PitchBook News - Fund performance gap narrows

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The Daily Pitch: VC

February 13, 2025

Presented by CIBC Innovation Banking

🚪 Bradley Tusk, the original architect of Uber's political playbook and founder of Tusk Venture Partners, will leave the traditional venture business after deploying its third and final fund. Tusk's decision comes at a time of low distributions and reshuffling among VCs. Read more

📉 SoftBank's AI push was overshadowed in its latest earnings by a $2.4 billion quarterly loss. The causes: investment losses at the Vision Funds and a weaker yen, CFO Yoshimitsu Goto said. Full story

Plus...
• It's darkest before the fundraising dawn as two infrastructure funds close short of target
• Tech startups reach for stars at space conference
• Could a US sovereign fund look like Saudi Arabia's PIF?

PE, debt fund returns outpace VC, real estate

Wild IRR dispersions between private market strategies are narrowing, but the more level playing field may point toward "a calm before the storm," according to our latest Global Fund Performance Report.

Recent returns show a narrowing between asset class and outcome. Consider that in Q2 2021, VC booked a one-year IRR of 75.9%. Real estate? Just 16.9%. The top-to-bottom spread winnowed way down by Q2 2024. But the Trump administration's fiscal policies, as well as the actions of the Fed and European central banks, could shake up spreads.

Whether private debt can maintain its hot streak remains to be seen. Led by a standout showing for direct lending, the strategy outperformed through H2 2024. But if declining rates continue, it could pare gains.

read the report

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Conference explores dawn of a new space age

A new space age is approaching, and the annual Commercial Space Week conference was abuzz about what's on the horizon. Our latest analyst note recaps the key themes and takeaways from the event—ranging from advances in AI technology in space to a changing regulatory landscape impacting spaceport infrastructure.

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Infrastructure fundraising set to rebound—but some funds miss target

(Jeffrey Coolidge/Getty Images)

More infrastructure funds are expected to miss their targets before a broader recovery of the fundraising market materializes. Core infrastructure is particularly taking the hit as investors divert to higher-risk strategies and private credit funds drive competition for capital.

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Since yesterday, the PitchBook Platform added:

15

VC valuations

2145

People

763

Companies

41

Funds

See what our data software can do

The Daily Benchmark:
2016 Vintage Global Secondaries Funds

Median IRR

15.91%

Top Quartile IRR

23.53%

0.98x

Median DPI

Select top performers

LTO Fund

ICG Strategic Secondaries Fund II

Industry Ventures Special Opportunities Fund III

*IRR: net of fees

27 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

People

Peter Crawford has been appointed operating adviser at Clayton, Dubilier & Rice. He formerly worked as the CFO of Charles Schwab.

VC Deals

Harvey, the operator of a legal AI platform, raised a $300 million Series D led by Sequoia at a $3 billion valuation.

Abcuro, which develops treatments for cancer and autoimmune diseases, raised a $200 million Series C led by NEA.

Shopping-app developer Tabby, based in Saudi Arabia, secured a $160 million Series E led by Blue Pool Capital and Hassana Investment Company at a $3.3 billion valuation.

Chestnut Carbon raised a $160 million Series B from investors including Canada Pension Plan Investment Board, Cloverlay and DBL Partners. The startup generates carbon-removal credits by planting trees on degraded land.

Klook, developer of a travel platform, raised $100 million in a round led by Vitruvian Partners.

Olipop raised a $50 million Series C led by JP Morgan Growth Equity Partners that values the soda-alternative company at $1.85 billion.

Fal raised a $49 million Series B led by Andreessen Horowitz and Notable Capital. Bay Area-based Fal builds infrastructure for AI-generated media content.

SGNL, which focuses on identity-based cybersecurity for apps and other software, raised a $30 million Series A led by Brightmind Partners.

Lanch, a Berlin-based company that helps food brands expand, secured a €26 million Series A led by Felix Capital and HV Capital.

PE Deals

Advent International, Lone Star Funds and Apollo Global Management may bid for a portfolio of homecare assets owned by Reckitt Benckiser Group that could be valued as much as £5 billion, Bloomberg reported.

Chicken restaurant chain Dave's Hot Chicken is exploring a deal that would sell the company to a PE buyer for about $1 billion, Reuters reported.

The Riverside Company bought financial industry training company Wall Street Prep from Eden Capital.

Natural gas treatment company Bold Production Services has been acquired by Apollo Global Management.

Exits

United Group is selling Serbia Broadband to Netherlands-based telecommunications company E& PPF Telecom Group and other assets to Telekom Srbija in a deal valued at €1.5 billion.

Energy and power generation company e2Companies will go public in a SPAC deal that values the company at $500 million.

Fundraising

Partners Group launched an evergreen fund designed for institutional investors to access its multisector royalty strategy.

Ulu Ventures, a Bay Area-based VC firm investing in seed-stage IT and internet startups, raised $208 million for its fourth fund.

Maryland-based IMB Partners raised $125.5 million at the close of its first institutional fund.

Slow Ventures launched its Creator Fund, which is dedicated to investing in audience-focused startups led by content creators.

Barcelona-based healthtech VC firm Nina Capital closed its Fund III at €50 million.

Chart of the Day

Source: 2024 Annual Global M&A Report

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PitchBook News - Fund performance gap narrows

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