Every quarter, private equity data provider Pitchbook releases their accounting of the most active investors each quarter by several measures. Here’s a look.

Most Active Globally

The first view is of the most active private equity firms globally. Before looking, can you guess any of the top 5? Likely unsurprising for long-time observers of the private equity industry, HarbourVest Partners shows up as the most active globally in the first quarter of 2022 at 69. Rounding out the top five were Silver Lake at 68, EQT at 60, Ares Management at 55, and Shore Capital Partners at 55. The remaining members of the top 10 include Mubadala Investment Company at 50, Sjatte AP-fonden at 45, the Carlyle Group at 40, the Government of Singapore Investment Corporation at 39, and Kohlberg Kravis Roberts at 38.

Source: Pitchbook

Most Active in the U.S.

Switching to the U.S., which investors would you guess show up on the list for investing in U.S.-based companies? On top is Shore Capital Partners at 55, followed by Ares Management at 42, HGGC at 28, Kohlberg Kravis Roberts at 25, and the Carlyle Group at 32. The remaining members of the top 10 included Martinson Ventures at 22, the Government of Singapore Investment Corporation at 22, the Cambria Group at 21, and Silver Lake/HarbourVest Partners at 19 each.

Source: Pitchbook

Most Active Buyouts

Switching to the most active buyouts, on top is the well-known Kohlberg Kravis Roberts at 9. The top five also included Ares Management at 6, Bpifrance at 6, Brookfield Asset Management at 6, Blackstone at 5, Waterland Private Equity Investments at 5, and Partners Group at 5. The remaining top 10 members, each with 4 deals in the first quarter, included Nuveen Real Estate, Salt Creek Capital, Advent International, Argos Wityu, The Riverside Company, Bain Capital, BNP Paribas Development, and Maranon Capital.

Source: Pitchbook

Most Active Add-on Sponsors

Moving to the most active add-on sponsors, the top mover was HarbourVest Partners at 67. Other top five members included Silver Lake at 66, EQT at 58, Shore Capital Partners at 53, and Mubadala Investment Company at 48. The other top 10 members included Sjatte AP-fonden at 45, Ares Management at 39, the Government of Singapore Investment Corporation at 35, the Carlyle Group at 31, and HGGC at 29.

Source: Pitchbook

Most Active in Growth/Expansion

Last, the most active firm in the growth/expansion classification was Martinson Venture at 22. Following Martinson Ventures’ lead was the Cambria Group at 17, Addor Capital at 10, Shenzhen Capital Group at 10, Bpifrance at 10, Ares Management at 10, BGF at 8, Vista Equity Partners at 7, Shenzhen Gaoxin Investment at 6, and the Carlyle Group at 6.

Source: Pitchbook

Summing Up

Overall, the private equity sector continues to be quite active based on several measures. Time will tell whether the activity will continue in the coming quarters as the economy potentially slows.

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Perhaps the hottest area in venture capital and private equity is financial technology (Fintech). Private equity data provider Pitchbook is out with their take on the state of fintech. Here’s a look.

A Timeline

Before looking into more detail on the state of fintech, here’s a timeline of events we saw in the first quarter of this year.

  • January 7th: PayPal confirms they are developing a stablecoin known as “PayPal Coin”. The code was found within its iPhone app. PayPal’s confirmation follows other major corporations, such as Visa, in developing stablecoin.
  • January 22nd: The Diem project – originally known as Facebook’s Lira project – sold its technology assets to Silvergate for around $200 million.
  • January 31st: FTX brings in $400 million in a Series C funding found at a whopping $32 billion post-money valuation. As constant observers well know, crypto companies’ valuations continue to skyrocket.
  • March 9th: President Biden calls for researching and supporting digital assets, including further research on a U.S. central bank digital currency. Over 90 countries are evaluating or piloting similar projects.
  • March 21st: The SEC proposes rules that would require public companies to report carbon emissions and the climate impact of their businesses.
  • March 22nd: Forge Global, a marketplace for exchanging of private company shares, finishes a deSPAC deal, making it one of the largest VC exits during the first quarter.

Some Numbers on the State of Venture Capital

Released in the report was Pitchbook’s take on the first quarter numbers. Overall, they reported 1,233 total deals, quarter-over-quarter decline of 3.7%, year-over-year decline of 6.5%, and year-to-date growth of 39.9%.

Switching to deal value, Pitchbook found $29.3 billion in total deal value, a quarter-over-quarter decline of 7.3%, a year-over-year growth of 13.8%, and a year-to-date growth of 113%.

Times, they are not too bad.

Source: Pitchbook

Fintech Venture Capital Deal Activity

Shifting to the state of VC deal activity, judging solely by the performance of deal activity through the first three months of this year, it’s unlikely that the 2021 performance will be matched. Last year, we saw 5,236 fintech deals, a massive jump from 2020’s 3,278. As mentioned, so far through the first three months, fintech has seen 1,233. If the first quarter trend holds, 2022 will mark the second-best year of fintech deal activity ever in terms of both deal counts and deal value. Deal value reached $29.3 billion through the first quarter of this year, while total deal value in 2021 reached an astonishing $122 billion.

Source: Pitchbook

Summing Up

Overall, deal activity in the fintech world is healthy, very healthy, although nowhere near the 2021 heyday trends. If the current trends continue, 2022 will be another strong fintech investing year – the second-best ever.

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The world is in a state of flux, and the venture capital world is no different. Here’s a look at five charts put out by private equity data provider Pitchbook on the state of the venture capital industry through the fist quarter of 2022. Quite interesting, with some surprising.

Venture Capital Investing in the First Quarter of 2022

In a perhaps surprising figure, first quarter venture capital (VC) investment came to $71 billion. This was down by $24 billion from the fourth quarter of 2020 and about $6 billion lower on a year-over-year basis. Surprisingly, although dollars flowing to the VC industry is lower, the deal count reached another high in the first quarter, reaching 4,822. This was well above the 4,098 in the fourth quarter of 2021.

Why are the new figures surprising? Well, in recent years the average dollar amount of VC investment activity had been trending upwards, but with the rising number of deals and lower dollar flows, the average deal size is slowing down. Perhaps this is a good sign for investors but should make some observers a little nervous.

Source: Pitchbook

First-time Financings

The second view – first-time financings – paints a very healthy picture. Through the first quarter, first-time financings reached $7.0 billion, which, when annualized, would reach the highest on record.

What does this figure mean? On a broader picture, it says that investors are still high on VC investment, but they’re investing smaller amounts, on average, per deal. Interesting!

Source: Pitchbook

Public Listing Activity Slows

The public markets went through a rough time in the first quarter of 2022. Given the volatile water, it’s likely no surprise that public listing activity saw significant pullback. Overall, acquisition activity came in at 224 deals, public listings saw 28 deals, and buyouts saw 58 deals. If one annualizes these figures, the picture pained equates to a slow 2022 year for public listing activity. Again, not surprising on this conclusion.

Source: Pitchbook

Momentum for VC Investing is Still High

If one is an economic pessimist for the 2022 year, the following picture is not confirming of that view. Overall, through the first three months of 2022, VC fundraising activity continues to exhibit strong momentum. Through the first quarter, capital raised reached almost $74 billion and the fund count reached 199. If these figures continue through the remainder of the year, capital raised will far surpass anything we’ve seen – ever. Interestingly, if the fund count trend continues, the number of funds will surpass all other years except 2020 and 2021, which saw 801 and 858 deals, respectively.

Source: Pitchbook

The Traditional Clusters Continue to Dominate

The last picture shown here is the percentage of all deal value by selected metropolitan areas. Unsurprisingly, the San Jose-San Francisco-Oakland, California area continues to dominate, capturing a whopping 40% of all VC money. Far behind in second place was New York-Newark, NY-NJ-CT-PA at 14%. One might have expected these two behemoths to see some slowdown given the move towards remote work, left leaning political policies, and other factors, but no, times are still good in these two very broad areas.

Source: Pitchbook

Summing Up

Overall, the state of VC through the first quarter of 2022 is quite healthy, at least according to data provided by Pitchbook. If things continue throughout the remainder of the year, 2022 could turn out, surprisingly, to be a banner year.

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A Look at Pitchbook’s New DeSPAC Index

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What the Ukraine War Might Mean for Private Equity?

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Which Industries Dominated Mergers and Acquisitions in 2021?

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Private Equity Investors Getting Into Residential Real Estate – It’s a New World

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Looking Inside a $5 Trillion Global M&A Boom

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US PE Surpasses $1 Trillion and Other Thoughts on the State of the US PE Market

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Recently, private equity (PE) data provider Pitchbook provided their take on the state of PE deal activity in the U.S. Amazingly, PE deal activity far surpassed $1 trillion in 2021. Here’s a look at the current state of the U.S. PE deal activity picture. The Broad Picture of PE Deal Activity Shown in the following […]

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