Healthcare's check-up: In last week's edition, we shared 13 key takeaways from the 2023 J.P. Morgan Healthcare Conference. To read our team's full event recap—with key takeaways, trends, and predictions—click here.
Talking credit: The leveraged loan asset class fell back to earth in 2022, while private credit burst onto the lending landscape. How will these segments navigate an uncertain 2023? To join our webinar this Tuesday, register here.
The state of US PE & VC: In case you missed them, we released our flagship US PE and VC reports last week, featuring a combined 84 pages of data and analysis to help you understand the trends of last year and look ahead to what's to come: | | | | | |
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| The future of infrastructure is sustainable and digital | | With macroeconomic trends of volatility, widespread inflation, and concerns around a recession, many investors' eyes have been drawn to infrastructure, considered by some to be a haven in such conditions. More capital has been raised by private infrastructure funds in the past few years than at any other point in history, so it bears asking what the future holds for this space. The answer, in part, lies in sustainability and digitization. Investment in sustainable infrastructure—which includes assets like solar and wind farms as well as socially sustainable investments such as hospitals increasing access to essential healthcare—has been on the rise over the past 15 years. This has been driven by many factors, including a need for improved infrastructure and energy security, concerns about climate change and socioeconomic equality, and an attractive regulatory and government spending environment.  | | 2022's final data will likely be in line with recent years. | Digital infrastructure, which encompasses telecommunications, broadband, and data center assets, has also experienced increased fundraising over the past decade and a half. The digitization of the economy, heightened needs around data due to technology such as AI & machine learning, and less polarized political support have all benefited this type of infrastructure. Many of the economic, political, and societal tailwinds that have supported fundraising in sustainable and digital infrastructure will persist, if not intensify, in the coming years. Read my new note to learn more about how and why these types of infrastructure will continue to shape the space—and even one another. Download the free research: Sustainable and Digital Infrastructure in the Private Markets | | | | | | | | | European PE dealmaking continued in 2022, while exits and fundraising fell | | 2022 will very much be remembered by a shift in monetary policy with most central banks around the world responding to high inflation by increasing interest rates that sent public markets lower. This came after a 12-year bull market characterized by cheap money which buoyed the PE industry to new highs. Despite headwinds from the macro, we saw both European PE deal value and deal count increase to record highs in 2022, up 1.4% and 13.1% YoY, respectively.  | | PE dealmaking remained healthy in Europe in 2022. | The year was defined by smaller but more numerous deals, with megadeals of over €1B hitting a nine-year low as LBOs became more expensive and sponsors favored smaller bolt-on deals. Bolt-ons represented 67% of all buyouts last year—the highest percentage to date. PE exits also hit a nine-year low as the IPO market in Europe was completely muted, with only 17 PE-backed public listings in 2022. GPs took note of the downfall of certain recently listed businesses that saw their value wiped away on the public market, such as Oatly or Cazoo, and refrained from exiting their investments, instead adopting a wait-and-see approach. European PE fundraising hit its lowest figure since 2006 in terms of fund count, raising only €52.8 billion across 92 funds in 2022, roughly half of last year's figures. It was a particularly difficult year for first-time funds to raise capital as LPs turn to experienced fund houses in periods of a market downturn. 2022 counted only 14 first-time funds out of the 92. For more data and analysis, download our free 2022 Annual European PE Breakdown. | | | | | | | |
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The Role of Placement Agents in GP Fundraising
Facing a harsher fundraising environment, some GPs might benefit from working with a placement agent who can help them find the right institutional investors, prepare marketing and due diligence documents, and more.
Indeed, while placement agents are commonly thought of as introduction services, this is only one component of their scope of work—and they cover funds of all sizes and strategies.
|  | | Working with a placement agent doesn't mean a short fundrais | | | |
Emerging managers in particular might be in the market for support, as 85% of capital raised in the first three quarters of last year went to their more experienced counterparts.
Our latest analyst note explains the role that placement agents play in the fundraising process and how they can help level the playing field: | | | | | |
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After years of continuous growth, European VC activity slowed last year in both deal count and value—down 5% and 16% YoY, respectively.
Nevertheless, it was still the second-biggest year for dealmaking on the continent.
Nontraditional investor participation remained resilient and, elsewhere, VC exit value saw its third-largest total despite reduced IPO appetite.
Fund value reached a record €25.4 billion, but vehicle count fell sharply.
Our 2022 Annual European Venture Report showcases all of the key trends that shaped the ecosystem last year: | | | | | |
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Two of our analyst teams hosted live discussions this week on what to expect across the private markets in 2023.
For deep insight into how crypto, AI, healthcare, climate tech, and other verticals are positioned for the coming year, watch the replay of our Emerging Technology Outlook.
Also, for an examination of how the European VC and PE industries are prepared to navigate a more challenging market environment, watch our EMEA team's webinar. - Feb. 2: What is SFDR and who will be most affected by it? We're partnering with Proof on a webinar examining this upcoming regulation for disclosing ESG metrics and performance. Register here.
- Feb. 9: Save the date for our quarterly webinar covering all of the latest trends in US VC dealmaking, exits, fundraising, and more. Register here.
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Our insights and data featured in the press: - Two topics to keep an eye on in healthcare: the genome sequencing war and the growth in primary care and value-based companies. [Forbes]
- US startups with all-women founders received 1.9% of the $238.3 billion in VC funding raised last year, a notable drop from 2.4% in 2021. [TechCrunch+]
- Diving deeper into the decline of US VC exit activity last year. [P&I]
- How European PE dealmaking defied economic headwinds in 2022. [PYMNTS]
If you're a journalist interested in interviewing our analysts or requesting data, contact our PR team. | | | | | |
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Highlights from our other recent research:
Market updates
Thematic research
Industry and technology research
Coming next week (subject to change) - Global M&A Report
- When Dry Powder Stays Dry
- What the Future Holds for Private Capital
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| A message from UnitedHealthcare | | |
| Easily navigate your portfolio's healthcare spending | | Strategy is key in private equity and your portfolio’s healthcare benefit spending.
UnitedHealthcare’s dedicated private equity team can help to lower your portfolio’s healthcare costs and free up more money for investment and growth with tools like: - Group buying power
- Portfolio trend management
- Strong national network
- Designated, responsive team
Learn more | | | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 376 Deals | 1736 People | 547 Companies | 18 Funds | | | | | | |
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