Better benchmarking: Measuring performance is not as straightforward as it seems. Understanding which figures to use—and not to use—is vital to appropriately measure the effectiveness of any investment. Read our research.
Allocator's Atlas: Private wealth is primed to drive future growth in private markets. Our LP-focused webinar series continues Wednesday with a discussion on integrating private markets into investment strategies. Register here. | | | | | |
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| Global M&A deal rush sets stage for even bigger 2025 | | This week, we released our 2024 Annual Global M&A Report, highlighting the industry's robust rebound and setting the stage for continued growth in 2025. In 2024, M&A activity increased by 14% in count and 19% in value YoY. In fact, deal activity reached its highest annual count ever, finishing with just over 45,000 deals. Each of the four quarters in 2024 maintained elevated levels of activity compared to 2023, and we expect this trend to continue into the new year. Central banks across the globe have been in sync, cutting rates, providing the M&A market with the prospect of lower borrowing costs, along with narrowing spreads seen as a result of increased competition between banks and private lenders. As a result, PE finally returned to the table and contributed a sequentially higher percentage of deals than it had in the prior year. Moreover, M&A multiples have seemingly stabilized around midcycle levels, suggesting that 2022's correction has largely run its course. That being said, they remain 15%-20% below the 2021 peak. Where does M&A activity go from here? 2024 demonstrated that dealmakers are adapting to new market realities and remain enthusiastic about transacting as they reposition their portfolios and businesses. The markets are seemingly flashing the all-clear sign after the most turbulent boom-bust cycle since the global financial crisis. Already lower interest rates, aided by additional cuts in 2025, coupled with reduced market volatility and a more favorable regulatory environment under the new US administration, both sponsors and strategics will likely pursue deals more aggressively than in recent years. The end result? The potential for two consecutive years of M&A deal value growth for the first time in over a decade. For those looking to see the drivers and sector trends behind the M&A rebound, all the details can be found in the free report: Download our Global M&A Report | | | | | | | | | Introducing the Morningstar PitchBook Unicorn 30 Index | | Investors looking to navigate the late-stage venture capital market now have a new tool to measure performance and uncover opportunities.
The newly launched Morningstar PitchBook Unicorn 30 Index (UI30) provides a systematic approach to evaluating some of the largest and most dynamic private companies globally.
By focusing on the 30 largest and most liquid "unicorns," the index offers a significant advancement in transparency and access to this critical segment of the private markets.
Historically, the challenge of assessing private market investments has been compounded by opaque pricing and limited liquidity.
The UI30 seeks to address these issues by leveraging a market-driven pricing model informed by actual transaction data. This approach delivers a clearer, more timely view of performance and valuation trends among late-stage startups, including SpaceX, Stripe, and OpenAI.
Private companies now represent an increasing share of the global economy, comprising 9% of the global equity market as measured by Morningstar's Global Markets Index—up from just 2% a decade ago.
For investors seeking new tools to benchmark venture capital performance, the UI30 represents a shift toward greater sophistication, enabling analysis and decision-making in an area previously reserved for insiders.
The Morningstar-PitchBook collaboration reflects an ongoing effort to provide tools that make private markets more accessible and investable.
With this index, investors gain a means of monitoring the growth and innovation of late-stage private companies through a framework that emphasizes liquidity, transparency, and relevance to portfolio construction.
Learn more about the Morningstar PitchBook Unicorn 30 Index.
PitchBook clients can access prior editions of our LP- and funds-focused commentary in our dedicated workspace.
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Year of the IPO Window
While more European companies are expected to IPO this year compared to 2024, European exchanges may miss out on more of this activity.
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Structural issues are pushing more businesses toward the US, and the proportion of European companies listing on domestic exchanges sank to a record low last year.
Our new research takes a quantitative look at the European IPO backlog, analyzing IPO probabilities by country, sector, and more:
Read the free research
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Infrastructure SaaS VC Trends
Q4 continued a run of five straight quarters of growing VC deal value for infrastructure SaaS companies.
But there's more than meets the eye for the sector, and aside from Databricks' record $10 billion fundraise, the underlying snapshot is more mixed.
Our research goes beyond the megadeals, highlighting a shift in the segments attracting the most investor attention:
Read a free preview
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Carbon & Emissions Tech VC Trends
Last year, carbon & emissions tech companies had their worst year for total VC deal value since 2020.
The sector has been affected by political uncertainty and a sluggish exit market—and the extent to which the Trump administration will further impact the space is unclear.
Our research explores the possible outcomes for industries including energy generation, storage, and carbon capture, plus the double-edged sword of datacenters:
Read a free preview
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Retail Fintech VC Trends
Retail fintech has grown, even if the segment continues to fall in enterprise fintech's shadow.
2024's rebound for consumer-focused companies reflects renewed investor optimism as the market hopes to ride tailwinds in a re-opening IPO window and recovering M&A.
Our research takes a closer look at where pockets of strength are emerging:
Read a free preview
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More events to add to your calendar:
Feb. 11-13: PitchBook is supporting BVCA European Private Capital Conference events in Boston (Feb. 11-12) and New York (Feb.13). The events are designed for US LP investors and European GPs to connect. Places are complimentary for LPs. Register here.
Feb. 12: Our quarterly Venture Monitor webinar will unpack all the key trends in VC, including the market's liquidity crunch, 2025 IPO and M&A prospects, fundraising fortunes, and more. Register here.
Feb. 13: In our latest Tech Talk, we'll discuss the AI-powered tools being developed to support the private equity industry. Register here.
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Our insights and data featured in the press:
• The key factors to why Europe's VC market is primed for more IPOs this year. [Bloomberg]
• Venture funding in China fell 37% to $40 billion last year. [FT]
• One reason why AI's IPO hopefuls might wait to list? "Public company investors are a lot more unforgiving if you miss a quarter." [Fortune]
• The US tech stock selloff after DeepSeek's emergence is another consideration on the mind of VC-backed companies eyeing a public debut. [Bloomberg]
If you're a journalist interested in interviewing our analysts or requesting data, contact our PR team.
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| | Since yesterday, the PitchBook Platform added: | | 605 Deals | 2717 People | 732 Companies | 26 Funds | | | | | | |
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