Some interesting news from PitchBook's 2023 Annual Global Private Markets Fundraising Report.
In 2023, Approximately $1,174.6 billion was raised across all global private capital strategies. The aggregate YoY change was down (20.5%). All strategies were down YoY with the exception of secondaries, though secondaries only accounted for $78.3 billion. Of note, Secondaries had a substantial increase (but from a smaller base). Venture capital, real estate, real assets, and fund of funds capital raised were all down over (40%) YoY.
Of note, Private Equity accounted for about half of all Private Capital raised, and was virtually flat YoY (down about 1%). Within PE, close to half of new capital raised was for funds sized $5B and up, and about 80% of all PE funds raised was for $1B+ or larger funds.
North America funds represented a little more than 60% of all funds raised.
The private debt market notably surged to $1.6 trillion by the second quarter of 2023. What's even more notable is the explosive growth in direct lending, which has been a key driver behind this surge. Can you believe that direct lending AUM soared past $550 billion last year, up from just $91.4 billion a decade ago?
More interesting news below.
NEWS LATELY
▪Financial Times reports that companies are rushing to bag financing ahead of the US election, with a record $606 billion issued in dollar bonds. Despite this, some experts argue that historical trends suggest elections have limited long-term market impact.
▪Simultaneously, banks will face pressure to minimize their exposure to commercial real estate due to the looming $2 trillion debt wall over the next three years. Moreover, concerns arise as $929 billion of commercial real estate debt is set to mature this year alone. Despite expectations for increased loan sale activity, commercial real estate deal volumes remain stagnant, indicating a slow recovery ahead.
▪Home Depot's $18.25 billion acquisition of SRS Distribution is its largest purchase to date. SRS serves professionals like roofers, aligning with Home Depot's goals. Despite housing market challenges, Home Depot foresees growth, aiming for a $1 trillion market expansion. The deal should be finalized by fiscal 2024, with SRS's management team staying on.
RECENT DEALS
▪Investec Aviation Finance extended $30 million in debt financing to Titan Aircraft Investments for the acquisition of a Boeing 747-400F leased to Atlas Air. This marks their first collaboration with Titan, highlighting robust demand for aviation financing.
▪STACK Infrastructure has announced the allocation of $240 million in green securitized notes. The company aims to provide flexible solutions to empower cloud providers and innovators. Notable projects include data centers in Santa Clara, Toronto, Dallas/Fort-Worth, Portland, New Albany, Central Phoenix, Osaka, and Stockholm.
▪Fintech company Coast, which caters to fleet-operating businesses, has secured a total of $92 million in equity and debt. This funding comprises $25 million in equity from existing investors, including Vesey Ventures, and $67 million in committed debt capital from TriplePoint Capital and Silicon Valley Bank. The raised capital will be used to support product development, grow market presence, and establish a partnership with Visa aimed at improving financial management for fleet operators.
