Monday, March 4, 2024

AI drives infrastructure SaaS forward

GP stakes ready for a comeback; one month in global markets; our guide to specialized healthcare funds
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The Daily Pitch: VC, PE and M&A
March 4, 2024
The Daily Pitch is powered by PitchBook's industry-defining research and best-in-class data
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In today's Daily Pitch, you'll find:
 
Today's Top Stories  
How will AI propel infrastructure SaaS?
Startups in the infrastructure SaaS market are ready to capitalize on the sea change that AI is bringing. The sector saw an uptick in VC funding in Q4 2023—reaching $2.2 billion compared to Q3's $1.9 billion.

There is still plenty of room for growth, especially for companies focusing on data software and systems, according to our latest Emerging Tech Research. Senior analyst Derek Hernandez examines startups supporting AI and other key trends in the infrastructure SaaS space.
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The GP stakes market is ready for a comeback
(Design Pics/Getty Images)
The world's largest asset managers spent less money on GP stakes in 2023 than they have in a decade, but they're ready to deploy capital in 2024.

Bogged down with market uncertainty, buyers and sellers of GP stakes retreated from the market in 2023. Minority ownership positions encompassed only 17.2% of the total value of deals involving GPs as targets—a steep decline from historical norms.
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A message from McDermott Will & Emery LLP  
Healthcare investors—maximize your success with PPMs and ASCs
Get actionable insights from senior PPM and ASC executives, chief development officers, PE investors and bankers facilitating innovative market moves during PPM-ASC 2024, May 15-16 in Nashville.

This destination conference brings together 800+ health industry leaders to address issues including value-based care models, federal and state policy developments, novel JVs and partnerships, creative deal and exit strategies, value-creation tactics and more.

Experience all the fun of Music City while networking with and learning from the decisionmakers who can help drive your next deal forward.

"Excellent content, phenomenal networking opportunities and great venue."—PPM-ASC 2023 attendee

Reserve your spot
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February wrap-up: One month in global markets
Our latest Global Markets Snapshot breaks down a month of trends in the equity, debt, and commodities markets, tracking returns across a range of indexes and sectors. It also features private market activity, including major deals, fundraising, IPO performance, lending volume and unicorn creation.

In this monthly digest, we provide the datasets that the PitchBook Institutional Research Group is keeping an eye on as we start off the new year.
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A guide to investing in specialized healthcare funds
Specialized healthcare funds are having their moment in the sun as allocators demand greater sector focus of their managers. Propped up by the industry's complex regulatory frameworks and scientific rigor, healthcare specialist PE fundraising activity hit an all-time high in 2023.

Our H2 2023 Healthcare Funds Report is a resource to help LPs, GPs and other market players capitalize on this moment. The report offers a comprehensive view of healthcare specialists—identifying trends across PE, VC and corporate venture funds focusing on diversified healthcare, healthcare services and life sciences.
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VCs focus on the grid, hydrogen storage
VC funding for the clean energy sector dipped by about $5 billion in 2023 compared to the previous year. But the industry has been ignited by pressure from the COP28 conference and the Biden administration's hydrogen hubs, according to our recent Emerging Tech Research.

VCs are paying more attention to the systems underpinning the clean energy revolution, with grid infrastructure and hydrogen storage joining the dealmaking spotlight.
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The Daily Benchmark:
2019 Vintage Global Debt Funds
Median IRR
10.30%
Top Quartile IRR
13.42%
0.39x
Median DPI
Select top performers
Inveready Venture Finance III
OrbiMed Royalty & Credit Opportunities III
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*IRR: net of fees
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Check out the latest version of PitchBook Benchmarks
 
VC Deals  
Massachusetts-based biotech startup FogPharma raised a $145 million Series E led by Nextech Invest.

Switzerland's Aktiia raised $30 million in a round led by Redalpine for its blood pressure monitoring device.

Vibe.co, an advertising startup focused on streaming markets, raised $22.2 million in a round led by Singular.

San Jose-based battery startup Anthro Energy raised $20 million in a Series A led by Collaborative Fund.

Austrian aviation technology company CycloTech raised €20 million from Breeze Invest and Konos Holdings.

London-based heat pump startup Heat Geek secured a £3.7 million seed investment led by Transition.
 
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PE Deals  
Ares Management has made a strategic investment in Bluepeak, a fiber broadband provider.

LDC has invested in 15below, a travel tech specialist.

Gryphon Investors, a middle-market firm, has sold skincare brand RoC Skincare to Bridgepoint Europe VII.

Adenia Partners has acquired The Courier Guy, a last-mile delivery company.

Bow River Capital has acquired Accelo, a SaaS specialist.

The Riverside Company has sold Hiway Group to New Zealand PE firm Direct Capital Partners.
 
Fundraising  
Belgian VC investor Entourage has launched with a €30 million early-stage fund.
 
Chart of the Day  
Source: 2023 Annual European PE Breakdown
 
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