PitchBook News - Charting the path forward for LPs

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The Daily Pitch: VC

June 25, 2024

Presented by Microsoft for Startups

In today's Daily Pitch, you'll find:

Our Q2 2024 Allocator Solutions report examines the dynamics at play across PE, VC and more

The head of Nvidia's NVentures on the firm's strategy, managing ballooning deal flow and more

Turmoil persists for the UK's private markets

Key trends across dealmaking, fundraising and exits in Southern Europe's VC market

Today's Top Stories

Mapping the path forward for LPs

Shifting macroeconomic environments can make room for opportunities for LPs. To help identify some of those potential investments, we look at key risk and return drivers across private markets in the context of that wider environment and provide potential paths forward.

Our latest report, Q2 2024 Allocator Solutions: Private Market Opportunities Midyear Update, dives into the macro dynamics at play across PE, VC, private credit and real estate.

read the report

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Rackhouse's $45M Fund II underscores room to run for early-stage AI

(Matt Anderson Photography/Getty Images)

San Francisco's Rackhouse Venture Capital has just closed its second early-stage vehicle on $45 million.

With limited dry powder, the firm is avoiding big name developers in favor of companies with a steady tech stack and definitive customer base.

"At our size, we are not typically investing at the [large language model] layer of generative AI," founder Kevin Novak said.

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Soon you'll have a (better) conversation with your car

Despite a slow quarter for mobility tech VC deals, generative AI continues to push its way into the sector, according to our recent Emerging Tech Research. ChatGPT and other generative AI partners are changing the way voice controls in cars work, enabling more natural interactions with your vehicle while eliminating the need for precise, explicit commands.

The largest VC deals of the first quarter were in electric vehicles. Over three times the amount invested in autonomous driving startups went to EV specialists, totaling $2.6 billion. IM Motors led the way with a $1.1 billion deal to develop solid-state batteries for EVs.

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Since yesterday, the PitchBook Platform added:

19

VC valuations

2679

People

807

Companies

43

Funds

See what our data software can do

The Daily Benchmark:
2019 Vintage Global PE Funds

Median IRR

15.78%

Top Quartile IRR

24.27%

0.16x

Median DPI

Select top performers

Bertram Growth Capital III Annex Fund

Sterling Investment Partners IV

SkyKnight Capital Fund II

*IRR: net of fees

162 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

BillionToOne, a Menlo Park-based biotech startup specializing in molecular diagnostics, raised a $130 million Series D led by Premji Invest.

Char.gy, a UK-based electric vehicle charging startup, secured £100 million from Zouk Capital.

Klarity, an AI document review startup based in San Francisco, raised $70 million from Nat Friedman, Tola Capital, Scale Venture Partners and others, The Information reported.

Rapafusyn Pharmaceuticals, a drug discovery startup based in Baltimore, raised a $28 million Series A led by 3E Bioventures Capital and Proxima Ventures.

FirstVet, a Stockholm-based provider of online pet health services, closed a €20 million Series C led by Telus Global Ventures.

Net Zero Company, a Stockholm-based carbon removal startup, raised a $5.5 million seed round from investors including Oilinvest and Varo Energy.

Don't miss our upcoming webinar

What are the benefits of a larger, more diverse, venture portfolio compared to a more concentrated focus? Our live discussion with professionals from Screendoor and Pioneer Fund will explore strategies around seed-stage portfolio construction.

Register now to secure your spot.

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PE Deals

KKR has agreed to buy Superstruct Entertainment, a UK-based events company that runs music festivals such as Wacken Open Air in Germany and Sziget in Hungary, for €1.3 billion.

Apollo Global Management and Platinum Equity are among potential buyers that have submitted an offer for Evri, a UK parcel delivery group that's valued at around £2 billion, Sky News reported.

Bregal Unternehmerkapital has agreed to acquire Relatech, an Italian company providing b2b digitalization services.

Trive Capital and 808 Capital Partners have invested in JF Fitness, a franchisee of Crunch Fitness, resulting in the company expanding its gym locations in the US Southeast.

Dutch pension fund APG has made a $400 million equity investment in Doral Renewables , an operator of renewable energy projects, in an effort to build an energy pipeline, while also providing a pro rata share of up to $185 million in capital over time.

Advent International and Aareal Bank have agreed to sell Aareon, a property-focused SaaS company, to TPG and Caisse de dépôt et placement du Québec for around €3.9 billion.

CVC Capital Partners is in advanced talks to buy M Group, an infrastructure services provider backed by PAI Partners, Sky News reported.

Blackstone is in talks to buy Ambassador Theatre Group, which owns several theaters in London's West End, from Providence Equity Partners. PEP has owned the company since 2013.

Macquarie Capital acquired Kalkomey, an online safety education provider, from Boston-based PE firm Cove Hill Partners.

Exits & IPOs

London Tunnels, a UK-based company redeveloping subterranean wartime tunnels, will list in Amsterdam instead of London. The company is seeking to raise £30 million at a £130 million valuation.

Quebec-based Desjardins has sold its C$53 million (approximately $39 million) stake in Canadian asset manager Fiera Capital.

ABM Industries has acquired power supply and maintenance provider Quality Uptime Services, previously backed by Seaport Capital, for $119 million in cash.

Fundraising

Trive Capital, a Dallas-based PE firm, raised $1.5 billion for its fifth flagship fund, according to a regulatory filing.

8-Bit Capital is targeting $60 million for its second flagship fund, according to SEC documents.

Andreessen Horowitz is planning to raise its first private equity fund, called a16z Perennial Private Equity Fund, Fortune reported.

Investors

Switzerland-based Partners Group has opened a new office in Hong Kong to meet a growing demand for private markets exposure from wealthy investors.

Corporate M&A

RXO agreed to acquire Coyote Logistics, an asset-light freight brokerage business, from UPS for $1.025 billion.

Chart of the Day

Source: Q1 2024 EMEA Healthcare Market Snapshot

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PitchBook News - Charting the path forward for LPs

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