PitchBook News - Global M&A hangs tough

Read online | Don't want to receive these emails? Manage your subscription.

PitchBook

Log in

The Daily Pitch: VC

April 27, 2022

Like our newsletter? The data comes from the PitchBook Platform — our data software for VC, PE and M&A

In today's Daily Pitch, you'll find:

Our newest Global M&A Report explores how geopolitical conflict and rising inflation impacted M&A activity in Q1 2022.

Investors at century-old Baillie Gifford discuss why the Scottish firm views itself as a more patient private market investor than many of its peers.

Elo Mutual Pension Insurance Co. is among the most active limited partners in Northern Europe. As part of our new LP spotlight series, we spoke with Karita Meling, Elo's head of private equity.

Today's Top Stories

Global M&A remains strong despite geopolitical conflicts

Global M&A activity bifurcated for much of Q1 2022. Previously negotiated deals closed on time, while announced activity diminished due to the uncertainty created by Russia's invasion of Ukraine, according to our latest Global M&A report, sponsored by Liberty GTS.

Final deal counts for the quarter fell compared to the fervent activity seen in the back half of 2021 but were healthy relative to the past five years. Key findings include:

As much of the globe pushes beyond the worst effects of the COVID-19 pandemic, consumer spending has been dampened as housing and transportation costs lift.

Higher-growth companies have lagged as have tech-heavy indexes, including the Nasdaq. Going forward, analysts expect deal professionals will be walking a tightrope.

Capital intensive industries—including energy and industrials—appear poised for prolonged growth, despite higher raw materials costs.

PE continues to account for a swelling proportion of deal activity, including a significant percentage of the biggest deals. Eight of the 20 largest deals to close in Q1 were led by financial sponsors.

read the report

Share:

Century-old asset manager Baillie Gifford says it's in no hurry to score exits

(joe daniel price/Getty Images)

Most mutual funds and asset managers that have flocked to the VC ecosystem over the past decade have set out to amass big stakes in fast-growing startups that later go public.

But Baillie Gifford, a 114-year-old Scottish firm that invests in VC-backed companies out of several evergreen vehicles, claims to be more patient than many of its peers. We spoke to multiple Baillie Gifford investors about the firm's portfolio, its stance on IPOs and more.

Recommended Reads

Why subscriptions likely won't take over the game industry anytime soon. [Protocol]

The fear of being stuck somewhere without a charge has deterred some Americans from seriously considering electric cars. Broken and slow charging stations could stall the EV movement even further. [Wired]

From his focus on philanthropy to a recently launched climate initiative, the UK's Christopher Hohn is a hedge fund manager like no other. [Institutional Investor]

Since yesterday, the PitchBook Platform added:

19

VC valuations

1333

People

379

Companies

27

Funds

See what our data software can do

Quick Takes


	The Daily Benchmark
	2018 Vintage Global PE Funds
	VC Deals
	General Catalyst leads $412M round for SonarSource
	Biofourmis picks up $300M Series D
	Harness hits $3.7B valuation
	Upside secures $165M in debt and equity
	Divergent Technologies brings in $160M Series C
	Ayar Labs raises $130M
	Qualified wraps up $95M Series C
	Tiger Global leads $75M round for RelationalAI
	BandLab nabs $65M for social music platform
	Adept emerges from stealth with $65M
	Verana Networks secures $28M for 5G
	Fundraising
	Flare Capital wraps Fund III on $350M
	Slow Ventures snags $325M across two funds
	Ansa Capital launches with $100M
	Harvard earmarks $100M to address slavery legacy

The Daily Benchmark

2018 Vintage Global PE Funds

Median IRR

22.45%

Top Quartile IRR

38.88%

1.31x

Median TVPI

Select top performers

Oaktree Special Situations Fund II

SSC Partners I

LVC USD Fund I

*IRR: net of fees

145 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

General Catalyst leads $412M round for SonarSource

Advent International and General Catalyst have led a $412 million round for SonarSource, which provides a platform for detecting bugs and security vulnerabilities in code, at a $4.7 billion value.

View round

View 49 competitors »

Biofourmis picks up $300M Series D

Biofourmis has raised $300 million at more than $1 billion valuation in a round led by General Atlantic. The company's virtual healthcare platform is designed to monitor and manage chronic conditions such as heart failure, hypertension and diabetes.

View round

View 25 competitors »

Harness hits $3.7B valuation

Harness has raised a $230 million Series D led by Norwest Venture Partners. The funding values the company at $3.7 billion. San Francisco-based Harness is the creator of a software delivery platform that provides developers with operations automation, security scanning and more.

View round

View 40 competitors »

Upside secures $165M in debt and equity

Upside has raised $65 million in equity financing and $100 million in debt financing led by General Catalyst, with support from Bessemer Ventures and Builders VC. The company helps brick-and-mortar businesses such as gas stations and convenience stores offer cash back to their customers.

View round

View 5 competitors »

Divergent Technologies brings in $160M Series C

Divergent, the developer of an automotive production system for vehicle structures, has raised $160 million. John L. Thornton, former president of Goldman Sachs, has joined the company's board.

View round

View 6 competitors »

Ayar Labs raises $130M

Ayar Labs has raised $130 million in a round led by Boardman Bay Capital Management. Founded in 2015, the Santa Clara, Calif.-based company builds photonics-based optics and lasers. Ayar Labs was valued at $450 million in February, according to PitchBook data.

View round

View 5 competitors »

Qualified wraps up $95M Series C

Qualified, the developer of a lead generation platform for sales teams, has raised $95 million in a Series C led by Sapphire Ventures. Tiger Global also participated in the funding, among others.

View round

View similar company »

Tiger Global leads $75M round for RelationalAI

RelationalAI has raised $75 million in Series B funding led by Tiger Global, bringing the startup's total VC backing to $122 million. The Berkeley, Calif.-based company's relational knowledge graph system is used to develop intelligent data apps.

View round

View similar company »

BandLab nabs $65M for social music platform

Singapore-based BandLab has raised a $65 million Series B led by Vulcan Capital, with support from Prosus Ventures and others. The startup's platform offers tools to help musicians create and share their music.

View round

View 14 competitors »

Adept emerges from stealth with $65M

Adept has emerged from stealth with a $65 million Series A led by Greylock Partners and Addition. The startup is developing a natural language interface that integrates with existing software like Tableau, Photoshop and Twilio to help users offload manual tasks.

Verana Networks secures $28M for 5G

Verana Networks has raised $28 million in a Series B led by DC Investment Partners. The Massachusetts-based company will use the funds to commercialize its 5G radio access network solution for wireless service providers.

View round

View 2 competitors »

Fundraising

Flare Capital wraps Fund III on $350M

Flare Capital Partners has closed its third flagship fund with $350 million in committed capital. Based in Boston, the VC firm targets investments in healthcare tech companies, including those developing big data analytics, secure infrastructure and mobile solutions. Flare raised $255 million for its second fund in 2019.

View fund

View 36 investments »

Slow Ventures snags $325M across two funds

Slow Ventures has launched its fifth seed fund and its second opportunity fund, which together represent $325 million in new capital commitments. The early-stage VC firm invests in areas such as crypto, SaaS, consumer brands and social networking. Slow Ventures raised $165 million for its fourth seed fund and $55 million for its first opportunity fund in 2019.

View fund

View 425 investments »

Ansa Capital launches with $100M

New VC firm Ansa Capital has held a first close of $100 million for its debut fund, with limited partners including Princeton University, Henry Kravis and George Roberts. The fund will target investments of $5 million to $15 million in emerging growth-stage companies that are pioneering new markets, reinventing distribution models and modernizing legacy systems.

View fund

View investment »

Harvard earmarks $100M to address slavery legacy

Harvard University has authorized a commitment of $100 million to support teaching, research and service intended to help redress the enduring effects of its legacy of slavery. A portion of the funds will be available for current use, with the remainder held in an endowment that will support the university's work over time.

View details

View 4 investments »

Chart of the Day

"A startling 78.3% of capital raised went to North American funds, though many of those funds may be investing globally and attracting capital from around the world. The previous high share for North American funds was 68.4% in 2015. Europe was a distant second in 2021, at 13.3%, and Asian funds attracted only 7.8%."

Source: PitchBook's H2 2021 Global Real Estate Report