PitchBook News - The rise of evergreen funds

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The Daily Pitch: VC

October 22, 2024

Presented by SRS Acquiom

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

Our analysts chart the rise of evergreen funds and perpetual capital

Neuberger Berman joins in a deal to buy Nord Anglia Education at a $14.5 billion valuation

AI search specialist Perplexity is reportedly targeting an $8 billion-plus valuation

Our Q3 valuations data for public companies in the agtech sector

PE investors targeting European healthcare are shifting their focus to organic growth

Today's Top Stories

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 recent 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.

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Bezos-backed Perplexity reportedly raising $500M at $8B+ valuation

(Aitor Diago/Getty Images)

Perplexity, an AI search engine specialist backed by heavyweights like Jeff Bezos, Nvidia and Elad Gil, is reportedly seeking an $8 billion-plus valuation in a $500 million funding round.

It marks the latest in a series of AI startups seeing rapid growth in a brief period.

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Since yesterday, the PitchBook Platform added:

2021

People

805

Companies

20

Funds

See what our data software can do

The Daily Benchmark:
2017 Vintage Global Debt Funds

Median IRR

8.71%

Top Quartile IRR

10.85%

0.76x

Median DPI

Select top performers

Aero Credit Opportunities Fund I

Anchorage Illiquid Opportunities VI

Glendon Opportunities Fund II

*IRR: net of fees

90 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

People

Zachary Hargreaves, previously a principal at Founders Fund, has joined The House Fund as managing partner. He will invest in AI startups emerging from the University of California, Berkeley.

VC Deals

Boston-based Seaport Therapeutics, which develops neuropsychiatric medicine, raised a $225 million Series B led by General Atlantic.

Zip, a San Francisco-based enterprise SaaS startup, raised a $190 million Series D led by BOND that values the company at $2.2 billion.

SchooLinks, a Boston-based educational resource specialist, raised an $80 million Series C led by Susquehanna Growth Equity.

Terralayr, a Swiss energy storage startup, raised €77 million in a round led by Rive Private Investment.

Seattle-based Carbon Robotics, which develops farming software and hardware that uses AI, raised a $70 million Series D led by BOND.

Zephyr, a company developing a home services platform, raised $60 million led by Elda River Capital and the Pritzker Organization, Axios reported.

Oriole Networks, a London-based developer of AI optimization technology, secured $22 million in a round led by Plural.

DataCrunch, a Helsinki-based provider of AI computing infrastructure, received a $13 million seed round from investors including ByFounders and J12 Ventures.

PitchBook webinar: ESG and Impact Investing in 2024

In our latest Sustainable Investment Survey, we focused on the "why" and "how" of investor strategies in today's climate and probed into the perception that impact implies concessionary returns.

Join Hilary Wiek, CFA, CAIA, senior strategist at PitchBook; Anikka Villegas, senior analyst, fund strategies & sustainable investing at PitchBook; and Matt Schey, ILPA's managing director of external affairs and sustainable investing, as they share key findings from the survey and spotlight current trends in the ecosystem.

Register now to secure your spot.

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PE Deals

Trustar Capital Partners has acquired a minority stake in Fast Food Holdings from CITIC for $430.3 million. The restaurant specialist operates McDonald's in China and Hong Kong.

Cybersecurity specialist Sophos, backed by Thoma Bravo, has acquired Nasdaq-listed Secureworks for about $859 million.

The Texas Permanent School Fund is taking a stake in Velocity Capital Management, a PE firm focused on sports investments, The Wall Street Journal reported.

London-based Bridgepoint invested in UK cybersecurity specialist Condatis.

Patrizia acquired a 40% stake in Greenthesis, valuing the company at €340 million, as part of its European infrastructure strategy, which focuses on waste treatment and energy-from-waste operations in Italy.

Aurelius Private Equity acquired the savory division of What's Cooking Group, a Belgian deli meat and snack supplier.

Event logistics and production specialist GES has been acquired by Truelink Capital.

Precision manufacturer Kadon Precision and Aerospace received an investment from Tecum Capital.

Portfolio Companies

Gopuff has fired its CTO, Sreekant Kotay, after he was arrested on a felony battery charge in June, The Information reported.

Exits & IPOs

London-based Cubico Sustainable Investments is in talks to be sold by owning investors Ontario Teachers' Pension Plan and PSP Investments in a deal that could value the company up to €7 billion, Bloomberg reported.

Stockholm-based Altor Equity Partners is selling its majority stake in Nordic investment bank and asset manager Carnegie Group to DNB Bank. The deal values the financial group at $1.14 billion.

Hein Park Capital Management is looking to sell its minority stake in Cirque du Soleil, Bloomberg reported.

Bridgepoint exited Care UK, an operator of residential care homes in the UK, after 14 years.

Healthtech companies CopilotIQ and Biofourmis will merge. The combined company will focus on developing a platform for in-home care.

Fundraising

EnCap Investments raised $5.25 billion on the close of its latest PE fund focused on investments in North American oil and gas companies.

San Francisco-based PE firm L2 Point Management raised almost $460 million for its first structured equity fund.

Corporate M&A

Health insurance companies Cigna and Humana have resumed talks of a merger after discussions fell apart in late 2023, Bloomberg reported.

Chart of the Day

Source: Bain leads Japan’s latest wave of foreign PE buyouts

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PitchBook News - The rise of evergreen funds

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