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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.
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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." | | | | | | | | | | 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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| Why are companies preparing to raise capital now before any rate rises? | | The global economy has made a strong post-pandemic recovery, but there is serious concern over inflation risk. Last month, US inflation hit a 40-year high of 7.5%. Now, many fear that the Federal Reserve will respond by raising interest rates—dramatically.
In this environment, confidence and certainty of your information is a necessity. Business leaders are preparing for the unknown.
Capital is essential for running any business, but the current climate has created additional urgency. Debt and/or equity raising are solutions for helping companies to survive and thrive—but being unprepared equates to unnecessary risk.
Get the free capital raising toolkit that thousands of businesses are using on Ansarada.
Download the capital raising checklist | | | | | | | |
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| Minded nabs $25M to boost mental health medication access | |  | | (Nataliia Prachova/Getty Images) | | | Minded, the operator of an online mental health treatment and medication management platform, has raised $25 million in seed funding.
The new round comes amid an overall rise in VC financing for mental health companies, as the demand for online psychiatry and behavioral health treatments continues to grow. | | | | | | | | | | Infosec Market Map: Startups scale to secure the cloud | |  | | (Mara Potter/PitchBook News) | | | The information security segment is changing, fast. Blame the cloud.
Enterprises are ramping up their spending to keep cloud-based assets safe, and venture capitalists are boosting the valuations of the cloud security sector's leaders.
Check out our information security market map to explore where investors have placed their bets. | | | | | | | | | | Most of the world hates inflation. But, for an obscure corner of Wall Street, it means making billions. [Bloomberg]
How a pivot to NFTs turned one tiny mobile game company into a multibillion-dollar powerhouse. [Forbes]
Meet Li Bin, the low-profile private equity investor bailing out China's chip industry. [The Information] | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 405 Deals | 1601 People | 513 Companies | 27 Funds | | | | | | |
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| 2016 Vintage Global PE Funds between $250M-$500M | | | | | | |
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| 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.
Read it here | | | | | | | |
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| Calpers brings on Nicole Musicco as CIO | | | | | | |
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| Amber Group brings in $200M | | | | | | | | | Cheq grabs $150M in Tiger Global-led round | | | | | | | | | | 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. | | | | | | | | 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. | | | | | | | | 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. | | | | | |
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| KKR inks $7.9B deal for bottler Refresco | | | | | | | | | Veritas to acquire HMH at $2.8B value | | | Veritas Capital has agreed to acquire Houghton Mifflin Harcourt Company, a Boston-based learning technology company, at an equity value of around $2.8 billion. Veritas will pay $21 per share for HMH, representing a 36% premium to the company's unaffected share price as of Jan. 13. | | | | | | | | MidOcean Partners buys Cloyes | | | | | | | | | PestCo picks up Pointe Pest Control | | | | | | | | | True Wind backs Sterling Capital Brokers | | | True Wind Capital has invested in Sterling Capital Brokers, a Canadian independent benefit consulting firm. Founded in 2014, Sterling offers employee insurance solutions including payroll integration, automatic billing reconciliation and digital onboarding to over 1,000 clients across Canada. | | | | | |
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| 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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| | | | | | | | | 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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| 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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