Private wealth's lifeline for emerging VCs

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The Daily Pitch: VC

January 6, 2025

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📷 Our latest Global Markets Snapshot breaks down a month of trends in the equity, debt and commodities markets, tracking returns across various indexes and sectors. It also features private market activity, including major deals, fundraising, IPO performance, lending volume and unicorn creation. Get the snapshot.

💰 Sovereign wealth funds played a major role in some of the biggest deals in the private markets in 2024. We ranked 10 of the largest PE deals backed by the likes of the Abu Dhabi Investment Authority and Singapore's GIC. Read more.

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The private-wealth lifeline for emerging VCs

(PBNJ Productions/Getty Images)

Doctors, lawyers and other members of the private wealth set are dangling a lifeline to emerging VC managers that often struggle to ink commitments from large limited partners like pensions and endowments.

In recent years, high-net-worth individuals and even retail investors have flocked to emerging funds with smaller investment minimums, a shift that has helped dull the blow of a pullback from other LPs.

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The Daily Benchmark:
2017 Vintage Global PE Funds

Median IRR

18.91%

Top Quartile IRR

25.40%

0.64x

Median DPI

Select top performers

Spectrum Discretionary Overage Program

Summit Partners Europe Growth Equity Fund II

HgCapital Mercury 2

*IRR: net of fees

131 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

KoBold Metals, a startup using AI to discover mineral deposits of metals used in manufacturing, raised a $537 million round led by Durable Capital Partners and T. Rowe Price at a $2.96 billion valuation.

Electra, which specializes in cleaner methods of iron production, is raising a $256.7 million round, according to SEC filings.

Geothermal energy specialist Fervo Energy raised a $135 million round led by Capricorn Investment Group.

Swave Photonics, a Belgian holographic display startup, received a €27 million Series A led by Imec.xpand and SFPIM Relaunch.

PE Deals

Permira agreed to acquire Westbridge, a energy and sustainability advisory firm based in Germany.

Exits

Minimalist, an India-based wellness startup known for its skincare brand, is in talks to be acquired by Hindustan Unilever for up to $350 million, TechCrunch reported.

Crypto trading platform operator Arbelos Markets has been acquired by California-based digital asset brokerage company FalconX.

Canyon Bridge Capital Partners plans to sell UK-based chipmaker Imagination Technologies, Bloomberg reported.

Fundraising

Mantra Investment Partners is targeting €250 million for Mantra Secondary Opportunities IV, Secondaries Investor reported.

Austin-based VC firm Tacora Capital raised $268.7 million for its latest fund, Tacora Capital II, according to SEC filings.

Reciprocal Ventures, a New York-based VC firm investing in fintech and crypto companies, launched its third fund targeted at $100 million.

Corporate M&A

President Joe Biden blocked Nippon Steel's $14.1 billion takeover of US Steel, citing US security and supply chain risks.

Licensed photo and visual asset companies Getty Images and Shutterstock are exploring a potential merger.

Chart of the Day

Source: European VC mega-rounds were rare in 2024—but hot startups still cashed in

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Private wealth's lifeline for emerging VCs

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