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💥 The GP-led secondary market is booming. The exit value for these transactions is on track to reach an all-time high in 2024, expected to land between $50 billion and $60 billion, according to PitchBook's latest analyst note.
The momentum is driven by the growing popularity of continuation funds, as depressed valuation multiples hamstring activity for traditional exit routes. GPs are unwilling to bring their crown jewels to market, preferring instead to roll trophy assets into continuation vehicles so they can monetize these investments at a higher price later.
Our analysts expect GP-led secondaries will continue to gain steam, growing into a $70 billion to $105 billion market by 2028. Get the analyst note.
Also...
🧬 Blackstone is back on the fundraising trail for its latest life sciences fund, targeting $5 billion. PE firms have become increasingly involved in financing drug development in recent years, as life sciences companies contend with depressed valuations and high interest rates. Full story.
🥡 Apollo-backed food packaging company Novolex agreed to acquire Pactiv Evergreen in a take-private deal valued at $6.7 billion including debt, as demand for eco-friendly packaging rises. Read more.
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| Cybersecurity VC funding returns to growth | | Generative AI is lending a boost to information security VC investment, according to our latest Emerging Tech Research. - Infosec VC funding is on pace to grow year-over-year, with startups collecting $8.8 billion through Q3.
- The Morningstar PitchBook Cybersecurity Unicorn Index has outperformed indexes of both global unicorns and AI unicorns since 2021.
- A loaded IPO pipeline should benefit from Rubrik: The company went public in April, and its stock is up more than 50% over the past month.
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| Three deal sourcing strategies for 2025 | | There's no doubt that deal sourcing in 2025 will be competitive. With a 76% increase in the number of operating funds since 2015, stricter due diligence criteria, and more pressure to deploy funds, finding and winning quality deals requires a new playbook.
Affinity's latest guide examines what VC firms can do to adapt and protect their competitive edge. Find out why dealmakers are shifting focus to outbound sourcing, how firms like Kleiner Perkins and Intel Capital are using AI effectively, and the data platform requirements for identifying relevant deals earlier.
Featuring insights from industry leaders, this guide provides proven strategies for balancing technology with the fundamentals of relationship-driven sourcing.
Access guide | | | | | | | |
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| Infrastructure fundraising slows, but carries momentum | | Just over 60 real assets funds have closed on nearly $71 billion combined through Q3 2024—putting the asset class on pace to fall short of year-end fundraising totals from 2023, according to our latest report on the strategy.
Funds are taking longer to close across the board, with even the fastest batch of real assets vehicles taking nearly 21 months to do so. Infrastructure fundraising has been subdued as the asset class awaits the closing of several mega-funds targeting over $7 billion in capital.
The outlook on real assets fundraising overall remains positive, with investors driven by decarbonization, digitalization and deglobalization. Still, fundraising in natural resources is moving at a slower pace, amid global tensions around supply and commodity pricing volatility. | | | | | | | | | GP-to-GP dealmaking hits annual high | | A key component of this year's M&A market has been the pronounced uptick in GP-to-GP transactions. GP deal activity reached 124 majority or minority deals through Q3, a record annual high with three months to go.
In PitchBook's Q3 2024 US Public PE and GP Deal Roundup, our analysts explore this trend, exemplified by Blue Owl, which completed its fourth acquisition of a GP this year, effectively adding $44 billion to its AUM. On the deployment front, private equity activity accelerated by 37.7% from Q2 across the six largest publicly traded PE managers. | | | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 641 Deals | 2034 People | 621 Companies | 33 Funds | | | | | | |
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The Daily Benchmark:
2015 Vintage Global Secondaries Funds | | | | | | |
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Global M&A activity lulls but quality targets emerge in unexpected places | | A transforming regulatory and macroeconomic landscape continued to weigh on global M&A activity as it declined for a third straight quarter this year, generating $2.2 trillion across 24,784 deals YTD. Despite the global M&A slowdown persisting into 2024, from a historical perspective, activity is normalizing.
Read Litera's latest report on global M&A trends to gather in-depth insights on how a confluence of macro variables dragged M&A activity down across several key indicators, but industry bright spots can be seen in TMT. This edition includes: - Assessment of M&A trends leveraging indicators, like check sizes and EV/EBITDA multiples, and industry and geographical-specific data
- Analysis on trends in strategic and PE acquisitions under a confluence of pressures.
- Insights on where investors are finding their next acquisition targets.
Read it now | | | | | | | |
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Nscale, a London-based AI infrastructure startup, raised a $155 million Series A led by Sandton Capital Partners.
Citryll, a Dutch biotech startup, secured an €85 million Series B led by Johnson & Johnson Innovation, Forbion and Novartis Venture Fund.
Bay Area-based Cala Health, a biotech startup developing wearable medical devices, raised a $50 million round led by Vertex Growth Fund and Nexus Neurotech Ventures.
WaveForms AI, which specializes in AI-powered audio and voice products, raised a $40 million seed round led by Andreessen Horowitz.
Pixxel, a space tech company based in the US and India, secured a $24 million Series B extension from M&G Catalyst and Glade Brook Capital Partners. | | | | | |
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| PitchBook webinar: Diversifying retirement allocations into private evergreen funds | | New investment flows of $7 trillion are expected to come from private wealth channels over the next decade, much of which is anticipated to end up in evergreen vehicles. Where are your opportunities? Join experts from PitchBook and RIA Freestone Capital to learn more about investing in evergreen structures.
Register now to secure your spot. | | | | | | | |
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Apollo Global Management will invest in a portfolio of infrastructure credit loans owned by Banco Santander valued around $370 million, Bloomberg reported.
Aerospace components manufacturer Forgital is in talks to be sold by The Carlyle Group to another PE firm, with Stonepeak, Cinven and JP Morgan making offers, Reuters reported.
The environmental services business of Canada-based GFL Environmental is in talks to be acquired by a PE firm, with Apollo Global Management, EQT and Stonepeak among potential buyers, Bloomberg reported.
Novo Holdings received regulatory approval to acquire Catalent, a New Jersey-based drug manufacturer.
The renewables project development business of Greencells Group has been acquired by Davidson Kempner and Nature Infrastructure Capital.
CVC Capital Partners made a voluntary tender offer for Compu Group Medical's outstanding shares at €22 per share, representing a 33.5% premium to Friday's closing price.
Keensight Capital acquired a majority stake in MetaCompliance, a human risk management software vendor based in Northern Ireland.
Inflexion has acquired a majority stake in Nodor Group, a UK-based darts equipment brand.
Kester Capital acquired Emas Pharma, a UK-based global clinical research organization specializing in therapeutic areas like oncology and rare diseases. | | | | | |
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NYSE-listed Arthur J. Gallagher & Co is in talks to acquire PE-backed insurance broker AssuredPartners in a $12 billion deal, Bloomberg reported.
Karman Space & Defense, which develops space and missile technology, is in talks to pursue an IPO or be sold by owner Trive Capital in a deal that could value the company around $3 billion, Bloomberg reported.
Kioxia, a Japanese chipmaker backed by Bain Capital, raised $800 million through its IPO in Tokyo. The company is set to list on Dec. 18.
GIC hired JPMorgan Chase as advisor for a potential sale of its 50% stake in Greenko Energy, an India-based wind farm operator, Bloomberg reported. | | | | | |
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Bay Area-based Centana Growth Partners raised $600 million for its third fund targeted at investments in the fintech sector.
Dimension, which focuses on life science and technology investments, launched its second VC fund targeted at $500 million in commitments.
Spanish investor Buenavista Equity Partners held a €100 million first close for BV Healthcare Growth Innvierte I.
Heartcore Capital closed Fund V on €170 million, to invest in early-stage European technology founders.
Chequers Capital closed Chequers Capital Fund XVIII on €1.2 billion. | | | | | |
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| Germany's Allianz has halted talks with Amundi's majority shareholder Crédit Agricole over a potential merger with the French investment group that would create a €2.8 trillion asset manager, Reuters reported. | | | | | |
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| Chocolate giant Hershey Co. is in talks to be acquired by Chicago-based Mondelez, which also makes snacks and candies, Bloomberg reported. | | | | | |
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