PitchBook News - SoftBank warns of Vision Fund cuts

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The Daily Pitch: VC

August 9, 2022

The Daily Pitch is powered by PitchBook’s industry-defining research and best-in-class data

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

PitchBook analysts revisit their predictions for US private equity in 2022.

After a bruising Q2, SoftBank is looking to cut Vision Fund staff; our data visualization dashboard shows the latest trends in the firm's performance.

Our PE Earnings Dashboard, now updated with Q2 data, tracks trends in key performance metrics for public PE firms in the US.

Today's Top Stories

Assessing our 2022 US PE predictions

At the start of 2022, PitchBook PE analysts made their predictions amid several tailwinds.

Now, midway through the year, inflation is raging as supply chains adjust to pandemic-related shocks, while Russia's invasion of Ukraine has escalated supply chain disruptions and further lifted inflationary pressures. This significant market volatility has dampened PE's previously fervent pace.

A few of the predictions we revisit in our latest analyst note:

Mega-funds will raise $250 billion in 2022, including the three largest-ever buyout funds.

The big five US public alternatives managers' AUMs will eclipse $3 trillion in 2022.

At least 30 GP stakes deals will close, thereby setting a record.

PE firms will close at least 400 middle-market software deals.

read it now

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SoftBank CEO laments losses, warns of Vision Fund cuts

SoftBank CEO Masayoshi Son (Tomohiro Ohsumi/Getty Images)

As the Vision Fund group turns into a money loser for SoftBank, CEO Masayoshi Son is preparing for widespread cuts to headcount and other operating costs.

SoftBank reported a loss of 2.93 trillion yen (about $21.7 billion) in Q2, following a similarly large loss in the prior quarter. Some of the companies that appeared to be its biggest winners more than a year ago—such as Coupang and Doordash—have seen their share prices plunge.

Our SoftBank's Vision Fund Dashboard breaks down the latest trends.

see the data

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A message from Twin Brook Capital Partners

The state of the mid-market with Twin Brook's Chris Martin

Chris Martin, Partner at Twin Brook Capital Partners, recently joined Middle Market Growth's Conversations podcast to discuss the state of the mid-market and working with PE sponsors and borrowers as they navigate the evolving macroeconomic environment.

Listen here

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US private equity earnings dashboard

Publicly traded US private equity firms reported mixed financial results for the second quarter of this year after continuing to navigate a volatile market—hit by rising interest rates, inflation and geopolitical turbulence.

Our US private equity earnings dashboard, updated quarterly, breaks down trends in key performance metrics for Blackstone, Apollo Global Management, KKR, The Carlyle Group, TPG and Blue Owl from company filings and PitchBook data.

see the dashboard

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Recommended Reads

Investors are selling stakes in private equity and venture capital funds at the fastest pace on record as the downturn in equities spreads to the private markets. [Financial Times]

Apple, which used to acquire a company every three or four weeks, has dramatically slowed its dealmaking in the past two years. [Bloomberg]

Crypto and the US government are headed for a decisive showdown to settle the question of whether most digital assets are illegal securities offerings. [Wired]

Since yesterday, the PitchBook Platform added:

27

VC valuations

1797

People

573

Companies

23

Funds

See what our data software can do

Quick Takes

	The Daily Benchmark
	2015 Vintage Global Real Assets Funds
	VC Deals
	Sports-betting specialist Betr rakes in $50M
	InBrace lines up $45M in debt
	Black Buffalo picks up $30M
	Project Solar secures $23M
	Forage bags $22M
	Epigenic Therapeutics gathers $20M
	BCV, Tiger Global lead $7M round for Mexico's Miferia
	Fundraising
	Sinovation Ventures reaches $200M first close of Fund V

The Daily Benchmark

2015 Vintage Global Real Assets Funds

Median IRR

9.17%

Top Quartile IRR

12.53%

1.34x

Median TVPI

Select top performers

Carnelian Energy Capital

Appian Natural Resources Fund

Partners Group Direct Infrastructure 2016

*IRR: net of fees

38 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Sports-betting specialist Betr rakes in $50M

Betr, a sports-betting and media company, has raised a $20 million Series A1 co-led by Aliya Capital Partners and Fuel Venture Capital, in addition to $30 million secured in a Series A led by Florida Funders earlier this year. Betr focuses primarily on micro-betting, which allows users to bet on specific moments in a sporting event in real time.

View details

View 78 investments »

InBrace lines up $45M in debt

Orthodontic company InBrace has raised $45 million in debt financing led by Horizon Technology Finance Corporation.

View round

View 11 competitors »

Black Buffalo picks up $30M

Black Buffalo has raised a $30 million Series A co-led by The Pritzker Organization and Listen Ventures. The Chicago-based company offers tobacco-free smokeless products.

View round

View 9 competitors »

Project Solar secures $23M

Project Solar has raised a $23 million Series A led by Left Lane Capital. The direct-to-consumer company offers solar equipment and installation.

View round

View similar company »

Forage bags $22M

Forage has raised a $22 million Series A led by Nyca Partners. The payment processing specialist helps grocers accept SNAP EBT payments online.

View round

View similar company »

Epigenic Therapeutics gathers $20M

Epigenic Therapeutics has raised $20 million from investors including Morningside Venture Capital, Kingray Capital, Trinity Innovation Fund and TigerYeah Capital. The Shanghai-based company specializes in next-generation gene editing therapy.

View round

View similar company »

BCV, Tiger Global lead $7M round for Mexico's Miferia

Miferia, based in Mexico City, has raised $7 million in seed funding co-led by Bain Capital Ventures and Tiger Global. The company offers a B2B marketplace that connects independent Mexican retailers with domestic brands.

View round

View similar company »

Fundraising

Sinovation Ventures reaches $200M first close of Fund V

Sinovation Ventures has completed a first close of its fifth namesake fund on $200 million, The Wall Street Journal reported. The firm, which is targeting $500 million for the fund, invests in sectors such as AI, robotics and automation, semiconductors, and healthcare technology. The vehicle's predecessor closed on $500 million in 2018.

View fund

View 352 investments »

Chart of the Day

"A bright spot in the venture market has been the returns of smaller funds. Vehicles under $250 million in size have outperformed the broader market in recent quarters. These funds are instrumental in bringing companies into the venture lifecycle, and an increase in small-fund vehicles due to outperformance will continue to move the VC market forward."

Source: PitchBook's 2022 Global Fund Performance Report (as of Q4 2021 with Preliminary Q1 2022 Data)

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Vision Fund staff PE Earnings Dashboard public PE firms data visualization dashboard The Daily Pitch US private equity key performance metrics

PitchBook News - SoftBank warns of Vision Fund cuts

Key phrases

Older messages

VCs face slowdown in information security

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Our VC predictions: revisited

Fund performance holds strong

Fintech investment simmers down

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