PitchBook News - Private debt funds tally $191B in 2021

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The Daily Pitch: VC

February 23, 2022

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:

US growth equity investing and deal value increased sharply in 2021, capping a decade of growth driven by investors on the hunt for stronger returns than those provided by buyouts.

Minded has raised $25 million in seed financing as the demand for online psychiatry and behavioral health treatments continues to grow.

Our information security market map explores how startups are scaling to secure the cloud.

Today's Top Stories

Private debt funds raise $191B in 2021 as LBO trend accelerates

Private debt managers secured $191.2 billion last year, the second-highest annual tally on record despite the lowest number of funds closed since 2011. It's a remarkable figure amid a challenging macroeconomic environment, and private debt is now the third-largest private market strategy in terms of assets under management, trailing only PE and VC.

Our 2021 Annual Global Private Debt Report, sponsored by the American Investment Council and Tree Line Capital Partners, tracks last year's major storylines in private debt and details why the evidence points to continued support for the strategy. Among the takeaways:

While private debt fundraising and AUM are both predicted to continue growing, the rate of increase is expected to be dampened by rising interest rates in the medium term.

The accelerating trend of leveraged buyouts relying on private financing as opposed to bank loans or high-yield bonds has helped fuel the strategy's rise as fund sizes have grown to meet the demand.

Direct lending funds' available dry powder has decreased annually since 2018, indicating lenders are finding it relatively easy to deploy capital.

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Growth equity deal activity spikes in 2021 as investors seek higher returns

(z_wei/Getty Images)

US growth equity investing and deal value rose sharply in 2021, capping a decade of growth driven by investors on the hunt for stronger returns than those provided by buyouts.

Investors pursuing the strategy raised more than $78.3 billion in 2021, the highest in a decade and more than twice the amount in 2020. Growth equity deal value hit $121.5 billion last year, the largest single-year total since 2010.

"Growth equity has become an asset class in its own right, and many LPs are interested in increasing their exposure," said Rebecca Springer, a private equity analyst at PitchBook. "The biggest driver of this trend is performance—growth equity strategies have outperformed buyouts over the past few years."

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Quick Takes


	The Daily Benchmark
	2016 Vintage Global PE Funds between $250M-$500M
	A message from Allvue Systems
	Six private equity trends to watch in 2022
	VC Deals
	Amber Group brings in $200M
	Cheq grabs $150M in Tiger Global-led round
	Timescale lands $110M
	Beyond Identity secures $100M Series C
	Funnel brings home $36.5M
	A message from PitchBook
	Unabated: Reflecting on 15 years of private capital markets growth
	Exits & IPOs
	SoFi set to purchase VC-backed Technisys
	Fundraising
	Ibex closes debut mobility fund on $113M

The Daily Benchmark

2016 Vintage Global PE Funds between $250M-$500M

Median IRR

22.40%

Top Quartile IRR

25.97%

1.54x

Median TVPI

Select top performers

Bertram Growth Capital III

Renovus Capital Partners II

Ufenau V German Asset Light

*IRR: net of fees

38 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

A message from Allvue Systems

Six private equity trends to watch in 2022

Private equity has quickly rebounded from its slight pandemic-related dip, but COVID-19 has still left its mark on the asset class.

In the new infographic 6 Private Equity Trends to Watch in 2022, Allvue Systems takes a closer look at the private equity trajectory for 2022, identifying key areas of focus including:

How ESG is increasingly becoming an integral part of strategies.
Why more and more contracts are including material adverse change clauses.

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VC Deals

Amber Group brings in $200M

Amber Group, the developer of a global digital asset platform, has raised $200 million in Series B+ financing led by Temasek. Sequoia China, Pantera Capital, Tiger Global, Tru Arrow Partners and Coinbase Ventures also participated in the funding.

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Cheq grabs $150M in Tiger Global-led round

Tel Aviv-based Cheq, a creator of go-to-market cybersecurity products that protect customer data from bots and fake users, has raised $150 million in a round led by Tiger Global. Battery Ventures, Hanaco, Phoenix Insurance and Key1 Capital also participated in the Series C.

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Timescale lands $110M

Timescale has raised a $110 million Series C led by Tiger Global. The funding values the New York-based company at more than $1 billion. Timescale offers an open-source time-series SQL database.

Additional Investors:

Redpoint Ventures, Icon Ventures, NEA, Two Sigma Ventures, Benchmark

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Beyond Identity secures $100M Series C

Beyond Identity has raised $100 million at a $1.1 billion valuation in a round led by Evolution Equity Partners. The company's multi-factor authentication platform operates without the use of passwords. Beyond Identity was valued at $375 million in 2020, according to PitchBook data.

Additional Investors:

Expanding Capital, Hbam, NEA, Potentum Partners

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Funnel brings home $36.5M

Funnel has raised $36.5 million in a Series B round led by RET Ventures. The company is a provider of property management software designed to manage apartment rental processes.

Select Additional Investors:

Camber Creek, Trinity Ventures

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A message from PitchBook

Unabated: Reflecting on 15 years of private capital markets growth

Over the past 15 years, there have been several key inflection points that have contributed to the growth, maturation and deepening of the global private capital markets. From the global financial crisis and the first unicorn to recent US elections and the pandemic, these factors paved the way for today's record-breaking investment landscape—and will undoubtedly have a lasting impact on the future.

What past financial events do you think contributed to today's dealmaking environment? What future implications do these events present for the next 15 years? PitchBook wants to hear your thoughts!

Submit your ideas to pr@pitchbook.com and you may be quoted in an upcoming feature.

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Exits & IPOs

SoFi set to purchase VC-backed Technisys

SoFi has agreed to acquire Technisys, the Miami-based provider of a banking platform that's used by over 100 million people across 16 countries. The personal finance specialist will pay Technisys shareholders some 84 million shares of SoFi common stock, which have an aggregate value of around $1.1 billion. Technisys has received prior backing from Kaszek Ventures, Alta Ventures, Endeavor Catalyst and others.

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PitchBook Webinar: The Definitive Guide to GP Fundraising

More than $1 trillion is committed to private market funds each year, yet much of this figure is represented by a handful of larger funds—while smaller and less developed funds struggle to get their footing.

In our GP fundraising webinar on Feb. 24, we'll explore how to navigate the current fundraising environment, with LP perspectives on what makes for an effective fund manager and how to stand out among the competition.

Register now

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Fundraising

Ibex closes debut mobility fund on $113M

Denver-based Ibex Investors has announced a first and final close of $113 million for its debut mobility venture capital fund. The vehicle will be used to back early-stage global transportation startups that provide tech and tech-enabled services. Ibex also operates in New York and Tel Aviv.

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