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| In today's Daily Pitch, you'll find: | | | | | |
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| Discount prices keep global M&A activity afloat | | A persistently gloomy macroeconomic backdrop and near banking crisis drove a decline in M&A activity in Q1 2023, pushing global deal value down 32% from the peak just over a year prior.
But total M&A deal value still topped $1 trillion for the quarter. While certain sellers—think private equity—stepped back in recent months, lower valuation multiples in some cases helped encourage deal flow.
Our Q1 2023 Global M&A Report, sponsored by Liberty GTS, explains which deals are happening and why, diving into dealmaking trends within industries and between regions: - Multiples on PE-led buyouts collapsed by 29% in Q1 after holding firm for two years, reflecting a shift to smaller and cheaper deals.
- Smaller companies—those worth $100 million or less—have seen their median enterprise value drop to a revenue multiple of 1.1x, trailing behind the overall M&A market's median of 1.6x.
- Founder-owned companies made up 85% of all businesses sold in Q1, their highest share of the market ever.
| | | | | | | | | PE exits slow to a trickle in Q1 | |  | | (Tim Roberts Photography/Shutterstock) | | | Buyout firms are holding off on selling their portfolio companies at lower valuations, resulting in a lackluster start to the year for exits. In the first quarter, PE firms closed only an estimated 279 exits for a total of $55.9 billion.
While sales to corporate buyers became PE firms' preferred exit route, these deals still declined in both deal value and count quarter-over-quarter. | | | | | | | |
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| A message from Pillsbury Winthrop Shaw Pittman | | |
| In Focus: Climatetech and VC | | In 2022, climatetech companies were not immune to the challenges facing VC, but the long-term bets placed on climate innovation are driving the space forward. Pillsbury's Climatetech: 2022 Year in Review provides in-depth analysis of climatetech VC activity.
Key takeaways include: - Climatetech VC activity totaled $24.5 billion, down from $32.9 billion in 2021 but representing its second-biggest year.
- Despite the downward trends in broader VC activity, 2022 set a record with $2.1 billion in total first-time financing deal value in climatetech.
- Earlier VC rounds held a larger share of total deal value in 2022. PE, corporate venture capital (CVC), and nontraditional VC investment activity all reached their second-highest annual levels of deal value in 2022.
- CVC activity deal activity set a record for the number of deals completed, despite moderately lower aggregate deal value.
Read the report | | | | | | | |
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| Carlyle CEO: First Republic rescue shows banking resilience | |  | The Carlyle Group CEO Harvey Schwartz
(Patrick T. Fallon/Getty Images) | | | The Carlyle Group's new chief executive sees resilience in the banking system amid collapses.
At the Milken Institute Global Conference this week, Carlyle CEO Harvey Schwartz said the announcement of JP Morgan's rescue of First Republic Bank demonstrates that the industry can handle institutional problems: "(Monday) was a good day for the system and for the country." | | | | | | | | | Startup radar: European VCs on space tech startups to watch | |  | | (Vadim Sadovski/Shutterstock) | | | Technological advances have made space tech increasingly accessible, leading to more VCs exploring opportunities in the sector.
We spoke to four European VCs active in space tech for their opinions on which startups, both in and outside of their portfolios, are worth watching. | | | | | | | | | Leverage in syndicated US loan market sinks to seven-year low | |  | | (QtraxDzn/Shutterstock) | | | The big question in the $1.4 trillion US leveraged loan market these days: Where's the leverage?
With M&A financings either being snapped up by an aggressive private credit segment or shelved due to market volatility, the old-school syndicated loan world has been left largely with less-risky refinancings so far in 2023.
Overall leverage in the sector recently dipped below 5x debt/EBITDA, the first time that's happened in seven years, according to PitchBook LCD. While less leverage can mean less risk, it also means less return for investors. | | | | | | | | | | China has dominated the global IPO market as the US reels from the recent banking crisis. [Financial Times]
Quantitative asset manager AQR is experimenting with ChatGPT to improve returns. [Institutional Investor]
How JP Morgan became banking's regular rescuer. [The New York Times] | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 537 Deals | 2045 People | 570 Companies | 20 Funds | | | | | | |
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The Daily Benchmark:
2014 Vintage Global Real Assets Funds | | | | | | |
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Generative AI startup Cohere is in talks to raise $250 million, which would give it a valuation of about $2 billion, the Financial Times reported. The upcoming round is being led by Inovia Capital with participation from Index Ventures.
Employee intranet startup Simpplr has raised a $70 million Series D led by Sapphire Ventures and joined by investors including Salesforce Ventures.
Foretellix, an automated driving safety and validation startup, has raised a $43 million Series C led by 83North. Nvidia and Woven Capital also joined, among others.
Uwill, a mental health and wellness startup focused on university students, has raised a $30 million Series A led by Education Growth Partners.
Nomba, a Nigerian banking and payment services startup targeting small businesses, has raised $30 million in a round led by Base 10 Partners.
Morgan Health, the health-focused investment arm of JP Morgan, has invested $25 million in Kindbody, a fertility clinic network.
Biotech startup Hygieia has raised a $22 million Series B led by Firstime Ventures.
Supplement brand Thesis has raised $13.5 million between an $8.4 million Series A and a $5.1 million seed round. Unilever Ventures participated in both.
Autonomize AI, an AI healthcare startup, has raised a $4 million seed round led by Asset Management Ventures.
Job platform startup Gigs has raised a $2.7 million pre-seed round led by Slauson & Co.
Sniffer, a robotics startup focused on emissions monitoring, has raised $2 million in seed funding led by the Michigan Angel Fund. | | | | | |
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| Turkish grocery delivery company Getir is in talks to buy VC-backed peer Flink, the Financial Times reported. Flink is also said to be looking to raise $100 million from existing investors at a $1 billion valuation. | | | | | |
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