PitchBook News - Can climate tech sustain its momentum?

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The Daily Pitch: VC

June 21, 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:

The private credit market is watching for signs of stress in loan portfolios as defaults pick up

Can climate tech's strong dealmaking keep up its momentum?

PE investors outside Europe are putting less money to work in the region

Today's Top Stories

A tipping point for climate tech

The median venture-growth pre-money valuation for climate-tech companies jumped from $96.1 million to $172.7 million between 2021 and 2022, but can the industry sustain that momentum?

Find out in our latest analyst note, which delves into emerging opportunities and spotlights key players, from fledgling seeds to venture-growth behemoths like TerraPower and Climeworks.

read the preview

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Turning credit cycle poses fresh test for private debt

(Yuriy K/Shutterstock)

As investors bask in private credit's "golden moment," market participants are watching for signs of stress in loan portfolios.

In recent years, private credit providers have stepped up to finance deals that may have been done in the syndicated loan market or the bond market in the past.

Now, borrower companies of private credit loans are feeling increasing strain due to higher interest costs. Loans placed in 2018-19, in particular, are being watched, as credit market conditions were strong at the time.

Recommended Reads

A slowdown in the junk-rated loan market is hitting US corporate borrowing plans. [Financial Times]

Rising interest rates caught private equity firms by surprise, and their debt-laden companies are paying the price. [Bloomberg]

Can Australia break China's critical-minerals monopoly? [The Economist]

Since yesterday, the PitchBook Platform added:

15

VC valuations

2110

People

659

Companies

24

Funds

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The Daily Benchmark:
2017 Vintage North American Real Assets Funds

Median IRR

12.85%

Top Quartile IRR

20.01%

0.29x

Median DPI

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EIV Capital Fund III

Waterous Energy Fund

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People

KKR has named Gaurav Trehan, the current CEO of KKR India, as its new head of private equity for Asia-Pacific, according to reports.

VC Deals

Mining company KoBold Metals has raised $195 million. T. Rowe Price led the round, The Wall Street Journal reported.

Cloud infrastructure provider Render has raised a $50 million Series B led by Bessemer Venture Partners.

SaaS logistics startup Rose Rocket has raised a $38 million Series B led by Scale Venture Partners.

Text-to-speech software specialist ElevenLabs has raised $19 million in a Series A led by Nat Friedman, Daniel Gross and Andreessen Horowitz.

Caraway, a telehealth provider offering mental, physical and reproductive health services, has raised a $16.75 million Series A led by Maveron and GV, Axios reported.

Parrot, which offers an AI-powered transcription platform for the legal and insurance industries, has raised an $11 million Series A led by Amplify Partners and XYZ Venture Capital.

Biopharma company Turbine has raised an additional €5.5 million for its Series A from MassMutual Ventures, bringing the round's total to €25.5 million.

Cooko, a Berlin-based agtech startup that supports cacao farmers, has raised €800,000 in a pre-seed round.

Don't miss our upcoming webinar

With fewer avenues available, PE and VC exits through H1 2023 have remained slow. As a result, allocators are continuing to turn to the secondary market through LP-led transactions. GPs with seasoned portfolios are approaching LPs with opportunities, too.

In this webinar, our panel of industry experts will discuss the increasingly creative liquidity solutions that provide capital to market participants. Key topics include:

The overall secondary market volume through H1 2023, expectations for H2, and factors that are driving these trends.

Specific dynamics, such as pricing, facing both the LP- and GP-led secondary markets.

Register now to secure your spot.

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PE Deals

KKR has agreed to purchase up to $44 billion in PayPal's European buy now, pay later loans as part of a multiyear replenishing loan commitment agreement.

Blackstone's infrastructure group has acquired a 19.9% stake in NiSource's NIPSCO, a vertically integrated electric and gas distributor in Indiana, for $2.15 billion.

The Investment Management Corporation of Ontario has made a $400 million investment in Northvolt—a VC-backed, Sweden-based battery producer—with convertible notes.

Scopia Capital, Jefferson River Capital and others have contributed $50 million in new equity funding to PM Pediatric Care, a New York-based urgent care network with 78 locations.

BPEA EQT and ChrysCapital have agreed to buy a majority stake in HDFC Credila, the education finance unit of India's Housing Development Finance Corporation, for 90.6 billion rupees (about $1.1 billion).

BGF has invested £9 million in Bristol-based healthcare infrastructure company Archus.

The Vistria Group has acquired a stake in MGT from Trivest Partners, which made a non-control investment in the company in 2020. MGT offers consulting services to local governments and school districts.

Serengeti Asset Management has acquired a 30% stake in the broadcast and commercial rights for Liga 1, the Peruvian football league, alongside 1190 Sports and other investors.

Sullivan Street Partners-backed UK grounds maintenance provider Tivoli Group has acquired sector peer Greenfingers Landscape.

Neptune Retail Solutions, a retail marketing firm backed by Charlesbank Capital Partners, has agreed to acquire NYSE-listed Quotient Technology, the parent company of Coupons.com, for $430 million.

Exit & IPOs

NGP Energy Capital Management has agreed to sell upstream oil and gas assets from portfolio companies Hibernia Energy III and Tap Rock Resources to Civitas Resources for $4.7 billion.

Ares Management-backed Savers Value Village could raise up to nearly $320 million through an IPO on the NYSE. The thrift store chain plans to sell 18.8 million shares priced between $15 and $17 apiece.

Renatus Capital Partners has sold its stake in UK-based Mexican restaurant chain Boojum to Azzurri.

Fundraising

Go-Ventures, a Southeast Asia-focused firm backed by GoTo, has closed its second fund at $240 million and rebranded itself as Argor Capital.

Illuminate Financial has raised a $235 million third fund with capital commitments from Bank of New York Mellon Corp and Euroclear.

Plug and Play Tech Center is in talks with Jada, a fund-of-funds established by PIF, to raise $100 million to invest in Saudi Arabian tech startups.

London-based VC firm Boost Capital Partners has held a $30 million first close on its inaugural fund targeting $40 million.

Investors

Bahrain-based alternative asset manager Investcorp hopes to raise up to $600 million through an IPO of the firm's private market co-investments, which include credit, real estate and PE, Reuters reported.

Chart of the Day

"Exit activity continues to be muted. TTM (trailing twelve-month) exit value for the ecosystem amounted to $637.1 million and this decline is closely coupled with elevated interest rates and a closure in the IPO window."

Source: Gaming VC Trends Deep Dive

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private credit market The Daily Pitch

PitchBook News - Can climate tech sustain its momentum?

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