Panel: Low returns making capital hard to come by

Panelists from well-known financial institutions offer their views on access to capital for growing healthcare companies to Health Care Council crowd

Email | Print By Walker Duncan

The sea of dark suits gathered today at the Cool Springs Marriott for a Nashville Health Care Council panel looking at the recent trends and development in the private-equity and venture-capital worlds.

The panel included Alan Moseley of Atlanta’s Noro-Moseley; Charles Ditkoff, the co-head of Banc of America’s Global Healthcare Group; Jon Santemma, a managing director with UBS’ Global Healthcare Investment Banking Group; and Robbert Vorhoff of General Atlantic.

Moderating the panel was former U.S. Senator and Cressey & Co. partner Bill Frist, who, taking a page from Community Health CEO and Health Care Council Chairman Wayne Smith, was quick with quips and sparred jokingly with the panelists.

Not surprisingly, the first question off the bat from the election-season crowd concerned federal regulation and the possible rise of universal coverage. While none of the panelists see universal coverage as likely, all agreed that some sort of shift will be seen following the election depending, not surprisingly, on who moves into the White House come January.

However, that shift, whatever form it may take, will not be as radical as campaigns would have voters believe. Frist chimed in at this point noting that, while a general leftward move in the legislative branch is likely, funding issues will necessitate a more gradual change that will be led by greater regulation.

Other issues raised at today's event included access to capital during the recent market downturn and going forward. The panelists conceded that access to early-stage capital is now more limited than in the past as returns have suffered in recent years and market volatility has led many investors to keep a tighter grip on their cash.

But, noted one panelist, the points when venture capital returns are the lowest are often the best times to invest in venture capital.