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| In today's Daily Pitch, you'll find: | | | | | |
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| Unveiling PitchBook's methodology for venture growth | | The VC market has changed tremendously since PitchBook developed a methodology for better defining the asset class by stages. The biggest shift has been in the late stage, which up until now was defined as all financings for companies that are more than five years old or have raised a Series C round.
But as VC-backed companies stay private for longer and collect more capital along the way, we have found that the smaller startups in our late-stage dataset have become considerably different from the larger ones.
To better address the variations and trends in late-stage venture, we have created a new category: venture growth stage. This segment is defined as funding rounds Series E or later or financings involving companies that are at least seven years old and have raised at least six VC rounds.
In our latest analyst note, PitchBook analyst Kyle Stanford details how the new stage has changed over the last decade and explains why its risk profile differs from angel, seed, early and late stages. | | | | | | | | | Q&A: Investment manager Downing on private market opportunities | |  | | (U_Photo/Shutterstock) | | | While many listed asset managers are looking to increase their exposure to the private markets, one boutique firm already has most of its assets invested in the space.
We spoke to Kostas Manolis, head of private market investments at the UK's Downing, about where there are opportunities and how the firm is adapting to changing investor sentiment. | | | | | | | |
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| A message from CohnReznick | | |
| New guide: 14 key strategies for private equity value creation | | The private equity ownership horizon is short, and finding the fastest and most reliable route to value creation is key.
This new ebook from CohnReznick explores 14 value creation “sprints” that enable more immediate top-line, bottom-line, and operational impacts. Whether you're at the onset of an investment, fully involved in implementing an existing value creation plan, or dealing with performance-inhibiting challenges, focusing on these distinct "sprints" can help set you up for a series of early wins and ultimately the timely achievement of your objectives.
Get your copy to give life to your value creation roadmap, with insights for optimizing areas such as: - Working capital, finance, and accounting
- Supply chain, sourcing, and procurement
- Pricing strategies and sales
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| Hard landing ahead? Recession odds are now a coin flip | |  | | (tomertu/Shutterstock) | | | The US faces a roughly 50% chance of a recession before the end of 2023. Here's the good news: An economic contraction, should it occur, is likely to be relatively short and buck the most pessimistic predictions.
That's according to Morningstar analysts, who lay out the case for inflation to fall quickly in 2023. Such an outcome would give the Fed a chance to ease off of monetary tightening and for GDP growth to bounce back in 2024. | | | | | | | | | Leveraged loan issuer earnings rise 14% as credit metrics improve | |  | | (TippaPatt/Shutterstock) | | | In a surprising sign of stability at the riskier end of the credit spectrum, US leveraged loan issuers posted robust earnings growth in the third quarter, buoying debt coverage in the process, according to LCD.
The relatively strong showing in the $1.4 trillion asset class is of particular importance as loan issuers face substantially higher funding costs, which grow with each Fed rate hike due to the floating-rate nature of the debt. Other key takeaways from LCD's quarterly earnings analysis: - Leverage at publicly filing loan issuers declined slightly.
- The share of issuers with cash flow coverage of less than 1.5x—a potential red flag—tumbled.
- Interest coverage—a metric for how easily a company can pay interest expense—has increased substantially from the pandemic-era low of 4.14x.
| | | | | | | | | FTX collapse could trigger decline in institutional capital in crypto funds | |  | | (ImageFlow/Shutterstock) | | | The FTX collapse sent a chill through the cryptocurrency market. For institutional investors who are already generally skeptical about the legitimacy of crypto, the company's downfall marks another reason to steer clear of the asset class.
With the asset class's promise of high potential returns and minimal correlation to other securities, institutional investors grew more confident in its potential over the past few years. But the FTX meltdown may diminish some of that institutional confidence and undermine the funding of crypto funds. | | | | | | | | | | US and European banks are endeavoring to offload $42 billion in buyout debt—quickly. [Bloomberg]
Americans want to support unions, but are they held back by their understanding of what unions used to be? [The New Yorker]
Junk bonds are seeing a modest end-of-year rally as investors bet on an improved economic outlook in 2023. [The Wall Street Journal] | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 437 Deals | 1939 People | 686 Companies | 19 Funds | | | | | | |
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| 2017 Vintage Global Secondaries Funds | | | | | | |
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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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| | | Vial, a contract research organization that supports biotech companies in clinical trials, has secured $67 million in a Series B led by General Catalyst. | | | | | | | | | Spend management platform Teampay has raised $65 million in a Series B led by Fin Capital. | | | | | | | | | | | | | | Wedding startup Joy lands $60M | | | Joy, a platform for planning weddings and hosting gift registries, has secured $60 million in Series B led by General Catalyst. | | | | | | | | | | | | | | | | | | | | | | | | | | | | Recycling startup CleanFiber raises $10M | | | | | | |
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| Nova Infrastructure acquires Xchange Telecom | | | Investment firm Nova Infrastructure has acquired Xchange Telecom, which provides internet and other services to residential and commercial customers in New York and New Jersey. The deal draws from Nova's Fund I, which closed on $565 million in July. | | | | | | | Weinberg sells Hoodmart to Valesco Industries | | | | | | | | PE firms provide new financing for Job.com | | | | | | |
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| Kore Power raises $75M from energy services companies | | | | | | |
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| Sentry acquires VC-backed Codecov | | | | | | |
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| New Fare debuts with $20M fund | | | New Fare Partners, a firm investing exclusively in early-stage food and beverage startups, has raised $20 million for its first fund. The vehicle will target startups offering next-generation consumer brands, supply chain technologies, marketplaces and more | | | | | | | Crystal View wraps up $140M | | | Real estate PE investment firm Crystal View Capital has closed its third fund on $140 million, surpassing its target of $95 million. Crystal View Capital Fund III has invested in 46 assets, of which nearly 80% are self-storage. | | | | | |
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| RBC to buy HSBC Canada for $10B+ | | | | | | |
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"VC-backed neural search companies are continuing to achieve traction at the early stage and raise outstanding rounds through economic volatility, as evidenced by the high valuations for Grata, Hebbia, and You, each of which use AI innovations to improve search results and personalization."
Source: Q3 2022 Artificial Intelligence & Machine Learning Report | | | | | |
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