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The Daily Pitch: VC

October 20, 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 private equity healthcare deals and key considerations for avoiding regulatory and bottom-line risk.

Clayton, Dubilier & Rice has agreed to buy PwC's mobility tax and immigration services unit, adding to a growing list of PE-backed carveouts involving the Big Four accounting firms.

Today's Top Stories

Understanding the nuts and bolts of private equity healthcare deals

(Ivan-balvan/Getty Images)

Healthcare providers have become a prime target for private equity firms, which view the highly fragmented landscape as a ripe opportunity to unlock returns through multiple approaches.

But healthcare providers are unlike any other type of private equity investment. To avoid significant regulatory and bottom-line risk, firms must navigate a changing landscape of legal restrictions, payer relationships and more.

Our latest analyst note details key considerations for private equity healthcare transactions, including:

Who can own healthcare practices, and how these restrictions affect the structure of private equity-backed healthcare providers.

What firms should look out for with healthcare provider acquisitions, including violations of anti-kickback and self-referral laws.

How different transaction structures can affect insurance payer contracts and taxation.

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PwC sells tax and immigration unit to CD&R for $2.2B

(Leon Neal/Getty Images)

Clayton, Dubilier & Rice has agreed to buy PwC's Global Mobility Tax and Immigration Services business. The Financial Times reported that CD&R offered to pay $2.2 billion for the unit, marking PwC's biggest sale in nearly 20 years.
The business, which employs around 5,700 professionals, offers tax and immigration advice for companies with cross-border staff. The deal also adds to a growing list of PE-backed carveouts involving the Big Four accounting firms: Deloitte, KPMG, PwC and EY.

Recommended Reads

The fight for a revolutionary chip manufacturing technology has left Dutch developer ASML caught in a global tug-of-war. [Fortune]

While oil prices are at a seven-year high and have yet to peak, forecasters aren't agreed on what is driving them up in the first place. [The New York Times]

How the people of Shenzhen built a $30 billion fortune. [Bloomberg]

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Quick Takes


	The Daily Benchmark
	2017 Vintage Global Real Estate Funds
	A message from RBC Capital Markets
	How are changes in consumer behavior influencing M&A?
	VC Deals
	Aura hits $2.5B valuation
	Pismo raises $108M Series B
	Aiven brings in $60M
	Data privacy startup Skyflow secures $45M
	Clyde collects $41M in new funding
	Element lands $32M Series A
	Insurights scores $22M in seed funding
	Fundraising
	Galaxy Interactive raises $325M fund
	Multicoin Capital targets $250M for crypto fund

The Daily Benchmark

2017 Vintage Global Real Estate Funds

Median IRR

9.70%

Top Quartile IRR Hurdle Rate

13.95%

1.19x

Median TVPI

Select top performers

Penwood Select Industrial Partners V

Balfour Pacific Real Estate IV

Oak Street Real Estate Capital Fund IV

*IRR: net of fees

63 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

A message from RBC Capital Markets

How are changes in consumer behavior influencing M&A?

Recent M&A volumes in the consumer and retail sectors have been exceptionally high, with companies deploying new strategies to stay aligned with evolving consumer behaviors. According to RBC's global head of consumer and retail, Carrie Cook, "A global cross-sector, cross-product perspective is going to be key." Pandemic-driven changes in consumer preferences are behind recent trends in M&A, including cross-sector convergence and increased investment in data and analytics.

How are consumer brands and companies preparing for the future? What's fueling larger, more complex transactions with global dimensions?

See what's ahead for the sector and why large deals may be a theme going forward, with insights from RBC Capital Markets' industry experts.

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VC Deals

Aura hits $2.5B valuation

Aura, a consumer digital security startup, has raised a $200 million Series F at a valuation of $2.5 billion. Madrone Capital Partners led the round, with support from TenEleven Ventures, General Catalyst, WndrCo, Warburg Pincus and Accel. The Massachusetts-based company has raised a total of $650 million in private funding and generates $220 million in annual revenue.

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Pismo raises $108M Series B

Pismo, the creator of a banking and payments platform, has raised $108 million in a round led by SoftBank's Latin America Fund, Amazon and Accel. Founded in 2016 in Brazil, the startup's technology allows banks, fintech companies and non-financial institutions to offer digital wallets, payment cards, digital banking and marketplaces.

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Aiven brings in $60M

Aiven has raised $60 million in a Series C extension at a $2 billion valuation. The funding was led by IVP and World Innovation Lab, with participation from Atomico. The Finland-based company offers open-source cloud database infrastructure intended to help developers create applications.

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Data privacy startup Skyflow secures $45M

Insight Partners has led a $45 million Series B for Skyflow, the creator of an API-based data privacy platform that helps companies in sectors like fintech and healthtech store and manage sensitive customer data. The Palo Alto-based startup was valued at $97.5 million in December, according to PitchBook data.

Additional Investors:

Canvas Ventures, Foundation Capital, Mouro Capital, MS&AD Ventures

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Clyde collects $41M in new funding

Clyde has raised a $25 million Series B and $16 million in working capital. The funding round was led by Headline, with support from investors including Vulcan, Spark Capital and Crosslink. The New York-based company is the developer of a product lifecycle platform designed to help brands and retailers sell protection plans and manage claims.

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Element lands $32M Series A

Element has raised $32 million at a $320 million valuation in a round led by Polychain Capital, with support from investors including Andreessen Horowitz, Placeholder, A_Capital and Scalar Capital. Element's open-source trading platform is designed to provide liquidity on yield and principal tokens.

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Insurights scores $22M in seed funding

Insurights has raised a $22 million seed investment led by Group 11. The New York-based company offers an AI-based platform to help employees manage their healthcare benefits.

Additional Investors:

Cresson Management, Good Company, Insurtech Israel

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Fundraising

Galaxy Interactive raises $325M fund

Galaxy Interactive has raised $325 million for its second fund focused on interactive content and tech startups. The New York-based VC firm has backed companies including Mythical Games, StockX and Bad Robot Games since its launch in 2018.

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Multicoin Capital targets $250M for crypto fund

Multicoin Capital is planning to raise $250 million for its third fund, The Information reported. Founded in 2017, the Austin-based firm invests in early-stage cryptocurrency and blockchain companies.

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View 52 investments »