Pitchbook newsletter

• • An unexpected group of investment managers has begun to dabble in the stock market: venture capitalists.

• • A storm of headwinds conspired against M&A deals, according to our Global M&A Report.

• A Morningstar report explores how awareness of a company’s strategies on data privacy concerns and security risks can benefit investors.

Climbing inflation, rising interest rates, tumbling tech and healthcare stocks, and a weaker euro all worked to drag down M&A deals, according to our Q3 2022 Global M&A Report, sponsored by Liberty GTS and RBC Capital Markets.

• • Public companies’ trading multiples have plummeted from a median multiple of 3.3x revenue in 2021 to 2.3x at the end of Q3, while M&A deal multiples have held firm at 2x during the same span.

• • Private equity and corporate buyers alike snapped up business products and services companies at higher rates, as 17 deals of $1 billion or more closed in the sector in Q3.

• The COVID-19 pandemic’s lingering effects on the labor force dragged on the healthcare industry’s pace of M&A, which typically fares well in recessionary times.

Since most LPs already have public market investors, why would they want their venture managers to allocate to the same asset class, with a much higher price tag?

Some LPs may not be thrilled about this style drift, but others are supportive of VCs investing in public companies in certain situations.

The uncertainty in today’s market is being felt by all. Now more than ever, you need a financial partner who’s determined to help you succeed.

Learn more here

Data breaches are the highest-profile threat, but they’re far from the only one. The acceleration of digitization through the pandemic has increased risk profiles, according to a report from Morningstar. Investors must understand different levels of risk exposure, as how companies implement mitigating measures plays a major role in determining valuations.

Here are five key trends from our Q3 2022 European Venture Report that highlight how the continent’s VC ecosystem is navigating choppier waters.

Even as more employers signal an end to remote work, tech startups and their investors are betting it is here to stay. [The Wall Street Journal]

Scientists detected some of the tiniest particles in the universe and tracked them back to a supermassive black hole hidden out of Earth’s view. [Axios]

In this webinar, our speakers will explore the lost momentum of 2022, as well as the inverse dynamic between deal sizes and deal count. They will analyze the factors that contributed to this decline and whether current market conditions will continue or revert.

Register now to secure your spot.