Private Market Review is a free newsletter for the smartest GPs, LPs and Allocators to keep tabs on the growing universe of alts, and the rotation to private capital markets.

The News 📰

Private Equity

• From padel to volleyball, PE increasingly targets niche sports

• Mubadala eyes mid-market assets amid PE exit dry spell

Venture Capital

• Meritech AGM presentation on public SaaS and opportunities for AI

• Robotics AI startup, Physical Intelligence, raises $400M in Bezos, Thrive-led round

• Fewer small and midsize venture funds are closing this year

Private Credit

• Lasry’s Avenue Capital Seeking Buyer for Impact Fund.

• Goldman’s sub line ABS heralds a new era in fund finance But see Myth of the ABS bogeyman

• Ares on course to raise more than $80B

• State Street in the market for a private credit manager

Hedge Funds

• Hedge Funds see more gains from Emerging Markets distressed debt

• Ken Griffin’s money machine: market maker Citadel Securities 

Alts

• JPM is reorganizing to become a powerhouse in Alts

• iCapital seals deal to scoop up AltExchange

• Energy transition funds have raised ~80% of the infrastructure capital

Real Estate

• Multifamily availability tightens, as demand outpaces new supply

• Student housing construction investment rises in Q3

• Brookfield relocating HQ from Toronto to NYC

LPs

• Outgoing Ohio Teachers’ executive director defends fund’s position after months of turmoil

• Florida pension fund looking to sell up to $4B in private debt

Strategy, Trends & Analysis 📈

• Quants are decoding private market returns

• Global Wellness industry balloons to $6.3T

• $11T in assets isn’t enough for BlackRock’s Larry Fink

• Q2 Closed-end fund analysis: private credit outperforms, while VC and real estate struggle

• A thinning of the PE herd is coming

• The quest for liquidity in private markets

• Troubles are coming for Private Credit’s $1.7T industry

Charts 📊

Unicorns account for over 60% of VC NAV. $2.6T of VC book value is attributable to Unicorns:

As VC waits to find an exit market, $1B+ companies comprise an historically large share of un-sold value. It’s true that Venture has always been reliant on “power law” returns, where the largest exits drive the lion’s share of returns. In this case, however, given the rapid proliferation of unicorns during the halcyon days of ‘21-22, one has to wonder whether those valuations will ever be realized (and at what haircut).

New Funds & People Moves

• Shamrock Capital raises $1.6B across two funds

• Theory Ventures raises $450M second fund