Real estate's complex reality

Entertain me in the metaverse; Thoma Bravo to sell Frontline Education for $3.7B; Main Street, Yankees join AC Milan investor group

Read online | Don't want to receive these emails? Manage your subscription. Log in The Daily Pitch: VC, PE and M&A August 31, 2022 The Daily Pitch is powered by PitchBook's industry-defining research and best-in-class data In today's Daily Pitch, you'll find: A new market map exploring the entertainment segment of the global metaverse VC ecosystem. Despite an expected upswing, private real estate fundraising appears to be falling, according to our H1 2022 Global Real Estate Report. Amid growing demand, blockchain networks have enabled startups to create a new option for real estate investing: tokenization.   Today's Top Stories   The complex reality of real estate in H1 2022 Private real estate fundraising appears to be in decline—an unexpected development for a strategy typically regarded as an inflation hedge. Going into this year, allocations to real estate were predicted to increase, but through H1, that growth has not materialized. A shift in investors' interest has combined with the evolution of opposing market forces to alter the landscape, according to our latest Global Real Estate Report, sponsored by Baker Tilly. Among the takeaways: In H1, real estate made up a smaller share of total private market capital raised than in any year on record, due in part to the lure of real assets amid infrastructure's recent steadfast performance. Real estate's one-year horizon IRR reached 24.8% through 2021—its best performance in a decade and just shy of the all-time high reached in 2011—but preliminary figures from Q1 2022 show the run of good fortune might not last. Opportunistic funds dominated capital raised, accounting for over 50% of the total, while distressed funds fell to just 1%. That may seem surprising in the current market, yet our data shows less of a correlation between distressed fundraising and economic recessions than might be expected. read it now   Share: Real estate tokenization: An emerging use for blockchain The division of real estate into digital tokens purchasable by investors, known as tokenization, has the potential to solve issues historically associated with real estate investing, such as illiquidity and high barriers to entry. Our latest analyst note explores how the emergence of blockchain networks such as Ethereum, Algorand and Solana has enabled startups to slice real estate into small pieces that are stored on blockchains and traded. Growing demand among both retail and institutional investors for exposure to the sector supports tokenization, yet barriers to adoption remain. The report also includes a profile of Lofty, which seeks to be a leader in this industry by building a real estate marketplace that allows investors to acquire tokens representing fractional ownership in residential rental properties. read it now   Share:   A message from McDermott Will & Emery   Join leading professionals for a can't-miss networking event in New York City Experience the healthcare private equity industry's most dynamic event of the fall! Join fellow senior leaders at McDermott Will and Emery's HPE New York for riveting conversations on the most pressing topics and trends impacting healthcare investing. Whether you are looking to identify new investment opportunities or position your company for growth, this event will provide unparalleled access to leading senior professionals active in healthcare investing including private equity investors, executives and founders. Join us on Friday, October 21 at the iconic Lotte New York Palace for a half-day of insightful panels and premier networking opportunities at HPE New York 2022. Register today Share:   Market Map: Entertain me in the metaverse (Chaosamran_Studio/Shutterstock) Billions of dollars have been invested into the metaverse, but its nature remains a mystery. What's clear is that much of the money and effort is being spent on novel ways to entertain and connect people. Our latest market map explores where money is going in the metaverse ecosystem, with details on the entertainment sector. read more   Share: Recommended Reads Executives at private equity giants like The Carlyle Group, Blackstone and KKR have convinced outsiders that they are in the process of ceding control to a younger generation. But are founders really ready to let go? [The New York Times] Elon Musk is now banking on a whistleblower report from Twitter's former security chief as new grounds to call off the $44 billion deal. [Financial Times] The satellites tracking illegal fishing and logging in some of the world's most inaccessible places. [Wired]   Since yesterday, the PitchBook Platform added: 425 Deals 1713 People 499 Companies 11 Funds See what our data software can do   Quick Takes     The Daily Benchmark     2020 Vintage North American Real Estate Funds     People     Karan Mehandru joins Madrona as managing director     VC Deals     EarlySalary banks $110M Series D     Web3 gaming company Xterio raises $40M     Recurve picks up $18M Series B     Outpost nabs $7M+ for reusable satellites     Power emerges from stealth with $7M     PE Deals     Temasek to lead $100M investment in Animoca Brands     Main Street, Yankees join AC Milan investor group     Accel-KKR invests in Teamcore     Genstar Capital lands Numerix     Align sells WilliamsMarston stake to Kelso     Apollo to exit Parallel Infrastructure to Harmoni Towers     Exits & IPOs     Thoma Bravo to sell Frontline Education to Roper for $3.7B       The Daily Benchmark   2020 Vintage North American Real Estate Funds Median IRR 15.71% Top Quartile IRR 28.93% 1.08x Median TVPI Select top performers Exeter Industrial Value Fund V Dalfen Last Mile Industrial Fund IV Bell Apartment Fund VII *IRR: net of fees 28 Funds in Benchmark » Check out the latest version of PitchBook Benchmarks   People   Karan Mehandru joins Madrona as managing director Karan Mehandru has joined Madrona Venture Group as a managing director. Mehandru, who will be based in Silicon Valley, sits on the boards of companies such Auth0 and Outreach. He was most recently a managing director at Steadfast Capital. View details       VC Deals   EarlySalary banks $110M Series D EarlySalary has raised a $110 million Series D co-led by TPG and Norwest Venture Partners. Based in India, the company offers consumer lending and buy now, pay later services for mid-income professionals. View round   View 26 competitors »   Web3 gaming company Xterio raises $40M Xterio has raised $40 million in a round led by FunPlus, Makers Fund, FTX Ventures and XPLA. Based in Switzerland, the company develops Web3 games and other interactive entertainment products. View details   View 28 investments »   Recurve picks up $18M Series B Recurve has raised $18 million from investors including Calpine Energy Solutions and Toshiba Energy Systems & Solutions. The California-based company is the provider of an open-source platform intended to help power plants and customers reduce and reschedule their electricity use. View round   View similar company »   Outpost nabs $7M+ for reusable satellites Outpost has raised $7.1 million in a seed round led by Moonshots Capital, with support from investors including Draper Associates, Starlight Ventures and Kittyhawk Ventures. The company is developing reusable satellites capable of safely returning to Earth with precision landing. View round   View similar company »   Power emerges from stealth with $7M Power has raised $7 million in seed financing co-led by Footwork and CRV. The Bay Area-based company's platform helps patients find and navigate clinical trials. View round   View similar company »     PE Deals   Temasek to lead $100M investment in Animoca Brands Temasek plans to lead a $100 million investment in Animoca Brands, a Hong Kong-based crypto investment specialist, Bloomberg reported. Temasek will lead the funding through convertible bonds. View deal   View 52 competitors »   Main Street, Yankees join AC Milan investor group Main Street Advisors and the New York Yankees have joined the investor group—led by RedBird Capital Partners—acquiring Italian soccer club AC Milan for roughly $1.2 billion, according to reports. View deal   View 8 competitors »   Accel-KKR invests in Teamcore Accel-KKR has made a majority growth investment in Teamcore, the provider of a retail execution platform. The Chile-based company offers go-to-market strategies, product roadmaps and more. View deal   View similar company »   Genstar Capital lands Numerix Genstar Capital has acquired Numerix, a New York-based provider of capital markets risk management technology. View deal   View 20 competitors »   Align sells WilliamsMarston stake to Kelso Align Capital Partners has sold its stake in accounting, tax and valuation advisory services company WilliamsMarston to Kelso & Company. Align originally backed the Boston-based company in 2020. View deal   View similar company »   Apollo to exit Parallel Infrastructure to Harmoni Towers Apollo Global Management has agreed to sell Parallel Infrastructure, a provider of telecommunications infrastructure, to Palistar Capital-backed Harmoni Towers. View deal   View similar company »     Exits & IPOs   Thoma Bravo to sell Frontline Education to Roper for $3.7B Thoma Bravo has agreed to sell Frontline Education, a provider of administration software for K-12 educators, to Roper Technologies. The deal values Frontline at around $3.7 billion. View details   View 26 competitors »     Chart of the Day   "Even with distributions at an all-time high, capital calls were even higher, marking the fourth consecutive year of net negative cash flows for investors." Source: PitchBook's 2022 Global Fund Performance Report (as of Q4 2021 with Preliminary Q1 2022 Data)   Who's in the newsletter today? Companies AC Milan Animoca Brands Auth0 Calpine Energy Solutions EarlySalary Frontline Education Numerix Outpost Outreach Parallel Infrastructure Power Recurve Teamcore WilliamsMarston Investors Accel-KKR Align Capital Partners Apollo Global Management CRV Draper Associates FTX Ventures Footwork FunPlus Genstar Capital Harmoni Towers Kelso & Company Kittyhawk Ventures Madrona Venture Group Main Street Advisors Makers Fund Moonshots Capital New York Yankees Norwest Venture Partners Palistar Capital RedBird Capital Partners Roper Technologies Starlight Ventures Steadfast Capital TPG Temasek Thoma Bravo Toshiba Energy Systems & Solutions People Karan Mehandru   About PitchBook | Terms of use | Advertise with us | Contact Follow us: This email was sent to edwardlorilla1986.paxforex@blogger.com via the PitchBook Platform. Do you want to change your email address, get a different edition or unsubscribe? Manage your subscription here. © 2022 PitchBook. Win what's next. All rights reserved.