PitchBook News - A swift rebound for private debt

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The Daily Pitch: VC

August 5, 2021

Like our newsletter? The data comes from the PitchBook Platform — our data software for VC, PE and M&A

Greetings, readers! In today's Daily Pitch, here's what you'll find:

Our analysts give their fresh take on how the private debt market is rebounding, with more than $72 billion raised in the first half of 2021.

CVC Capital, the heavyweight player at the intersection of private equity and sports, just grabbed a major European prize.

Emerging tech hubs: Atlanta's startup scene adds to its growth spurt with the birth of its fourth unicorn this year.

... and now for the Pitch!

Today's Top Stories

Private debt market remains buoyant after COVID-19 setbacks

(Peter Schreiber/Getty Images)

Private debt fundraising declined across the globe last year during the height of the COVID-19 pandemic, but the 2021 rebound has been swift thanks to a surging economy, liquidity in the credit markets and businesses avoiding default.

Sponsored by the American Investment Council and UMB Fund Services, PitchBook's H1 Global Private Debt Report explores those trends in an analysis of an oft-overlooked alternative asset strategy.

The report includes:

A breakdown of private debt fundraising by fund type, including direct lending and distressed debt.
A deep dive into the venture debt ecosystem, looking specifically at how venture debt has increasingly emerged as an alternative form of financing for startups over the past decade.
An analysis of private debt performance, dissecting the rebound of various sub-strategies following the dip in Q2 2020.

read it now

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FullStory rides Atlanta's unicorn wave with mega-round

Could Atlanta be the next hot spot for unicorns?
(Dan Reynolds Photography/Getty Images)

Atlanta is fast emerging as a unicorn hub, with four startups surpassing the $1 billion valuation mark so far this year. The city's unicorn tally to date in 2021 is equal to the past six years combined, according to PitchBook data.

The latest entrant in the herd is FullStory, which raised a $103 million Series D led by Permira, catapulting the company's valuation to $1.8 billion.

FullStory is the developer of an analytics platform that helps organizations like Peloton, Chipotle and Forbes access insights on web and mobile user behavior, increase revenue and improve efficiency. Existing investors Kleiner Perkins, GV, Stripes, Dell Technologies Capital, Salesforce Ventures and Glynn Capital also participated in the funding.

Other Atlanta-based unicorns from the class of 2021 include meeting scheduler Calendly, video surveillance and security specialist Flock Safety, and SalesLoft, a sales engagement platform creator.

Related read: Why Atlanta could face startup hub growing pains

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A message from West Monroe

What's driving the current wave of healthcare M&A and investment?

Whether you're a strategic or financial investor—or a healthcare business leader—understanding what's driving M&A and investment is critical to developing strategies that meet the needs of today's consumers. Consolidation continues for providers as patient needs and care delivery economics shift.

Our recent report covers trends and drivers for three vital segments of the healthcare deal landscape: providers, payers and life sciences. With rapid change continuing to hover on the horizon, it's an exciting time for healthcare dealmakers and business leaders.

Read the report

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CVC Capital makes its biggest sports bet with $3.2B Spanish soccer deal

Alejandro Gomez of La Liga's Sevilla FC celebrates a goal against Deportivo Alavés. (Fran Santiago/Getty Images)

CVC Capital Partners has landed its biggest sports deal yet, investing $3.2 billion in La Liga in exchange for a share of the top Spanish league's revenue and a stake in a new company controlling its commercial activities.

The deal, which values La Liga at $28.7 billion, marks CVC's third attempt in the past year to back a European soccer league, after talks stalled with Italy's Serie A and Germany's Bundesliga.

A prolific sports investor, CVC is one of the leaders among the surge in private equity firms backing professional athletics. The firm has invested in volleyball, rugby and motorsports in recent months.

Recommended Reads

Software and internet investing has reached a tipping point, and author Sam Lessin foresees the end of venture capital as we know it. [The Information]

UK hedge fund Man Group's Sandy Rattray on why the takeover of computer-driven funds is inevitable. [Financial Times]

Amid the fight against climate change, German truck drivers are asking, "What if highways were electric?" [The New York Times]

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Quick Takes


	The Daily Benchmark
	2016 Vintage Global Debt Funds
	Partner Perspectives
	Capital flows into life sciences at a record pace
	VC Deals
	Sonoma Bio picks up $265M for inflammatory disease treatment
	Chronus brings in $78M
	IVP leads $75M round for Superhuman
	Zeni snags $34M Series B for finance concierge platform
	G2VP leads $25M round for MakerSights
	Wildfire Systems banks $15M for consumer rewards platform
	Exits & IPOs
	Pico to merge with Betsy Cohen-backed SPAC
	Correction: Figure acquires Homebridge

The Daily Benchmark

2016 Vintage Global Debt Funds

Median IRR

7.25%

Top Quartile IRR Hurdle Rate

11.38%

1.14x

Median TVPI

Select top performers

Centerbridge Special Credit Partners III- Flex

PAG Enhanced Credit Fund

Silver Point Distressed Opportunities Offshore Master Fund

*IRR: net of fees

53 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

Partner Perspectives

Capital flows into life sciences at a record pace

Well over $25 billion has been invested in US life sciences companies in 2021 already, a sum that exceeds annual totals for most of the 2010s. In addition, a slew of IPOs has contributed to a mammoth $36.4 billion in aggregate exit value. Orrick's latest Life Sciences Snapshot breaks down these remarkable trends in depth. Key data points and findings include:

Additional drivers of meteoric rises in valuations
Transactional volume by series and size
A roundtable with industry experts focused on spinouts and how they can unlock value

Read it now

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VC Deals

Sonoma Bio picks up $265M for inflammatory disease treatment

Sonoma Biotherapeutics has raised a $265 million Series B led by Ally Bridge Group, with participation from ArrowMark, Avidity Partners, Casdin Capital, Deep Track Capital, GV, NS Investment and others. Operating out of South San Francisco and Seattle, the company develops T cell therapies for autoimmune and inflammatory diseases. Sonoma raised $70 million in a Series A last year.

Select Additional Investors:

Fidelity Management & Research, Frazier Healthcare Partners, Janus Henderson Investors, Mirae Asset Global Investments, Osage University Partners, Piper Sandler, Vertex Ventures HC

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Chronus brings in $78M

Chronus has raised $78 million from Level Equity. Founded in 2007 and based near Seattle, the company is the developer of an employee mentoring platform designed to help organizations such as Amazon and Electronic Arts address initiatives like talent retention and workplace diversity.

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IVP leads $75M round for Superhuman

Superhuman, the developer of an email client, has raised a $75 million Series C led by IVP. The funding values the Bay Area company at $825 million, according to a PitchBook estimate. Ajay Vashee, general partner at IVP, is joining the company's board.

Additional Investor:

Tiger Global

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Zeni snags $34M Series B for finance concierge platform

Fintech startup Zeni has raised $34 million in a Series B led by Elevation Capital, with support from Think Investments and other backers. The Bay Area-based company is the creator of an AI-based concierge platform that provides bookkeeping, accounting and other financial services for startups. Zeni was valued at $31.5 million in 2019, according to PitchBook data.

Additional Investors:

Dragon Capital, Liquid 2 Ventures, Saama Capital, Sierra Ventures, Twin VC

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G2VP leads $25M round for MakerSights

Consumer-focused software company MakerSights has raised $25 million in a Series B led by G2 Venture Partners. Golub Capital, Gaingels, Forerunner Ventures and Baseline Ventures also participated, along with several angel investors. MakerSights was valued at $40 million in 2019, according to PitchBook data. The company provides a tech platform that helps retail brands operate more profitably and sustainably.

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Wildfire Systems banks $15M for consumer rewards platform

Fintech startup Wildfire Systems has raised $15 million in a Series A co-led by TTV Capital and QED Investors. Founded in 2017, the Solana Beach, Calif.-based company enables customers like Microsoft and Acorns to offer consumer rewards and loyalty programs like cashback for purchases.

Additional Investors:

B Capital Group, BAM Ventures, Bonfire Ventures, Daher Capital, George Kaiser Family Foundation, Moonshots Capital, Mucker Capital

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View similar company »

Exits & IPOs

Pico to merge with Betsy Cohen-backed SPAC

Pico has agreed to merge with FTAC Athena Acquisition, a blank-check company led by former The Bancorp CEO Betsy Cohen. The deal is expected to provide Pico with $450 million in cash and values the combined company at $1.4 billion. New York-based Pico makes trading infrastructure and other technology for financial clients. It has received prior backing from Intel Capital and DRW Venture Capital.

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Correction: Figure acquires Homebridge

Figure Technologies, a blockchain-based financial services company founded by Mike Cagney, has agreed to acquire Homebridge Financial Services, a mortgage-lending specialist, for an undisclosed sum. The company had previously raised a total of $1.55 billion from investors including Ribbit Capital, DCM Ventures and DST Global, according to PitchBook data, including a recent Series D that valued the company at $3.2 billion. (Wednesday's newsletter incorrectly reported Figure was acquired in the combination of the two companies.)

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View 17 competitors »