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| Tracking a frothy buyouts market | |  | | (Paper Boat Creative/Getty Images) | | | For the first time in over a decade, the US and Europe are seeing a significant gulf in buyout multiples. In a new research note, PitchBook analysts explore what's driving the valuation differentials, which have big consequences for GP returns across the private equity industry. Key takeaways include: - US buyout prices during the pandemic have surged to record highs while Europe's declined, a sign of each market's comparative resilience.
A record percentage of US deals priced between 15 times and 19.9 times, but European prices are expected to rise over the next 12 months.
- Buyout valuations in Europe's biggest markets have come closer in line with each other, as the UK's buyout multiples dropped while those in France and Germany increased.
| | | | | | | | | | Deliveroo cuts IPO range amid investor concerns | |  | | (Jack Taylor/Getty Images) | | | Deliveroo will price its upcoming IPO toward the bottom of its intended price range, blaming volatile market conditions. - The news comes at a time when many high-profile investors are stepping away from the offering, citing concerns over how workers are paid and the planned dual-class share structure.
- A number of the UK's largest investors, including Legal & General Investment Management, Aviva Investors, Aberdeen Asset Management and M&G, said that they will not participate in the offering, the Financial Times reported.
- Gig worker compensation has been under greater scrutiny since the UK's Supreme Court ruled that Uber drivers must be treated as workers rather than as self-employed individuals. A study by the Bureau of Investigative Journalism found that, on an hourly basis, one in three Deliveroo riders earned less than the national minimum wage.
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| A message from Bridge Bank | | |
| Austin's VC ecosystem tops $2 billion in value for third year running | | Although volume dipped 10.5% year-over-year in 2020, the Austin VC ecosystem still secured a record $2.3 billion in aggregate value thanks in no small part to its resilient enterprise tech sector.
In this installment of Bridge Bank's Markets to Watch series, the key top-level trends that defined VC dealmaking in Austin last year are situated within the developments in fundraising activity and financing events that took shape over the past decade. Additionally, the report contains analysis of Austin's banner year for exit value creation.
Read the report | | | | | | | |
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| Carlyle makes $2.3B+ bet on private air travel | |  | The Carlyle Group has agreed to take Fly Leasing private after a year in which demand for air travel took a hit.
(Justin Sullivan/Getty Images) | | | The Carlyle Group has tapped its aviation investing division to buy a struggling aircraft financier, marking the latest example of an investor betting that air travel will bounce back in 2021. - The firm has agreed to acquire Fly Leasing in a deal that values the aircraft leasing company at more than $2.3 billion, including debt. Carlyle paid $17.05 per share in cash for the Ireland-based company, marking a roughly 29% premium to the company's Friday closing price and a 43% premium to its average share price over the past 30 trading days.
- Funds for the investment will come via Carlyle Aviation Partners, which has grown to more than $6 billion in assets under management since Carlyle launched the unit in 2002. The firm raised around $900 million for the unit's latest flagship fund, according to a Buyouts report.
- The deal caps an active few weeks for aircraft deals. Earlier this month, General Electric sold its aircraft leasing business to rival AerCap for roughly $30 billion.
- Of the latest deal, Fly Leasing CEO Colm Barrington said in a statement: "This transaction represents strong value for Fly shareholders at a time when airlines are facing an extremely difficult environment and smaller aircraft lessors are disadvantaged in the debt markets."
| | | | | | | | | | Complaints about working conditions at investment banks are raising some questions about the sustainability of the industry's profit surge. [The Wall Street Journal]
An overwhelming demand for therapists has created a growing field of companies that promise mental-health care via smartphone. But are they promising a service they can't possibly provide? [The Cut]
Remote work is here to stay, and Manhattan may never be the same. [The New York Times] | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 179 Deals | 467 People | 170 Companies | 21 Funds | | | | | | |
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| 2018 Vintage Global Funds-of-Funds | | | | | | |
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| Brex rival Ramp's valuation rises to $1.6B | | | Fintech startup Ramp, a Brex competitor that provides corporate credit cards and a spend management platform, is close to wrapping up a pair of funding rounds, one of which would value the company at $1.6 billion, as first reported by The Information. The deals reportedly include a $65 million round led by D1 Capital Partners and a second $50 million funding led by payments giant Stripe, which is also co-investing in the other round. | | | | | | | | Cityblock Health collects $192M | | | Cityblock Health, a healthcare provider for Medicaid and lower-income Medicare beneficiaries, has raised $192 million in a Series C extension led by new investor Tiger Global, with support from existing backers Kinnevik, Maverick Ventures and Redpoint Ventures. The company was valued at $1.28 billion in December, according to PitchBook data. Cityblock currently operates across New York, Connecticut, Massachusetts and Washington, DC. | | | | | | | | Crossover Health banks $168M Series D | | | | | | | | | Qihan secures new funding | | | | | | | | | Substack deal sets sights on $650M valuation | | | Substack is reportedly seeking to raise $65 million in a venture capital deal that would value the newsletter-publishing platform at around $650 million. The company was valued at just over $48 million in a deal in July 2019, according to PitchBook data. Axios reported the new round is being led by existing investor Andreessen Horowitz. | | | | | | | |
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| Shore Capital reveals IPC investment | | | Shore Capital Partners has announced an investment in Innovative Packaging Company, a Vancouver, Wash.-based provider of custom packaging solutions. Founded in 2012, IPC specializes in packaging procurement, supply chain management, warehousing and more. Based in Chicago, Shore Capital is a PE firm that typically invests in the healthcare, food and beverage, and business services industries. | | | | | | | | Odyssey partners with insurance alliance | | | | | | | | | Vista strikes pact with adtech specialist | | | Vista Equity Partners has acquired a majority stake in TripleLift, a provider of media advertising products, in a deal reportedly worth some $1.4 billion. TripleLift CEO Eric Berry will retain his role and remain on the company's board of directors. The company previously received around $16.5 million in venture funding, with Edison Partners most recently leading a $10.5 million Series B in 2015. | | | | | |
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| VC-backed Cazoo to go public in $7B SPAC deal | | | UK-based online used car retailer Cazoo has agreed to go public on the NYSE by merging with blank-check company Ajax I in a deal worth $7 billion. The deal will raise around $1.6 billion in proceeds for the company, including $805 million cash in trust and an $800 million PIPE led by Ajax sponsors and existing backer D1 Capital Partners. Cazoo has previously been backed by investors such as General Catalyst and BlackRock. | | | | | | | | SomaLogic to go public in SPAC deal | | | Biotech specialist SomaLogic plans to combine with blank-check company CM Life Sciences II in a deal that gives it a pre-money valuation of about $1.23 billion. The Boulder, Colo.-based business expects to receive $651 million from the deal, including a $375 million PIPE round from Casdin Capital, Corvex Management, Janus Henderson, SoftBank and others. SomaLogic's proteomics technology is used by other biotech companies for drug discovery. | | | | | |
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| BBG Ventures announces $50M fund | | | New York-based BBG Ventures has raised $50 million for its latest namesake vehicle, which will be used to lead seed and pre-seed rounds for consumer startups addressing health, climate-friendly products, education and overlooked communities. The firm focuses on backing female-led startups, and a third of its portfolio companies have a Black or Latinx founder. | | | | | | | | Cerberus pulls in $2.8B for fifth real estate-focused fund | | | Cerberus Capital Management has closed its fifth institutional real estate fund on $2.8 billion, surpassing an initial target of $2 billion. The strategy will be used to invest in direct assets, real estate companies, real estate-related debt and entities with significant real estate exposure. The New York-based PE firm manages around $26 billion in real estate-related assets across US, Europe, Asia, South America and Australia. Cerberus raised $1.8 billion for its fourth fund in the series in 2017. | | | | | |
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