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| In today's Daily Pitch, you'll find: | | | | | |
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| Rate cuts by lenders, not the Fed, have been the big surprise of 2024 | | PE managers came into 2024 anticipating as many as six interest rate cuts from the Federal Reserve. Although this didn't materialize, they've found relief through lower spreads being charged above those base rates due to increasing competition within the private credit sector, and the revival of the syndicated loan market.
Another surprise was the bustle of fundraising activity—with H1 seeing $155 billion in capital committed, maintaining the near-record pace set last year. In our midyear update to the 2024 US Private Equity Outlook, our analysts review their forecasts for the year, from continuation funds hitting "critical mass" to PE-backed company holding periods reaching new records. | | | | | | | | | Q&A: Hot biotech stocks have LPs eyeing hybrid venture vehicles | |  | | (Andrew Brookes/Getty Images) | | | Hybrid venture vehicles are nothing new, but blended public and private vehicles may be gaining an edge.
Stephanie Sirota, RTW Ventures' chief business officer, said her outlook for biotech has never been brighter, but that's only when you couple private and public names. | | | | | | | |
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| The private equity race to digital is intensifying | | In today's market, PE funds race to adopt the latest technology to stay ahead. While many embrace digital solutions to streamline back-office functions, amidst AI's promise of game-changing results, leaders remain uncertain on which tools will give their teams the edge to win—from screening and diligence to successful exits.
Leading firms such as CVC, Warburg Pincus, Riverside, and others have chosen Mosaic's advanced digital modeling platform to optimize their investment analysis. Mosaic delivers precise, data-driven insights, enabling teams to swiftly evaluate LBO opportunities and make informed decisions that maximize returns across the deal lifecycle. Mosaic's integration with AI empowers investors to bring static analysis to life, enhancing decision-making while seamlessly integrating into existing workflows.
Position your fund at the forefront of deal-making with confidence. | | | | | | | |
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| Climate-tech fundraising bounces back | | Fundraising for climate-tech companies is on the upswing in 2024, with fund value already on track to exceed numbers from 2023, according to our latest Emerging Tech Research. While 2022 marked a peak in climate-tech investment, the decline over the last two years is largely a part of wider VC deal trends and not necessarily indicative of the strength of climate tech itself.
Eighteen climate funds have closed so far in 2024, with five exceeding $300 million each. Emerging firms still make up over half of VC climate-tech investors so far in 2024, though the ratio of experienced to emerging firms is becoming more balanced as new climate regulations see widespread acceptance. | | | | | | | | | VC investors' leverage may have peaked | |  | | (Drew Sanders/PitchBook News) | | | It's still an investor-friendly environment for VCs, but their advantage may have peaked in the first half of 2024, according to PitchBook's VC Dealmaking Indicator. Conditions have improved for founders raising capital at all stages, with our early-stage index showing the largest move.
Valuation step-ups have stagnated, while the quarterly capital raised by startups is at a two-year high—signaling that investors may soon face a more challenging environment. The demand-to-supply ratio is down due to large AI deals, which show investors will still pay up for select companies. | | | | | | | | | Public medtech buyouts may inspire surge in startup M&A | | Medtech earnings were strong in kicking off 2024, yet valuations pulled back in Q2. Even still, analysts maintain optimism for 2025, estimating double-digit growth for earnings per share across the sector.
The tepid medtech M&A market is feeling rumblings of potential trends: Large strategics acquiring smaller public companies could encourage more of the same. This has not been mirrored in acquisitions of late-stage medtech startups, but that could change if IPOs remain sparse.
Our Q2 2024 Medtech Public Comp Sheet and Valuation Guide tracks stock performance, valuations, and market caps for key publicly traded companies. | | | | | | | | | Blue Owl continues to round out product suite with Atalaya acquisition | |  | | (Darya Komarova/Getty Images) | | | Blue Owl Capital will expand its footprint in private credit and asset-based finance through the acquisition of Atalaya Capital Management for $450 million.
The deal, expected to close in the second half of 2024, will add $10 billion in assets under management to Blue Owl's portfolio, the firm announced yesterday. | | | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 593 Deals | 2162 People | 659 Companies | 31 Funds | | | | | | |
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The Daily Benchmark:
2017 Vintage Global PE Funds | | | | | | |
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Cardurion Pharmaceuticals, which is developing treatment for cardiovascular diseases, raised a $260 million Series B led by Ascenta Capital.
CatalYm, a Munich-based biotech startup focused on cancer therapies, received a $150 million Series D led by new investors Canaan Partners and Bioqube Ventures.
HexClad, a startup backed by chef Gordon Ramsay specializing in premium kitchenware, raised a $100 million strategic investment from Ramsay's Studio Ramsay Global.
Scorpion Therapeutics raised a $150 million Series C led by Frazier Life Sciences and Lightspeed for cancer treatments.
Asceneuron, a neurodegenerative disease biotech startup, has raised a $100 million Series C led by Novo Holdings.
Huma, a London-based company developing AI digital health technology, raised an $80 million Series D from investors including AstraZeneca Plc, Bayer AG and Hitachi Ventures. Huma is now valued at close to $1 billion.
Botrista raised a Series C from Jollibee Foods that brought its total fundraising to $120 million. The San Francisco-based company provides an automated beverage systems for restaurants and cafes.
Lhoopa has raised $80 million for affordable housing development in the Philippines. The round comprises $20 million in equity co-led by International Finance Corporation and Wavemaker Partners and $60 million in debt.
OneData, a German data management software company, has extended its Series B with €32 million co-led by Vsquared Ventures, Molten Ventures, and HV Capital.
Naked Energy, a UK-based solar heat and power scale-up, has raised a £17 million Series B led by E.ON Energy Infrastructure Solutions
SamanTree Medical, a Swiss medical technology company specializing in surgery solutions, has raised a $14 million Series B led by Relyens Innovation Santé. | | | | | |
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| Don't miss our upcoming webinar | | 2024 has sparked VC optimism, with improvement in deal values and startup valuations. Although European VC hasn't gained significant momentum, resilient dealmaking across various industries, along with a better fundraising environment, signals a potential turning point. However, liquidity pressures persist and continue to affect sentiment.
Industry experts and PitchBook analysts will share findings from our upcoming European Venture Report, sponsored by J.P. Morgan, shedding light on developments that should be on every investor's radar. - Exits show negligible signs of recovery due to tepid public listing markets.
- Fundraising is in line with 2023 as smaller, emerging vehicles take a share of closes.
Register now to secure your spot. | | | | | | | |
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Affinity Partners, a Florida-based PE firm founded by Jared Kushner, will buy a stake in Israeli insurance company Phoenix Holdings. The nearly 5% stake is worth $128.5 million, Bloomberg reported.
Omni Fiber, an Ohio-based high speed internet service provider, has received $150 million in debt financing from Stonepeak Credit.
The Travel Corporation, a California-based travel agency with a portfolio of 18 brands, agreed to be acquired by Apollo Global Management.
Varicent, a company developing software intended to help businesses manage sales performance, received a strategic investment led by Warburg Pincus and joined by Great Hill Partners and Spectrum Equity.
Robot-Coupe and Magimix, companies developing and manufacturing culinary equipment like food processors, are both in talks to be acquired by PE firm Ardian.
Auxilo Finserve, a Mumbai-based student loans company, raised 2.8 billion Indian rupees (around $33.4 million) from LeapFrog Investments.
MML Capital invested in SC Pack Group, a manufacturer and distributor of hollow-body packaging operating in France and Belgium. | | | | | |
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Online visibility SaaS specialist Semrush acquired Ryte, the VC-backed developer of a website user experience platform based in Munich.
The potential sale of StandardAero, a provider of aircraft maintenance services backed by The Carlyle Group, has drawn the interest of Blackstone, CVC Capital Partners and Veritas Capital, Bloomberg reported. A sale or IPO could value StandardAero at around $10 billion or more, including debt.
SymphonyAI, a company developing AI tools for business insights, is planning on filing for an IPO in 2025, Reuters reported.
Micromeritics, a company specializing in the characterization of materials for manufacturing, agreed to be acquired by UK-based publicly listed company Spectris for $630 million and a later $53 million contingent on financial performance metrics. | | | | | |
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Paris-based Eurazeo has reached a €706 million close on its first infrastructure vehicle, exceeding its €500 million target.
Goldman Sachs Asset Management is seeking $2 billion for its maiden Asia-Pacific PE fund, Reuters reported. Half of the fund's allocation is expected to be deployed in Japan.
Amsterdam-based Marktlink Capital closed on €80 million for its second VC fund-of-funds after six months of fundraising.
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| In Monday's newsletter, a fundraising brief incorrectly stated that Shield Capital is targeting $700 million for its second fund. The firm is targeting $350 million for this fund. | | | | | |
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