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One of private equity’s favorite playbooks is about to get tested.
Hellman & Friedman and Warburg Pincus are seeking a buyer for Edelman Financial Engines, a network of financial advisors they built by acquiring small teams and solo operators. The $8 billion asking price, related by people close to the process, struck a few bidders as ambitious. READ MORE
From low economic growth to a push into the retail market, a swathe of challenges abound in the buyout industry. Private Equity News caught up with senior figures at the SuperReturn conference earlier this month to ask them what they see as the biggest risk facing PE today.
Here’s what they said. READ MORE
At least two private-equity firms have told recent graduates they will delay their recruiting process to hire junior associates for positions that begin in 2027.
Apollo Global Management sent a letter Wednesday to its candidates, indicating as much. And General Atlantic followed suit Thursday. READ MORE
Asset managers selling private assets to everyday investors claim to have found investing’s holy grail: lower risk (or at least less volatility) and better returns. Is that true? The answer is mixed.
The first claim is fictional. Private securities’ prices only seem less variable because we don’t see them change throughout each trading day. As AQR Capital Management co-founder Cliff Asness puts it, their ostensible stability is “volatility laundering.” READ MORE
In the last five years, the top 300 private equity (PE) firms raised $3.3 trillion—up just 0.4% from last year’s total.
Overall, PE fundraising has slumped in recent years, with many expecting the trend to continue in 2025. At the same time, the industry is getting increasingly divided—with the six largest players raising 60% of total funds in the first nine months of 2024. READ MORE
So let me break down exactly what it takes to be VC-backable and explain what VCs are looking for, portfolio construction and the steps to check if it’s a fit for your company.
Not every business is a fit for a VC and that doesn’t mean it isn’t a good business! It just means that it doesn’t fit the VC business model, but it can in fact be a great fit for other groups of investors. READ MORE
The share of venture capital (VC) investors who expect VC funding to rise over the next year has fallen by 20 percentage points over the last six months, according to PitchBook.
The share dropped from 58% in the second half of 2024 to 38% today, the capital market intelligence platform said in its H1 VC Tech Survey released Wednesday (June 4).
In addition, the share of investors who expect a moderate decline in VC funding over the next year rose from 9% in the second half of 2024 to 28% today, according to the report. READ MORE
One of the year’s most anticipated IPOs took place on Thursday when neobank Chime raised $864 million in its IPO, pricing its shares at $27, which is above its previously announced range of $24 to $26. That gave it a starting market cap of about $9.8 billion.
While some would point out that this is far below its last private valuation of $25 billion, according to PitchBook’s estimates, shares opened at $42, putting it at $14.5 by midday in heavy trading, according to Yahoo Finance. It closed the day at $37 and about a $12 billion market cap. That’s still well shy of it’s yesteryear high, but it was a healthy response from retail investors all the same. READ MORE
Corporate venture capital (CVC) is widely seen as essential to corporate innovation. But most programs fail to deliver. They mimic VC or offer passive optics, promising to “see around corners” without ever forcing action. Many become innovation theatre, expensive experiments with a five-year shelf life.
That’s not just a missed opportunity, it’s a threat. The average lifespan of an S&P 500 company has collapsed from 61 years in 1958 to less than 18 today. Since 2000, 52% of Fortune 500 companies have disappeared. In a world of accelerating disruption, optionality is no longer enough.
Survival now demands strategic intent – and the courage to act on it. What if we reframed the role of corporate venture capital entirely? READ MORE
Search funds are quietly minting millionaires by buying stable, profitable businesses while venture capital and private equity struggle with depressed valuations and exit freezes.
A quiet revolution is unfolding in the investment world. While venture capitalists chase unicorns and private equity firms compete for mega-deals, search funds are targeting a different opportunity: profitable, owner-operated small businesses in need of succession. Here's why this entrepreneurial investment vehicle is outperforming both VC and PE. READ MORE
In today’s startup landscape, raising venture capital is often treated as a milestone — proof that a company is gaining traction. But after building and exiting multiple ventures, I’ve come to see things differently.
While, depending on the industry, VC funding can unlock important resources and mentorship, it’s not the only path to success, and often not the most sustainable one. My thoughts here should not be interpreted as a disparagement of venture capitalists or financial investors — I have close personal relationships with individuals who operate successful VC firms. Rather, I’d like to present another alternative capital strategy for founders. READ MORE
In a slow exit market, venture capital firms are turning to liquidity strategies typically used in private equity. One of these is the creation of continuation funds to extend the life of investments beyond a 10-year fund term and to provide returns to limited partners.
Crunchbase News recently spoke with Mathew Eapen, partner, and Shane Goudey, partner and chair of the venture funds practice at law firm Sidley Austin. They advise private investment funds, including venture capital and private equity, on their formation and ongoing operations. READ MORE
U.S. artificial intelligence startups are gobbling up a large share of funding at all stages. However, the biggest slice of investment is coming at late stage.
That was the broad finding from a Crunchbase analysis of funding by stage to companies in AI-related industry categories. Over the past year, nearly half of venture funding went to AI-related enterprises, data indicates. Later stage had the largest share, with roughly 61% of venture deals related to AI. READ MORE
The Securities and Exchange Commission’s (SEC’s) new Chair, Paul Atkins, today discussed the SEC’s approach to innovation under the new administration. Apart from discussing crypto, he also proposed relaxing rules for retail investors in closed end funds that invest in private assets, such as hedge funds and private equity. Currently they have a $25,000 minimum investment to filter out most retail investors. Is this good or bad for tokenization?
With more companies and “unicorns” staying private for longer, these investment opportunities are often only available to accredited investors. Though riskier, these opportunities offer upside that retail investors cannot currently access. READ MORE
You are probably hearing other business owners refer to the term “the second bite” with a big smile on their faces. The second bite refers to the opportunity that arises after a business owner sells less than 100 percent of their ownership stake. By leaving chips on the table, business owners have the chance to partner with a private equity firm to accelerate growth and business value. This can lead to a second bite which comes during the next sale of the business.
At some point, many great businesses reach an inflection point: a time when the owner wants a partner who can help preserve and enrich the future of the business (and do it in the right way). When a business owner is selling and thinking ahead to a second bite (rolling equity and exiting again down the line), the three most important elements to focus on are: READ MORE
As more retail investors gain access to early-stage companies — commonly through equity crowdfunding platforms and angel networks — they’re getting a front-row seat to the most exciting part of the innovation economy. But that opportunity comes with a challenge: How do you evaluate a startup when all you’ve got is a pitch, a few metrics and a founder interview?
Most investors zero in on the product or the market. But in my research I’ve found that the best early signal isn’t what the startup is building — it’s who’s building it, and how. READ MORE
According to the 2024 National Venture Capital Association Yearbook, at the end of 2023, there were over 3,400 venture capital firms in the United States. That year, over 13,600 deals closed, with a total value of over $170 billion. Clearly, plenty of VCs and founders are looking to get deals done.
I think there is a misconception that the balance of power is always in VCs’ hands, leaving founders begging for term sheets. VCs are often perceived as the “king makers” and decide, with the stroke of a pen, the founder’s fate in some type of “survival of the fittest” journey. READ MORE
For most of venture capital’s history, we’ve heard the mantra “illiquidity is a feature, not a bug.”
The assumption has been that investments are held until exit, with returns heavily weighted toward IPO or strategic acquisitions. For their patience, LPs would be rewarded with performance surpassing public-market equivalents. READ MORE
The National Venture Capital Association has joined the fight to save the Inflation Reduction Act’s clean energy tax credits.
In a letter to the House Ways and Means Committee, the NVCA expressed its support for green tech tax credits now that they’re on the chopping block. Similar to a letter to Congress from green tech business leaders, the NVCA letter emphasized the importance of reliable tax policy for economic development—especially when it comes to startups, which traditionally begin with no or low taxable income. READ MORE
Venture capital's series progression is stalling at seed, according to new Carta data.
By the numbers: 46% of all seed deals were bridge rounds in Q1 2024, which is the highest bridge rate for any stage since Carta has been tracking such data. READ MORE