PitchBook News - Red hot: PE earnings and sports deals

Investment in NBA and MLB franchises offers PE firms a greenfield opportunity; several public PE firms have reported 50%+ gross annual return figures.
Read online | Don't want to receive these emails? Manage your subscription.
PitchBook
Log in
The Research Pitch
May 15, 2021
Sports franchises begin to accept private equity capital
Minority investments in sports franchises offer private equity firms a greenfield opportunity in which to deploy tens of billions of dollars.

In the last few years, the NBA, MLB and MLS have altered ownership rules to allow a select group of private equity investors to hold minority stakes in multiple teams.

The Golden State Warriors and the Boston Red Sox—through their ownership group Fenway Sports—have already sold stakes to private equity firms. We expect more deals to follow as some minority owners seek to cash out while other majority owners look to raise growth capital.

Over the last 20 years, valuation growth for NBA, MLB, and NFL teams has outpaced the S&P 500, and many LPs want access to this return stream. Looking to the next 20 years, live content is likely to command even more of a premium with more on-demand streaming.

In our latest research, we explore this bourgeoning opportunity and dive into the investment thesis and risks behind sports investments.

Furthermore, the analysis includes a look at the unique characteristics and long-term revenue drivers of seven major sports leagues, as well as a rundown of top firms in the space—Arctos Sports Partners, Dyal Capital Partners, Galatioto Sports Partners and more. If you are interested in learning more about this emerging space for PE or have additional questions, please feel free to reach out to me or our institutional research group

Best,

Wylie Fernyhough
Senior Analyst, Private Equity Lead
Share:   Email    LinkedIn    Twitter    Facebook
Thematic Research
Analysis of Public PE Firm Earnings: Q1 2021

Building on their momentum coming out of 2020, Blackstone, KKR, Apollo, Carlyle and Ares had a very impressive Q1.

Our analysis of the latest earnings reports from these private equity giants dissects their performance and strategies—and explains how they relate to broader PE industry trends:
  • A year after 2020's market nadir, corporate PE fund performance came in red hot, with several firms reporting 50%+ gross annual returns.

  • This combined with an already favorable fundraising environment portends more and bigger mega-funds in the coming quarters.

  • Also of note: All five firms expect significant runway for growth in the secondaries market, though they're taking different approaches to realize that potential.
read our analysis
 
Emerging Tech Research
MOBILITY TECH: From tackling congestion to reducing carbon emissions, the mobility tech industry is increasingly being seen as one of the ways we can solve a host of societal problems.

Venture investors are pouring billions of dollars into mobility tech startups that have been benefiting from the SPAC boom and rising demand for low-cost and environmentally friendly transportation solutions.

In our latest ETR report on the sector, analyst Asad Hussain explores the major trends that shaped the mobility tech industry in Q1, including mounting optimism around air taxis and autonomous driving technology. Among the takeaways:
  • Venture funding in the space set a record in Q1, with $23.4 billion invested.

  • The SPAC phenomenon added upward pressure on valuations for early- and late-stage mobility startups and has accelerated funding timelines.

  • Electric vehicle specialists need to rethink design processes in a way that prioritizes manufacturing cost and total cost of ownership.

  • Micromobility providers appear to be gaining traction in emerging markets such as India and Brazil.
read a summary
 
ENTERPRISE HEALTH AND WELLNESS TECH: Increasing healthcare costs have pushed employers, governments and healthcare providers to demand technology that can both lower costs while also providing high quality of care.

Our Q1 report on the sector from analyst Kaia Colban gives an overview of the latest developments and opportunities in prescription tech, customer acquisition tools, clinical trial tech and operations & care management. Among the key takeaways:
  • VC activity in the sector reached a record level in Q1, with $4.5 billion invested across 55 deals.

  • The COVID-19 pandemic exposed many remote capability inefficiencies in the healthcare system, thus enabling startups with market-ready products to gain market share.

  • New regulations will drive opportunities in personalized health apps, real-time prescriptions and care coordination software. Additionally, Medicare and private health insurance providers' adoption of value-based care could boost interest in tech that links providers' earnings to quality of care and patient outcomes.
read a summary
 
Webinars & Events
If you missed our analysts' webinar on autonomous finance, the most recent episode of our In Visible Capital podcast captured the highlights.

Also, the on-demand replay of our Venture Monitor webinar, which covered trends in US VC dealmaking, exit activity and fundraising, is available now.

One more webinar for your radar:
  • May 19: Our EMEA analysts will discuss the latest trends in the European PE and VC markets and look at how their 2021 predictions are faring. Register here.
Deal Commentary
AI analyst Brendan Burke weighs in on this week's $80 million Series B funding for SiMa.ai:

"This Series B is the largest deal we have tracked in the Edge AI category of AI & ML semiconductors.

"SiMa.ai is developing a system-on-chip that can process machine learning algorithms with low power requirements.

"We believe that the edge AI is an emerging semiconductor market that is partly driving the major announced acquisitions of Arm by Nvidia and Xilinx by AMD.

"Compressed ML algorithms in edge devices can unlock value for common IoT use cases, including predictive maintenance, supply chain optimization, and connected healthcare.

"Lead investor Fidelity Management & Research recently achieved an outstanding VC exit for chip design startup NUVIA, demonstrating the opportunity in this space.

"We estimate the AI microprocessor market to grow at a 49.7% CAGR from 2021 to 2024, resulting in a $6.5 billion market."

 
Brendan Burke

Senior Emerging Technology Analyst
AI & Machine Learning
In the News
Our insights and data featured in the press:
  • How soon will self-driving trucks be widely deployed? How does that compare to robotaxis? Analyst Asad Hussain shared his expectations in the context of a recent SPAC deal in the mobility tech sector. [WSJ]

  • PitchBook data is the foundation for this look at venture capital trends to watch. [WSJ]

  • How can smaller VC funds compete in a market increasingly favoring mega-funds? It was the topic of discussion in our webinar this week. [Venture Capital Journal]
If you're a media member interested in interviewing our analysts, contact our PR team.
ICYMI
Highlights from our research content published over the past few months:

Market updates Thematic research Emerging Technology Research deep dives Coming next week (subject to change)
  • Q1 Private Fund Strategies Report
  • 2021 UK/Ireland Private Capital Breakdown
  • Analysis of SoftBank's latest earnings
  • ETR: Foodtech (sneak peek)
  • ETR: Insurtech
Thanks for reading! Feel free to email us any time with feedback, questions or tips!

Learn more about the PitchBook Institutional Research Group or access our research libraries for clients and non-clients.

Were you forwarded this newsletter? Sign up at pitchbook.com/subscribe.
Since yesterday, the PitchBook Platform added:
8
VC valuations
831
People
273
Companies
31
Funds
See what our data software can do
 
About PitchBook | Terms of use | Advertise with us | Contact

Follow us:   in   twtr   fb

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.

© 2021 PitchBook Data. All rights reserved.
Venture capital, private equity and M&A financial information technology provider.

Older messages

Biotechs launch with big backing

Friday, May 14, 2021

Mental health startup collects $47M; Zeekit finds fit with Walmart; IVP raises $1.8B fund; Upsie scoops up $18.2M Read online | Don't want to receive these emails? Manage your subscription.

Tiger Global dips into seed funding

Friday, May 14, 2021

Ginkgo Bioworks inks SPAC deal; BuzzFeed eyes Complex Networks; BLCK VC launches scout program; ParcelLab picks up $112M Read online | Don't want to receive these emails? Manage your subscription.

SoftBank goes it alone on Vision Fund 2

Friday, May 14, 2021

VCs flock to health & wellness tech; Bird to go public via SPAC; Better.com to go public at $7.7B valuation; Handshake grabs $80M Read online | Don't want to receive these emails? Manage your

The future of autonomous finance

Tuesday, May 11, 2021

Gojek raises $300M before merger; Procore sets IPO terms; Plus to go public via SPAC; Better eyes SPAC deal Read online | Don't want to receive these emails? Manage your subscription. PitchBook Log

Why mobility tech is riding strong

Monday, May 10, 2021

Science 37 inks SPAC pact; Chatbot specialist nabs $130M; Genomics startup lands $50M; Gopuff picks up Fancy Read online | Don't want to receive these emails? Manage your subscription. PitchBook

You Might Also Like

‘We found the thing that gives us joy’: Microchild on the microverse, music, and shared language

Wednesday, March 12, 2025

The wife and husband pair of Shannon Sengebau McManus and Jonathan Camacho Glaser are souls behind the band Microchild. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

🦅 Reminder: Masterclass with Jesse Pujji

Tuesday, March 11, 2025

At 1:00 PM Eastern Time (US and Canada) ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

[Webinar tomorrow] Canadian? How to Grow Your Amazon FBA Business as a Canuck

Tuesday, March 11, 2025

Hey Reader, Are you a Canadian? No? Well, you should never skip a single line on an EcomCrew email but this is one exception and you can continue with your day. Yes? Then congratulations on hitting the

The state of ad serving for brands and agencies

Tuesday, March 11, 2025

How ad-serving technology is changing and unlocking new opportunities ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

♟️ OpenAI's smart chess move!

Tuesday, March 11, 2025

Guess who's sweating? ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

March Madness is here: Tap into the hype with these marketing plays

Tuesday, March 11, 2025

And more insights to drive smarter social strategies and ROI ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

ET: March 11th 2025

Tuesday, March 11, 2025

Exploding Topics Logo Presented by: Exploding Topics Pro Logo Here's this week's list of rapidly trending topics, insights and analysis. Topic #1 Gruns (trends) Chart Gruns is a DTC startup

If SEO is dead…

Tuesday, March 11, 2025

Here's a surefire way to fall behind your competition: Declare SEO as dead and stop optimizing your content. Sure, the strategies that worked five years ago may not work today, but businesses that

Niche = $$$

Tuesday, March 11, 2025

Why Your Tiny Newsletter Could Be an Advertiser's Dream ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

The Founder Institute targets first VC fund

Tuesday, March 11, 2025

Startups join the M&A big leagues; Hinge Health files for IPO; stablecoin surges with regulation in play; VC-backed IPOs give up post-election gains Read online | Don't want to receive these