| | In today's Daily Pitch, you'll find: - Our latest Quantitative Perspectives report, featuring nearly 50 pages of data and charts detailing US PE's recovery—and beyond.
- The SEC's SPAC scrutiny has ensnared a pair of high-profile deals as part of an ongoing push to increase investor protections.
| | | | | | | | | | US PE moves beyond recovery and into the unknown | | As the two-year anniversary of COVID-19's emergence looms, the world is adjusting to a new normal. For financial assets and economies, that means a dramatic pace of activity—firmly establishing the markets' move beyond the recovery stage.
Lately, US private equity has experienced its fastest pace of deal and exit activity in at least two decades, according to our latest Quantitative Perspectives report, which features nearly 50 pages of data and charts. Among the takeaways: - Strong activity within tech and business products & services has driven the majority of the surge in PE deal value.
- Aggregate exit value has spiked in 2021, driven by the increasing valuations across all exit types—but especially public listings.
- The 10 largest funds accounted for almost one-third of all capital raised in 2021, as larger funds continue to dominate the market.
- Institutional investors' long-term expectations point to a challenging period ahead, as the strong recent returns have likely come at the expense of future returns.
| | | | | | | | | | SEC's SPAC scrutiny ensnares marquee deals | |  | | (Courtesy of Lucid Motors) | | | A pair of high-profile blank-check deals are being investigated by the SEC as part of an ongoing push to increase investor protections related to SPACs. - Both the SEC and the FINRA are probing an ongoing merger between Donald Trump's new media venture and Digital World Acquisition Corp., a blank-check company. The former president reportedly met with DWAC CEO Patrick Orlando prior to the SPAC's IPO, an action that could violate SEC rules.
- The SEC also subpoenaed documents from electric carmaker Lucid Motors, which said that the regulator appeared interested in business projections and statements tied to its $4.4 billion deal to combine with Churchill Capital Corp. IV earlier this year. The SEC previously opened investigations into the SPAC mergers of EV makers Canoo and Lordstown Motors, and it charged the founder of Nikola with fraud.
- Concerns over forward-looking projections, conflicts of interest and other risks have been at the heart of the SEC's push for enhanced disclosures in SPAC deals.
- The actions come ahead of an expected wave of such mergers: More than 600 US blank-check companies are either seeking a deal or in the process of closing one, according to PitchBook data.
| | | | | | | | | | A message from the National Science Foundation | | | | | Stanford University spinout Novome Biotechnologies, which engineers microbes to help treat chronic disease, recently struck a $605 million deal to genetically engineer microbial medications.
Novome Biotechnologies (NSF-1648230) is one of hundreds of deep tech startups funded annually by the National Science Foundation, a government agency that plays a central role in accelerating discoveries into the marketplace.
Each startup can receive up to $2 million to support translational R&D. By investing roughly $200 million in startups annually, NSF helps teams navigate the earliest stages of technology translation. In the past five years, these companies have gone on to raise billions in follow-on capital, and the portfolio has had 100+ exits.
Learn more about NSF funding at seedfund.nsf.gov | | | | | | | | | | CVC Capital prepares for IPO | |  | | CVC Capital picked up a stake in the Six Nations Rugby tournament earlier this year. (Harry Trump/Getty Images) | | | CVC Capital Partners has hired Goldman Sachs to help prepare for an IPO that could value the London-based firm at $15 billion, The Sunday Times reported.
If the deal goes ahead, it would likely be the most valuable listing of a private equity firm in Europe, with nearly double the valuation garnered by EQT Partners in its €7 billion (about $7.9 billion at today's conversion rate) listing in 2019.
This is also the second time in the space of a month that there have been reports of a major European buyout firm looking to go public. Last month, Paris-based Ardian reportedly started preparing for an offering, adding to a growing list of publicly traded PE firms in Europe that also includes UK firm Bridgepoint and French investor Antin Infrastructure.
CVC is currently investing out of its fifth flagship buyout fund, which closed on $4.4 billion in late 2020. Its biggest deals this year include an investment in the Six Nations Rugby tournament and the €2.5 billion acquisition of building materials distributor Stark Group.
A recent PitchBook analyst note revealed that in the US, where several PE firms already trade publicly, shares in the largest asset managers have outperformed the S&P 500 over the past year. | | | | | | | | | | Temasek-backed BenevolentAI to go public via SPAC | |  | | (MF3d/Getty Images) | | | BenevolentAI, a UK drug discovery startup, plans to go public via a merger with Odyssey, a SPAC, in a deal the values the company at €1.5 billion (about $1.7 billion).
BenevolentAI will raise €390 million after transaction costs. The company will get €300 million from Odyssey, which listed in Amsterdam in July, and another €135 million via private placement from existing investors including Singapore state-backed investment fund Temasek and pharma giant AstraZeneca.
Founded in 2013, BenevolentAI has developed an AI-based platform that helps deliver novel drug candidates that have a better chance of clinical success than those developed using traditional means. The company raised $90 million from Temasek in late 2019 at a $1 billion valuation.
Odyssey, which was launched by Michael Zaoui and Yoel Zaoui, targets investments in the European healthcare and technology, media and telecom sectors. It was the 11th SPAC to go public on the Euronext markets in 2021, which has been a record year for European SPAC listings. | | | | | | | | On the podcast: How tech is helping the global supply chain to evolve | | This week on "In Visible Capital," we talk about the state of the supply chain with PitchBook senior emerging tech analyst Asad Hussain, who recently published the Q3 update of our Emerging Tech Research on the supply chain tech sector.
Hussain discusses opportunities in maritime innovation, supply chain visibility, risk management and more. Then, we revisit an episode published earlier this year featuring an expert discussion on the latest logistics technologies. | | | | | | | | | | Fueled by cheap power, empty plants and few regulations, crypto miners are descending on New York's former industrial towns. The environmental impact could be devastating. [The New York Times]
Calpers is turning to private equity and leverage to boost returns and reduce risk, but industry experts are mixed on whether it will work. [Institutional Investor]
China won't be able to meet its environmental goals without connecting its sources of renewable energy with its coastal mega-cities. The result will likely be both ugly and expensive. [Bloomberg] | | | | | | | | | | | Since yesterday, the PitchBook Platform added: | | 734 Deals | 2711 People | 678 Companies | 29 Funds | | | | | | | | | | | | | | | | | | | | 2017 Vintage Global Real Estate Funds | | | | | | | | | | | | | Breaking down the key venture capital trends in blockchain | | Venture financing in the blockchain space has been garnering so much attention recently, as blockchain and cryptocurrencies have offered a glimpse into how these technologies can reshape the digital world.
Beyond the eye-catching headlines on NFTs, many blockchain-enabled businesses are growing rapidly and forging the future of what is commonly referred to as Web3.
In its inaugural market review, Blockchain & Venture Capital: Breaking Down Key Trends, Forte uses PitchBook's data sets to break down key trends across the space. Highlights include: - A summary of important industry and regulatory trends.
- Metrics on venture funding such as valuations and deal sizes.
- A market map segmenting the ecosystem.
Read it now | | | | | | | | | | | | Lyft CFO Brian Roberts leaves for crypto startup OpenSea | | | NFT trading marketplace OpenSea has hired Brian Roberts as CFO, a position he has held at Lyft since 2014. OpenSea was valued at $1.5 billion this summer, and The Information reported that the company received offers to raise another round at a $10 billion valuation. | | | | | | | | Christina Melas-Kyriazi joins Bain Capital Ventures | | | | | | | | | | | | | Salesforce Ventures leads $580M round for Genesys | | | | | | | | | Africa's TradeDepot collects $110M | | | TradeDepot, a B2B marketplace for consumer goods producers, importers and local manufacturers, has raised $110 million in new funding that will be used to expand the Nigeria-based startup's buy now, pay later service across the continent. The round reportedly consists of equity funding led by IFC, with participation from Novastar, Sahel Capital, CDC Group, Endeavor Catalyst, MSA Capital and Partech, as well as debt financing provided by Arcadia Funds. | | | | | | | | | | | | | | | Hometap welcomes $60M in new funding | | | | | | | | | Sense raises $50M from SoftBank | | | Sense, the creator of an AI-backed talent recruitment and communications platform, has raised a $50 million Series D led by SoftBank's Vision Fund 2. The new capital values the San Francisco-based company at $500 million, TechCrunch reported. Sense has now raised a total of $90 million in private funding, including a $16 million Series C announced in June. | | | | | | | | Mysten Labs snags $36M Series A led by a16z | | | | | | | | | | Stacked, the developer of a crypto investment platform, has reportedly raised a $35 million round led by Alameda Research and Mirana Ventures, with participation from other investors. Based in Chicago, the startup's tech lets users manage their assets and invest in pre-built portfolios and strategies from hedge funds and traders. | | | | | | | | Canopy nabs additional $35M | | | | | | | | | | | | | Carlyle to invest $475M in YipitData | | | The Carlyle Group will invest up to $475 million into YipitData, a New York-based financial data company that serves Wall Street and corporate clients, Bloomberg reported. The investment will value the company at over $1 billion, the report said. | | | | | | | | EFM funnels $350M into Elysian | | | EnCap Flatrock Midstream has invested $350 million in Elysian Carbon Management, a provider of end-to-end carbon capture and storage solutions. Elysian serves North American industrial and power facilities seeking to transition to low-carbon products and address ESG goals. EnCap Flatrock Midstream is currently investing out of its fourth flagship fund, a $3.25 billion vehicle. | | | | | | | | Berkshire Partners backs cloud-based software company Tango | | | Berkshire Partners has invested in Tango, a Dallas-based provider of cloud-based store lifecycle and workplace management software. Founded in 2008, the company has partnered with more than 1,000 brands; its SaaS and mobile solutions are used in 140 countries. | | | | | | | | Bain Capital, Baring among potential suitors for outsourcing specialist | | | | | | | | | | | | | Delivery Hero curbed in attempt to buy The Chefz | | | Berlin-based Delivery Hero has been blocked in its latest attempt to buy Saudi Arabia-based competitor The Chefz after the Saudi General Authority for Competition denied the takeover bid, Bloomberg reported. The Chefz reportedly raised a funding round in 2019 from Saudi investors including Vision Ventures. The startup said the talks are still ongoing, according to the report. | | | | | | | | | | Dominus Capital to sell outdoor grill specialists | | | | | | | | | 10X Capital SPAC pares IPO estimate | | | A SPAC formed by 10X Capital, dubbed 10X Capital Venture Acquisition III, has lowered the proposed deal size for its upcoming IPO. The tech-targeting SPAC now plans to raise $250 million by offering 25 million shares priced at $10 apiece, after originally planning to sell 35 million shares at $10 apiece. | | | | | | | | | | TSG targets $5B for latest fund | | | TSG Consumer Partners is looking to raise $5 billion for its ninth flagship fund, The Wall Street Journal reported. The firm, founded in 1987, focuses on consumer products companies. | | | | | | | | | | | | | | | | | | | | Who's in the newsletter today? | | People | | | | Investors | | | | Companies | | | | Service Providers | | | | | | | | | | | | | |
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