Emerging GPs dominate impact fund counts

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The Daily Pitch: VC

April 10, 2024

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 latest US PE Breakdown examines when dealmaking and exit activity could spring to life

Monad Labs hits unicorn status with a $225 million Series A in a win for the chilled crypto sector

Emerging managers close a high percentage of funds in the impact investing space

Some PE firms like Vista Equity Partners are favoring smaller take-private transactions

Which digital health startups are likely to transform the healthcare landscape?

Today's Top Stories

Emerging managers dominate fund count in impact

(ak_phuong/Getty Images)

Impact investing is one segment of the private markets where emerging managers account for a larger portion of total fund closes than established managers.

Over the past five years, more than 55% of impact funds were closed by fund managers raising their first, second or third fund, a sign of the relative newness of the space, according to our recent analyst note on the state of ESG and impact investing in 2024.

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PE extends slide in share of M&A activity

Recent improvements in liquidity and wider economic conditions herald a potential rebound in M&A dealmaking this year. However, whether PE will participate in the upside of a broader M&A recovery and break its exits logjam remains to be seen, according to our Q1 2024 US PE Breakdown, sponsored by Alter Domus and Azurite Consulting.

In 2023, PE's share of M&A deal volume dropped to less than 40% from 44% in 2022, reversing a trend of eight years with a growing share, and that slide has continued this year. The report breaks down deal trends and offers insights on when PE dealmaking and exit activity could spring to life.

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Monad Labs nabs unicorn status with $225M in largest crypto deal of 2024

(Jenna O'Malley/PitchBook News)

Crypto seems poised for a comeback, helped by a bitcoin rally and novel opportunities to apply AI to blockchains.

Monad Labs, an ethereum blockchain developer, has raised a $225 million Series A, the largest crypto deal in over seven months. Crypto-focused firm Paradigm led the round, which values the startup at $1.8 billion.

"The hangover from 2022 is far enough away," said Nic Carter, a partner at Castle Island Ventures who invested in the round.

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Digital health settles into a new normal

In Q4, digital health startups raised $1.1 billion in VC funding across 57 deals, a 1.7% quarter-over-quarter increase in deal value, but a marked decrease in deal count, which declined 21.9%.

As the vertical begins to stabilize, senior analyst Aaron DeGagne touches on the $30 billion substance use disorder treatment industry and startups looking to break into the space with new modes of treatment.

Our Q4 2023 Digital Health Report unpacks key trends, data, companies to watch, and emerging opportunities—like startups working with digital twins—likely to transform the healthcare landscape.

read the preview

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Private equity downsizes take-private transactions

(MR.Cole_Photographer/Getty Images)

Vista Equity Partners has agreed to acquire software specialist Model N for $1.25 billion.

The take-private offer is at the smaller end of Vista's usual price range as PE buyers favor smaller transactions.

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Third time's the charm for CVC Capital Partners' public listing?

(NurPhoto/Getty Images)

After multiple delays, PE firm CVC Capital Partners could list as early as next week.

The timing could be fortuitous for the European investor as IPO activity has picked up.

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Since yesterday, the PitchBook Platform added:

7

VC valuations

630

People

234

Companies

24

Funds

See what our data software can do

The Daily Benchmark:
2014 Vintage Global Secondaries Funds

Median IRR

12.36%

Top Quartile IRR

16.30%

1.05x

Median DPI

Select top performers

LPE Astraeus

Glouston Private Equity Opportunities V

Ardian Secondary Fund VI Infrastructure

*IRR: net of fees

17 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

People

Sierra Ventures has brought on Shashank Saxena as a managing partner. Saxena founded VNDLY, a vendor management system startup that was later acquired by Workday.

Frank Williams has been named as the latest venture partner addition to digital health-focused firm Define Ventures.

VC Deals

Data security startup Cyera raised a $300 million Series C led by Coatue. The round brings the New York-based startup's valuation to $1.4 billion.

Platform Science, a transportation fleet management specialist based in San Diego, raised $125 million in growth capital from RyderVentures, 8VC and others.

Boston-based biotech startup Seaport Therapeutics, which focuses on neuropsychiatry, raised a $100 million Series A co-led by Arch Venture Partners and Sofinnova Investments.

Genetic medicine startup Nvelop Therapeutics emerged from stealth with $100 million from GV, Arch Venture Partners, F-Prime Capital and others.

Media company Dude Perfect raised more than $100 million from Highmount Capital to expand beyond YouTube.

Helsinki's Basemark, a provider of automotive augmented reality software, closed a €22 million Series B led by ETF Partners.

London-based fintech startup TransferGo raised $10 million from Taiwania Capital, TechCrunch reported.

Weenat, a French agricultural soil water management startup, secured an €8.5 million Series C from investments including ECBF, Pymwymic and Liberset.

PE Deals

L'Occitane majority owner Reinold Geiger is reportedly in the final stages of a take-private deal for the Hong Kong-listed beauty company. Blackstone is expected to support the deal with debt financing. Geiger could pay a 20% premium for the remaining shares of L'Occitane, which currently has a market cap of about $5.6 billion.

Blue Owl Capital agreed to buy real estate lender Prima Capital Advisors for $170 million. The deal supports Blue Owl's creation of a real estate finance strategy.

Growth investor Verdane has taken a majority stake in Dublin-based Corlytics, which makes software for regulatory intelligence and compliance.

Growth equity firm EMH Partners made a minority investment in Stonebranch, a Georgia-based IT software company. Stonebranch majority owner Elvaston also invested in the deal.

Wind Point Partners-backed supply chain company Quantix acquired Space City Services, a Houston-based hazardous waste transportation specialist.

KPS Capital Partners agreed to acquire Sport Group from Equistone Partners Europe. Sport Group makes flooring for sports applications and owns the AstroTurf brand of artificial grass.

Exits & IPOs

German generic drugmaker Stada Arzneimittel is pursuing a sale that could value it at €8 billion, Bloomberg reported. Potential buyers include Clayton Dubilier & Rice, CVC Capital Partners and KKR, among others. Stada owners Bain Capital and Cinven are also considering an IPO or minority stake sale for Stada.

EQT sold data management software company Rimes to Five Arrows, the alternative investment arm of Rothschild & Co. The deal valued Rimes at between €800 million and €900 million including debt, Bloomberg reported.

Bain Capital raised $429 million by selling its entire stake in Indian bank Axis to investors including Morgan Stanley Asia Singapore and BofA Securities Europe, Reuters reported.

Empower Finance has acquired Petal, a fintech startup focused on credit card technology.

Fundraising

Pennsylvania-based PE firm NewSpring Capital is targeting $400 million for its sixth growth capital fund, according to a regulatory filing.

AlleyCorp, the New York-based VC firm led by Kevin Ryan, raised a $250 million fund, Fortune reported.

Chart of the Day

Source: 2024 Southeast Asia Private Capital Breakdown

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Emerging GPs dominate impact fund counts

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