Thursday, March 10, 2022

Real estate fund sizes set records in 2021

The great robot awakening; Russia's most active PE investors; Bringing back the woolly mammoth; AngelList hits $4B valuation
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The Daily Pitch: VC, PE and M&A
March 10, 2022
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In today's Daily Pitch, you'll find:
  • Our H2 2021 Global Real Estate Report tracks the pandemic rebound and how the real estate investing landscape may change in an evolving market.

  • No longer limited to their stationary posts on assembly lines, autonomous robots are making their way up and down the supply chain.

  • Meet the investors who want to bring back the woolly mammoth.
Today's Top Stories
Specter of inflation driving real estate out of pandemic funk
Real estate funds raised $152.7 billion in 2021, a year-over-year increase of 6%, as capital committed bounced back only modestly from the dip wrought by COVID-19.

Rising inflation may reshape the future of real estate funds, as the strategy is one of the asset classes expected to provide a hedge. Our H2 2021 Global Real Estate Report tracks the pandemic rebound and how the real estate investing landscape may change in an evolving market. Key takeaways include:
  • Allocations to real estate are likely to increase amid inflation, with signaled rate hikes dictating which strategies benefit and potentially driving capital to lower-risk areas.

  • Median and average real estate fund sizes set records in 2021, but funds over $5 billion, which dominate other strategies, remain rare.

  • The pandemic has redirected capital into sectors including logistics, industrial and life sciences at the expense of retail and hospitality investments.

  • The share of funding going to emerging managers continues to fall as LPs favor experienced managers and as real estate fund management remains difficult to enter.
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The great robot awakening: Mobile machines are taking over the supply chain
(Drew Sanders and Julia Midkiff/PitchBook News)
The robotics revolution that took over factories has now arrived at virtually every point in the supply chain, from farm fields to forklifts.
  • Thank mobile robots, which are outselling their stationary brethren and changing how goods are moved.

  • Improved vision systems, batteries and AI chips have led to robots that can handle the randomness of the real world.

  • Also hastening the transition: supply chain risks, labor shortages and ecommerce growth.
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A message from Golub Capital
Golub Capital knows sponsor finance
Golub Capital's transactions span industries, execution styles and sizes—from deals below $20 million up to $2 billion-plus unitranche facilities.

Golub Capital nurtures long-term, win-win partnerships of every size that inspire repeat business.

Learn more about the flexible financing solutions offered to private equity sponsors by this market-leading direct lender and credit asset manager.
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Who are Russia's most active private equity investors?
(NurPhoto/Getty Images)
The war in Ukraine has unleashed a wave of sanctions on Russia that have wide-ranging consequences, not just for the regime, but also for its people and industries.

The situation is likely to get worse before it gets better, impacting businesses and investors that have grown up in a country that, until recently, was globally connected. We take a look at the most active players in the Russian private equity industry, which now faces an uncertain future behind a new Iron Curtain.
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Meet the investors who want to bring back the woolly mammoth
(Mark Garlick/Getty Images)
The news cycle of the past two weeks has been decidedly somber. Here's a deal that brought us a much-needed moment of delight.

A billionaire movie producer, a legendary biotech investor, a blockchain gaming company, a nature-positive VC firm, the co-founder of ethereum, Paris Hilton and others have invested $60 million into Colossal Bioscience, a startup that wants to de-extinct the woolly mammoth and other species using genetic engineering.
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Recommended Reads
As the United States and others shun Russian oil, the global oil market faces its greatest upheaval in over half a century. [The New York Times]

How scientists are creating lab-grown versions of tumors isolated from patients to test cancer drugs. [Wired]

David Solomon has spent the last three years building up Goldman Sach's consumer and wealth management businesses—but the bank still can't shake its high-finance reputation. [Institutional Investor]
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Quick Takes
  The Daily Benchmark  
  2014 Vintage Global VC Funds  
  VC Deals  
  Acorns banks $300M Series F  
  Menlo Micro locks in $150M Series C  
  Branch secures $75M  
  M13 leads $17M round for Milo  
  Instant Teams picks up $13M Series A  
  PE Deals  
  Carlyle inks $787M deal for CBAM Partners  
  Clearlake to acquire edtech company Discovery Education  
  Cuadrilla Capital buys InfoDesk  
  Exits & IPOs  
  VSS Capital offloads Caravan Health to Signify Health  
  Investors  
  AngelList hits $4B valuation with Tiger Global-led round  
 
 
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The Daily Benchmark
2014 Vintage Global VC Funds
Median IRR
25.50%
Top Quartile IRR
31.15%
2.64x
Median TVPI
Select top performers
CRCM Opportunity Fund
4BIO Ventures I
DCM VII
*IRR: net of fees
62 Funds in Benchmark »
Check out the latest version of PitchBook Benchmarks
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VC Deals
Acorns banks $300M Series F
Acorns, the creator of an app that invests spare change into professionally managed portfolios, has raised a $300 million Series F led by TPG. The company is now said to be valued at nearly $2 billion.
View round
 
View 33 competitors »
 
Menlo Micro locks in $150M Series C
Menlo Microsystems has raised $150 million in a round co-led by Vertical Venture Partners and Future Shape. The Irvine, Calif.-based company is a developer of electronic switches designed for use in power grids, smart buildings, factories and more.
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View 9 competitors »
 
Branch secures $75M
Branch has raised $75 million in a Series C led by Addition. The Minneapolis-based company is the developer of a workforce payments and expense management platform.
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View 38 competitors »
 
M13 leads $17M round for Milo
Milo has raised a $17 million Series A led by M13. The Miami-based company is a developer of financial products designed to manage crypto-based mortgages and other transactions.
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View 2 competitors »
 
Instant Teams picks up $13M Series A
Tiger Global has led a $13 million round for Instant Teams, the developer of an HR tech platform designed to hire and manage remote teams. Founded in 2016, the Delaware-based company counts Amazon and Walmart as customers.
View round
 
View similar company »
 
PE Deals
Carlyle inks $787M deal for CBAM Partners
The Carlyle Group has agreed to acquire investment firm CBAM Partners in a deal that Bloomberg reported was valued at about $787 million. The agreement will increase Carlyle's collateralized loan obligation assets under management to about $48 billion.
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Clearlake to acquire edtech company Discovery Education
Clearlake Capital has agreed to acquire Charlotte-based edtech company Discovery Education. The company's software platform is intended to support educators and improve student achievement. Existing shareholder Francisco Partners will retain a minority stake in Discovery Education.
View details
 
View 8 competitors »
 
Cuadrilla Capital buys InfoDesk
Cuadrilla Capital has acquired InfoDesk, an Irvington, N.Y.-based enterprise intelligence management SaaS platform provider. InfoDesk serves life sciences, government, professional services and financial services organizations.
View deal
 
View 9 competitors »
 
Exits & IPOs
VSS Capital offloads Caravan Health to Signify Health
VSS Capital Partners has sold Caravan Health to Signify Health. Caravan Health provides population health management and value-based payment programs to accountable care organizations.
View details
 
View 10 competitors »
 
Investors
AngelList hits $4B valuation with Tiger Global-led round
AngelList has raised $100 million in a round led by Tiger Global. The capital gives the venture crowdfunding platform provider a pre-money valuation of $4 billion.
View details
 
View 707 investments »
 
Chart of the Day
Source: Q4 2021 PitchBook-NVCA Venture Monitor
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