PitchBook News - Who's hit hardest by Northvolt losses?

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The Daily Pitch: VC

November 26, 2024

Presented by Banc of California’s Venture Banking Group

Today's Top Stories

Aerospace, defense now a hotbed for PE

We're launching coverage of private equity investment in aerospace and defense, a sector that has thrived despite headwinds in the broader market. An estimated 249 PE deals were inked in this year's first three quarters, on pace to set an annual record, according to PitchBook senior analyst Jim Corridore's inaugural report.

Boeing's production crisis and supply chain issues created opportunities and spurred consolidation in airline maintenance, aerospace parts and components, and other areas. Meanwhile, strong military funding—which many expect to grow under the Trump administration—has emboldened PE firms to invest in defense. Dive in.

Also...

⚡ Who has the most to lose from Northvolt's failure? The Swedish battery maker was Europe’s best-funded VC-backed company before it filed for Chapter 11 bankruptcy protection last week. Its collapse will leave many investors out of pocket, including Volkswagen, Goldman Sachs and Baillie Gifford. Read more.

🛢️ Blackstone and natural gas producer EQT formed a $3.5 billion joint venture involving key pipelines. EQT will use the funds to reduce its debt, while Blackstone leverages the opportunity to invest in energy infrastructure as AI drives increased demand for power. Full story.

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GP-to-GP dealmaking hits annual high

A key component of this year’s M&A market has been the pronounced uptick in GP-to-GP transactions. GP deal activity reached 124 majority or minority deals through Q3, a record annual high with three months to go.

In PitchBook’s Q3 2024 US Public PE and GP Deal Roundup, our analysts explore this trend, exemplified by Blue Owl, which completed its fourth acquisition of a GP this year, effectively adding $44 billion to its AUM.

On the deployment front, private equity activity accelerated by 37.7% from Q2 across the six largest publicly traded PE managers. In the post-election environment, the momentum is expected to persist with a likely uptick in M&A come December.

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People

HSBC Asset Management appointed Pete Scott as head of innovation credit to launch its venture debt strategy.

VC Deals

Copenhagen-based Adcendo, a biotech startup developing cancer treatments, raised a $135 million Series B led by TCGX.

Halcyon, a cybersecurity startup developing a platform to fight ransomware, raised a $100 million Series C led by Evolution Equity Partners.

ID.me, a startup developing a virtual identification platform, completed a tender offer led by Ribbit Capital that valued the company at $1.8 billion, Bloomberg reported.

Crypto startup bank Singapore Gulf Bank is in talks to raise over $50 million in a new round which would include an unnamed sovereign wealth fund in the Middle East as an investor, Bloomberg reported.

Kanglin Biotechnology, a Hangzhou, China-based biotech startup developing treatments for disorders including sickle cell disease, raised a $20 million Series A.

PlayAI, a startup creating AI voice software for text-to-speech implementation, raised a $20 million seed round led by led by 500 Startups and Kindred Ventures.

Emma, a Luxembourg-based cloud management platform, closed a $17 million Series A led by Smartfin.

PE Deals

Canadian asset management firm CI Financial will be acquired by Mubadala in a C$12.1 billion (about $8.6 billion) take-private deal.

Communications software developer Mavenir is in talks to raise $1 billion from Saudi Arabia-based Aramco's digital unit, Reuters reported. The deal would value Mavenir around $3 billion.

Pyramid Analytics, which develops AI data analysis software, raised $50 million from BlackRock.

LBC Tank Terminals is up for sale with a potential price tag of more than €1.5 billion. KKR and Mitsui OSK Lines have submitted bids for the liquid storage company, Bloomberg reported.

Growth Catalyst Partners acquired UK-based events company Inspired Minds.

Salfarm, a Danish animal pharma company backed by Polaris Private Equity, acquired Finnish veterinary drug company FaunaPharma.

Permira-backed Evelyn Partners Group sold its professional services business to Apax Partners for £700 million.

Exits

Mediq, a medical supply company based in the Netherlands and backed by Advent International could be valued at around €1 billion in a sale, Bloomberg reported.

EQT-backed Indira IVF, a fertility clinic chain in India, is considering a Mumbai IPO at a $2.5 billion valuation, Bloomberg reported.

Apollo Global Management-backed Global Schools Foundation, a Singapore-headquartered private school operator, is shopping a minority stake, Bloomberg reported.

Eurazeo established a €180 million continuation fund for its stake in I-Tracing, a French cybersecurity services provider. Five Arrows and TPG are co-lead investors in the vehicle.

Tecta America, a roofing company owned by Altas Partners and Leonard Green & Partners, is in talks for a sale that could value it at up to $4 billion, Bloomberg reported.

Fundraising

Bay Area-based accelerator and VC firm Neo launched its fourth fund with a target of $250 million in commitments, according to SEC filings.

Chart of the Day

Source: Q3 2024 Retail Fintech Report

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PitchBook News - Who's hit hardest by Northvolt losses?

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