PitchBook News - Mismatched valuations stall secondaries

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

Log in

The Daily Pitch: VC

July 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:

As the expectations of buyers and sellers diverge, secondary dealmaking slows

PitchBook analysts revisit their US PE predictions from the beginning of 2023

PE firms stick with private credit to finance leveraged buyouts

Today's Top Stories

Valuation disconnect stands in the way of secondaries dealmaking

(New Africa/Shutterstock)

Global secondary market dealmaking declined roughly 25% year-over-year to $43 billion in the first six months of 2023, a product of persistent pricing gaps, lower asset supply in Q1 and easing pressure from the denominator effect, according to data from advisory firm Jefferies and dealmakers participating in the secondary market.

Recommended Reads

Startups are producing real dairy without a cow in sight. [The Economist]

Inside Binance's botched efforts to outwit regulators in Europe. [Forbes]

One-time unicorn Cameo struggles for new funding as its growth fizzles in the wake of the pandemic. [The Information]

Since yesterday, the PitchBook Platform added:

196

People

40

Companies

See what our data software can do

The Daily Benchmark:
2016 Vintage North American Debt Funds

Median IRR

10.19%

Top Quartile IRR

11.89%

0.74x

Median DPI

Select top performers

VSS Structured Capital III

Blue Ocean Fund

Silver Point Distressed Opportunities Master Fund

*IRR: net of fees

55 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

Don't miss our upcoming webinar

ESG and sustainable investing are now a mainstay of market discourse, but there remains a lack of consensus on how and where these terms should be applied. Join our speakers from the PitchBook Institutional Research Group for a discussion on ESG's evolving perception and usage, as seen through the lens of the 2023 Sustainable Investment Survey.

Register now to secure your spot.

Share:

PE Deals

Bain Capital has increased its offer for German-listed SoftwareOne to as much as 3.3 billion Swiss francs (around $3.8 billion), after the company rejected an earlier bid.

Inflexion Private Equity Partners has agreed to acquire UK-based law firm DWF Group in a £342 million take-private deal.

Seraya Partners-backed Cyan Renewables, an offshore wind services provider, has fully acquired service operation vessel Groenewind, which is under a long-term charter in Belgium with Siemens Gamesa, from DEME Group.

Energy-focused PE firm Bluewater's new platform, Fox Innovation & Technologies, which works on compressors and turbines in the energy and industrial markets, has made its first acquisition: Houston-based Revak.

Levine Leichtman Capital Partners has invested in California-based med spa manager and operator SEV, which has 27 offices in seven states.

Tikehau Capital is buying Dutch cycling infrastructure and sustainable street furniture company Crowd.

9altitudes, a Belgian consulting group backed by Waterland Private Equity, has acquired Spanish peer Integral Group.

Portfolio Companies

Failed cryptocurrency exchange FTX has sued four former executives, including founder Sam Bankman-Fried, for more than $1 billion over misuse of funds, according to reports.

VC-backed Cerebras Systems has partnered with Group 42, a UAE-based technology company, to develop up to nine AI supercomputers. The deal is worth around $100 million, according to reports.

The SEC subpoenaed Bolt, an ecommerce startup, over allegations that former CEO Ryan Breslow misled investors while raising its $355 million Series E, The Information reported.

Fundraising

Bracket Capital, which focuses on late-stage and venture-growth investing, has closed its third flagship fund on $150 million. It has raised an additional $300 million to invest across co-investment and evergreen funds.

Corporate M&A

French aerospace manufacturer Safran Group has agreed to acquire the flight control systems business of North Carolina-based, RTX-owned Collins Aerospace at an enterprise value of $1.8 billion.

Chart of the Day

"While only 8% of GPs reported that they decreased their focus on sustainable investing, 20% of all respondents thought that GPs were doing so. Respondents also perceived LPs to be decreasing their focus more than LPs reported doing so, with 23% saying that they thought LPs were pulling away from sustainable investing compared with 17% of LPs expressing that view of themselves."

Source: PitchBook's 2023 Sustainable Investment Survey

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.

PitchBook News - Mismatched valuations stall secondaries

Older messages

The return of the LBO

Lawyers unfazed by new antitrust guidelines

Has Europe's VC market bottomed out?

ESG difficulties split for Europe, North America

Offshore energy production sets sail

You Might Also Like

Boost conversions of your Tweets

Jaycee Nolan speaks social media

✅ ✅ SEO Black Friday came early this year...

DOGA Rockets to the moon - a sign for web3 gaming?

Will this new tool disrupt search?

Gensler’s Likely Exit as SEC Chair Sparks Legal Backlash

Move Over Temu: Amazon Launches Its Low-Cost Store [Crew Review]

Weekly Dose of Optimism #120

Test Your IQ...🤔 To Crack The Interview

Supply chain tech looks to Japan