Crypto stocks surge to ease fintech wobble

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The Daily Pitch: VC

April 15, 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:

Carveouts are taking a bigger share of the buyouts pie and could feed an eventual PE recovery

Our Q1 valuations data for public companies in the fintech and payments sector

Unicorn creation rebounded in Q1, thanks in part to AI startups

Today's Top Stories

Dusty crypto stocks spring to life to balance wavering public fintech

The success of previously "left for dead" neobank, brokers and crypto stocks such as Robinhood and Coinbase propelled the segment to blast past its fintech and payments peers with median Q1 returns of about 48%. As a whole, however, performance of public fintech companies was mixed compared to major indexes.

M&A picked up as valuations equalized, according to our Q1 2024 Fintech & Payments Public Comp Sheet and Valuation Guide, which tracks stock performance, EBITDA margins, revenue growth and valuations for key publicly traded companies.

see the data

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Carveouts provide greater deal reservoir for PE buyers

(CarlosAndreSantos/Getty Images)

Carveouts are on the rise as company valuations find their feet. HuFriedyGroup, a manufacturer of dental instruments, caught the eye of Peak Rock Capital, which has agreed to pay $787.5 million for the business unit.

According to our Q1 2024 US PE Breakdown, carveouts were a significant source for dealmaking, accounting for 12.6% of all buyout deals, a bounce back from 5.7% in Q4 2023.

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Since yesterday, the PitchBook Platform added:

31

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17

Companies

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The Daily Benchmark:
2015 Vintage Global Funds-of-Funds

Median IRR

19.36%

Top Quartile IRR

22.10%

0.70x

Median DPI

Select top performers

TrueBridge-Kauffman Fellows Endowment Fund IV

TrueBridge Capital Fund IV

Adams Street 2015 US Fund

*IRR: net of fees

51 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

AI security and data management specialist Cohesity raised a $150 million Series F from IBM and Nvidia.

Blockchain startup Berachain raised a $100 million Series B co-led by Framework Ventures and Brevan Howard Digital.

Arizona-based biotech startup Nectero Medical raised a $96 million Series D led by Norwest Venture Partners.

San Francisco's Anrok raised a $30 million Series B led by Khosla Ventures for its sales tax platform.

Amsterdam-based challenger bank Bunq raised €29 million from existing investors.

Boston-based biotech company DeepCure raised a $24.6 million Series A1 led by IAG Capital Partners.

Don't miss our upcoming webinar

As interest rates begin to level out, the loan market is seeing renewed interest from previously risk-averse investors and issuers, as well as borrowers looking to refinance expensive debt. These conditions have helped the growth of both syndicated lenders and private credit, adding to the mounting competition between them. Key topics include:

Overall activity in the US leveraged loan market hit its highest levels in four years, though leveraged buyouts remain challenging.

As investors warmed to risk, riskier borrowers flocked to the market to refinance expensive debt.

A revitalized high-yield bond market sees a return of unsecured issuance—will this aggressive stance continue?

Register now to secure your spot.

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PE Deals

The Carlyle Group-backed biomanufacturing startup Spiber has raised 10 billion Japanese yen (about $65 million) in growth funding from undisclosed investors to produce its alternative protein product.

Brookfield Asset Management is pursuing a deal to acquire a majority interest in Castlelake, potentially investing $1.5 billion in the airline investor, the Financial Times reported.

Clearlake Capital is resurrecting its take-private bid for Blackbaud, a software solutions company with a market cap of $4 billion, a year after its initial offer was rejected, Bloomberg reported.

OceanSound Partners and Energy Impact Partners have teamed up to acquire Message Broadcast, a customer engagement software company, from Link Mobility.

Exits & IPOs

PE firm Platinum Equity is weighing a sale of Spanish waste management company Urbaser, Bloomberg reported. The deal would value Urbaser at €6 billion or more.

Zscaler, a cloud security company backed by VC firm WestBridge Capital, has acquired VC-backed Airgap Networks for an undisclosed amount.

The Rohatyn Group sold South African beverage manufacturer BevCo to India-based Varun Beverages, a PepsiCo bottler.

Fundraising

New York-based private credit firm Blue Torch Capital closed its Credit Opportunities Fund III with $2.3 billion.

Boston-based Underscore VC has raised $58 million for its third flagship fund, focused on early-stage B2B startups.

Chart of the Day

Source: Q1 2024 PitchBook-NVCA Venture Monitor

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Crypto stocks surge to ease fintech wobble

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