Every quarter, private equity data provider Pitchbook releases their accounting of the most active private equity (PE) and venture capital (VC) investors. Here’s a look at PitchBook’s Q3 2024 Global League Tables through the third quarter of 2024. In addition to covering VC and PE, the update includes mergers and acquisitions (M&A). One of the advantages of Pitchbook’s take on investor activity is their breakdown of activity across regions, sectors, size, and exits.

Private Equity Activity

In the realm of private equity, several firms distinguished themselves in the third quarter. On top of the most globally active list includes (deals in parentheses) Ares (91), Leonard Green Partners (51), The Carlyle Group (47), Shore Capital Partners (43), and TA Associates Management (43).

Venture Capital Activity

Shifting to the VC picture, the venture capital landscape showcased robust activity, with the most active firms having actively invested in at least 30 startups and emerging companies each. On top of the list of most active VCs in the third quarter was (deals in parentheses) Antler (78), Enterprise Ireland (74), Pioneer Fund (70), Andreessen Horowitz (67), and Y Combinator (64).

Mergers and Acquisitions Activity

M&A activity remained a critical component of the global financial landscape. Pitchbook’s league tables suggests some well-known names continue to lead the world in M&A transactions. The top five list includes (deals in parentheses) Jefferies (130), BDO (80), Houlihan Lokey (80), PwC (77), and KPMG (61).

Of Note on Methodology

PitchBook’s methodology for compiling these league tables involves analyzing an extensive dataset of deals. For PE firms, regional rankings are based on all PE deal types as defined by PitchBook. Similarly, VC firm rankings consider all VC deal types. When specific deal types are broken out in rankings, such as buyouts or exits, only those deal types form the basis of the rankings. This approach ensures that the league tables accurately reflect the firms’ activities across different deal types and regions.

Conclusion

Overall, PitchBook’s Q3 2024 Global League Tables offer a detailed snapshot of the firms leading the charge in private equity, venture capital, and mergers and acquisitions. To the casual reader, these interactive rankings offer valuable insights into the global financial landscape.

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Every quarter, private equity data provider Pitchbook releases their estimates of fund performance. The recently released Q1 2024 Global Fund Performance Report provides an insight into updates on private capital strategies, highlighting challenges and opportunities across asset classes. Although the macroeconomic conditions are weak, the report offers some interesting insights into the performance of private equity.

Private Equity (PE): Navigating a New Normal

Private equity, with a one-year internal rate of return (IRR) of 8.7%, continues to perform below its historical average of 14.2%. Larger funds, particularly megafunds, outperformed their smaller counterparts, demonstrating resilience but also higher volatility due to leverage. European funds led regional performance with a 9.6% IRR, fueled by robust fundraising and increased interest from non-European investors. However, the higher-for-longer interest rate environment has kept returns in check, making it challenging for funds to recapture the exceptional performance seen in previous years.

Venture Capital (VC): Signs of Stabilization

Venture capital remained in negative territory with a one-year IRR of -1.2%, marking the seventh consecutive quarter of losses. However, the gap between smaller and larger funds narrowed, and smaller funds recorded their best performance since Q2 2022 with a modest 0.3% return. Anticipation of interest rate cuts and improvements in exit activity, such as IPOs, offer hope for recovery in the coming quarters. Cerebras’ IPO filing was a notable development, potentially signaling a shift in market dynamics.

Real Estate: A Sector Under Pressure

Private real estate was the weakest-performing asset class, with a one-year IRR of -4%, continuing a four-quarter streak of negative returns. Value-add strategies were hit hardest, posting -7.1% returns due to high leverage and interest rate pressures. Conversely, distressed funds were the sole bright spot, achieving a 2.8% IRR. Preliminary Q2 data suggests the sector may have bottomed out, with quarterly returns showing a slight improvement.

Real Assets: Infrastructure Leads the Way

Real assets recorded a robust 9.1% one-year IRR, driven by strong infrastructure performance (10.5%) and gains in metals, timber, and agriculture (10.7%). Infrastructure investments, particularly in energy transition projects, continue to attract significant capital, benefiting from government support and technological advancements. Oil and gas funds, while recovering, remain volatile due to fluctuating energy prices.

Private Debt: Consistent Performance Amid Volatility

Private debt achieved a one-year IRR of 7.8%, closely aligned with its 10-year average. Mezzanine funds led performance with a 15.3% return, while distressed and special situation funds lagged. The floating-rate structure of private debt helped mitigate risks during rising interest rates, though the sector now faces challenges as rates begin to decline.

Funds of Funds and Secondaries: Steady Gains

Funds of funds delivered a one-year return of 3.2%, lagging other asset classes but showing gradual improvement. Secondaries posted a 6.4% IRR, with European-focused funds outperforming North American counterparts. The narrowing bid-ask spreads in buyouts have boosted secondary activity, although pricing pressures remain a concern.

The Outlook

Overall, Pitchbook’s status report underscores a mixed recovery across private capital, with sectors like real assets and private debt showing strength, while others, such as VC and real estate, continue to face headwinds. As central banks ease monetary policies, the potential for recovery and recalibration in private markets remains a key theme for 2024.

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Private equity data provider Pitchbook often does interesting data pieces on the tech industry. Their most recent piece on the tech industry’s layoffs trend is no different. Here’s a review.

Despite recent high-profile layoffs at companies like Miro, Consensys, and Dropbox, the tech sector’s layoff picture is much better than it used to be. Looking at daily information from Layoffs.fyi, tech industry job losses dropped a lot, reaching a two-year low in October 2024.

Although Miro recently let go of 275 employees, representing 15% of its workforce, while Consensys and Dropbox each reduced their headcounts by 20%, these cases have so far been outliers in a broader industry trend where layoffs have become increasingly rare.

The Data

Data from Layoffs.fyi reveals that the number of tech employees laid off in October 2024, around 3,000 from 33 companies, was less than half compared to October 2023. This decrease in layoffs follows a peak in job cuts in early 2023, which has since seen a 45% drop in companies announcing workforce reductions by the third quarter of 2024.

The Backdrop

This shift can be traced back to mid-2022 when the venture funding market weakened, prompting tech companies to focus on profitability and operational efficiency over rapid growth. Many startups, especially those in Software-as-a-Service (SaaS) and fintech, were forced to scale back after raising funds at high valuations during the market’s peak. Miro, which has not raised venture capital since a 2021 funding round valuing it at $17.1 billion, cited structural inefficiencies and a push for a leaner organization as reasons for the recent cuts.

Some Areas are Gaining Steam

Meanwhile, as the tech industry stabilizes, other areas are gaining momentum, particularly those aligned with AI advancements. The tech-heavy Nasdaq index has risen 23% since the start of 2024, and venture capital interest is growing in AI-focused startups. Major venture funds like Andreessen Horowitz and Thrive Capital have accumulated significant resources to support the next wave of innovation in this area. Investors and venture capitalists are now advising startups with solid financial footing to adopt a more aggressive growth strategy, positioning them to capitalize on emerging opportunities.

The Current Landscape Overall

Overall, the current landscape suggests that, while layoffs persist in certain segments, the tech industry’s overall health suggests that tech life is still good. With that said, companies are increasingly focused on sustainable growth, and sectors related to AI are showing renewed investment interest, suggesting a more balanced and optimistic outlook for the future of tech.

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Private Equity is Still Powering Forward

October 22, 2024

Contrary to popular wisdom, through the third quarter of 2024, private equity (PE) markets continued moving forward despite some mixed performance. There are certainly some positive signs of PE revival while some continued evidence of ongoing challenges. Overall, despite a slow start to the year, private equity deal-making showed some improvement, although it has not […]

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Recent Job Market Revisions Should Give You Some Pause

October 8, 2024

On Friday, the Bureau of Labor Statistics (BLS) released their monthly jobs report, showing a preliminary estimate of 254,000 net new jobs in the American economy in September. The much-better-than-expected result begs the question – How believable is it? Here’s a look at revisions to the monthly jobs report by month for the initial release, […]

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Will the Fed’s Rate Cut Help IPOs? Looking at the Impact of the Federal Funds Effective Rate on IPO Activity

September 24, 2024

The Initial Public Offering (IPO) market is a key indicator of economic health and business confidence. Companies often choose to go public when they expect favorable market conditions and investor appetite for new opportunities. One key macroeconomic factor that can have a significant influence on IPO activity is the Federal Funds Effective Rate (FFER), the […]

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The Rise of European Megafunds: Trends, Performance, and Future Prospects

September 10, 2024

In recent years, European megafunds have emerged as a dominant force in the private equity (PE) landscape, marking a notable shift in the fundraising and investment dynamics across Europe. Despite facing macroeconomic challenges, European megafunds have been setting new fundraising records, reflecting the growing appeal of large-scale investments within the region. The second installment of […]

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Looking at the Venture Capital Landscape Across Europe

August 27, 2024

Every quarter, private equity data provider Pitchbook offers a glimpse of the venture capital markets in Europe. Here’s a review. Summary Overall, this quarter’s report underscores the ongoing recovery in valuations, driven largely by favorable interest rates and the growing influence of AI across various investment stages. However, the market still grapples with uncertainties, particularly […]

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A Look at Pitchbook’s Global Manager Performance Tables

August 14, 2024

Every year, private equity data provider Pitchbook releases its accounting of the best global managers. This year’s 2023 report provides a fascinating review of the landscape. Here’s a review. Methodology and Scoring Overall, the 2023 PitchBook Global Manager Performance Score League Tables report provides a comprehensive evaluation of private capital fund strategies worldwide. The report […]

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An Update on the Global M&A Picture

July 30, 2024

Global M&A Activity Rebounds in Q2 2024 Every now and then we do a review of the global mergers and acquisitions picture (M&A). This is that reviewed based on a recent report out of private equity data provider Pitchbook. The second quarter of 2024 marked a significant turning point for the global M&A market. After […]

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