private Equity and Private Credit markets. This has allowed M&A deal making to continue and has supported elevated multiples for select sectors
- Healthcare is well positioned. Public Healthcare companies have outperformed the S&P 500 as investors view the space as non-cyclical/recession resilient, while private healthcare companies are also highly sought after, evidenced by transaction multiples relaxing only slightly from record highs. Continuing this trend, Healthcare balance sheets are healthier than ever as companies are prepared to weather any potential economic downturn and pursue opportunistic M&A
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