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🌍 Our next installment of The Allocator’s Atlas will offer key private market insights based on PitchBook research with analysts Zane Carmean, CFA, CAIA, and Hilary Wiek, CFA, CAIA. The discussion will also examine fundraising and cash flow trends as well as fund performance data important to LP workflows. 💰 The discussion will also feature Brian Hoehn of ILPA, who will share SEC private fund development rules and ILPA's best practices for LPs, covering areas such as NAV loans and continuation funds. 💻 This is a specialized webinar series designed for LPs, where you’ll gain valuable insights and expert perspectives to effectively navigate your #investment strategies and portfolio management. 🎟 Reserve your spot today! https://pitchb.co/nqhuY1

The venture industry grew rapidly over the past decade, but now its size is a liability: It manages far more assets than the exit markets can currently absorb. 🗞 Learn more in this edition of The Weekly Pitch, along with the week’s top news and research from our team of industry-leading sources for info on the worlds of #VC, #PE and M&A.

Every December, we share our views on how the year ahead might unfold for US private equity. We offered six such outlooks, and now we're taking stock of those forecasts and see how they have fared versus expectations. 👇 1️⃣ Outlook: Continuation #funds will hit critical mass with more than 100 new formations and related exit transactions. 💡 Midyear update: Outlook is tracking as expected. In H1 2024, 49 exits were announced or completed via continuation fund processes, a 48.5% increase from the same period in 2023, on track to meet the 100 predicted for the full year. 2️⃣ Outlook: #Tech-focused PE funds will outperform more diversified PE funds. 💡 Midyear update: Outlook is tracking as expected. Tech-focused #PE funds have shown significant recovery, with IRRs rebounding from -6.8% in Q4 2022 to 7.2% in Q3 2023, though they are currently trailing the diversified benchmark by 240 basis points. 3️⃣ Outlook: Disappointing fund distributions will push buyout #capital raised below trend. 💡 Midyear update: Outlook is not tracking as expected. Despite negative sentiment, buyout #fundraising was more resilient than expected in H1 2024, with total capital raised 2.9% above trend, largely driven by megafunds. 4️⃣ Outlook: Holding periods of US PE-backed companies will hit new records as the exit environment remains weak. 💡 Midyear update: Outlook is not tracking as expected. The median holding period for completed or announced exits in YTD 2024 has contracted to 5.8 years, down from the record 7.0 years in 2023, as GPs adjust to improving market conditions. 5️⃣ Outlook: The mix of #founder-owned company deals, now 56% of all US PE buyouts, will push even higher. 💡 Midyear update: Outlook is tracking as expected. Through Q2 2024, nonbacked companies accounted for 56.4% of US PE deal activity, with sequential increases in Q1 and Q2 2024. 6️⃣ Outlook: PE #healthcare services platform trades will not resume until the Fed begins cutting rates in earnest. 💡 Midyear update: Outlook is tracking with some variations. Platform deal activity remained low in H1 2024, with just nine deals recorded through Q1. However, some positive factors may lead to a slight increase in sponsor-to-sponsor platform trades, though not a full resurgence. Overall, the PE market shows mixed results compared to our initial outlooks, with some predictions on track and others deviating from expectations due to various market factors and economic conditions. You can learn more about each of these outlooks and their updates in our 2024 US Private Equity Outlook: Midyear Update report. Click the link in the comments below. 🔗

📈 Early-stage #VC deal value surged by 56.9% quarter-over-quarter, hitting $16 billion in Q2. However, the figure was driven by select outsized deals, according to our Q2 PitchBook-NVCA Venture Monitor report. 📊 Despite this significant jump, ongoing liquidity constraints stemming from low exit counts have flattened US venture #capital dealmaking. Based on preliminary data from our report, acquisitions and public listings are on track to land at the lowest levels seen in a decade. 💡 In partnership with the National Venture Capital Association and sponsored by J.P. Morgan, Dentons, Deloitte, and Juniper Square, our Q2 Venture Monitor report examines exit, fundraising, and deal trends amid prolonged challenges in the VC environment and what #investors should be aware of in the year ahead.   Learn more in the report here: https://pitchb.co/UPjOwJ

The VC market shows signs of recovery, but staffing levels are still lagging behind. PitchBook data illustrates that total deal value hit an eight-quarter high of $55.6 billion, indicating market recovery. However, the data also reveals VC headcount growth in the US has slowed dramatically to just 2% for the five quarters from Q1 2023 to Q1 2024. In Europe, data shows 50% fewer active VC investors in the region. This disconnect between market recovery and staffing levels raises questions about structural changes in the VC industry, potentially driven by technological advancements like AI. Learn more from our news team here: https://lnkd.in/eJw4ZAn5 Find these insights and more in our Q2 2024 PitchBook-NVCA Venture Monitor here: https://lnkd.in/gnrjnxUJ

Rising interest rates are limiting the amount of debt lenders are willing to take on and, by extension, the number of LBOs going forward. Despite this, recent spread compression and a wave of refinancing and extension activity have opened the door for a potential M&A issuance revival. Join our panel of credit experts as they discuss the factors influencing the US leveraged loan and private credit markets and answer some of the biggest questions going into the back half of 2024, including: ✔️ Are markets ripe for meaningful M&A issuance?  ✔️ Is the end of the repricing wave finally in sight for weary lenders?  ✔️ Will CLOs maintain a record pace of issuance?    Reserve your spot here: https://pitchb.co/azPa4q   #debt #credit #LBO

Risky corporate loans are making a surprising comeback, outperforming expectations in a high-interest rate environment. Our PitchBook LCD (Leveraged Commentary & Data) data reveals that despite expectations that higher rates would hurt risky corporate borrowers, low-rated corporate loans are outperforming. Companies issued and refinanced $736 billion of speculative-grade loans through June 30, up from less than $200 billion in the same period last year. The default rate remains low at 0.92% as of June. This unexpected resilience in the leveraged loan market highlights the complex interplay between interest rates, economic outlook, and investor sentiment. As our global head of credit research, Marina Lukatsky, notes, there's a "massive imbalance between supply and demand," suggesting this trend could have significant implications for the broader financial landscape. Learn more in this article from The Wall Street Journal that our data helped inform: https://lnkd.in/gx4PAACU

The #IPO drought explains why VC firms are coming up against a fundraising wall. They’ve collected $80.5 billion from #investors globally this year, on pace for a nine-year low dating back to 2015. 🗞 Learn more in The Weekly Pitch, which includes our new Q2 editions of the PitchBook-NVCA Venture Monitor and US PE Breakdown.

🥗 Despite stagnant overall foodtech investment, investors are focusing their bets on restaurant and retail tech segments. Why? These technologies are addressing critical industry needs: 1️⃣ Improving cooking efficiency 2️⃣ Reducing waste 3️⃣ Enhancing food tracking In Q1 2024, restaurant and retail tech raised $551.5M, becoming the second-highest performing vertical in foodtech. This trend highlights the industry's shift towards practical, efficiency-driven solutions. However, the broader foodtech landscape faces challenges. Overall investment has plateaued at around $2B quarterly, and the exit environment remains subdued. In Q1 2024, exits generated just $100M across 18 deals, down significantly from the 2021 peak. Learn more from our news team here: https://pitchb.co/fg1KXQ Get the full report on the segment here: https://pitchb.co/XZsNyT