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| In today's Daily Pitch, you'll find: | | | | | |
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| No easy road for PE as recession risk rises | | It's looking increasingly likely that the US economy could enter a recession in the next 18 months, according to PitchBook's quantitative model. Meanwhile, PE buyout deals are starting to slow, and exits are declining to extents rarely seen in the past two decades.
As things stand, portfolio companies are using more cash flow than usual for interest payments, thus squeezing returns. But a full economic slowdown dragging down interest rates would create thornier problems for PE investors.
Using data visuals, our latest Quantitative Perspectives report tells the story of the macroeconomic factors and debt complications leading PE to pump the brakes. | | | | | | | | | Boutique firm closes its largest vehicle as LPs turn to mid-market buyout funds | |  | | (Hoowy/Shutterstock) | | | Stone-Goff Partners, a middle-market PE investor, has closed its largest buyout fund. The $175 million vehicle is also the firm's first backed by institutional investors.
The firm plans to make up to nine platform acquisitions from the fund, which is dedicated to acquiring founder-owned companies in the business services sector. Middle-market-focused buyout strategies appear to be gaining traction among LPs as the broader PE industry weathers a tough fundraising environment. | | | | | | | |
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| A message from Allvue Systems | | |
| Take care of key investor reports automatically | | Without the right engine powering a PE firm's end-to-end operations, managing investor communications and reporting, such as capital calls and PCAP statements, can feel impossible to complete without errors.
From beginning to end, the capital call process—like other reporting processes—requires clear and easy access to investor data and the ability to carry those figures through as notices are generated and sent out, and as capital is received. Without the right workflow in place, GPs will encounter chaos, and likely during a high-pressure time when they're working against the clock to secure the capital to close an important deal.
Check out Allvue's primer on simplifying the capital call process and download an investor-ready template of a capital call statement.
Download the template | | | | | | | |
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| The accelerator most likely to propel a startup to unicorn status | | Y Combinator, the Bay Area accelerator behind Airbnb, Stripe and DoorDash, has yielded more unicorns than Techstars, SOSV, MassChallenge, Plug and Play Tech Center or 500 Global, with an estimated unicorn creation rate of 4.5% since 2010.
That's just one of many exclusive findings from our recent PitchBook analysis, which offers a comprehensive look inside the industry's preeminent accelerator programs. See how the top names stack up and hear from founders surveyed by PitchBook who went through each program on whether the experience was worthwhile. | | | | | | | | | Track private markets with these tools | | We have a new home for data and tools to help you understand the state of private markets. - Market indicators and indexes that approximate the investor-friendliness of VC deals and PE performance, as well as track the performance of unicorns and PE- and VC-backed IPOs.
- Dashboards that cover female founders, unicorn companies, SoftBank's Vision Fund and public PE firms.
- Leaderboards that rank the most active lenders and investors, as well as rankings of universities by startup founder alumni.
| | | | | | | | | Electric vehicles supercharge a reliance on lithium | |  | | (Halfpoint/Shutterstock) | | | As an industry, lithium—once an obscure resource used primarily for industrial purposes—is transforming. Shares of lithium producers may have plunged earlier this year, but lithium's use for energy storage in batteries will make it critical to the global economy, especially as electric vehicle sales rise.
Morningstar analysts believe lithium will remain undersupplied through the rest of the decade as new projects face delays, leading to lower production. | | | | | | | | | | The world's most livable cities in 2023. [The Economist]
From fast-growing trees to volcanic dust, startups are getting creative in their efforts to fight global warming. [The Wall Street Journal]
The trillion-gallon question: What happens if California's dams fail? [The New York Times] | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 453 Deals | 2088 People | 580 Companies | 24 Funds | | | | | | |
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The Daily Benchmark:
2014 Vintage Global VC Funds with more than $250M | | | | | | |
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| Robinhood has agreed to acquire no-feed credit card startup X1 for $95 million. X1 closed a $40 million Series B in 2022 led by Alarco Ventures, FPV Ventures and Soma Capital. | | | | | |
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| Indian VC firm Lumikai has launched a $50 million fund to invest in gaming and interactive media companies. | | | | | |
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"The largest fund raised in Q1 2023 was the Rakiza Fund, based out of Oman, which closed on $1 billion; the smallest fund came in at $60 million for the Cardiff Capital Region Innovation Investment Capital Fund, raised out of the United Kingdom. No funds raised this quarter were domiciled in North America."
Source: PitchBook's Q1 2023 Global Real Assets Report | | | | | |
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