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In Q1, we saw the public market rebound sustained, with most benchmarks gaining an additional 20%. Comparatively, our ADH index somewhat lagged with a 12% uptick, and YoY, it is still down 35%. This overall strong quarterly performance reflected anticipation from investors of an easing in monetary conditions. On the valuation front, our index was up almost 0.5x revenue for the quarter and reached
3.8x, closely tracking the NASDAQ. However, Fundamentals for our index members further deteriorated, with aggregate revenue growth falling to 16%.
Activity for both Digital Health private placements and M&A improved over the previous quarter. Deal value for private placements increased 30% QoQ to nearly $4B. However, activity slightly declined with 245 transactions completed during the quarter – in line with pandemic-era levels. While the average deal size slightly recovered to $16M, we expect dry power to decline over the foreseeable future, with unexpected consequences.
The M&A market experienced a similar revival with deal value up nearly 40% to $6.2B. This is however still on the lower end of the quarterly aggregate for deal value over the last five years. Conversely, Deal volume remained flat for a fourth consecutive quarter. The average M&A revenue multiple contracted to 5x over the last twelve months, and the average of the last six months is even lower.