PitchBook News - GPs chip away at PE's exit logjam

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The Daily Pitch: VC

July 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 unpacks the trends pointing toward a PE market recovery

VCs are coming up against a fundraising wall, with only $80.5 billion collected globally in H1

In its latest fundraise, Monomoy hit its nearly $2 billion hard cap within eight weeks

Funding for European startups with female founders is pacing ahead of 2023's figures

Today's Top Stories

Dealmaking rebound provides glimpses of hope for PE

More than halfway through the year, the US PE industry has finally shown some promising signs.

Total deal activity in H1 2024 increased 12% year-over-year. The uptick accompanies a rise in exit activity, which also rebounded from the more-than-a-decade lows seen in the last two years. GPs employed a variety of strategies to break the exit logjam, including outright sales with minority roll-overs, continuation funds and partial exits.

Our Q2 2024 US PE Breakdown, sponsored by Weaver, looks into the latest trends that herald a recovery for the PE market.

read the report

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Global VC fundraising on track for worst year since 2015

(PalleC/Getty Images)

The first two quarters of 2024 cemented troubling trends for the VC industry: A shortage of public offerings, definitive down rounds and fund launches drying up faster than a lake in Phoenix.

The IPO drought explains why VCs are coming up against a fundraising wall. The industry has collected $80.5 billion in capital commitments from LPs globally this year—on pace for a nine-year low—while the number of new VC funds is on track to reach only one-third of the 2021 peak by the end of the year.

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Funding for Europe's female founders rises slightly in H1

Funding for European startups with female founders is pacing ahead of the figures seen in 2023, according to our European VC female founders dashboard.

Startups with at least one female founder garnered €5.1 billion across 895 deals through the first six months of 2024. This is nearly €1 billion more than in H1 2023.

While the amount of capital raised in H1 is up year-over-year, it's still down compared to 2021 and 2022. This is likely indicative of a tougher VC environment, however, as the share of total capital raised by female-founded startups has increased slightly.

Notable deals include a reported £800 million in debt and equity for consumer lending specialist Abound, co-founded by COO Michelle He, and a $150 million seed round for online gardening marketplace developer Planteka Community, co-founded by CEO Sanitha Alam.

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Surveying ESG and impact investing practices

We've launched our revamped 2024 Sustainable Investment Survey to take a closer look at what investors are doing and why—including the current events influencing sustainable investing practices.

We would also like to hear what the term "ESG" means to private market participants and whether concessionary returns are implicit in impact investing. We invite you to share your firm's approach.

All who complete the roughly 10-minute survey will have the opportunity to enter a prize drawing, and for each completion, PitchBook will make a donation to World Central Kitchen.

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Since yesterday, the PitchBook Platform added:

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Funds

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VC Deals

SciRhom, a Paris-based biopharmaceutical company focusing on treating autoimmune diseases, raised a €63 million Series A led by an investor group including Andera Partners, Kurma Partners and Hadean Ventures.

Captions, an AI video startup, raised a $60 million Series C led by Index Ventures. The company is now valued at $500 million.

ZwitterCo, a company developing industrial water treatment technology, raised a $58.4 million Series B led by Evok Innovations.

Volley, a startup using AI to develop games played on voice-controlled devices, raised a $55 million Series C led by M12 Ventures and Lightspeed, The Information reported.

Athletic Brewing Company, a company creating non-alcoholic beer, raised $50 million in equity financing in a round led by General Atlantic.

Canoe Intelligence, a New York-based fintech company focused on alternative investments, raised a $36 million Series C led by Goldman Sachs Alternatives.

Command Zero, a startup developing investigative cybersecurity technology with the help of large language models, raised a $21 million seed round led by Andreessen Horowitz.

PE Deals

Pictet Alternative Advisors has acquired Technology Services Group, a UK-based Microsoft IT solutions provider that helps businesses transition to cloud-based IT infrastructure.

Exponent has backed Irish private healthcare provider Kingsbridge, marking its first investment in Northern Ireland.

French soccer team Girondins De Bordeaux could be acquired by Fenway Sports Group, the same company that owns both Liverpool FC and the Boston Red Sox.

Tikehau Capital has bought Rome-based CEBAT, a provider of utility networks maintenance, from Oaktree.

Nasuni, a cloud storage specialist, has been acquired by Vista Equity Partners in a deal valuing the company at $1.2 billion.

CyrusOne, a company that owns data center facilities, has closed two credit facilities totaling $9.7 billion of additional debt for future development.

MRO Holdings, a Panama-based company servicing commercial aircraft, has received an investment from Bain Capital.

A unit of Collins Aerospace, a company owned by NYSE-listed RTX, may be sold to PE firm Arcline in a deal that could value the unit at around $500 million, Bloomberg reported.

PE-backed HarmonyCares, which provides home healthcare to older adults and people with disabilities, raised $200 million in a round led by General Catalyst and McKesson Ventures.

Kingsmen Software, a financial sector advisory and engineering firm with expertise in generative AI, has been acquired by PE-backed Sparq.

Portfolio Companies

VC-backed DigniFi, a startup developing financing solutions for vehicle repair services, raised a $150 million credit facility from Encina Lender Finance as well as $25 million in debt financing from Brigade Capital Management.

Valyant AI, which is developing conversational AI, has been acquired by ConverseNow, a startup using voice AI to develop ordering assistants.

Curated, a company developing a collaborative online shopping platform, has been acquired by visual ecommerce startup Flip for $330 million in stock.

Exits & IPOs

India-based pharmaceutical company Anthem Biosciences could move forward with an IPO that would value the company at more than $3 billion, Bloomberg reported.

Fundraising

HongShan, a China-based VC firm formerly affiliated with Sequoia, has raised $2.5 billion for a new fund targeted at tech startups in China, the Financial Times reported.

AE Industrial Partners, a Florida-based PE firm, has raised $1.28 billion for its third fund. AEI invests in industrial services, national security and aerospace.

North Sky Capital, a Minnesota-based PE firm, has raised $250 million for Clean Growth VI fund to target companies in the climate-tech and energy transition spaces.

Chart of the Day

Source: 2024 European Private Capital Outlook: Midyear Update

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PitchBook News - GPs chip away at PE's exit logjam

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