SPACs lead a rebound in our indexes

Tech specialists attempt to thaw IPO freeze; the state of VC in six charts; Apollo returns to profit in Q4; Europe's most-funded startups

Read online | Don't want to receive these emails? Manage your subscription. Log in The Daily Pitch: VC, PE and M&A February 10, 2023 The Daily Pitch is powered by PitchBook's industry-defining research and best-in-class data In today's Daily Pitch, you'll find: SPACs are leading the way as recently public companies rebound, according to our indexes. Nextracker and Hesai Technology went public on the same day, which could prime the IPO market for a lively 2023. The median amount of VC capital raised by European startups continues to climb despite a challenging economic climate.   Today's Top Stories   SPACs lead rebound of recently public companies (Drew Sanders/PitchBook News) After a bruising 2022, companies that recently went public on US exchanges are off to a strong start this year, helped by a broad surge in tech stocks. Businesses that went public through a SPAC merger have seen the largest gains. PitchBook's DeSPAC Index has climbed 25.7% in 2023. The VC-backed IPO index is up 23.3%. The PE-backed IPO index has risen 15.3%. explore the indexes   Share: Nextracker, Hesai attempt to thaw IPO freeze (VIEW press/Getty Images) The IPO winter has been brutal. Driven by an unstable market, a critical exit strategy has been closed off. But two tech companies, Nextracker and Hesai Technology, beat expectations this week in a pair of IPOs that offered hope for better days ahead. Eventually, fintech giant Stripe, semiconductor producer Arm and hordes of cash-hungry startups could go public—if conditions continue to improve. read more   Share: How bad was 2022 for VCs? It depends where you look (Drew Sanders/PitchBook News) Inflation. Crypto's implosion. Layoffs. 2022 was a challenging year for everyone, especially VC-backed tech startups, but how bad was it really? According to PitchBook's data, it all depends on where you look. Here's the state of VC in six charts that lay out the complex picture and road ahead. read more   Share: Northvolt tops list of most-funded startups in Europe (Courtesy of Northvolt) Swedish battery maker Northvolt has emerged as the most-funded VC-backed company in Europe with $5.5 billion raised. Despite a more challenging dealmaking environment, the median round amount in the region has also grown. read more   Share: Healthcare sector tops distressed bond and loan index leaderboards (PopTika/Shutterstock) Healthcare companies make up a disproportionately large percentage of distressed bonds and loans in the Morningstar US High-Yield Bond Index and the Morningstar LSTA US Leveraged Loan Index—23% for bonds and 28% for loans. Rising personnel costs and the federal No Surprises Act on medical billing, which went into effect in 2022, have been cited for a hit to some healthcare providers' bottom lines. read more   Share: Recommended Reads You've heard about hard and soft landings, but what about a rolling recession? [Bloomberg] The Atlanta billionaire behind Goldman Sachs' latest consumer-lending push. [The Wall Street Journal] Visualizing the biggest US tech layoffs since 2020. [Visual Capitalist]   Since yesterday, the PitchBook Platform added: 436 Deals 2182 People 618 Companies 25 Funds See what our data software can do   Quick Takes     The Daily Benchmark     2014 Vintage Global Real Estate Funds     Exit & IPOs     Weight loss specialist Allurion to go public via SPAC     Fundraising     Triton Partners seeks $5.9B     Athene holds first close on $2B     Kainos raises $1B+ for Fund III     eWTP Arabia nears $1B fundraise     Earth & Beyond Ventures debuts with $125M     Weinburg holds first close of French security, defense fund     Carbon Equity launches second vehicle     Investors     Apollo profits in Q4     Rothschilds in talks with wealthy French families     Maven Capital closes Liverpool office     Corporate M&A     MGM Resorts ditches buyout plan for UK's Entain       The Daily Benchmark   2014 Vintage Global Real Estate Funds Median IRR 10.62% Top Quartile IRR 14.06% 1.49x Median TVPI Select top performers Exeter Industrial Value Fund III L-A Saturn Acquisition Activum SG Real Estate Fund I *IRR: net of fees 66 Funds in Benchmark » Check out the latest version of PitchBook Benchmarks   VC Deals   Data observability startup Acceldata has raised a $50 million Series C led by March Capital. JP Morgan, CVC Growth Funds and Pantheon have invested $50 million in cybersecurity startup Skybox Security. Danish neobank Lunar has raised €35 million, TechCrunch reported. Lunar's previous investors include Kinnevik, Tencent and IDC Ventures. Foundation Capital has led a $30 million round for Coincover, which specializes in protecting digital assets. Refrigeration data specialist Therma has secured a $19 million Series A led by Zero Infinity Partners. Yodawy, a pharmacy benefits manager in Egypt, has raised $16 million in the first close of its Series B. The round was led by Delivery Hero Ventures and Global Ventures. Mino Games, a mobile game developer, has secured $15 million in a Series B led by Standard Crypto. Cybersecurity startup Sendmarc has secured $7 million in a round led by Atlantica Ventures. Warsaw-based Plenti has raised 23 million Polish zlotys (around $5.2 million) in a round led by 4growth VC. The startup's platform allows users to rent electronics.   PE Deals   The Carlyle Group is in talks to buy healthtech company Cotiviti for nearly $15 billion, according to reports. The deal is expected to include a $5.5 billion private loan. A consortium led by Japan Industrial Partners has submitted a takeover offer for Toyko-listed conglomerate Toshiba. The offer is understood to be worth $15 billion. PE firm Francisco Partners is close to acquiring software provider Sumo Logic for about $1.7 billion, The Wall Street Journal reported. The Carlyle Group has made a tender offer for Japanese lighting solutions provider Iwasaki Electric that values the business at roughly $266 million, Deal Street Asia reported. Macquarie-backed Wavenet has agreed to buy London-listed managed services provider Adept Technology for about $61 million. Blackstone plans to sell a minority stake in travel industry software provider IBS Software after a failed attempt at a foreign listing, Mint reported. The PE giant has reportedly hired JP Morgan to sell 40% of its 44% stake in the company. Chicago Pacific Founders-backed Ascend Vision Partners has acquired Cohn Eye Center and R&E Optical. Investcorp has invested in Swiss cybersecurity company Terra Quantum.   Exit & IPOs   Weight loss specialist Allurion to go public via SPAC Allurion, a healthtech company specializing in weight loss, has agreed to merge with blank-check company Compute Health Acquisition Corp. and go public on the NYSE. The new company is expected to be valued at $500 million, including debt, Bloomberg reported. View details   View 3 competitors »     Fundraising   Triton Partners seeks $5.9B Triton Partners is seeking €5.5 billion (about $5.9 billion) for the firm's latest fund. Triton VI will focus on businesses in Western Europe in sectors like industrial tech, healthcare and business services. View fund   View 423 investments »   Athene holds first close on $2B Financial services firm Athene has held the first close of its Apollo/Athene Dedicated Investment Program II, which is meant to aid the firm's growth strategy, on roughly $2 billion. View fund   View 16 investments »   Kainos raises $1B+ for Fund III Kainos Capital, a PE firm that invests in the food and consumer products industries, has closed its third namesake fund on more than $1 billion, making it the firm's largest vehicle so far. View fund   View 48 investments »   eWTP Arabia nears $1B fundraise VC firm eWTP Arabia, which is backed by ecommerce giant Alibaba and Saudi Arabia's Public Investment Fund, is closing in on $1 billion for a fund targeting technology startups in Asia and the Middle East, Bloomberg reported. View fund   View 3 investments »   Earth & Beyond Ventures debuts with $125M Israel-based Earth & Beyond Ventures has launched with a $125 million fund dedicated to investments in early-stage space-tech startups. The fund has backing from Corning, NASA and Japanese electronics giant Kyocera. Weinburg holds first close of French security, defense fund Paris-based Weinberg Capital Partners has held a more than €100 million (about $107 million) first close of its buyout fund targeting French small and medium-sized businesses and mid-cap companies in the security and defense sector. View details   View 61 investments »   Carbon Equity launches second vehicle Amsterdam-based Carbon Equity is targeting €75 million (around $81 million) for its second fund. The vehicle will be used to back climate-tech companies with a minimum ticket size of €100,000.   Investors   Apollo profits in Q4 Apollo Global Management saw a profit in the fourth quarter after a prolonged period of quarterly write-downs. The asset manager reported net income of $584 million in Q4, more than double what it earned in Q4 2021. View details   View 784 investments »   Rothschilds in talks with wealthy French families The Rothschilds are meeting with France's wealthiest families to enlist help in buying out minority owners in the family's investment bank as part of a plan to privatize the firm, the Financial Times reported. Rothschild & Co is currently valued at nearly $4 billion. View details   View 173 investments »   Maven Capital closes Liverpool office Maven Capital Partners is closing its Liverpool office, which opened last year. Now, the firm will share regional offices with wealth management company Ludlow, which is also owned by listed wealth manager Mattioli Woods. View details   View 391 investments »     Corporate M&A   MGM Resorts ditches buyout plan for UK's Entain MGM Resorts International will no longer pursue a buyout of sports betting and gaming firm Entain, Reuters reported. Entain previously rejected an $11 billion takeover attempt by MGM. View details   View 8 competitors »     Chart of the Day   "Strategic buyers accounted for a healthy 38.8% of all middle-market PE exits in Q3, in line with prior quarters in recent years. However, this bears watching moving forward, especially with the PE exits engine now firing on just two of its three cylinders." Source: PitchBook's Q3 2022 US PE Middle Market Report   Who's in the newsletter today? Investors 4growth VC Alibaba Apollo Global Management Atlantica Ventures Blackstone CVC Growth Funds Chicago Pacific Founders Compute Health Acquisition Corp. Corning Delivery Hero Ventures Earth & Beyond Ventures Foundation Capital Francisco Partners Global Ventures IDC Ventures Investcorp JP Morgan Japan Industrial Partners Kainos Capital Kinnevik Kyocera MGM Resorts International Macquarie March Capital Maven Capital Partners NASA Pantheon Public Investment Fund Rothschild & Co Standard Crypto Tencent The Carlyle Group Triton Partners Wavenet Weinberg Capital Partners Zero Infinity Partners eWTP Arabia Companies Acceldata Adept Technology Allurion Ascend Vision Partners Athene Cohn Eye Center Coincover Cotiviti Entain IBS Software Iwasaki Electric Ludlow Lunar Mattioli Woods Mino Games Plenti Sendmarc Skybox Security Sumo Logic Terra Quantum Therma Toshiba Yodawy Service Providers JP Morgan   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? 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