What the future holds for private capital

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

The Daily Pitch: VC

January 24, 2023

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

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

Our analysts forecast that global private capital AUM will reach $13 trillion by 2027.

Find out why the practice of buying stakes in private equity firms has recently gained traction.

A look at four of last year's key trends that pushed private equity over the New Year's Day finish line.

Today's Top Stories

Private market AUM growth will slow, but it won't die

Persistent global market headwinds will likely blunt the growth of total private capital AUM, but they won't stop it altogether. As the alternatives industry heads into a period of uncertainty, private closed-end funds are likely in for a progressive slowdown in capital commitments.

Our aggregate model suggests that global private capital AUM will reach a total of $13 trillion by 2027, a cumulative growth of 20.7% and a steep drop from the over 200% AUM growth over the past decade.

read it now

GP stakes gain traction as fundraising slows

(YesPhotographers/Shutterstock)

The practice of buying stakes in private equity firms—also called general partner stakes—is gaining traction as institutional investors look at ways to gain diversified exposure to the asset class in a tough fundraising environment.

At the same time, firms are seeing GP stakes as a way of bolstering their balance sheets.

A Message from Deloitte

ESG at the expansion stage: How fast-growth companies are navigating ESG priorities

After a record-breaking 2021 for dealmaking, ESG's primary arenas of cleantech, climate tech and impact investing saw robust tallies of investment at the expansion stage in 2022—totaling $15.7 billion across a few hundred completed deals. Yet, balancing ESG priorities with rapid growth can prove challenging. The latest edition of Deloitte's Road to Next series explores key metrics emerging from dealmaking data while discussing insights on key priorities and how ESG implementation can aid growth, with highlights including:

How factoring in risks stemming from governance ripple effects future-proofs businesses
What growth in available capital for ESG-related enterprises entails, especially in environments of rising risk
A spotlight on under-discussed segments of cleantech

Read it now

Highland Europe closes milestone VC mega-fund on €1B

Highland Europe counts food brand Huel among its portfolio.
(GarethWilley/Shutterstock)

Highland Europe, a UK-based venture capital firm, has hit a €1 billion final close on its latest growth fund—Europe's first VC mega-fund to close this year.

European VC fundraising has become more challenging, but the proliferation of larger funds has helped push the total capital raised higher as LPs gravitate toward more established managers.

Four charts that spotlight how PE held on in 2022

(Paolo Cremonesi/Shutterstock)

2022 wasn't a banner year for PE, but several metrics—deal value and exit count, for example—showed it was roughly in line with recent years. The industry stumbled over the New Year's Day finish line thanks to shifts in strategy that led to smaller median deal size and different kinds of investments.

see the data

Recommended Reads

The growing success of chips using Arm technology is heaping pressure on Intel as SoftBank-owned Arm prepares for an IPO. [The Wall Street Journal]

Even as company cafeterias struggle with emptier workplaces, food is still important to employees. Here's how some businesses are reinventing the company meal. [The New York Times]

How women on boards navigate the line between warmth and competence. [Harvard Business Review]

Since yesterday, the PitchBook Platform added:

VC valuations

1784

People

528

Companies

Funds

See what our data software can do

Quick Takes

	The Daily Benchmark
	2010 Vintage Global Secondaries Funds
	VC Deals
	Zift secures $70M
	Dayforward lands $25M, acquires Commercial Travelers
	Mexico's Zenfi picks up $8.5M
	Calimero Network raises $8.5M
	Former FTX US head scores $5M for crypto startup Architect
	Grazzy gets $4.25M for digital tipping
	Portfolio Companies
	Quordle purchased by Merriam-Webster

The Daily Benchmark

2010 Vintage Global Secondaries Funds

Median IRR

13.60%

Top Quartile IRR

18.00%

1.50x

Median TVPI

Select top performers

Origami Opportunities Fund I

StepStone Ohio Secondary Opportunities Fund

Landmark Real Estate Fund VI

*IRR: net of fees

14 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Zift secures $70M

Zift Solutions, which offers a marketing and partner relations platform, has secured $70 million in a round led by Investcorp Technology Partners. Investcorp is now Zift's majority shareholder.

View round

View 68 competitors »

Dayforward lands $25M, acquires Commercial Travelers

Digital life insurance startup Dayforward has raised $25 million in a round led by Axa Venture Partners. The startup has also bought Commercial Travelers Life Insurance Company (not to be confused with Travelers) from National Guardian Life Insurance Company.

View round

View similar company »

Mexico's Zenfi picks up $8.5M

Magma Partners has led an $8.5 million round for Mexico-based Zenfi, TechCrunch reported. The company's platform helps users understand their finances and taxes.

View round

View similar company »

Calimero Network raises $8.5M

Blockchain infrastructure startup Calimero Network has raised $8.5 million in seed funding co-led by Khosla Ventures, Lyrik Ventures and Near Foundation. The London-based startup was founded in 2022 and is creating a management platform for private networks, called "shards," on its blockchain.

View round

View similar company »

Former FTX US head scores $5M for crypto startup Architect

The former president of FTX US, Brett Harrison, has launched crypto trading platform Architect with a $5 million round, according to reports. The funding comes from investors including Coinbase Ventures, Circle Ventures and former White House communications director Anthony Scaramucci.

View round

View similar company »

Grazzy gets $4.25M for digital tipping

Grazzy, which offers a payments platform for hourly workers, has raised a $4.25 million seed round. Next Coast Ventures and Tuesday Capital participated in the round. The Austin-based startup has raised a total of $6.8 million.

View round

View similar company »

Insights on over 100K clinical trials now available in PitchBook

In response to market volatility and slowing innovation in the computer hardware and software space, investors are turning to healthcare—specifically, non-cyclical industries like biotech and pharma—as the next wave of high-impact, high-return opportunities. However, biotech and pharma investing contain a different set of risk profiles compared to tech startups. Progress through clinical trial stages is the best indication of the ultimate commercial viability of a new drug or medical device—and therefore, the likelihood of achieving a solid investment return.

To help investors isolate biotech and pharma companies with the highest chance of success, we've launched a new clinical trial integration, providing insights on over 100,000 clinical trials alongside our industry-leading funding data. With this new tool, investors can reduce time spent on opportunity discovery and due diligence by viewing a company's funding status alongside its drug development pipeline.

Explore our new clinical trial integration.

Portfolio Companies

Quordle purchased by Merriam-Webster

Wordle competitor Quordle, which offers an online game that features four words to be guessed at once, has been acquired by dictionary giant Merriam-Webster for an undisclosed amount. The New York Times purchased Wordle in January 2022 for at least $1 million.

View details

View similar company »

Chart of the Day

"It is likely that banks will gradually return to underwriting new LBO loans late in 2023 as the backlog clears and the leveraged loan market becomes more liquid—but not before ceding significant share to direct lenders."

Source: PitchBook's 2022 Annual US PE Breakdown

About PitchBook | Terms of use | Advertise with us | Contact

This email was sent to you via the PitchBook Platform.

Do you want to change your email address, get a different edition or unsubscribe? Manage your subscription here.

Key phrases

global private capital AUM Day finish line private equity firms The Daily Pitch milestone VC megafund

Older messages

Lightspeed's game changer

Monday, January 23, 2023

Genesis files for bankruptcy protection; SetPoint Medical snags $80M; AiOla picks up $25M; Presso grabs $8M for robotic dry-cleaning Read online | Don't want to receive these emails? Manage your

Private debt braces for stormy seas

Sunday, January 22, 2023

Plus: Get smart about placement agents, an account from the analysts on healthcare conference, Europe's venture market stumbled in 2022 & more Read online | Don't want to receive these

The future of our infrastructure

Saturday, January 21, 2023

Also: The role of placement agents in GP fundraising; How leveraged finance is set up for this year; European PE holds strong while VC slows in 2022. Read online | Don't want to receive these

A placement agent primer for GPs

Friday, January 20, 2023

B Capital raises $2B+ growth fund; PhonePe hits $12B valuation; Courtside closes $100M vehicle; Outrider hauls in $73M for autonomous trucks Read online | Don't want to receive these emails? Manage

The rhyme and reason of impact investing

Friday, January 20, 2023

ReCode lines up gene therapy partnerships; insurtech startups flounder in a fragmented market; are startups' board members spread too thin? Read online | Don't want to receive these emails?

4 common marketing problems & how to solve them

Tuesday, February 7, 2023

To view this email as a web page, click here The Content Marketer This week, we're investigating 4 common marketing problems and how to solve them like a pro, discovering new ways to increase brand

20 things to put on your homepage

Tuesday, February 7, 2023

(and 5 things to remove) ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Feb. 7 - Wendy’s first to test new shoppable TV tech | Klarna channels Y2K with Paris Hilton

Tuesday, February 7, 2023

Klarna jumps back to Y2K with help from Paris Hilton; ZipRecruiter partners with Ant-Man to showcase job-seeking tech; Publicis Groupe's data and tech bets pay off with strong growth; Ad blitz:

Claim back your time

Tuesday, February 7, 2023

Take control over your time in 2023 ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Increase revenue with social media consistency

Tuesday, February 7, 2023

Here's how Figo Pet Insurance did it ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Jan Income Report ($43K) + Two Things I'm Doing In Feb

Tuesday, February 7, 2023

View in browser It's always hard to know what to work on next isn't it? Do you work on fixing up the site that's suffered a big traffic drop? Or do more of what's working with the one

[Roundup] How to avoid Amazon’s storage limits

Tuesday, February 7, 2023

‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Bitcoin Fundamentals Keep Getting Stronger

Tuesday, February 7, 2023

Listen now (5 min) | A breakdown of bitcoin's fundamentals. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

What is Rebranding? Best Examples & Strategies in 2023

Tuesday, February 7, 2023

Before you start a rebrand, learn the best strategies to pull it off in 2023, and see examples of other brands who've reinvented themselves. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

The Latest from SaaStr: What Happens When You Hire the Wrong VP

Tuesday, February 7, 2023

What Happens When You Hire the Wrong VP To view this email as a web page, click here saastr daily newsletter What Happens When You Hire the Wrong VP (Updated) By Jason Lemkin Monday, February 6, 2023 |