PE's pressure release: Partial exits, continuation funds, and rolling minority stakes have buoyed exit value in tough conditions. Our Global PE First Look reveals our Q2 data, with additional views for the US and Europe.
Venture's resilience: VC deal counts have risen for three quarters, per our estimates, and valuations are growing. Our PitchBook-NVCA First Look unveils our Q2 data across the US, Europe, and a global aggregate.
June caps strong H1: US markets continued their growth trajectory last month, but that optimism hasn't translated to an IPO comeback just yet. Our Global Markets Snapshot contextualizes June's performance: read it here. | | | | | |
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These three certificates offer a comprehensive learning pathway to build your expertise in private markets.
Ready to get started? Explore the CFA Institute's certificates and elevate your career. | | | | | |
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| Surveying the private capital landscape for H2 | | As we pass the six-month mark for 2024, the macro trends investors have been paying attention to have largely carried over from last year. Labor markets remain strong, stock markets have climbed higher, and all eyes are on the Fed looking for tangible indications of a rate cut. Betting markets have had to reset Fed policy rate expectations since the start of the year due to the strength of the US economy and the stubbornness of inflation data. With that macro backdrop, dealmaking has yet to kick back into high gear. In particular, the exit market has left much to be desired, and many LPs in private funds are wondering when they will get their capital back from their GPs. Both LPs and GPs are finding creative ways to deal with the distribution drought, finding liquidity from relatively novel sources such as fund secondaries, NAV lending, and other structured solutions. Meanwhile, traditional exit routes should continue to open up, especially if the economy remains strong and the Fed begins the descent on interest rates. As capital frees up for deployment, investors should ask: "Where are the risks and opportunities across the private market landscape?" It is with that lens—from the perspective of where to put fresh investment dollars to work—that we published our Allocator Outlook in December and are now providing an update in our latest Allocator Solutions report. First looking at the macro landscape, we explore the potential economic scenarios that may play out over the coming quarters using a simple growth/inflation framework, with the much-anticipated soft landing becoming increasingly likely.  | | Click to view a bigger version of this chart. | We further discuss the implications for private market investors, comparing risk and return expectations across asset classes relative to the zero-interest-rate world of 2021. Finally, we dig into the risks and opportunities across private markets, namely buyout, VC, private credit, and real estate. Our framework looks at private asset valuations, relative attractiveness to public alternatives, and the supply of capital, which we have adjusted from where we saw things at the end of last year. Our analysis suggests that buyout entry valuations remain historically high, posing a challenge for returns. In VC, capital supply remains constrained, which has led to improvements in early-stage pricing and a remarkably investor-friendly dealmaking environment. Private credit is seeing increased competition for deals, translating to falling spreads and its attractiveness. And in real estate, private valuations have likely entered neutral territory, though LPs should be wary of static NAVs anchored to 2021 levels in evergreen funds. For a deep dive into the macro trends that investors should be paying attention to, as well as the risks and opportunities in deploying capital across private markets, please download our research, Allocator Solutions: Private Market Opportunities Midyear Update. As always, we welcome any feedback or questions. | | | | | | | |
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APAC Healthcare Market Snapshot
Healthcare VC deal value in the APAC region has remained consistent so far this year, as companies in the sector have attracted 16.4% of overall investment.
PE dealmaking continues to be highlighted by firms such as MBK Partners, Blackstone, and The Carlyle Group.
|  | | See a larger version of this heatmap in the research note. | | | |
China has become a top target for investors as companies capitalize on opportunities for more affordable medicine.
Our new healthcare research uses data to illustrate the current state of the market: | | | | | |
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As decarbonization needs grow, carbon tech startups seem to have weathered a challenging VC market.
But following a blockbuster 2023, deal value is down this year across the sector.
Our Carbon & Emissions Tech Overview showcases the latest data—as lithium battery recycling stood out—and features an updated vertical taxonomy: | | | | | |
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Lots of new events this month:
July 17: Join us for our latest US credit-focused webinar, where we'll dive deep into the trends, challenges, and opportunities within the leveraged loan and high-yield bond markets. Register here.
July 24: Is European VC nearing a turning point? Our webinar, featuring JP Morgan managing director Folake Shasanya, will shed light on the trends and developments that should be on every investor's radar. Register here.
July 25: Our LP-focused Allocator's Atlas series will continue with ILPA's Brian Hoehn, addressing SEC private fund development rules and best practices involving NAV loans and continuation vehicles. Register here.
Nov. 5-8: Join us at SuperInvestor 2024 in Monaco! The event will feature 1,000+ senior LPs and 1,500+ GPs, offering more opportunities than ever to make industry connections. Register here.
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Our insights and data featured in the press: - US corporate fundraising jumped in H1, with borrowing in high-grade and junk-rated debt markets up almost 50% to $1.3 trillion. [FT]
- Investors poured $27.1 billion into AI startups from April to June, accounting for nearly half of all US VC funding in the period. [NYT]
- PE fundraising slogs, especially for buyout firms, as assets remain frozen. [WSJ Pro]
- VC has split into a "haves and have-nots" environment for companies and firms. [WSJ Pro]
- "It is becoming increasingly apparent that the COVID-19 pandemic was both a blessing and a curse for the telehealth sector." [Fierce Healthcare]
If you're a journalist interested in interviewing our analysts or requesting data, contact our PR team.
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More of our recent research (* - report preview):
Market updates
Thematic research
Industry & tech research
Credit research
Coming next week (subject to change) - US PE Breakdown
- PitchBook-NVCA Venture Monitor
- PitchBook Benchmarks
- Vertical Snapshot: Defense Tech
- Quantifying PE Investment in Healthcare Providers
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| | Since yesterday, the PitchBook Platform added: | | 394 Deals | 2101 People | 599 Companies | 13 Funds | | | | | | |
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