Succession plans aid in attractive GP stakes

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The Daily Pitch: VC

September 21, 2022

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

Some investors indicate that solid succession plans are a key factor when considering GP stakes in PE firms.

Middle-market dealmaking stayed steady in H1, but fundraising was another story, according to our new US PE Middle Market Report.

Today's Top Stories

Succession plans emerge as a key part of GP stakes investing

(Andrey_Popov/Shutterstock)

Behind the scenes of the recent wave of investment in GP stakes in PE firms, some partners bringing in new capital have another crucial concern in mind: succession planning.

In addition to fund expansion and growth initiatives, PE firms often seek minority capital to facilitate succession planning. At the same time, some investors mulling a stake in a firm want to see a solid succession plan in place before making a commitment.

Recommended Reads

Calpers, the biggest public pension plan in the US, says putting its PE program on hold for 10 years cost it up to $18 billion in returns. [Financial Times]

Having a good climate plan, and following through on it, could help tech companies attract top talent. [Protocol]

Some PE firms are disputing the findings of a new report grading them on their oil and gas holdings, highlighting the lack of readily available information on a huge industry. [Institutional Investor]

Since yesterday, the PitchBook Platform added:

17

VC valuations

1974

People

493

Companies

27

Funds

See what our data software can do

Quick Takes

	The Daily Benchmark
	2015 Vintage North American VC Funds
	A message from Apex Group
	Fund managers benefit from $3.8M savings with Apex Group
	VC Deals
	Opto Investments emerges from stealth with $145M
	Zopper secures $75M
	Fraud prevention startup Sardine raises $51.5M
	Classiq extends Series B to $49M
	Scratch Financial banks $35M
	4M Analytics brings in $30M
	ImmunoScape collects $14M
	Battery Ventures leads $14M round for Higlobe
	Fundraising
	Lerer Hippeau raises $230M across two funds
	Avanta Ventures collects $225M
	Investors
	Chamath Palihapitiya scraps two SPACs

The Daily Benchmark

2015 Vintage North American VC Funds

Median IRR

26.15%

Top Quartile IRR Hurdle Rate

37.31%

2.39x

Median TVPI

Select top performers

Kingfisher Equity Partners II

Outlander 1 Archimedes

G Squared III

*IRR: net of fees

55 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

A message from Apex Group

Fund managers benefit from $3.8M savings with Apex Group

Forrester Consulting has recently released its independent study, having interviewed key decision makers across a number of large Apex Group clients, and the findings in its Total Economic Impact™ study of Apex Group are compelling:

Around $5.4M in cost benefits
$2.75M Net Present Value over three years
105% return on investment ROI

To find out more about the benefits and savings that Apex Group's single-source solution can provide, download Forrester's Total Economic Impact™ report on Apex Group here.

Apex Group's transformation over the past few years has been driven by the Group's founding vision—to deliver service in a better way, in a way that no one else can.

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VC Deals

Opto Investments emerges from stealth with $145M

Opto Investments has raised a $145 million Series A led by Tiger Global, with support from investors including 8VC and Clocktower Ventures. The New York-based company's platform offers private market access to independent investment advisers.

View round

View similar company »

Zopper secures $75M

Zopper has raised a $75 million Series C led by Creaegis, with support from investors including Bessemer Venture Partners and ICICI Venture. Based in the New Delhi area, the company helps B2B and B2C customers offer insurance products.

View round

View 14 competitors »

Fraud prevention startup Sardine raises $51.5M

Sardine has raised a $51.5 million Series B led by Andreessen Horowitz. Based in the Bay Area, the company provides fraud prevention products to fintech and Web3 companies.

View round

View similar company »

Classiq extends Series B to $49M

Awz Ventures has led a $13 million Series B extension for Classiq, bringing the round's total to $49 million. Based in Tel Aviv, the company is developing quantum computing software for commercial applications.

View round

View similar company »

Scratch Financial banks $35M

Scratch Financial has raised a $35 million Series C led by Norwest Venture Partners. Scratch helps patients and healthcare providers access financing tools and manage payment options.

View round

View 2 competitors »

4M Analytics brings in $30M

4M Analytics has raised $30 million in a Series A extension co-led by Insight Partners and ITI Venture Capital Partners. The Tel Aviv-based company provides mapping technology for underground infrastructure.

View round

View similar company »

ImmunoScape collects $14M

ImmunoScape has raised $14 million in a round led by Anzu Partners. The company is the developer of a drug discovery platform for the treatment of solid tumors.

View round

View 2 competitors »

Battery Ventures leads $14M round for Higlobe

Higlobe, the developer of a payments platform designed to facilitate cross-border transfers, has raised $14 million in a round led by Battery Ventures. Founded in 2020, the Palo Alto-based company is backed by investors including FJ Labs and TTV Capital.

View round

View similar company »

Fundraising

Lerer Hippeau raises $230M across two funds

Lerer Hippeau has raised a total of $230 million for its eighth pre-seed and seed fund and its fourth select fund, which invests in companies from Series A to C.

View fund

View 419 investments »

Avanta Ventures collects $225M

Avanta Ventures has raised a $225 million early-stage fund. The Mountain View, Calif.-based firm seeks to invest in sectors including fintech, cybersecurity, smart home and applied AI.

View fund

View 22 investments »

Investors

Chamath Palihapitiya scraps two SPACs

Chamath Palihapitiya has announced plans to shut down two blank-check companies after they failed amid the downturn to find acquisition targets, Bloomberg reported. The SPACs, Social Capital Hedosophia VI and Social Capital IV, had raised $1.15 billion and $460 million, respectively.

View details

View 49 investments »

Chart of the Day

Source: PitchBook's Q2 2022 US PE Middle Market Report

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Succession plans aid in attractive GP stakes

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