|The Daily Pitch: VC, PE and M&AMay 27, 2021Like our newsletter? The data comes from the PitchBook Platform — our data software for VC, PE and M&A|
|TODAY’S TOP STORIESEuropean fintech startups with overseas ambitions fill war chests at record clipHelsinki-based Holvi left the UK market in October, citing the pandemic and an unstable post-Brexit landscape. (Courtesy of Holvi)European fintech startups have raised €7 billion (around $8.5 billion) from VC investors this year as many look to replicate their domestic success in both neighboring markets and in the US.Payment card provider Curve and digital banks including Starling Bank have secured capital to put toward international expansion.|
However, entering new markets can be fraught with challenges for fintech companies in regulated sectors such as banking and insurance.
Fintech startups looking to expand in the US face a patchwork of regulations, while in Europe, Brexit has added another layer of complexity to consider.read more Share: VC, PE continue to shine brightest in private fund performancePreliminary data for the fourth quarter of 2020 reveals that, after a headwind-filled year, fund performance across the majority of private market strategies has recovered.
PitchBook’s latest Global Fund Performance Report provides a clear picture of the changes across sectors, with a new quilt chart visualization that will be included in all our quarterly benchmarks going forward. Other highlights include:PE funds registered a 13.3% return in Q3. As a result, PE fund appreciation has more than made up for pandemic-induced losses, underscoring how quickly the economy bounced back.
VC’s Q2 rebound in returns pushed higher in Q3. IRR for the quarter hit 12.4%—the highest figure since 2010—as investors returned to their usual dealmaking pace, with exits supported by a robust IPO market.
Private debt saw a modest improvement in Q3. The liquidity offered by central bank bond-buying programs, combined with lower-than-expected default rates, drove a broad recovery in credit markets in H2 2020.read it now Share: A MESSAGE FROM SS&C INTRALINKSAlternating current: Five energy M&A supertrendsEnergy is in flux: Demand-side volatility and a growing emphasis on sustainability by dealmakers are combining to create unprecedented uncertainty in the energy sector. Plus, a pandemic-driven migration to technology platforms and digital tools and solutions is creating new challenges in energy M&A.
SS&C Intralinks’ new report, 5 Energy M&A Supertrends, explores the dominant trends that emerged from last year’s chaos and crises and provides energy deal professionals with insights into current and forecasted market conditions, plus guidance on how to navigate—and succeed—in the new virtual environment. The report examines:The continuing impact of the pandemicWhy ESG is here to stayIncreasing government involvementDistressed deals, consolidation and acquisitionsRising valuations in renewablesDownload the new report nowShare: Veritas, Evergreen complete $3B Cubic takeoverCubic is a provider of communications, intelligence and training solutions to the defense industry. (Don Farrall/Getty Images)Veritas Capital and Elliott Management affiliate Evergreen Coast Capital have completed a $3 billion acquisition of Cubic, a San Diego-based provider of tech solutions to the defense and transportation sectors.The public-to-private deal includes the assumption of debt and will see company shareholders receive $75 per share in cash. Cubic stock has ceased trading on the NYSE, and the company will remain headquartered in San Diego.
Elliott confirmed in September that it had acquired a 15% stake in the company.
Cubic was founded in 1951 as an electronics company and completed its IPO in 1959. Its services have expanded to include digital intelligence, transportation fare collection and revenue management, and air combat maneuvering instrumentation for the military. Cubic has around 5,600 employees across 22 countries.Share: Recommended ReadsIt’s never been easier to back a startup, and Gen Z is taking advantage of that fact. Inside the growing cohort of young investors who care less about getting rich, and more about making their mark on the startup ecosystem. [Wired]
A recent study demonstrates a little-known way that private equity ownership can add value to companies. [Institutional Investor]
Qualcomm’s incoming CEO, Cristiano Amon, discusses 5G, Tesla competitors and the company’s new capacity for R&D. [Forbes]Since yesterday, the PitchBook Platform added:399Deals1590People424Companies25FundsSee what our data software can do QUICK TAKES The Daily Benchmark 2018 Vintage European Venture Funds VC Deals SoftBank leads $775M round for Perch Contentsquare collects $500M Series E at $2.8B valuation Salesforce backs $120M+ round for Wiz Salt Security lands $70M Series C Pet tracking startup walks off with $35M PartnerStack picks up $29M Electric vehicle startup brings in $20M PE Deals Carlyle to buy UK pharma company Vectura in $1.35B deal Thoma Bravo set to take over Greenphire FFL Partners, CDPQ take New Look Vision private Morgan Stanley backs HVAC provider KKR devotes $55M to Essential Accessibility Exits & IPOs Paymentus brings in $210M in IPO Fundraising Mindset Ventures raises $52M for Fund III Corporate M&A Volkswagen gets $9.1B bid for Lamborghini Amazon strikes $8.4B+ deal for MGM Studios THE DAILY BENCHMARK2018 Vintage European Venture FundsMedian IRR18.00%Top Quartile IRR Hurdle Rate28.70%1.03xMedian TVPISelect top performersForbion Capital Fund IVDawn Capital IIICapital300 Fund*IRR: net of fees9 Funds in Benchmark »Check out the latest version of PitchBook BenchmarksVC DEALSSoftBank leads $775M round for PerchPerch, an acquirer and o