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The Daily Pitch: VC

May 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:

Our Emerging Tech analysts find infrastructure SaaS poised for a transformation

A lawsuit involving a firm's roll-up strategy was dismissed in a win for PE in healthcare and beyond

The value of SoftBank's Vision Funds remained largely flat in Q1

PE's US-listed giants are expecting an uptick in deal activity

Today's Top Stories

How generative AI could revolutionize the IT industry

As everyone keeps an eye on Databricks' road to IPO, infrastructure SaaS is poised for a transformation.

Generative AI-powered solutions in network operations, such as those being developed by startups like Sequoia-backed BigPanda and Silver Lake-backed ScienceLogic, have the potential to overhaul IT functions of major organizations, according to our latest Emerging Tech Research

The DevOps sector logged 108% quarter-over-quarter growth in VC deal value in the first quarter. Kleiner Perkins-backed Glean, Salesforce Ventures-backed Together and Net Friedman-backed Magic all raised funding—and are spearheading the bleeding edge of generative AI integration in DevOps.

read the preview

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Healthcare court win for PE bolsters roll-up strategies

(Sshepard/Getty Images)

On Tuesday, a Texas federal judge threw out a lawsuit that could have killed private equity's bread-and-butter roll-up strategy.

In a win for the PE industry against antitrust regulators, a lawsuit against Welsh, Carson, Anderson & Stowe was dismissed after the Federal Trade Commission alleged the PE firm was suppressing competition in the Texas anesthesiology market as a result of its roll-up strategy.

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Since yesterday, the PitchBook Platform added:

10

VC valuations

2099

People

756

Companies

40

Funds

See what our data software can do

The Daily Benchmark:
2015 Vintage Global Debt Funds

Median IRR

8.39%

Top Quartile IRR

10.68%

0.91x

Median DPI

Select top performers

AAVIN Mezzanine Fund

ICG Europe Fund VI

TA Subordinated Debt Fund IV

*IRR: net of fees

79 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

People

New-York based VC firm Inspired Capital has promoted Charlotte Ross to partner. Ross previously worked as an investor at NEA.

VC Deals

San Francisco-based AI robot startup The Bot Company, founded by former Cruise and Tesla employees, raised $150 million in seed funding from investors including Quiet Capital, Daniel Gross and Nat Friedman.

San Francisco-based SaaS startup Harness secured $150 million in financing from Silicon Valley Bank and Hercules Capital.

ByHeart, a New York-based infant nutrition startup, raised $95 million from investors including D1 Capital Partners, Bellco Capital and Polaris Partners.

Dubai-based real estate specialist Property Finder has raised $90 million in debt from Francisco Partners, Bloomberg reported.

Aplazo, a Mexico City-based fintech startup, raised a $45 million Series B led by QED Investors.

Shanghai-based Gausium, a startup developing cleaning robots, raised a $50 million Series D from undisclosed investors.

SmarterDx, a New York-based healthtech startup, raised a $50 million Series B led by Transformation Capital.

New York-based Chapter, a Medicare advisory startup, raised a $50 million Series C led by XYZ Venture Capital.

London-based Sona, which offers a frontline workforce management platform, has closed a $27.5 million Series A led by Felicis, TechCrunch reported.

Enspired, a Vienna-based energy trading company, has secured a €25.5 million Series B led by Zouk Capital.

Pitchbook webinar series: The Allocator's Atlas

The Allocator's Atlas is a specialized webinar series designed for LPs, where you'll gain valuable insights and expert perspectives to effectively navigate your investment strategies and portfolio management.

In our inaugural webinar, a panel of PitchBook analysts will provide insights on how macroeconomic challenges have affected private capital returns, capital call and distribution rates across asset classes, and the cash flow J-curves of PE funds more specifically. Key topics include.

An update on our latest fund performance benchmarks and PitchBook Private Capital Indexes returns.

Analysis of cash flow patterns by asset classes and what has driven their volatility.

What J-curves of recent PE fund vintages across strategies and fund sizes look like today and their potential future trajectories.

Register now to secure your spot.

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PE Deals

A group including Blackstone, the Abu Dhabi Investment Authority and GIC are looking to acquire a controlling stake in Haldiram's in a deal that could value the Indian snack multinational at $8.5 billion, Reuters reported.

Apollo Global Management is in exclusive talks with semiconductor manufacturer Intel to finance an $11 billion chipmaking plant in Ireland, the Financial Times reported.

Piramal Alternatives, a unit of Piramal Group, has invested 6 billion rupees (around $72 million) in microfinance company Annapurna Finance.

3i Group has agreed to invest around €116 million in Constellation, a French IT managed services provider.

Attain Capital has made a minority investment in Excella, a technology consultancy.

Warburg Pincus will acquire India's Shriram Housing Finance from Shriram Housing Finance for 46.3 billion rupees (around $554 million).

Inflexion has invested in UK-based health and fitness company Ultimate Performance.

Omni Partners has invested in Compass Continuing Healthcare, a UK-based company that specializes in securing healthcare funding for patients.

CG Environmental, a remediation and waste management provider, has been sold to One Rock Capital Partners-backed EnviroServe.

Exits & IPOs

CVC Capital Partners is seeking a valuation of as much as $3 billion for Japanese personal care brand FineToday in a Tokyo IPO, Bloomberg reported.

Minneapolis-based Access Point Technologies, a medtech startup, agreed to be acquired by NYSE-listed Stereotaxis.

Mynd, a fintech startup specializing in real estate, is in talks to merge with fellow Bay Area startup Roofstock, Bloomberg reported.

Don't miss today's webinar

Though investors continue to wait for European M&A to recover, robust refinancing activity shaped last quarter into leveraged loans' best since 2021. Join our panel of credit market experts to explore the ongoing surge of institutional loan issuance, bonds and CLOs, along with what they expect for Q2 and the rest of 2024. Key topics include:

CLO issuance hits its second-highest quarterly volume in the 2.0 era—will the surge in new transactions continue?

Will the syndicated loan market continue to take share from the private credit market?

M&A is starting to return, but will refinancings continue to dominate deal flow for both loans and high-yield bonds?

Register now to secure your spot.

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Fundraising

Palo Alto-based VC firm Accel has raised a $650 million fund to back early-stage startups in Europe and Israel.

Clearlake Capital has raised $7.5 billion toward its eighth buyout fund, which has a $16.7 billion hard cap, Buyouts reported.

Cresta Fund Management, a Dallas-based infrastructure investor, is raising $650 million for a sustainability fund focused on alternative fuels and carbon capture, Axios reported.

Life sciences growth equity investor Sands Capital has closed its third fund on $555 million.

European middle-market PE firm FSN Capital has launched its small-cap strategy with over €400 million raised, AltAssets reported.

RCP Advisors, a subsidiary of P10, has closed on approximately $285 million for its Fund XVIII.

Stockholm-based impact investor Norrsken VC has closed its second fund on €320 million to invest in early-stage startups.

Paris-based VC firm Blisce has launched a climate-tech fund with a target of up to €150 million.

Chart of the Day

Source: Q1 2024 European PE Breakdown

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PitchBook News - Will generative AI revolutionize IT?

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