Credit boom: Repricing transactions in the leveraged loan market were on fire in May, hitting a record high for volume. Our US Credit Market Weekly Wrap has all our latest data and commentary. Read a free preview.
Healthcare buzz: GLP-1 weight loss drugs, value-based care, and women's health were key topics of discussion at the MedCity INVEST conference. To read our key takeaways from the event, download our recap note.
Calling all LPs: Visit us at the ILPA Members' Conference in Chicago (June 4-6), where our lead quantitative and funds research analyst Zane Carmean will participate in a discussion on continuation funds. Register here. | | | | | |
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| Unlock competitive advantage at your CRE firm | | The commercial real estate (CRE) market has faced major challenges over the past several years, however, there are signs that things may start to turn around in the second half of 2024, as new opportunities are expected to emerge for CRE investors.
Competition for these opportunities will be fierce, and a first-mover advantage will be critical. In a market where timing is everything, your team needs the agility to move quickly.
A real-estate-minded CRM platform gives your team access to critical insights needed to uncover new opportunities, accelerate deal flow, and nurture relationships in the name of the first-mover advantage.
Read this article to discover how a real estate CRM provides you with a competitive edge. | | | | | | | |
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| Conditions have improved, so why is PE still waiting? | | In many ways, the current macro environment should be quite supportive of PE. Real economic growth has continued to be robust while input prices have moderated, which has created a positive backdrop for portfolio companies' topline growth and profit margins. Labor market turnover and wage growth have slowed without a pickup in layoffs, and leveraged finance investors are offering the most favorable lending terms with respect to credit spreads in the post-GFC period. Yet, the figurative dam holding back pent-up PE buyout deal and exit activity has not broken despite many in the industry trying to speak it into existence. The continued lack of activity is putting many components of the traditional PE buyout investment cycle under pressure. Buyout investors are finding it difficult to put capital to work and it is hard to point to anything other than interest rates as the main culprit. The Fed has held interest rates above 5% for nearly a year and does not appear to be in any hurry to lower them. Not even a more favorable lending environment, especially in the syndicated loan market, has been able to spark dealmaking. The recent surge in refinancing and dividend recap activity, while issuance for new financings has remained sluggish, suggests there is weak demand for new platform deals.  | | Exits are falling and holding periods are growing. | The more pressing concern for investors, however, is that the drought in exit activity has now extended into its third year. This has created a pileup of portfolio companies that have been held for longer than normal in funds that are older than seven years. Buyout funds that were launched more than seven years ago now hold an impressive $760 billion in NAV that will need to find an exit route soon. Based on a bottom-up fund analysis, we estimated that these older funds will require more than $240 billion in liquidity in just 2024 alone, almost twice the total trailing one-year exit value. While many have pointed to the growing secondaries market as a reason not to be concerned about the looming liquidity need, our analysis shows that this is potentially misguided. The secondaries market will be able to provide a valuable pool of alternative liquidity, but we estimated the capital available for GP-led buyout secondaries is only about $60 billion. On a standalone basis, this will only cover about 25% of the estimated liquidity needs from older funds. At least a partial recovery in primary exit activity will be needed to satisfy the total liquidity demand at current valuations. For additional details and supporting data on these topics and more, please download the free report: Quantitative Perspectives: Under Pressure | | | | | | | |
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During Q1, fundraising for the largest publicly traded PE firms was driven by private credit—with 70% of inflows going to the strategy.
Private wealth and insurance remain major fundraising channels, according to our new US Public PE and GP Deal Roundup, after accounting for an estimated 48% of credit fundraising in 2023.
The report also shows how a weak exit environment has impacted realizations in buyouts and other PE strategies: | | | | | |
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H1 2024 VC Tech Survey
Overall, VCs are more optimistic about fundraising and the IPO market than they were a year ago.
We asked 53 investors dozens of questions on the state of the venture market, sectors and regions of interest, valuation expectations, and much more.
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How are fundraising plans changing? Which industries and tech sectors are under the most pressure?
See the results from our survey: | | | | | |
EV Charging Segmentation
Electric vehicle adoption faces a chicken-and-egg problem.
Prospective drivers are deterred by range anxiety, leading to a lack of investment in EV charging infrastructure.
|  | | See more of the market map in the full research. | | | |
Our new research provides a detailed look at the EV charging space—which is not monolithic—and its distinct segments and opportunities.
It also provides an overview of what other countries like Norway are doing to build out charging infrastructure and further supercharge adoption: | | | | | |
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Technologies that enable doctors to monitor patients' health between office visits promise to improve outcomes, particularly for those with chronic conditions.
This fragmented segment is ripe for consolidation, with opportunities for investors to create scale and improve efficiency, according to our latest Healthcare IT Report.
But there are hurdles, including buy-in from doctors, who struggle to integrate longitudinal care into their workflows: | | | | | | Medtech VC investment rebounded significantly to $3.3 billion in the first quarter as investors piled into high-quality companies despite historically low deal volume.
Public medtech valuations have stabilized, and there are pockets of rising valuations in the medical devices, consumer health, and life sciences sectors.
Our Medtech Report also covers emerging opportunities in cardiac arrest prevention and treatment as well as whole-body scans: | | | | | |
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Our insights and data featured in the press: If you're a journalist interested in interviewing our analysts or requesting data, contact our PR team.
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More of our recent research (* - report preview):
Market updates
Thematic research
Industry & tech research
Credit research
Coming next week (subject to change) - Australia & New Zealand Private Capital Breakdown
- Global Markets Snapshot: May
- France Snapshot
- Biopharma Report*
- Emerging Tech Indicator
- Emerging Space Brief: High-Performance Computing
- Software is transforming the automotive industry
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| | Since yesterday, the PitchBook Platform added: | | 448 Deals | 2389 People | 944 Companies | 45 Funds | | | | | | |
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