PitchBook News - New key for PE: Adding value

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The Weekend Pitch

February 18, 2024

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

(Chloe Ladwig/PitchBook News)

Reading some of the news headlines of recent weeks, driven by a refinancing bonanza and a return of dividend recaps, it has almost been possible to imagine we were back in a different time. One where money was easy to come by and PE firms could handily generate returns.

However, while improved conditions in the leveraged debt markets may have given squeezed PE firms some respite in recent weeks, investors should not expect the cost of finance to be reduced significantly or dependably in the short term.

PE firms should remain focused on the long game if they are going to succeed in the current environment, while avoiding the temptation to chase shortcuts. A renewed focus on the meat and potatoes of value creation should be central to their approach.

This is the Weekend Pitch, and I'm Marie Kemplay. You can reach me at marie.kemplay@pitchbook.com.

Trivia

(We Are/Getty Images)

Crypto, battered by scandals and collapses, may finally be bouncing back, buoyed by the approval of a spot Bitcoin ETF by the SEC. Across 326 deals, how much deal value was generated by the crypto vertical in Q4?

A) $1.9 billion
B) $1.3 billion
C) $2.2 billion
D) $1.7 billion

Find your answer at the bottom of The Weekend Pitch!

Drone-fighting startups enter
cat-and-mouse game of R&D

(Anton Petrus/Getty Images)

Startups made a splashy entrance into the drone detection and neutralization sector with cost-effective solutions compared to those developed by established defense contractors. Currently, it's cheaper to retrofit drones for harmful or unauthorized purposes than it is to set up a comprehensive defense system against drone threats.

This asymmetry tees up opportunities for disruption and innovation spanning military, commercial and civilian uses. Our latest emerging space brief contrasts different types of counter-drone technology, including nets, lasers and GPS spoofers, and the funding associated startups have garnered so far.

Improving climate points to spring thaw for US private markets

(Ekspansio/Getty Images)

Private markets deal volume and fundraising were subdued last year, compared with the anomalous years of 2020 and 2021. But positive economic indicators and market conditions indicate a spring thaw may be underway, according to our Q1 2024 Quantitative Perspectives: US Market Insights report.

The potential for interest-rate cuts will ease some pressure on GPs managing their portfolios amid the valuation reset, and signs of a resurgence in the public markets may unfreeze exit activity.

Fintech's big fire sale

(d3sign/Getty Images)

As fintech enters the fifth inning of its failure wave, cash crunches will drive more distressed acquisitions and fire sales, according to our new analyst note, Financial Fusion: Fintech's M&A Landscape Unveiled.

Dive into the likely acquisition targets and sink your teeth into takeaways from interviews with over 30 fintech founders, bankers and investors who have their eye on what happens next in M&A.

Quote/Unquote

(Shana Novak/Getty Images)

“These are groups that have never really struggled before. They have good performance. It’s just really tough.”

—Jordan Stein, director of private capital at Cresset Partners speaking to PitchBook News on GPs struggling to fundraise.

Stay tuned

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

Q4 2023 Supply Chain Tech Report
2023 Annual EU VC Valuations Report
Gaming VC Trends Deep Dive Report
Q4 2023 Medtech Report

Trivia

Answer: A)

In Q4 $1.9 billion was generated in deal value within the crypto space. You can read more about those deals and the vertical in our Q4 2023 Crypto Report

This edition of The Weekend Pitch was written by Marie Kemplay, Madeline Shi, Clarinda Simpson, Jacob Robbins and Rosie Bradbury. It was edited by Andrew Woodman and Ron Prichard.

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PitchBook News - New key for PE: Adding value

Trivia

Drone-fighting startups enter
cat-and-mouse game of R&D

Improving climate points to spring thaw for US private markets

Fintech's big fire sale

Quote/Unquote

Stay tuned

Trivia

Older messages

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An optimistic outlook for US markets

Former founders, VC needs you

Down rounds and deal terms

The climate-tech startups to watch

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PitchBook News - New key for PE: Adding value

Trivia

Drone-fighting startups enter cat-and-mouse game of R&D

Improving climate points to spring thaw for US private markets

Fintech's big fire sale

Quote/Unquote

Stay tuned

Trivia

Older messages

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Drone-fighting startups enter
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