Rising interest, few deals in fertility space

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The Daily Pitch: VC

September 30, 2024

Presented by Fidelity Private Shares^SM

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

Debut report: PE dealmaking in consumer retail and services is rebounding

Demand for fertility services like IVF has PE eager to invest, but opportunities are limited

Our analysts chart the rise of evergreen funds and perpetual capital

Washington tops Seattle and Austin as a draw for startup founders and VCs

StepStone closed its fifth secondaries fund on $4.8B, as that market remains hot

Today's Top Stories

Fertility investors look to ancillary services amid limited opportunities

(John Fedele/Getty Images)

A growing market for fertility services like in vitro fertilization has private equity investors eager to enter the space.

But with few sizeable platform opportunities available, some sponsors are taking a back-door approach. They're shifting focus to ancillary assets—companies that support core fertility services.

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Perpetual capital funds rise as GPs tap private wealth

Private fund managers are searching for new pools of capital to grow as institutional investors pump the brakes on further allocations to private capital. Private wealth presents a $450 trillion opportunity, but regulations on closed-end funds have hindered access for individual investors.

Evergreen fund structures have become more popular as a result, our latest analyst note explains. These vehicles let money move in and out more freely, appealing to private wealth investors and their advisers. GPs benefit from the wider pool of investors.

Brand-name firms have been the biggest winners so far, but tech platforms are bridging the divide between investment advisers and smaller GPs.

read it now

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A message from Fidelity Private Shares

Capturing Climate Tech Opportunity in 2024: US Startup Landscape

Presented by Fidelity Private Shares^SM, this comprehensive report dives into the emerging trends and innovations driving climate technology forward as well as key market forces and opportunities impacting the future of this fast-evolving sector.

Whether you're a founder, investor, employee, or industry stakeholder, this report is your guide to seizing new opportunities and gaining unique insights into this dynamic industry.

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PE dealmaking in consumer sector is poised for a comeback

Buyout activity in the consumer retail and services industry is staging a rebound in the wake of the Federal Reserve's interest rate cut. Total PE deal count in the space reached 461 in Q2 2024, marking a 31% year-over-year increase, according to our debut Consumer Retail & Services Report.

But the sector is still grappling with challenges. Financial buyers are hesitant to make acquisitions, citing elevated borrowing costs and unfavorable valuations.

read the report

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Washington beats Seattle, Austin as startup hub

(J. David Ake/Getty Images)

Washington has long held a reputation as an industry town: a watering hole for politicians, lobbyists and white-shoe lawyers.

Add startup founders and VCs to that list. Since Q3 2018, DC has seen more homegrown startup financing and LP capital raised than either Seattle or Austin, two cities more typically associated with the tech universe.

Behind this growth is the proximity to federal agencies and their deepening pockets for startups in regulated industries.

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Since yesterday, the PitchBook Platform added:

386

People

229

Companies

20

Funds

See what our data software can do

The Daily Benchmark:
2014 Vintage Global Secondaries Funds

Median IRR

12.03%

Top Quartile IRR

15.32%

1.08x

Median DPI

Select top performers

LPE Astraeus

Glouston Private Equity Opportunities V

Ardian Secondary Fund VI Infrastructure

*IRR: net of fees

18 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Italy's D-Orbit, which is developing space logistics technology including cloud computing and satellite servicing, raised a total of €150 million in a two-part Series C led by Marubeni.

Washington-based fusion power company Zap Energy raised $130 million led by Soros Fund Management.

Observe, a Bay Area-based startup developing an AI tool for observability and incident management, raised a $145 million Series B led by Evolution Equity Partners and Madrona Venture Group.

Lithuania's Ovoko, which operates a car-parts marketplace, raised a €20 million Series B led by Smash Capital.

Anaphite, a UK-based battery startup, received a $13.7 million Series A led by World Fund and Maniv, Tech Funding News reported.

Access our data directly

Integrate PitchBook data into your systems to fit your workflow. Data Feeds and APIs work with any system, allowing customization for your team's access.

Request data feeds here.

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Portfolio Companies

Amazon's $4 billion investment into AI startup Anthropic was cleared by the UK's Competition and Markets Authority. Anthropic will use AWS and Amazon's computer chips in future development.

Exits & IPOs

Ardian agreed to sell Corob, an Italy-based manufacturer of automated paint dispensers, to paint sprayer-maker Graco.

Dipsea, which offers a platform for romance audiobooks, has been acquired by subscription management startup RevenueCat.

LeapPoint, a digital marketing advising agency, has been acquired by NYSE-listed Omnicom Group's precision marketing division.

Singaporean energy firm Senoko Energy is in talks to be acquired by Jakarta-based Medco Energi in a deal that could value the company at up to $1 billion, Bloomberg reported.

Peak XV Partners has sold its 47% stake in Prataap Snacks, an India-based snacks manufacturer, to Authum Investment for 8.5 billion rupees (about $102 million).

Advertising platform provider MNTN, where actor Ryan Reynolds is the chief creative officer, is planning a 2025 IPO, Bloomberg reported.

Investors

The Ontario Municipal Employees Retirement System will stop making direct PE investments in Europe and instead invest alongside European partners and third-party managers, Bloomberg reported.

Chart of the Day

Source: The world’s top startup cities

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Rising interest, few deals in fertility space

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