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In today's Daily Pitch, you'll find: - Dealmaking activity has rebounded in the France and Benelux region this year. From exits to fundraising, our latest report breaks it all down.
- Sweden's financial watchdog is looking into whether EQT violated disclosure regulations in a $2.7 billion share sale.
- The third installment in our research note series on venture returns by stage.
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| Dealmaking activity makes a comeback in the France and Benelux region | | The France and Benelux region has seen a huge rebound this year, as private capital activity is on track to surpass previous annual bests. In only two quarters, PE dealmaking virtually reached pre-pandemic levels, while records have been broken in the region on the VC side.
PitchBook's 2021 France & Benelux Private Capital Breakdown examines the PE and VC markets in France, Belgium, the Netherlands and Luxembourg, breaking down trends across deals, exits, fundraising and sectors. Key highlights include: - Activity in Europe's second-largest PE ecosystem reached €87.6 billion in the first half of the year, marking a year-over-year increase of 55.2%.
- Swelling VC deal sizes put the region on the path to new heights.
- Fundraising activity had a robust start to the year for both PE and VC investors.
| | | | | | | | | | Sweden opens probe of EQT over partners' insider sales | |  | | (Stefan Cristian Cioata/Getty Images) | | | Sweden's financial watchdog is investigating whether one of Europe's largest PE firms violated regulations concerning the disclosure of insider information.
EQT is facing a probe into whether it failed to publicize in a timely manner that former and existing partners were selling shares in the firm totaling $2.7 billion. The public offering allowed senior executives to exit some of their stock earlier than planned under a lock-up agreement that was supposed to last until late 2022.
Financial regulator Finansinspektionen said that it decided to open an investigation over the "postponed publication of inside information" after being notified of the move by EQT on the same day as the share sale.
After being contacted to justify the delay, EQT said in a statement that the firm "has handled the information correctly" and "looks forward to a continued positive and constructive dialogue with the Authority."
Partners including chairperson Conni Jonsson and CEO Christian Sinding sold approximately 6% of the firm's issued share capital for 370 Swedish kronor (about $42.75) apiece. The partners said in a press release that they would commit to reinvesting 50% of the proceeds into EQT vehicles over the next fund cycle. | | | | | | | |
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| A message from RBC Capital Markets | | |
| What's driving record capital in genetic medicine? | | Genetic medicine has attracted record-breaking capital in biotech, with roughly $150 billion invested since 2013. Gene editing enables scientists to precisely tackle the genetic root causes of diseases. Such an approach can be "one and done" and thus avoid the chronicity of the current standard of care. Rapid advancements in this field are creating a robust product pipeline and attracting record capital. But despite all the enthusiasm, companies should tread cautiously with this technology.
Find out more | | | | | | | |
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| How early-stage VC deals drive inordinately high returns | |  | | (RapidEye/Getty Images) | | | Investors are consistently allocating larger amounts of capital to startups that go on to exit successfully—a trend especially distinct with later-stage financing.
Our recent analyst note is the third in our series breaking down venture returns by round. In this new installment, we've refined our approach to enable richer analysis of the flow of capital. Key takeaways include: - The data suggests a clear relationship between capital raised and the success or failure of a company.
- The earliest stages, especially Series A, show asymmetrically high returns compared with later-stage deals.
- The attractive VC fund returns of the past few years have accelerated the increase in capital allocated to venture investing.
| | | | | | | | | | PE-backed EV maker Polestar worth $20B in US SPAC deal | |  | | (Image courtesy of Polestar) | | | Swedish electric vehicle maker Polestar has agreed to go public through a merger with US blank-check company Gores Guggenheim. - The combined company, which will be listed on Nasdaq, will have a valuation of around $20 billion. The deal includes approximately $800 million of cash from the SPAC, which is backed by PE investor Alec Gores and Guggenheim Capital, and a $250 million PIPE investment which will be used to invest in the production of new models and its international expansion.
- Polestar was set up in 2017 by automotive giants Volvo Cars and Zhejiang Geely. In April, it raised $550 million from investors including Chongqing Chengxing Equity Investment Fund Partnership, I Cube Capital and Zibo City Government.
- Polestar is not the only European electric vehicle-related company that has sought to go public via a US SPAC. In June, Barcelona-based EV charger maker Wallbox announced plans to merge with Kensington Capital Acquisition Corp., valuing it at around $1.5 billion including debt. Earlier this year, Quell Acquisition Corp. agreed to combine with German electric aircraft maker Lilium at a $3.3 billion valuation.
Related read: Desperate for deals, America's SPACs target more foreign companies | | | | | | | | | | Towns from Maine to Washington are still seeing fallout from ongoing closures of the US-Canada border. [The Wall Street Journal]
As China doubles down on banning crypto transactions, NFT marketplaces are using clever workarounds. [Protocol]
Never before in history have so many people been under the gaze of so many strangers. One writer muses about what the internet has become, and what happens when the experience of celebrity becomes universal. [The New Yorker] | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 16 Deals | 121 People | 41 Companies | | | | | | |
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| A message from McDermott Will & Emery | | |
| How to prepare for the future of healthcare investing | | Are you prepared for the unique challenges facing private equity investors in the current healthcare landscape? At this year's HPE New York 2021 conference, an elite faculty of PE leaders will explore the most pressing challenges facing buyers and sellers.
Join industry peers at this virtual event on October 15. Panels include: - The Need for Speed: Critical Issues Facing Buyers
- Supercharging Sellers' Strategies for Today's Market
- Prepare for Tomorrow: How Government Actions Will Impact the Market
Register for HPE New York 2021 now | | | | | | | |
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| 2011 Vintage North American Venture Funds | | | | | | |
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| Momenta drives off with $300M | | | | | | | | | | | | | | | | | Sternum has raised a $27 million Series B led by Spark Capital. The Tel Aviv-based company offers a platform to secure Internet of Things devices. | | | | | | | | Intelinair gathers $20M Series B | | | Intelinair has raised $20 million from investors including Regulator Group and Scientia Ventures. The company offers a crop intelligence platform to help growers make data-based decisions. Intelinair was valued at $41.25 million in 2018, according to PitchBook data. | | | | | |
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| PE-backed Nelson Global Products buys Tru-Flex | | | | | | | | | Daiwa PI Partners pedals off with bicycle retailer | | | | | | |
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| PitchBook Webinar: Q2 2021 EMEA Private Market Update | | Don't miss our upcoming webinar. It will take place on Sept. 28 at 7 a.m. PDT/3 p.m. BST and will cover how European venture capital and private equity performed in Q2.
Our analysts will explore the records set throughout the first half of the year, despite lingering uncertainty around COVID-19 and macroeconomic volatility. Key statistics include: - VCs completed €47.1 billion worth of transactions in H1 2021, signaling that the VC dealmaking environment has never been stronger.
- European PE posted its second-highest quarterly dealmaking total on record, thanks—in part—to growing vaccination rates and strong debt markets for leveraged buyouts.
Register here to secure your spot. | | | | | | | |
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| Clearwater Analytics raises $540M in IPO | | | | | | | | | EngageSmart lands $378M in public debut | | | General Atlantic- and Summit Partners-backed payment acceptance and invoice presentment SaaS company EngageSmart has raised $378 million in its IPO. The Massachusetts-based company priced 14.6 million shares at $26 a share, above its original range of $23 to $25 a share. | | | | | | | | IPO nets Brilliant Earth $100M | | | Mainsail Partners-backed online retailer of ethically sourced fine jewelry Brilliant Earth Group has raised $100 million in its IPO. The San Francisco-based company sold 8.3 million shares at $12 a share, pivoting from its original plan to sell 16.7 million shares priced between $14 and $16 a share. | | | | | | | | Udemy plans for public offering | | | Udemy, a company that offers online courses, is gearing up to file for an IPO at a valuation between $6 and $8 billion, The Information reported. The edtech company was last valued at $3.3 billion when it raised $50 million in November. The offering could be as early as next month. | | | | | | | | Aris Water Solutions files for IPO | | | | | | |
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| HarbourVest brings in $892M for direct lending fund | | | Boston-based HarbourVest Partners has raised over $892 million for its direct lending fund. The firm plans to target senior credit investments in private equity-backed middle-market companies, with a focus on North America. | | | | | |
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"Asia has not managed to grow share, despite private capital being a maturing model in the region. 2020 fundraising only totaled $93.1 billion, a lower figure than any of the prior six years'. Asia's 2021 fundraising through June totaled $42.9 billion, a little behind the pace to match 2020."
Source: PitchBook's Q2 2021 Private Fund Strategies Report | | | | | |
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