PitchBook News - US PE mega-deals gain steam

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The Daily Pitch: VC

March 4, 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:

Our latest analyst note breaks down the trends behind the host of mega-deals and mega-exits in 2021.

The UK government has rejected Russian demands that it sell its stake in SoftBank-backed satellite operator OneWeb.

Today's Top Stories

US PE mega-deals and exits rapidly gain steam

(-ALINA-/Getty Images)

In 2021, PE firms pursued massive deals fortified by low interest rates, an excess of dry powder and a growing crowd of mega-funds. Larger deals were pervasive, as mega-deals—transactions sized $1 billion or more—accounted for 32% of all US PE deal activity.

Simultaneously, PE firms exited portfolio companies at impressive values, thanks to elevated transaction multiples across sectors and cash-rich buyers.

Our latest analyst note breaks down the data behind PE mega-deals. Takeaways include:

Public listings dominated mega-exits, compared with exits to corporates and other sponsors, with 75 PE-backed companies listed at valuations above $1 billion. This makes for a record far beyond previous annual numbers.

Macroeconomic factors such as expected interest rate hikes and increased government scrutiny for large M&A deals could impede mega-deal and mega-exit activity in the near future, but many investors maintain their positive growth outlook.

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UK rebuffs Russian call to sell OneWeb stake

(Michael Dunning/Getty Images)

The future of SoftBank-backed satellite operator OneWeb was cast into doubt after the UK government rejected demands from Russia—which hosts the firm's satellite launches—that it sell its stake.

OneWeb has been exclusively using Russia's Soyuz rocket for launches, and the suspension of operations in the country threatens its plans to roll out a global service by the end of the year.

Recommended Reads

The institutional investors whose capital fuels private markets are growing more sophisticated. But picking winners gets no easier. [The Economist]

How tech giants and startups alike are turning to holographic communication. [Bloomberg]

Do chatbots have the potential to become more intelligent, more conversational, more humanlike and—most importantly—more helpful? [The New York Times]

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Quick Takes


	The Daily Benchmark
	2017 Vintage Global Secondaries Funds
	VC Deals
	ThatGameCompany scores $160M
	Apollo.io nabs $110M
	Luminous picks up $105M Series A
	Construction tech startup OpenSpace lands $902M valuation
	Lido raises $70M from a16z
	Fundraising
	M13 raises $400M for Fund III

The Daily Benchmark

2017 Vintage Global Secondaries Funds

Median IRR

20.38%

Top Quartile IRR

28.51%

1.46x

Median TVPI

Select top performers

Auldbrass Partners Secondary Opportunity Fund II

Lexington Middle Market Investors IV

NB Secondary Opportunities Fund IV

*IRR: net of fees

18 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

ThatGameCompany scores $160M

ThatGameCompany, a Los Angeles area-based video game developer, has raised $160 million from Sequoia and TPG.

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Apollo.io nabs $110M

Apollo.io has raised a $110 million Series C led by Sequoia. Based in San Francisco, the company is the developer of a B2B sales intelligence and engagement platform.

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Luminous picks up $105M Series A

Luminous Computing has raised a $105 million Series A from investors including 8090 Partners, Gigafund and Neo. The California-based company is a developer of photonic chips designed for use in AI supercomputers.

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Construction tech startup OpenSpace lands $902M valuation

OpenSpace has raised a $102 million Series D at a $902 million valuation in a round led by PSP Growth. Based in the Bay Area, the company is a developer of AI-based construction tech that helps users track projects via computer vision and data analytics. OpenSpace was valued at $455 million in April 2021, according to PitchBook data.

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Lido raises $70M from a16z

Andreessen Horowitz has invested $70 million in Lido. The company is the developer of a liquid staking platform for ethereum and other proof-of-stake assets.

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View 765 investments »

Don't miss our Insurtech Update and Outlook webinar

Join PitchBook for a webinar on March 9 covering our recent 2021 Annual Insurtech Report. PitchBook senior analyst Robert Le will discuss the report's findings, notable market activity and insurtech industry outlooks, including:

The current backdrop of struggling public insurtech companies and possible impacts on the private markets.

Insurtech companies gaining the most traction and emergent areas of interest to investors.

Current industry trends and market outlook.

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Fundraising

M13 raises $400M for Fund III

M13 has raised $400 million for its third flagship fund. Founded in 2016 and based in the Los Angeles area, the VC firm focuses on early-stage consumer technology startups.

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