Cybersecurity VC funding returns to growth

Read online | Don't want to receive these emails? Manage your subscription.

Log in

The Daily Pitch: VC

December 10, 2024

Presented by Silicon Valley Bank

Today's Top Stories

💥 The GP-led secondary market is booming. The exit value for these transactions is on track to reach an all-time high in 2024, expected to land between $50 billion and $60 billion, according to PitchBook's latest analyst note.

The momentum is driven by the growing popularity of continuation funds, as depressed valuation multiples hamstring activity for traditional exit routes. GPs are unwilling to bring their crown jewels to market, preferring instead to roll trophy assets into continuation vehicles so they can monetize these investments at a higher price later.

Our analysts expect GP-led secondaries will continue to gain steam, growing into a $70 billion to $105 billion market by 2028. Get the analyst note.

Also...

🧬 Blackstone is back on the fundraising trail for its latest life sciences fund, targeting $5 billion. PE firms have become increasingly involved in financing drug development in recent years, as life sciences companies contend with depressed valuations and high interest rates. Full story.

🥡 Apollo-backed food packaging company Novolex agreed to acquire Pactiv Evergreen in a take-private deal valued at $6.7 billion including debt, as demand for eco-friendly packaging rises. Read more.

Was this email forwarded to you? Subscribe here.

Cybersecurity VC funding returns to growth

Generative AI is lending a boost to information security VC investment, according to our latest Emerging Tech Research.

Infosec VC funding is on pace to grow year-over-year, with startups collecting $8.8 billion through Q3.

The Morningstar PitchBook Cybersecurity Unicorn Index has outperformed indexes of both global unicorns and AI unicorns since 2021.

A loaded IPO pipeline should benefit from Rubrik: The company went public in April, and its stock is up more than 50% over the past month.

read the preview

Share:

A message from Silicon Valley Bank

Yes, SVB

Backed by the strength of First Citizens Bank, a Fortune 500 company, SVB can deliver even more solutions that can help you stay ahead of the curve. Yes, SVB.

Learn more

Share:

Infrastructure fundraising slows, but carries momentum

Just over 60 real assets funds have closed on nearly $71 billion combined through Q3 2024—putting the asset class on pace to fall short of year-end fundraising totals from 2023, according to our latest report on the strategy.

Funds are taking longer to close across the board, with even the fastest batch of real assets vehicles taking nearly 21 months to do so. Infrastructure fundraising has been subdued as the asset class awaits the closing of several mega-funds targeting over $7 billion in capital.

The outlook on real assets fundraising overall remains positive, with investors driven by decarbonization, digitalization and deglobalization. Still, fundraising in natural resources is moving at a slower pace, amid global tensions around supply and commodity pricing volatility.

read the report

Share:

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.

read it now

Share:

Since yesterday, the PitchBook Platform added:

2034

People

621

Companies

33

Funds

See what our data software can do

The Daily Benchmark:
2015 Vintage Global Secondaries Funds

Median IRR

16.48%

Top Quartile IRR

19.74%

1.10x

Median DPI

Select top performers

Siguler Guff Secondary Opportunities Fund

SG/NMERB Secondary Fund I

Ion Pacific Phillion I

*IRR: net of fees

14 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Nscale, a London-based AI infrastructure startup, raised a $155 million Series A led by Sandton Capital Partners.

Citryll, a Dutch biotech startup, secured an €85 million Series B led by Johnson & Johnson Innovation, Forbion and Novartis Venture Fund.

Bay Area-based Cala Health, a biotech startup developing wearable medical devices, raised a $50 million round led by Vertex Growth Fund and Nexus Neurotech Ventures.

WaveForms AI, which specializes in AI-powered audio and voice products, raised a $40 million seed round led by Andreessen Horowitz.

Pixxel, a space tech company based in the US and India, secured a $24 million Series B extension from M&G Catalyst and Glade Brook Capital Partners.

PitchBook webinar: Diversifying retirement allocations into private evergreen funds

New investment flows of $7 trillion are expected to come from private wealth channels over the next decade, much of which is anticipated to end up in evergreen vehicles. Where are your opportunities? Join experts from PitchBook and RIA Freestone Capital to learn more about investing in evergreen structures.

Register now to secure your spot.

Share:

PE Deals

Apollo Global Management will invest in a portfolio of infrastructure credit loans owned by Banco Santander valued around $370 million, Bloomberg reported.

Aerospace components manufacturer Forgital is in talks to be sold by The Carlyle Group to another PE firm, with Stonepeak, Cinven and JP Morgan making offers, Reuters reported.

The environmental services business of Canada-based GFL Environmental is in talks to be acquired by a PE firm, with Apollo Global Management, EQT and Stonepeak among potential buyers, Bloomberg reported.

Novo Holdings received regulatory approval to acquire Catalent, a New Jersey-based drug manufacturer.

The renewables project development business of Greencells Group has been acquired by Davidson Kempner and Nature Infrastructure Capital.

CVC Capital Partners made a voluntary tender offer for Compu Group Medical's outstanding shares at €22 per share, representing a 33.5% premium to Friday's closing price.

Keensight Capital acquired a majority stake in MetaCompliance, a human risk management software vendor based in Northern Ireland.

Inflexion has acquired a majority stake in Nodor Group, a UK-based darts equipment brand.

Kester Capital acquired Emas Pharma, a UK-based global clinical research organization specializing in therapeutic areas like oncology and rare diseases.

Exits

NYSE-listed Arthur J. Gallagher & Co is in talks to acquire PE-backed insurance broker AssuredPartners in a $12 billion deal, Bloomberg reported.

Karman Space & Defense, which develops space and missile technology, is in talks to pursue an IPO or be sold by owner Trive Capital in a deal that could value the company around $3 billion, Bloomberg reported.

Kioxia, a Japanese chipmaker backed by Bain Capital, raised $800 million through its IPO in Tokyo. The company is set to list on Dec. 18.

GIC hired JPMorgan Chase as advisor for a potential sale of its 50% stake in Greenko Energy, an India-based wind farm operator, Bloomberg reported.

Fundraising

Bay Area-based Centana Growth Partners raised $600 million for its third fund targeted at investments in the fintech sector.

Dimension, which focuses on life science and technology investments, launched its second VC fund targeted at $500 million in commitments.

Spanish investor Buenavista Equity Partners held a €100 million first close for BV Healthcare Growth Innvierte I.

Heartcore Capital closed Fund V on €170 million, to invest in early-stage European technology founders.

Chequers Capital closed Chequers Capital Fund XVIII on €1.2 billion.

Investors

Germany's Allianz has halted talks with Amundi's majority shareholder Crédit Agricole over a potential merger with the French investment group that would create a €2.8 trillion asset manager, Reuters reported.

Corporate M&A

Chocolate giant Hershey Co. is in talks to be acquired by Chicago-based Mondelez, which also makes snacks and candies, Bloomberg reported.

Chart of the Day

Source: PE deal value in Southern Europe returns to growth in 2024

About PitchBook | Terms of use | Advertise with us | Contact

This email was sent to you via the PitchBook Platform.

Do you want to change your email address, get a different edition or unsubscribe? Manage your subscription here.

PitchBook Data Inc., 901 Fifth Avenue, Suite 1200, Seattle WA 98164, United States

Cybersecurity VC funding returns to growth

Older messages

SpaceX tender offer boosts secondary sales

Should VCs spend slowly?

Crypto VCs size up Trump's SEC pick

Why VCs should slow down

The great AI gap: consumer startups

You Might Also Like

How This "1 PAGE" Website Makes $21,000/Month!

$1,654 in DAILY sales 😮 (Beta-Tester results + NEW system)

Founder Weekly - Issue 669

Building AI Agents the Easy way

Are you a Chaos Coordinator? It's one of the top gifts on Amazon

The Market Is Pushing Asset Prices After Inflation Report — But Should It Be?

When Video Matters And When It Shouldn't

😎Wake up, babe. State of Marketing just dropped.

VC climate-tech funding falls for 3rd year

🦅 We're rescheduling Jesse Pujji's masterclass