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| Why sports teams and private equity are pairing up | |  | The Golden State Warriors landed an investment from private equity after the NBA opened up its ownership rules.
(Ezra Shaw/Getty Images) | | | Over the past few years, professional sports leagues including the NBA, MLB and MLS have relaxed ownership rules to allow institutional investors to buy passive stakes in multiple franchises. A handful of private equity firms have followed suit by raising funds dedicated to purchasing minority stakes in teams and leagues.
Our latest analyst note unpacks what's driving investors to turn their attention to a sports world that has historically been a tough ownership club to enter. Among the takeaways: - Lucrative media rights deals have continued to favor live programming, making pro sports ownership resilient to market downturns that could result in a drop in ticket sales.
- Due to a lack of voting control and liquidity options, some buyers have received double-digit discounts when buying minority stakes in franchises, making the long-term possibilities for returns more compelling.
- Leagues have embraced the fast-growing sports betting market and more recently NFTs, adding another layer of revenue beyond the typical income streams they get from owning a team.
| | | | | | | | | | Fresh-faced biotech startups launch with big backing | | Biotech startups continue to show strength more than a year after the pandemic began. Early-stage check sizes and post-money valuations have risen sharply across the sector in 2021, according to PitchBook data.
Related read: Biotech Went to Work as the World Stayed Home | | | | | | | |
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| Digital is coming for PE and VC | | A revolution in this industry may have great potential for value creation and sweeping shifts in market dominance. Private capital markets underpin all sectors, determining all-important flows of capital and elite talent and proving hugely influential in executive decision-making. Cash and power aside, one might suggest the vast potential lies in the fact that PE and VC have gone unchallenged for decades, and as a result, this industry may be especially antiquated in its ways.
The traditional model is being challenged and those who remain idly behind the curve have little hope of success.
Read about the "Digital Collision" | | | | | | | |
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| VC is performing better than ever. Why are so few first-time funds being raised? | |  | | (lemono/Getty Images) | | | | Limited partners have been pouring money into venture capital at record rates, but their excitement about the asset class has not extended to first-time managers. In fact, the number of inaugural funds has dropped sharply since 2018, according to PitchBook data.
Ironically, the decrease in first-time funds is largely due to venture capital's recent success, LPs say. - Established managers are raising larger funds at a faster pace, taking up a bigger portion of LPs' VC allocation.
- The venture market's recent strong performance has resulted in some LPs suddenly finding themselves overallocated to the asset class.
- Despite these challenges, there's no shortage of new managers trying to raise their first fund.
| | | | | | | | | | Digital creators used the blockchain to create a whole new art scene, with some works going for millions of dollars. It's the untold story of the NFT boom. [The New York Times Magazine]
Today's economic conditions are not just holding millennials back, they're stratifying them. [The Atlantic]
A look at several success stories showing how some of Africa's women entrepreneurs have defied investor resistance. [Financial Times] | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 250 Deals | 816 People | 258 Companies | 16 Funds | | | | | | |
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| PE well positioned for 2021 infrastructure market | | Private equity infrastructure investing hit almost $25 billion last year, a new record. PE's interest in the space was already gaining steam before the pandemic, but took on new importance over the past year. Now, federal infrastructure spending is poised to grow, and PE can be an important accelerant, providing both financial and intellectual capital to the effort.
In collaboration with SMEs from CohnReznick and PitchBook, the CohnReznick Infrastructure Investment Report takes a deep dive on PE and M&A activity in US infrastructure, including the potential for public-private partnerships.
To download the report, click here. | | | | | | | |
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| AEA Investors brings on pair to lead San Francisco team | | | New York-based AEA Investors has hired Bobby Bassman and Ravi Sarin to lead its San Francisco-based investment team focused on growth deals in the tech-enabled, software and healthcare services sectors. Prior to joining AEA, Bassman was a managing director at Morgan Stanley, while Sarin is a founder and former managing partner of ROCA Partners. | | | | | |
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| Mental health startup Unmind collects $47M | | | Unmind, the developer of a workplace mental health platform, has secured a $47 million Series B. New investors EQT Ventures and Sapphire Ventures participated in the round, alongside existing backers. The capital will go toward Unmind's international expansion, recruitment and product development. The London-based startup raised a $10 million Series A last year. | | | | | | | | Collective grabs $20M to help self-employed workers | | | Collective, the creator of a subscription-based financial services platform that provides tax management, bookkeeping and other services for self-employed workers, has raised a $20 million Series A led by General Catalyst. Several angel investors and Sound Ventures, a VC firm founded by actor Ashton Kutcher and talent manager Guy Oseary, also joined the round. The deal values the San Francisco-based company at $100 million, according to PitchBook data. To date, Collective has brought in more than $28 million in private funding. | | | | | | | | Consumer warranty startup scoops up $18.2M | | | Upsie, which provides consumers a platform for purchasing product warranties, has raised $18.2 million in a round led by True Ventures, with participation from Concrete Rose VC, Avanta Ventures, Kapor Capital, Backstage Capital, Draft Ventures, M25 and others. The Minnesota company's users can purchase warranties for items including smartphones, tablets, laptops and smart watches. | | | | | | | | Worksome takes in $13M for Series A | | | Worksome has raised $13 million from angel investors and Danish construction company Lind & Risor, TechCrunch reported. With offices in locations including Copenhagen, London and New York, the company is the creator of a platform for hiring, managing and collaborating with freelance workers. Worksome has reportedly grown its revenue by 10 times since January 2020. | | | | | |
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| Blackstone to buy $1B+ in San Diego real estate | | | Blackstone has plans to purchase over $1 billion of residential housing in San Diego from property developer The Conrad Prebys Foundation, The San Diego Union-Tribune reported. The firm is buying 66 multifamily complexes comprising around 5,800 apartment units. The deal will add to the $4.5 billion in San Diego assets already owned by Blackstone, making the firm one of the largest real estate holders in the region, the report said. | | | | | | | | Cue Health brings in $235M from consortium | | | | | | | | | Axtria lands $150M from Bain Capital | | | Axtria, a provider of cloud software and data analytics that help life sciences companies bring drugs to market faster, has collected a $150 million growth investment from Bain Capital's Tech Opportunities platform. The funding will help the New Jersey-based company expand its suite of AI-enabled products. Axtria has raised more than $210 million in private funding to date, according to PitchBook data. | | | | | | | | HIG Capital backs home improvement company | | | HIG Capital has completed a growth investment in Homewerks Worldwide. Based in Lake Bluff, Ill., the company develops and supplies home improvement products. | | | | | | | | Nexus Capital invests in organic beauty company | | | Los Angeles-based Nexus Capital Management has invested in Sky Organics, a provider of natural and organic beauty and personal care products. The family-owned company is based in Miami. | | | | | |
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| Walmart to buy startup Zeekit | | | Walmart has agreed to acquire Israeli shopping startup Zeekit for an undisclosed sum. Zeekit has developed a virtual fitting room for shoppers and has been backed by Jovono and Women Founders Forum, an accelerator. | | | | | | | | VC-backed Contentful mulls US IPO | | | Content management software provider Contentful is considering listing in the US, Reuters reported. The German startup is looking to go public this year and could be valued at nearly $5 billion in an IPO. It is also said to be mulling plans to merge with a blank-check company. Contentful has raised $158 million in total VC funding from backers including Sapphire Ventures, General Catalyst and Salesforce Ventures. | | | | | | | | Apollo to exit Smart & Final to Mexican retail giant for $620M | | | A subsidiary of Grupo Comercial Chedraui, a publicly traded Mexican retailer, has agreed to purchase supermarket chain Smart & Final from Apollo Global Management for $620 million. Smart & Final operates more than 250 stores in California, Arizona and Nevada, with an additional 16 stores operating in northwestern Mexico through a joint venture. Apollo acquired Smart & Final through a $1.12 billion public-to-private buyout in 2019. | | | | | |
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| IVP raises $1.8B for latest flagship vehicle | | | IVP, a late-stage VC and growth equity firm, has raised $1.8 billion for its latest flagship fund, IVP XVII. The new vehicle raised $300 million more than its predecessor, which closed on $1.5 billion in 2017. IVP has seen five of its portfolio companies, including Coinbase and UiPath, make public market debuts this year. The latest fund brings the Menlo Park, Calif.-based firm's total committed capital to $8.7 billion. | | | | | |
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