PitchBook News - Ever-changing tariffs keep PE on edge

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The Weekend Pitch

March 23, 2025

Presented by Deloitte

(Jenna O'Malley/PitchBook News)

Tariffs and market uncertainty have stalled US private equity dealmaking—yet some dealmakers view this as an opportunity to unlock value in previously overlooked assets by leveraging trade policies.

The year's start for US deal volume in tariff-sensitive sectors, such as industrials and manufacturing, has dropped to decade lows, according to PitchBook data. The reason is buyers are reluctant to take on any material tariff exposure at this time, citing the unpredictability of US trade policies and the difficulty of forecasting how tariffs will affect corporate earnings.

"It is really difficult to reprice a deal right now based on what's happening with tariffs because it seems to be changing every single day," said a senior investment professional from a middle-market PE firm presenting at a recent industry event.

Late last year, the person's firm, a middle-market PE player, turned down a seller—a Canadian pet food company—due to concerns about tariff risks.

Other attendees at the event shared a similarly cautious stance.

"The uncertainty is high enough that we certainly are not taking that underwriting risk right now," said another panelist, from a firm investing in industrials and manufacturing companies.

I'm Madeline Shi, and this is The Weekend Pitch. You can reach me at madeline.shi@pitchbook.com or on X @Madelin94615831.

Trivia

This week, a group led by investor Bill Chisholm set the record for the largest PE sports deal ever when it acquired a majority stake in which sports team?

A) Boston Celtics
B) Seattle Mariners
C) Utah Jazz
D) Brooklyn Nets

Find your answer at the bottom of The Weekend Pitch!

Unicorn valuations climb
as VC-backed IPOs sink

With an increasingly unsteady economy dampening already uncertain IPO prospects, venture capital in the US is becoming increasingly polarized, according to our latest Quantitative Perspectives report. LPs continue to favor mega-funds, while GPs pile into standout sectors such as AI, SaaS and biotech.

Capital flowing into these spaces has spurred record unicorn valuations: The total value of US unicorns is nearing $3 trillion for the first time. Unicorns may have good reason to stay private—through the end of January, the median 180-day IPO return for VC-backed companies trailed the Morningstar Growth Index by nearly 30%.

The report examines the historical features of IPO-ready companies, offering insights into potential future exits.

Quote/Unquote

"You have to press on the gas at the right time. Look at the quality of the revenue you have. Is it sustainable? Is it long-lasting? Look and see: Is the market going in the wrong way? If so, why are you putting your foot on the gas now?"

—Ken Elefant, partner and co-founder of Sorenson Ventures speaking to PitchBook about the rapid growth startups are experiencing in the shadow of Wiz's $32 billion sale to Google.

Trivia

Boston Celtics player Kristaps Porzingis
(Adam Glanzman/Getty Images)

Answer: A.

The consortium led by Bill Chisholm acquired a majority stake in the Boston Celtics, which values the basketball team at a record $6.1 billion. You can read more about how this transaction stacks up to other PE sports deals here.

Stay tuned

Keep an eye out for these insights and research reports coming out this week:

2024 Annual US PE Lending League Tables
Q4 2024 Gaming Report
Q4 2024 Enterprise SaaS Report
Q4 2025 Emerging Tech Indicator Report
Q4 2024 Healthcare IT PE Update
2025 Clean Energy Overview

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This edition of The Weekend Pitch was written by Madeline Shi and Jacob Robbins. It was edited by Heather West and Clarinda Simpson.

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PitchBook News - Ever-changing tariffs keep PE on edge

Trivia

Unicorn valuations climb
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PitchBook News - Ever-changing tariffs keep PE on edge

Trivia

Unicorn valuations climb as VC-backed IPOs sink

Quote/Unquote

Trivia

Stay tuned

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Older messages

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Unicorn valuations climb
as VC-backed IPOs sink