PitchBook News - Ivys' not-so-elite returns

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The Weekend Pitch

November 5, 2023

Presented by Masterworks

(Jenna O'Malley/Pitchbook News)

Endowments at the top universities in the US have had a tough couple of years, and their struggle is far from over.

Fiscal years 2022 and 2023 saw the worst returns in the past decade for Ivy League endowments. And as valuation corrections cut through the private markets, it may be a while before these institutional investors see above-average returns.

The Princeton University endowment saw the worst performance in the Ivy League in FY 2023 with a 1.7% loss on its investments. The university's return is a steep dip from its performance over the last decade, which averaged an annual return of 10.8%.

It's the same story among its peers. Out of the eight schools in the Ivy League, Columbia University was the only institution to generate a return above 4%. After a decade ripe with annualized returns averaging around 10%, these measly fiscal year results present the bleak reality of a high interest rate environment, volatility in public equities and a drawn-out valuation correction in the private markets.

This is the Weekend Pitch, and I'm Jessica Hamlin. You can reach me at jessica.hamlin@pitchbook.com or @jessicaAhamlin on X.

Trivia

(Mike Kline/Getty Images)

Which of the following cities is the fastest-growing VC ecosystem in the US, according to a PitchBook analysis?

A) Houston
B) Raleigh
C) Miami
D) Detroit

Find your answer at the bottom of The Weekend Pitch!

Why seed deals keep sprouting

(sarayut Thaneerat/Getty Images)

While valuations of most stages have wilted since the market peaked in 2021, deal metrics of seed deals have only grown stronger thanks in large part to the participation of large, multistage investors.

Our latest analyst note, The Seed Blip, examines why we think the growth spurt will turn out to be a temporary phenomenon.

Helping PE healthcare investors mind the specifics

(Richard T. Nowitz/Getty Images)

Generalist PE firms buying and building healthcare providers with no eyes on their operations are out. What’s in: Specialists armed with industry expertise in areas like value-based care. Our quarterly Healthcare Services reports reflect that reality.

Our new Healthcare Services Overview breaks down categories and subcategories within the industry, allowing for ever more specific insights into investment drivers and headwinds.

Open banking puts data in consumers' hands

(Busakorn Pongparnit/Getty Images)

In the fintech industry's top dog, the enterprise fintech sector, all eyes are on developments in open banking technology. It provides a more secure and reliable way for consumers to share financial data with outside applications, giving them power in an area historically controlled by banks.

The European Union and the UK have pioneered the technology, and our recent Emerging Tech Research explores its leading players—Plaid, Oracle, Apple and others—and notable startups including Akahu, Basiq and Flinks.

Chris Heller

Quote/Unquote

"What we think [about] when finding today's alternatives is being early, so we invest in barrels of whiskey, boat marinas, wireless spectrum licenses, all kinds of things."

—Chris Heller, co-managing partner and founder of San Francisco-based Cordillera Investment Partners, which invests in what it calls "alternative alternatives."

Stay tuned

Keep an eye out for these insights and research reports coming out this week:

Global Fund Performance Report
US VC Valuations Report
PitchBook Private Capital Indexes Report
Infrastructure SaaS Quarterly Report
Healthcare Services Quarterly Report
Agtech Quarterly Report
MedCity INVEST Digital Health Conference Recap
Germany Quarterly Snapshot

Trivia

Answer: D)

Detroit, long known as Motor City, is the fastest growing VC ecosystem in the US and the second-fastest growing VC ecosystem in the world, according to a recent PitchBook report. Cities with thriving startup scenes tend to have these three qualities in common.

This edition of The Weekend Pitch was written by Jessica Hamlin, Marina Temkin, Clarinda Simpson and Emily Burleson. It was edited by Heather West and Ron Prichard.

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PitchBook News - Ivys' not-so-elite returns

Trivia

Why seed deals keep sprouting

Helping PE healthcare investors mind the specifics

Open banking puts data in consumers' hands

Quote/Unquote

Recommended Reads

Stay tuned

Trivia

Older messages

Making sense of seed deal data

Fintech's opportunity in open banking

How LP returns are feeling the exit squeeze

Climate-tech startups buck trends

Sizing up the seed blip

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