PitchBook News - How PE keeps planes in the air

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The Weekend Pitch

August 25, 2024

The Daily Pitch is powered by PitchBook’s industry-defining research and best-in-class data

(Mara Potter/PitchBook News)

Private equity is doing its part to propel the return of planes to the sky.

With a resurgence in air travel and a lag in aircraft production, demand to sustain and refurbish older planes is fueling a rise in PE interest in the aerospace service and maintenance industry.

CORE Industrial Partners, a Chicago-based firm targeting the lower middle market, is one investor preparing to wager on this expected growth. It was founded by John May, who spent 18 years working on deals with institutions including Blackstone and HIG.

I'm Madeline Shi, and this is The Weekend Pitch. You can reach me at madeline.shi@pitchbook.com or on X @Madelin94615831.

In January, CORE acquired Florida-based Aviation Concepts, a provider of used serviceable materials to the aftermarket commercial aviation industry. May said the deal, which sets up the new platform company to consolidate the maintenance, repair and overhaul space, is a testament to the firm’s belief in the market’s long-term growth potential.

Trivia

European VC valuations are on the mend, reports PitchBook's Leah Hodgson, with early-stage deals leading an uptick. Pre-seed in particular saw the largest rise in median pre-money valuations in the first half of 2024. What record figure did it reach?

A) €2.8 million
B) €3.7 million
C) €5.1 million
D) €4.4 million

Find your answer at the bottom of The Weekend Pitch!

Quote/Unquote

(Drew Sanders/PitchBook News)

"And I can tell you, [the auditors] go over it with a fine-tooth comb, asking
'why did you pick this? Why did you do this, do that?'"

—Ron Kahn, co-head of Lincoln International‘s portfolio valuation group, speaking to PitchBook reporter Jessica Hamlin on lingering distrust between LPs and their GPs.

Medtech exits test
a new venture

(Vithun Khamsong/Getty Images)

VC dealmaking in the medtech industry dipped in Q2, but activity is still on track to surpass last year and VC exits are on the rise, according to our latest Emerging Tech Research.

Startups generated $3.3 billion across 206 deals—declines of 7% and 3.3%, respectively, from the first quarter. Notable fundraises in Q2 included molecular testing provider BillionToOne raising a $130 million Series D and ultrasound device specialist Insightec securing $150 million.

PitchBook senior analyst Aaron DeGagne also highlights emerging opportunities in the heart arrhythmia and sepsis testing sectors.

From gravity to gas,
VC recharges energy storage

Companies working on alternatives to chemical batteries for energy storage received a funding boost in Q2.

Overall VC dealmaking in the clean energy market during the first half of the year was roughly in line with the same period in 2023. But the alternative energy storage sector surged in Q2 2024—notching over $582 million across 16 deals, according to our latest Emerging Tech Research.

Greater demand for renewable energy, including intermittent sources like solar and wind power, has increased the need for energy storage. The report highlights companies, like Highview Power, that are generating innovative solutions.

Biopharma startups face
a high bar for exits

(Andrew Brookes/Getty Images)

Biopharma remains a strong VC sector, showing resilience through funding rounds. But overall exit value has sharply declined quarter-over-quarter—from $10 billion in Q1 2024 to less than half that amount in Q2, according to our latest Emerging Tech Research.

Only biopharma companies with robust clinical data are succeeding in IPOs, leaving the majority of startups facing significant barriers to exit. This suggests many—particularly those focusing on gene editing, targeted cancer treatment and AI drug discovery platforms—may need to continue their development independently rather than seeking acquisition by Big Pharma.

Stay tuned

Keep an eye out for these insights and research reports coming out this week:

Q2 2024 Retail Fintech Report
Q2 2024 Enterprise SaaS Report
Analyst Note: The Rise of European Megafunds: Part II
Q2 2024 Public PE Roundup
Analyst Note: VC Returns by Series: Part IV

Trivia

Answer: D.

H1 2024 pre-seed dealmaking reached a €4.4 million median pre-money valuation, according to PitchBook News coverage. You can learn more about other trends and the overall picture in the Q2 2024 European VC Valuations Report.

This edition of The Weekend Pitch was written by Madeline Shi and Jacob Robbins. It was edited by Heather West and Clarinda Simpson.

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PitchBook News - How PE keeps planes in the air

Trivia

Quote/Unquote

Medtech exits test
a new venture

From gravity to gas,
VC recharges energy storage

Biopharma startups face
a high bar for exits

Stay tuned

Trivia

Older messages

Gene-editing and AI: Biopharma's future

A high bar for biopharma exits

VC recharges energy storage

A path to recovery for Europe's VC valuations

AI ripens farm management tech

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PitchBook News - How PE keeps planes in the air

Trivia

Quote/Unquote

Medtech exits test a new venture

From gravity to gas, VC recharges energy storage

Biopharma startups face a high bar for exits

Stay tuned

Trivia

Older messages

You Might Also Like

Medtech exits test
a new venture

From gravity to gas,
VC recharges energy storage

Biopharma startups face
a high bar for exits