Our new tool for allocators

When startups round up startups; OTPP inks $1.8B power deal; Brookfield, Affinity swap label maker Trimco; HealthKart grabs $65M for supplements
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The Daily Pitch: VC, PE and M&A
November 28, 2022
The Daily Pitch is powered by PitchBook's industry-defining research and best-in-class data
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In today's Daily Pitch, you'll find:
  • Using PitchBook's new portfolio forecasting tool, our Allocator Solutions report explores how LPs can optimize the pace of their commitments.

  • For companies that end up selling to another startup, those exits may feel especially disappointing for shareholders.

  • Our latest university rankings provide a unique look into which colleges have produced the most VC-backed founders.
 
Today's Top Stories  
The denominator effect enters the simulation
Picture this: You're a public pension plan with a target private equity portfolio allocation of 20%. Amid market turmoil and public equity downturns, your PE allocation overshoots your target range. Your portfolio is imbalanced—what do you do?

Using PitchBook's new portfolio forecasting tool, our latest Allocator Solutions report explores how LPs can optimize the pace of their commitments. In three simulated case studies, we model how allocators can navigate the denominator effect and the challenging market environment. Key takeaways include:
  • Simulated PE portfolios confirm that many allocators are feeling the denominator effect.

  • Aggressive near-term changes to the commitment schedule in response to the denominator effect can cause large fluctuations in the allocation.

  • Straightforward forecasting is a useful tool for mature portfolios navigating the current market environment.
read it now
 
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Slump puts more startups on path to acquisition by other startups
(Rei Imagine/Shutterstock)
Startups at risk of running out of capital may soon have no choice but to sell to larger VC-backed companies.

These exits may feel especially disappointing for shareholders. That's because VC-backed businesses seldom pay with cash and instead offer a stock swap as currency.

For now, most startup-to-startup M&A conversations are between profitable or cash-rich companies and much smaller startups. But investors expect consolidation between moderately strong private businesses to pick up as the downturn continues.
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A message from BMO Harris Bank  
Interest rate & inflation impacts on middle market M&A activity
In the current issue of Transaction Trends, BMO Sponsor Finance provides insights into the impact of rising interest rates on coverage ratios and how sponsors are responding. BMO also examines wage inflation's impact on healthcare, as well as the industry dynamics at play in the technology services sector.

To learn more, download the full issue of Transaction Trends. You can also contact Stephen R. Isaacs, Managing Director and Head of BMO Sponsor Finance, at stephen.isaacs@bmo.com.
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The 2022 PitchBook university rankings
(Joey Schaffer/PitchBook News)
Our annual list of universities that have produced the most VC-backed founders offers a number of improvements for 2022. We've added more schools, expanded our graduate school rankings to include all degrees, and enabled filters for university criteria.

The rankings are powered by PitchBook's data on VC-backed companies and the founders who start them. Our proprietary methodology takes into account educational data on more than 144,000 founders.
see the rankings
 
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Recommended Reads
The secret to private rocket companies' success? They treat rocket systems as platforms rather than as bespoke, one-off projects. [Harvard Business Review]

Dimming the sun to cool the planet is a desperate idea, yet we're inching toward it. [The New Yorker]

One writer's thoughts on why startups should embrace radical transparency. [Harvard Business Review]
 
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Quick Takes  
  The Daily Benchmark  
  2016 Vintage US PE Funds  
  A message from PitchBook Media  
  PitchBook's 2023 Media Kit released  
  VC Deals  
  Healthtech startup HealthKart raises $65M  
  Lidar startup Scantinel Photonics lands €10M  
  Proptech startup Searchland pockets $2.8M  
  PE Deals  
  OTPP inks $1.8B deal for SSE transmission unit stake  
  Astorg, Epiris complete Euromoney deal  
  PE-backed All4Labels to buy Romprix Exim  
  Exits & IPOs  
  Brookfield buys label maker Trimco  
  Adelis exits modular building company Mobilhouse  
  Fundraising  
  India's Kae Capital closes Fund III on $94M  
 
 
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The Daily Benchmark  
2016 Vintage US PE Funds
Median IRR
23.70%
Top Quartile IRR
29.88%
1.85x
Median TVPI
Select top performers
Francisco Agility Fund
Renovus Capital Partners II
Gemspring Capital Fund I
*IRR: net of fees
93 Funds in Benchmark »
Check out the latest version of PitchBook Benchmarks
 
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A message from PitchBook Media  
PitchBook's 2023 Media Kit released
Year to date, PitchBook's newsletters have over 161 million impressions and over 744,000 report downloads. Partnering with PitchBook Media is a way to feature your firm's insights in one of the most popular venues for timely and relevant PE and VC articles, news, asset class reports and custom white label reports.

The brand-new 2023 Media Kit contains all the details to help your firm position itself in front of a VC or PE audience.

Click here to download it today or to speak to someone on the media team.
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VC Deals  
Healthtech startup HealthKart raises $65M
Indian supplement maker HealthKart has raised around $65 million from Temasek and A91 Partners. Temasek—via its V-Science Investment unit—invested nearly $47 million, while Mumbai-based A91 Partners invested $18 million.
View round
 
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Lidar startup Scantinel Photonics lands €10M
Scantinel Photonics, a German startup developing light detection and ranging solutions for mobility and industrial applications, has secured €10 million (about $10.4 million). Investors in the round included PhotonDelta, Scania Growth Capital and ZEISS Ventures.
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View similar company »
 
Proptech startup Searchland pockets $2.8M
Fuel Ventures has led a £2.3 million (around $2.8 million) investment in London-based Searchland. The startup's platform is designed to automate the process of sourcing off-market property development opportunities.
View round
 
View similar company »
 
 
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PE Deals  
OTPP inks $1.8B deal for SSE transmission unit stake
Ontario Teachers' Pension Plan has agreed to buy a 25% stake in SSE's electricity transmission network for around £1.5 billion (about $1.8 billion). SSE will retain a majority holding in SSEN Transmission.
Astorg, Epiris complete Euromoney deal
Astorg and Epiris have completed their £1.6 billion (around $1.9 billion) take-private of Euromoney. The B2B information services company will be delisted from the London Stock Exchange on Nov. 25.
View deal
 
View 10 competitors »
 
PE-backed All4Labels to buy Romprix Exim
Triton-backed All4Labels Group has agreed to buy Romania-based Romprix Exim. The company makes decorative self-adhesive labels.
View deal
 
View similar company »
 
 
Exits & IPOs  
Brookfield buys label maker Trimco
Affinity Equity Partners has sold Hong Kong-based clothing label maker Trimco Group to Brookfield Asset Management, Bloomberg reported. The deal is understood to value Trimco at between $800 million and $900 million.
View details
View similar company »
Adelis exits modular building company Mobilhouse
Adelis Equity Partners has sold its majority stake in Mobilhouse, a Danish provider of temporary modular buildings for offices and schools, to an investor group led by Kirk Kapital. Adelis bought Mobilhouse in 2019 via Fund II.
View details
 
View similar company »
 
 
Fundraising  
India's Kae Capital closes Fund III on $94M
Mumbai-based VC Kae Capital has closed its third fund on 7.67 billion Indian rupees (around $94 million). The sector-agnostic, early-stage fund will look to invest in around 25 companies.
View fund
 
View 91 investments »
 
 
Chart of the Day  
Source: PitchBook's Q3 2022 US PE Breakdown
 
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