Private Capital Markets

Weekly Chart Spotlight

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Our private markets observations based on the world’s largest private market data ecosystem of over 12,500k funds, 125,000k+ portfolio companies and 2,000,000 proprietary cash flows.

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April 11, 2024

Financing Structure at Entry by Investment Year (Median)

The Financing Structure at Entry by Investment Year (Median) chart serves as a critical gauge for finance professionals, offering a comprehensive view of a company's financial dynamics over time. By analyzing the distribution of equity and debt at the point of investment across different years, investors gain valuable insights into the company's debt management strategies, its capacity for financial agility, and its overall financial robustness. This metric enables investors to assess the company's ability to navigate debt levels effectively, maintain flexibility in capital allocation, and sustain its financial health throughout its growth trajectory, thereby informing investment decisions and risk management strategies with a deeper understanding of the company's financial landscape.

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April 4, 2024

US Deal Default rates by stage 2005-2023

In the wake of the 2008 Global Financial Crisis (GFC), venture capital defaults surged to a peak in 2009 (1), marking a turbulent era for investors. However, post-crisis, a semblance of stability emerged as defaults converged (2), offering a glimpse of recovery. By 2009, default rates for VC and Growth deals normalized to 45% and 20% respectively, signaling a return to equilibrium amidst ongoing efforts to mitigate risks. A steady decline in defaults ensued, guiding the industry towards resilience. Yet, the onset of the COVID-19 pandemic in 2020 unleashed a fresh wave of uncertainty, pushing defaults back to crisis levels (3). As financial professionals navigate these stormy waters, the tale of VC defaults underscores the cyclical nature of the market and the imperative of adaptive strategies in times of crisis.

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March 26, 2024

TVPI & Revenue CAGR vs EV/EBITDA 2005-2023

The Great Financial Crisis (GFC) brought a sharp pricing dip, swiftly followed by a V-shaped recovery (1). Subsequent deals delivered outstanding returns and stable revenue growth (2). In 2019, revenues surged, peaking in 2020 (3). However, from 2020 to 2022, pricing reached unprecedented levels while money multiples dipped, alongside a downward trend in revenue CAGR (4). Amidst these fluctuations, the financial sector's resilience and adaptability endured, navigating through the complexities of the economic landscape.

Latest Insights

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Private equity advisory and its role in the investment process

Private equity advisory plays a crucial role in guiding clients through various stages of the investment process, from deal origination and due diligence to execution and exit strategies.

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DealEdge: New Quarterly Benchmarks Feature

We’ve made some recent changes to the platform that were designed to elevate your experience and provide even more insights.

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Responsible Private Equity: Balancing Profitability and Public Commitments

Responsible private equity involves the integration of ethical, social, and environmental considerations into investment practices. Private equity firms, known for pooling capital to acquire, invest in, and manage companies, are facing heightened pressure to adopt responsible business practices. This encompasses evaluating the potential environmental, social, and governance (ESG) risks associated with their portfolio companies.

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