Private wealth's lifeline for emerging VCs

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The Daily Pitch: VC

January 6, 2025

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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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