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| In today's Daily Pitch, you'll find: | | | | | |
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| Credit markets brace for recession: LCD survey | |  | | (Spencer Platt/Getty Images) | | | Our colleagues over at LCD, PitchBook's platform for credit market news and data, just completed the latest quarterly Leveraged Finance Survey of buy-side, sell-side and advisory professionals. The survey indicates a significant decline in market sentiment, with a majority of market players bracing for an even rougher road ahead.
Some of the main findings in the survey: - The percentage of respondents forecasting a recession has skyrocketed.
- Leverage multiples of buyouts are set to decline.
- The worst of the volatility is yet to come.
- Institutional investors are maintaining PE allocations.
| | | | | | | | | How public market caution may shape private fintech company valuations | | The stock market decline has brought public valuations to the forefront, along with questions about the future of their private counterparts. In the fintech sector, investors are finding that there's no substitute for core profitability—and their patience might be waning.
Our Fintech Q2 Public Company Valuation Guide tracks stock performance, revenue forecasts and market caps of key publicly traded fintech companies, diving into data that can help illuminate the potential impact of public comps on the private markets. Among the takeaways: - Insurtech stocks have dropped 65% from their peak, outpacing broader market declines, and companies may face investor pressure to restructure or sell.
- Four of the five companies in the neobanks, brokers and crypto segment are expected to generate negative earnings through 2024.
- Stock prices for high-growth payments and fintech companies have fallen 59% from their peak, yet attractive margins might make public investors more patient with the payments sector.
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| A message from the National Science Foundation | | |
| | Dimensional Energy, a company that transforms carbon dioxide into an environmentally friendly fuel, is helping operators like United Airlines reduce their carbon footprint.
Dimensional Energy (NSF-1831166) is one of hundreds of deep tech startups funded annually by the National Science Foundation (NSF), 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 research & development. 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 200+ exits.
Learn more about NSF funding at seedfund.nsf.gov | | | | | | | |
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| Exclusive: SC Lowy wraps up $400M in latest Asia-Pacific direct lending fund | |  | | (krisanapong detraphiphat/Getty Images) | | | SC Lowy is wrapping up a new direct lending fund more than three times the size of its predecessor, as the Hong Kong-based asset manager seizes upon strong investor interest in Asia's private debt markets.
The firm is expected to close the vehicle above target on around $400 million.
In recent years, appetite has grown for private debt funds in Asia, where smaller companies face limited access to credit because of inefficient debt markets. The relative lack of competition in the market has already helped some credit investors to post high returns. | | | | | | | | | Lightspeed raises $7B+, piling onto record year for mega-funds | |  | | (GarryKillian/Getty Images) | | | A blowout year for commitments to VC mega-funds shows few signs of slowing.
Lightspeed raised $7.1 billion across four funds, adding to the $121.5 billion already raised by US VC firms this year—87% of the record total committed in 2021.
The continued success of the largest firms to secure commitments highlights a growing disparity between capital allocators and the startups they back, whose outlook for raising cash is becoming gloomier by the day. | | | | | | | | | | Elon Musk's decision to pull out of the $44 billion Twitter deal plunged the company into chaos—and its employees are fed up. [Wired]
One writer's thoughts on why betting on small funds over large managers could give investors better odds of outperformance. [Institutional Investor]
Charting the $100 trillion global economy. [Visual Capitalist] | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 466 Deals | 1664 People | 453 Companies | 32 Funds | | | | | | |
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| 2015 Vintage Global Debt Funds | | | | | | |
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| Insurtech startup Wefox worth $4.5B with Series D | | | Berlin-based Wefox has raised $400 million in a round led by Mubadala, valuing it at $4.5 billion. The startup's platform connects insurance companies, distributors and customers. | | | | | | | SingleStore brings in $116M | | | SingleStore has raised $116 million in a round led by Goldman Sachs Asset Management. Based in San Francisco, the company is the developer of a cloud-native relational database for data-intensive applications. | | | | | | | May Mobility rides off with $111M | | | | | | | | | | AI21 has raised $64 million in a round led by Ahren. Based in Tel Aviv, the company develops AI-based language services designed to understand context and meaning. | | | | | | | Scale Computing raises $55M | | | | | | | | Terra CO2 secures $46M to decrease carbon footprint of cement | | | | | | | | Fifth Wall leads $38M round for Assembly OSM | | | Assembly OSM has raised a $38 million Series A led by Fifth Wall. Based in New York, the company is a provider of modular construction technology for high-rise buildings. | | | | | | | Tiger Global leads $25M round for Fort Robotics | | | Fort Robotics has raised $25 million led by Tiger Global. Based in Philadelphia, the company makes wireless functional safety systems for autonomous machines. | | | | | | | Milk Moovement scores $20M | | | Milk Moovement has raised a $20 million Series A led by VMG Catalyst. The Canadian company's dairy supply chain software offers transportation monitoring, production tracking, quality monitoring and producer payment. | | | | | |
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| Resurgens sells Castellan Solutions to PE-backed Riskonnect | | | | | | | | IK Partners to acquire IG&H | | | IK Partners has agreed to acquire a majority stake in IG&H. The Dutch business consultancy serves clients in sectors including financial services, health and retail, and trade and logistics. | | | | | | | ArchiMed backs Title21 Health Solutions | | | | | | | | Enercon lands Ardent Environmental Group | | | | | | | | Madison Dearborn to buy Unison from Carlyle | | | | | | |
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| Francisco Partners raises $17B across two funds | | | Francisco Partners has raised nearly $17 billion across two funds that aim to invest in the technology sector. The firm closed its seventh flagship fund on $13.5 billion and FP Agility III on $3.3 billion. | | | | | | | Motive Partners wraps up $2.5B | | | Motive Partners has closed its second flagship fund on $2.54 billion. The vehicle will focus on growth and buyout investments in software, investment and information services businesses in North America and Europe. | | | | | | | Crossplane closes second fund on $325M+ | | | Crossplane Capital has closed its second fund on over $325 million. The fund will target lower-middle-market industrial companies that are family- and founder-owned. | | | | | |
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| Ackman to return $4B to SPAC investors | | | Two years after raising a $4 billion SPAC, Pershing Square Capital Management founder and CEO Bill Ackman is returning the funds to investors after failing to find a target company to take public. In a statement to shareholders, Ackman listed "the extremely poor performance of SPACs that have completed deals during the last two years" and companies delaying their public debuts due to unfavorable market conditions among the reasons a transaction was not completed. | | | | | |
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