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In today's Daily Pitch, you'll find: - Our US PE Middle Market Report explores how dealmaking could shift to the middle markets as mega-buyouts become more difficult to finance.
- A look at how unicorns have fared in 2022's choppy waters.
- Chart of the day: Real assets first-time fundraising activity, from our Global Real Assets Report.
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| Bigger isn't always better when it comes to private equity funds | | PE giants' mega-buyouts dominated the market over the past few years, pushing middle-market funds into the backseat. But this dynamic could shift in the future as take-privates take aim at smaller companies.
In our Q3 2022 US PE Middle Market Report, sponsored by Antares Capital and LBMC, we show how dealmaking could shift to the middle markets as mega-buyouts of over $1 billion become increasingly difficult to finance. The report also explores opportunities and risks in this market segment. | | | | | | | | | Charting how the unicorn baby boom turned bust in 2022 | |  | | (Arina P Habich/Shutterstock) | | | Unicorn creation has declined sharply year-over-year, with only 308 private startups crossing the billion-dollar threshold through November, compared to 596 in total in 2021.
While this is still the second-highest annual total, the latter half of this year has seen a definitive slowdown in new unicorns being minted amid uncertain economic conditions.
Investors appear to be flocking to safety by favoring IT startups as well as North American companies. | | | | | | | | | Europe's 10 largest private equity funds in 2022 | |  | | (Marian Weyo/Shutterstock) | | | The UK and Sweden dominated in a list of the largest PE funds to close in 2022, together accounting for seven of the top 10. The biggest among them was Nordic Capital's Fund XI, which hit a €9 billion close in October.
There are also a number of mega-funds still in the market at this time, the biggest of those being London-based Cinven's eighth flagship fund, which is looking to raise €10 billion for its buyout strategy. | | | | | | | | | Private credit lenders sharpen focus on portfolio management | |  | | (Number1411/Shutterstock) | | | Lenders in the private credit market, a form of riskier debt that has largely overtaken the traditional syndicated leveraged loan segment in 2022, have long said a key advantage to their invest-to-hold model is the ability to act quickly when trouble with a borrower emerges.
Volatility and upheaval throughout the finance arenas this year—as rates soar and the risk of recession looms—is affording those private credit players a chance to prove their market mettle, and they're relying on lessons learned after the severe pandemic-induced sell-off in 2020 to do just that. | | | | | | | | | | Inside the world-changing race to develop the quantum computer. [The New Yorker]
Dubai is a new hot spot for idle bankers chasing IPO deals. [Bloomberg]
Investors are growing more confident that the Fed will pull off a soft landing. [The Wall Street Journal] | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 459 Deals | 2211 People | 547 Companies | 28 Funds | | | | | | |
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| 2018 Vintage Global PE Funds with more than $1B | | | | | | |
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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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| YouTube CFO lands at Cohere | | | Natural language processing software developer Cohere has hired Martin Kon as its new president and COO. Kon is leaving YouTube, where he served as CFO. In late October, The Wall Street Journal reported that Cohere was in talks to raise $200 million from Alphabet's Google. | | | | | |
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| Shield AI closes $225M round | | | | | | | | | | Virtual desktop deployment startup Nerdio has raised a $117 million Series B led by Updata Partners. The company spun off from IT company Adar in 2020. | | | | | | | | | | | | | | Small Door Veterinary catches $40M | | | | | | | | | | | | | |
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| Insights on over 100K clinical trials now available in PitchBook | | In response to market volatility and slowing innovation in the computer hardware and software space, investors are turning to healthcare—specifically, non-cyclical industries like biotech and pharma—as the next wave of high-impact, high-return opportunities. However, biotech and pharma investing contain a different set of risk profiles compared to tech startups. Progress through clinical trial stages is the best indication of the ultimate commercial viability of a new drug or medical device—and therefore, the likelihood of achieving a solid investment return.
To help investors isolate biotech and pharma companies with the highest chance of success, we've launched a new clinical trial integration, providing insights on over 100,000 clinical trials alongside our industry-leading funding data. With this new tool, investors can reduce time spent on opportunity discovery and due diligence by viewing a company's funding status alongside its drug development pipeline.
Explore our new clinical trial integration. | | | | | | | |
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| Milestone acquired by Halifax | | | | | | | | PE-backed Care Team buys 1st Care | | | The Care Team, a hospice and home healthcare specialist backed by Revelstoke Capital Partners, is acquiring peer 1st Care Home Health and Care Hospice. This is the fourth acquisition TCT has made in partnership with Revelstoke. | | | | | | | Comvest reels in Flash Global | | | Comvest has acquired supply chain specialist Flash Global. While the financials of the purchase weren't disclosed, Comvest typically provides equity and debt capital to North American middle-market companies. | | | | | | | Coral Tree scoops up digital jukebox company | | | | | | |
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| Microsoft picks up Fungible for $190M | | | Processor startup Fungible has been sold to Microsoft for $190 million, Blocks & Files reported. The company creates data processing units and has previously raised over $300 million from investors including SoftBank and Norwest Venture Partners. | | | | | |
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| Carlyle struggles to meet fundraising deadline for $22B fund | | | The Carlyle Group is negotiating with investors to extend the fundraising timeline for a buyout fund targeting $22 billion, the Financial Times reported. The fund's closing was slowed by the recent market turmoil and the firm's succession issue, according to the report. | | | | | | | | | VSS Capital Partners has closed VSS Structured Capital Fund IV on $530 million, beating its initial $400 million target. VSS focuses on debt and equity investments in lower-middle-market companies in the healthcare, education and business services industries. | | | | | | | US Venture Partners closes $400M fund | | | US Venture Partners has raised $400 million for its 13th fund, dedicated to Series A and B investments. The firm has previously invested in startups such as GoPro and cloud services company Box. | | | | | |
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