PitchBook News - Dividing the pie in GP stakes investing

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The Daily Pitch: VC

October 11, 2021

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

In today's Daily Pitch, you'll find:

Our analysts explore GP stakes funds and theorize on how best to allocate them in a broader portfolio.

Our visual breakdown of NerdWallet's IPO filing.

An analysis of how startups are leveraging healthtech to better serve the LGBTQ community.

Today's Top Stories

Thinking through GP stakes fund weighting and location in a portfolio

(Serg Myshkovsky/Getty Images)

GP stakes funds are unique among private equity strategies. This allocation has its appeal—offering yield and differentiated downside protection, and the funds benefit when the underlying firms perform well.

With over $20 billion currently being raised across GP stakes funds, many LPs are looking to make their first allocation to this strategy.

Yet because the strategy is so unlike others, it can be challenging to choose the right allocation bucket and weight within a broader portfolio. Our latest latest analyst note explores GP stakes allocations and theorizes on how best to bucket and weight these funds.

read it now

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Breaking down NerdWallet's IPO filing

(Image courtesy of NerdWallet)

Personal finance company NerdWallet has filed for an IPO in which it is said to be seeking a $5 billion valuation.

The VC-backed company's revenue grew 32.3% year-over-year in the first half of 2021, but that growth came at the expense of a significant uptick in marketing spending.

NerdWallet is more than a decade old and was bootstrapped for many years. To this day, it remains tightly controlled by founder and CEO Tim Chen, who owns 92.6% of the voting rights.

Read our full S-1 teardown for more takeaways.

Recommended Reads

Demand for everyday goods is outpacing supply halted by pandemic shutdowns, and America is running out of everything. [The Atlantic]

As families head for higher ground, workers from the liquified natural gas industry are rushing to Louisiana's port towns despite the danger. [Bloomberg]

How Evergrande grew and grew, despite years of red flags. [The Wall Street Journal]

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Quick Takes


	The Daily Benchmark
	2012 Vintage Global Secondaries Funds
	VC Deals
	Notion hits $10B valuation
	BetterUp raises $300M
	Aquant secures $70M Series C
	Gretel.ai picks up $50M Series B

The Daily Benchmark

2012 Vintage Global Secondaries Funds

Median IRR

12.25%

Top Quartile IRR Hurdle Rate

16.01%

1.32x

Median TVPI

Select top performers

Dover Street VIII

Pomona Capital VIII

Keyhaven Secondaries Fund I

*IRR: net of fees

13 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Notion hits $10B valuation

Notion has raised $275 million at a $10 billion valuation in a round led by Coatue and Sequoia, Forbes reported. The company is the developer of a work collaboration platform; its customers include Spotify, Slack and Pixar. Notion was valued at $2 billion in April 2020, according to PitchBook data.

Additional Investor:

Base10 Partners

View round

View 72 competitors »

BetterUp raises $300M

BetterUp has raised $300 million at a $4.7 billion valuation in a round co-led by Wellington Management, Iconiq Growth and Lightspeed. The Series E comes less than eight months after the Bay Area-based company raised a $125 million round. BetterUp is the developer of a mobile-based professional coaching platform.

Additional Investors:

Morningside Group, Mubadala Investment Company, Plus Capital, SV Angel, Salesforce Ventures, Sapphire Ventures

View round

View 31 competitors »

Aquant secures $70M Series C

Aquant has raised $70 million in a round co-led by Qumra Capital, Insight Partners and Pitango Growth. The New York-based company's service intelligence platform structures data to provide actionable solutions to service challenges. The funding values Aquant at $350 million, according to PitchBook data.

Select Additional Investors:

Angular Ventures, Claltech, Lightspeed Venture Partners

View round

View 23 competitors »

Gretel.ai picks up $50M Series B

Gretel.ai has raised $50 million in a round led by Anthos Capital, with support from Greylock, Moonshots Capital and Section 32. The company is a developer of privacy engineering tools designed to help developers manage data security.

View round

View 2 competitors »

PitchBook Webinar: Views on sustainable investing

Ongoing global challenges and consumer-led pushes for sustainability have prompted changes at all levels of business, from startups built on ethical practices to new goals at long-standing companies.

In this webinar, our analysts will explore some of the findings from our 2021 Sustainable Investment Survey, which garnered record responses from around the globe. The report covers views on the main frameworks for impact investing and why stakeholders are showing more interest in sustainable investments.

Register today to secure your spot.

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Chart of the Day

"Though fundraising has posted strong results in recent years, the amount of available capital (dry powder) in private debt funds has fallen. At year-end 2020, private debt funds held $355.1 billion of dry powder—an impressive sum, but still about 10% below the highs of the prior two years."

Source: PitchBook's H1 2021 Global Private Debt Report