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| In today's Daily Pitch, you'll find: | | | | | |
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| Healthcare services deal activity continues to slip in Q4 | | While 2022 was the second-best year on record for PE investment in healthcare services, dealmaking declined throughout the year and rounded out Q4 at pre-pandemic levels.
And PitchBook analysts don't see a rebound on the horizon quite yet. The staffing crunch, liquidity constraints and a rocky fundraising market will likely continue to drag deal count down in the first half of 2023.
Our Q4 2022 Healthcare Services Report, sponsored by UnitedHealthcare, breaks down recent PE trends, investment strategies and key regulatory developments in the healthcare services market. The report also spotlights opportunities in rheumatology, value-based care enablers and Medicaid/CHIP pediatric dentistry. | | | | | | | | | Early signs of lower valuations enter European VC market | | Valuations for European venture-backed companies remained relatively unscathed last year, but signs point to a decline on the horizon. Our 2022 Annual European VC Valuations Report showcases key trends across stages, sectors and geographies. Highlights include: - The median early-stage valuation rose 23.4% year-over-year.
- Late-stage startups saw their median price tag climb to €14 million, but growth has begun to slow.
- Aggregate unicorn post-money valuations grew 46.3% YoY.
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| Is raising capital on your 2023 agenda? Start with a Capital Raise template | | Ansarada's data shows that capital raising activity decreased by 17% last quarter, but increased 30% YoY. Despite the Q4 drop-off, 2022 closed out as the second most active year of the last decade. It's anticipated activity will ramp up in 2023 as businesses seek to capitalize on opportunities and outpace competitors—but the uncertain market still poses challenges.
The key to raising capital faster, safer and successfully in 2023? Better organization.
Ansarada's capital raising workflow template brings order to your raise to increase business value. Companies can open a free Data Room, access the customizable template and know exactly how to structure their information to stand up to investor scrutiny.
Start preparing for a raise in minutes—with no risk and no cost.
Access your free capital raise template | | | | | | | |
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| PE Dashboard: Lower asset values weighed on big firms' earnings | |  | | (Joey Schaffer/PitchBook News) | | | Q4 earnings are in—and it wasn't the hottest quarter. The deceleration in exit activity continued to pressure the earnings that asset managers could return to shareholders, and the firms' stock prices in 2022 reflected that fact. But fundraising totals for the year showed it was still, in some ways, business as usual.
Our PE dashboard, updated quarterly, tracks trends in key performance metrics for public PE firms—Blackstone, Apollo Global Management, KKR, The Carlyle Group, TPG and Blue Owl— from company filings and PitchBook data. | | | | | | | | | Why SignalFire doesn't regret taking longer to raise $900M capital pool | |  | | (sezer66/Shutterstock) | | | SignalFire, a firm that pioneered applying AI to VC investing, has closed on over $900 million in new funds—nearly double the $500 million it closed in 2019.
But despite the large step up, CEO Chris Farmer admits it took the firm much longer to raise this capital pool than he originally anticipated.
The timing worked out well. A year into the downturn, market conditions are becoming clearer, and investments look more attractive than they did in 2022. | | | | | | | | | Is the UK doing enough to support its tech startups? | |  | | (Mara Potter/PitchBook News) | | | When UK Prime Minister Rishi Sunak took office in October, his government's aspiration for the tech ecosystem was clear: develop the UK into the world's next Silicon Valley. The government seems to have doubled down on that promise by setting up a new ministry for science, innovation and technology.
At the same time, UK startups and their investors have expressed concern over recent policies that appear to run counter to these aims—among them the move to pull funding from government-backed industry body Tech Nation, the lack of visas for attracting startup talent, and the removal of tax relief for research and development.
As post-Brexit Britain falls behind the rest of Europe in recovering from a series of economic crises, the government is under increasing pressure to safeguard the development of the country's most innovative sectors. Not everyone thinks it is doing enough. | | | | | | | | | Leveraged loan refinancing surges amid market thaw | |  | | (John Danow/Shutterstock) | | | Issuers of riskier debt were all but frozen out of the leveraged loan market in 2022. Now, investors are once again warming to these lower-rated borrowers, allowing companies to refinance fast-approaching debt maturities.
The spike in corporate loan refinancing, some of which backs PE buyouts, coincides with a sharp rally in the $1.4 trillion US leveraged loan asset class. Secondary bids on riskier, B-minus-rated debt jumped more than 2 percentage points in January, according to the Morningstar/LSTA Leveraged Loan Index. | | | | | | | | | | The scramble to save Twitter's research from Elon Musk. [Wired]
Morgan Stanley doubles down on ESG despite the politics. [Bloomberg]
One writer breaks down why the muddied waters between investment policy and investment strategy are at the root of bad governance. [Institutional Investor] | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 465 Deals | 2170 People | 649 Companies | 22 Funds | | | | | | |
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| 2020 Vintage European Real Assets Funds | | | | | | |
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Lowercarbon Capital and Wollemi Capital have led a roughly $73 million Series B for carbon farming startup Loam Bio.
NanoGraf, which develops materials for lithium-ion batteries, has raised a $65 million Series B led by CC Industries and Volta Energy Technologies.
Supply chain automation startup Apkudo has raised $37.5 million in a Series C co-led by Closed Loop Partners and Piper Sandler Merchant Banking.
Spiffy, a car care specialist, has secured a $30 million Series C led by Edison Partners.
Africa-based Smile Identity has raised a $20 million Series B led by Costanoa and Norrsken22 for its identity verification platform.
Amazon's VC arm, the Alexa Fund, has led a $20 million Series A extension for 3D character design studio Superplastic. Sony Japan, GV and Scribble Ventures also participated, among others.
Biotech company Maxion Therapeutics has raised $16 million in a Series A led by LifeArc Ventures.
Battery recycling startup Cylib has raised €8 million in a seed round led by World Fund.
Hippo Video, a startup that helps businesses create personalized videos, has secured $8 million in a round led by Dallas Venture Capital.
Amsterdam-based travel tickets platform Transferz has raised €6.5 million in a round led by a consortium of angel investors and family offices.
Spanish women's health company Innitius has raised €1.8 million in a round led by Clave Capital and Nara Capital. | | | | | |
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| Hicks Equity's DTI lines up SPAC deal | | | | | | | | ARX completes TES Vsetin exit | | | | | | | | Nautic Partners closes sale of BioPlus | | | | | | |
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| DE Shaw bags $450M+ for first PE fund | | | DE Shaw has raised more than $450 million for the firm's first stand-alone fund dedicated to PE. The vehicle targets investments in privately owned post-seed and growth equity-stage companies. | | | | | | | Counteract reaches first close on CO2 fund | | | London-based climate investor Counteract has held a £15 million (about $18 million) first close of its inaugural fund. The fund, which is targeting £35 million, will back companies helping to reduce CO2 emissions. | | | | | |
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| Morrisons' credit rating downgraded | | | Clayton, Dubilier & Rice-backed UK supermarket chain Morrisons' credit rating has been downgraded to negative from stable by rating agency Moody's. The move comes after the company reported poor sales and profits. | | | | | | | Gamma Biosciences sells UK drug unit | | | | | | |
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| UK insurance company to increase PE holdings | | | UK-based insurance company Phoenix Group Holdings plans to allocate more capital to private equity in an effort to boost portfolio returns. Over the next three to five years, the firm plans to increase PE allocation from "small single digit billions" to "tens of billions," Bloomberg reported. | | | | | | | TPG earnings fall after drop in exit value | | | Private equity firm TPG's fourth quarter distributable earnings fell 26% year-over-year, the firm reported yesterday. But the after-tax earnings of $227 million still surpassed average analyst expectations, Reuters reported. | | | | | | | Former Goldman exec founds PE firm | | | A former Goldman Sachs executive and a family office managing partner have launched tech-focused growth equity firm Springcoast Capital Partners, The Wall Street Journal reported. The firm will invest in software and tech-enabled companies. | | | | | |
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