We continue our special series on healthcare with a look this week at how the sector is playing out in the capital markets. (See also our Lead Lead Spotlight with Brad Raymond, Head of Investment Banking at Stifel Financial).

As we covered last week, healthcare benefits from tailwinds unique to the industry. Those characteristics have created certain dynamics that have made the sector popular with both issuers and investors.

Few sectors match the sheer breadth to which healthcare has grown across the economic landscape in recent years. In 1990, according to the Bureau of Labor Statistics, manufacturers employed more workers than any other industry. By 2003, retailers, interestingly, held that position. Twelve years after that, post-recession, healthcare related businesses reigned as the number one employer in the country.

Favorable demographic and technological trends have positioned healthcare in the sights of capital providers. Attendees at Proskauer’s Private Credit Insights conference in January saw a survey of private credit participants’ views on select topics.

To the question “In which industries is your organization interested in/considering investing in over the next 12 months?,” 87% answered healthcare. Business services (at 98%) was the only sector with a higher percentage. Manufacturing, consumer goods/retail, and technology followed next in order of interest.