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Hamilton Lane, a leading global private markets investment firm, has announced the launch of the Hamilton Lane Venture Capital and Growth Fund (HLVCG), a new evergreen investment vehicle registered under the Investment Company Act of 1940. The fund targets accredited U.S. investors, including high-net-worth (HNW) individuals, their wealth advisors, and institutional investors, offering access to private venture capital and growth equity investments focused on disruptive technologies and innovative companies. The HLVCG fund is part of Hamilton Lane’s expanding evergreen platform, which now manages over $10 billion in assets under management (AUM). With $117.8 billion in total AUM and more than 260 relationships spanning over 370 investments in the venture and growth equity space, Hamilton Lane leverages its extensive experience to provide investors with institutional-quality opportunities. The fund emphasizes early capital deployment, flexible liquidity options, and portfolio diversification across vintage year, transaction type, manager, strategy, and geography. “This launch marks a significant step in democratizing access to private markets,” said Steve Brennan, Head of Private Wealth Solutions at Hamilton Lane. “The HLVCG fund allows accredited investors to tap into high-growth sectors like AI and disruptive technologies, which are increasingly shaping the global economy.” The fund’s focus on venture capital and growth equity aligns with Hamilton Lane’s view that these areas, particularly AI-driven innovations, will drive significant value creation in the private markets over the next four to five years. The HLVCG fund builds on Hamilton Lane’s broader evergreen strategy, which includes funds like the Global Private Assets Fund, Private Assets Fund, Senior Credit Opportunities Fund, and recently launched infrastructure and secondary funds. The platform, initiated in 2019, has grown to serve hundreds of investors globally, with a net asset value of approximately $8.1 billion as of August 31, 2024. Market analysts see the launch as a strategic move to capture the growing interest in private markets among retail and HNW investors. Hamilton Lane’s emphasis on innovative investment structures and technology aligns with industry trends, particularly as fundraising faces challenges and competition intensifies. The firm notes that a rebound in exit activity will be critical for sustained fundraising momentum, with the U.S. market expected to remain attractive due to favorable macroeconomic conditions. The HLVCG fund’s minimum investment thresholds and flexible redemption options make it accessible to a broader investor base, though specific details on minimums were not disclosed in the announcement. The launch follows Hamilton Lane’s recent successes, including the $615 million close of its Venture Access Fund in February 2025 and the introduction of infrastructure and secondary evergreen funds earlier this year. As private markets reach an inflection point, Hamilton Lane’s focus on venture capital, growth equity, and innovative structures positions it to meet the evolving demands of investors. The HLVCG fund is poised to capitalize on long-term growth trends, offering a compelling opportunity for those seeking exposure to the dynamic U.S. venture capital landscape. Disclaimer: The views expressed in this article are based on publicly available information and do not constitute investment advice. ----Join Nenwnex — the trusted and verified network for VCs, LPs, and venture-scale startups. Connect, collaborate, and drive reference-based private deal-making and strategic networking. Register on <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

Hamilton Lane Launches U.S. Venture Capital and Growth Evergreen Fund

Three decades ago, Venture Capital Trusts (VCTs) were launched with a clear mission: to fuel innovation and entrepreneurship across the UK by connecting private investors with early-stage, high-growth companies. As VCTs celebrate their 30th anniversary in 2025, let’s look at how they’ve changed, the numbers behind their impact, and what the future holds. The Origins and Purpose of VCTsVCTs were introduced to Parliament in 1994 by then-Chancellor Kenneth Clarke. The goal was twofold: to help build a thriving venture capital industry in the UK and to support innovation by making it easier for small, ambitious businesses to access funding. The government offered generous tax incentives—upfront income tax relief of 30% and tax-free dividends—to encourage individuals to invest in these higher-risk ventures. How VCTs Have Grown and ChangedFrom a handful of funds in the mid-1990s, the VCT market has expanded dramatically. Today, there are over 45 active VCTs managing more than £6.3 billion in assets, supporting around 1,600 startups and scale-ups across the country. These companies now employ over 100,000 people, demonstrating the scheme’s significant contribution to job creation and economic growth. VCTs have backed businesses that have become household names, including Zoopla, Graze, and Quantexa. For example, Quantexa—a company using AI to help banks detect financial crime—grew from a small startup in 2017 to a business valued at over £2 billion in 2025, with more than 600 employees. The focus of VCT investment has shifted over the years. While the original aim was broad, today’s VCTs increasingly target technology, healthcare, fintech, and other innovative sectors. This shift mirrors the UK’s emergence as a global leader in these industries. Tax Incentives and Investor AppealVCTs remain attractive to investors, especially those seeking tax-efficient income and diversification. The key benefits include:<ul><li>30% upfront income tax relief on investments up to £200,000 per tax year (if shares are held for at least five years)</li><li>Tax-free dividends</li><li>No capital gains tax on profits from selling VCT shares</li></ul> These incentives, combined with the squeeze on pension allowances and higher dividend taxes, have kept demand high. In 2023/24, VCTs raised £882 million—the third-highest annual fundraising on record. VCTs have weathered economic uncertainty, regulatory changes, and shifting investor expectations. The government’s decision to extend VCT tax reliefs until at least 2035 provides much-needed stability and signals ongoing support for the sector. Looking forward, VCTs are expected to play an even bigger role in supporting the UK’s innovation economy. The focus on funding early-stage tech, health, and climate companies is likely to intensify, especially as the government invests more in research and development and seeks to drive economic growth through entrepreneurship. If you’re considering VCTs, here’s how to get started:<ul><li>Assess your risk tolerance: VCTs invest in early-stage businesses, which can be volatile and carry higher risks.</li><li>Think long-term: To benefit from tax relief, you’ll need to hold VCT shares for at least five years.</li><li>Diversify: Consider spreading your investment across several VCTs to reduce risk and access a broader range of companies.</li><li>Consult a financial adviser: VCTs can be a powerful tool for tax planning and retirement income, but professional advice is key to making the most of them.</li></ul> VCTs have come a long way in 30 years, evolving into a vital part of the UK’s investment landscape. They offer investors a unique way to support the country’s most exciting startups while enjoying significant tax benefits. As the UK continues to champion innovation, VCTs are set to remain at the heart of the nation’s growth story for years to come.

Venture Capital Trusts' turns 30: How VCTs Have Evolved and What’s Next

Michael Novogratz’s Galaxy Ventures Fund I LP is making headlines for beating expectations in a tough market. The fund, which zeroes in on early-stage crypto and blockchain startups—especially those working on payments and stablecoins—is now on track to close with between $175 million and $180 million by the end of June, well above its original $150 million target. The plan is to use this capital to back a portfolio of about 30 startups, offering a much-needed boost to the sector during a period when venture capital for crypto has been hard to come by. Why This Fundraise Stands OutLet’s put the numbers in perspective. The initial close for Galaxy Ventures Fund I was $113 million in June 2024. Since then, the fund has attracted more interest from family offices, high-net-worth individuals, and even Galaxy itself. The fund’s portfolio already includes names like Ethena (synthetic dollars), M^Zero (stablecoin DeFi protocol), Monad (layer-1 blockchain), Plume (tokenized asset chain), and Renzo (Ethereum restaking via EigenLayer). This fundraising success is especially notable because the broader crypto venture capital scene is still recovering from a major pullback. In 2024, VCs invested $11.5 billion in crypto and blockchain startups across 2,153 deals—a slight uptick from $10 billion in 2023, but still far below the $30 billion peak of 2022. In the U.S., crypto VC funding dropped 22% in Q1 2025 to about $1.3 billion, as investors shifted their focus toward artificial intelligence, which absorbed 58% of global VC dollars during the same period. What’s Driving the Shift?Several big trends are shaping the current landscape:<ul><li>AI is dominating VC funding: In Q1 2025, AI startups captured nearly 58% of global venture capital dollars, compared to just 28% a year earlier. In North America, that figure jumps to 70%.</li><li>Crypto VC is rebounding, but unevenly: Global crypto VC funding hit $4.8 billion in Q1 2025—the highest since Q3 2022—but nearly half of that came from a single $2 billion investment in Binance by Abu Dhabi’s MGX, suggesting much of the capital is concentrated in fewer, larger deals.</li><li>Investors are more selective: The days of funding projects based on a white paper alone are over. Founders now need real traction, and deal sizes have shrunk nearly 90% since 2018.</li></ul> Novogratz’s Take on the MarketMike Novogratz remains optimistic about crypto’s long-term potential. He recently described Bitcoin as a “report card on financial stewardship,” suggesting that in times of uncertainty, it acts both as a safe haven and as a long-term bet on a new financial system. However, he also points out that crypto adoption needs a period of calm to truly thrive—adoption doesn’t flourish in chaos, and new buyers tend to retreat during turbulent times. If you’re an entrepreneur or investor in the crypto space, here are a few things to keep in mind:<ul><li>Focus on real-world utility: Projects that make payments cheaper, expand access to financial markets, or build new blockchain infrastructure are more likely to attract funding.</li><li>Be prepared for scrutiny: Investors want to see traction, not just ideas. Demonstrate real progress and utility.</li><li>Watch the AI trend: With so much capital flowing into AI, consider how your project might intersect with or benefit from AI advancements.</li></ul> Imagine you’re building a startup like Ethena, which issues synthetic dollars, or Monad, a new layer-1 blockchain. Galaxy Ventures’ backing provides not just capital, but also access to a network of experts, hands-on product feedback, and brand-building support. This kind of partnership can make a big difference in a competitive and selective funding environment. In short, Galaxy Ventures Fund I’s fundraising success is a bright spot in a cautious market. It signals that while crypto VC isn’t back to its 2022 highs, there’s still strong conviction—and opportunity—for teams building the next wave of blockchain innovation. --Join Newnex – The VC Institutional Network &amp; Co-Investment Platform Connect with authenticated venture capital and LP investors, syndicate deals, and directly and privately co-invest and syndicate via Newnex, the trusted platform for institutional investors.Free Sign-UpVerified Access OnlyStreamlined Syndication &amp; Deal Discovery Start building strategic VC partnerships today at <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a> – Sign up free and get authenticated.

 Galaxy Ventures Fund I LP Surpasses $150M Goal Amid Crypto VC Slowdown

Larry Fink, CEO of BlackRock, has issued a sobering warning about the state of the U.S. economy, suggesting that the country is "very close, if not already in, a recession." His comments come at a time when financial markets are grappling with heightened volatility, and economic indicators are flashing warning signs that have left investors nervous about the future. The Impact of Tariffs on the Economy Fink has attributed much of the economic upheaval to the sweeping tariffs implemented by former President Donald Trump. These policies, which targeted not only geopolitical rivals like China but also long-standing allies, have disrupted global supply chains and contributed to rising costs across several industries. For example, the construction sector has been hit hard, with reports suggesting that the average cost of building a new home could increase by as much as 26% due to tariff-related expenses. These inflationary pressures are further straining already-tight household budgets and heightening the Federal Reserve's policy challenges. As inflation remains elevated, hopes for aggressive interest rate cuts to stimulate economic growth are fading. Market Sentiment: A Wave of Caution The stock market has not been immune to the effects of growing uncertainty. The S&amp;P 500 recently experienced its steepest two-day drop since the COVID-19 crash in March 2020. On top of that, consumer sentiment has plummeted, with April 2025 recording an 11% drop — marking the second-lowest level since 1952.&nbsp; Investor behavior reflects this unease, with BlackRock reporting an all-time high of $950 billion in cash accounts. While the firm saw strong inflows of $84 billion in the first quarter of the year, this cautious approach signals that many investors prefer to hold onto cash during turbulent times rather than risk losses in equity markets. Long-Term Investment Opportunities Amid Uncertainty While the short-term outlook may be gloomy, Fink believes that the market downturn presents an opportunity for patient investors. He explained that the turbulence might be "more of a buying opportunity than a selling opportunity" over the long term. Even as he warned that stocks could see further declines of up to 20%, Fink emphasized the importance of focusing on "megatrends" like artificial intelligence and infrastructure development. AI-related investments, particularly in building the infrastructure required for this transformative technology, continue to offer compelling growth potential. These sectors could serve as refuges for investors seeking to capitalize on long-term economic shifts, even as broader market conditions remain challenging. Navigating the Recession Landscape Larry Fink's warnings underscore the complexity of the current economic environment. With rising inflation, tariffs, and recession fears converging, investors are adopting a cautious approach to protect their portfolios. However, Fink's emphasis on long-term opportunities in key sectors serves as a reminder that periods of uncertainty often give rise to future growth. As the world's largest asset manager, BlackRock's insights are a bellwether for global financial sentiment, and Fink's observations should not be taken lightly. For those willing to weather the storm, this might be a moment to look beyond market volatility and focus on investments aligned with transformative economic trends. --Join Newnex – The VC Institutional Network &amp; Co-Investment Platform Connect with authenticated venture capital and LP investors, syndicate deals, and directly and privately co-invest and syndicate via Newnex, the trusted platform for institutional investors.Free Sign-UpVerified Access OnlyStreamlined Syndication &amp; Deal Discovery Start building strategic VC partnerships today at <a href="http://www.newnex.io" rel="noopener noreferrer" target="_blank">www.newnex.io</a> – Sign up free and get authenticated.

BlackRock's Larry Fink Warns of Recession: Market Sentiment and Investment Outlook

Bessemer Boosts India Focus with $350 Million AI and Startup Fund

Indonesia has officially launched Danantara, a new multi-billion-dollar sovereign wealth fund aimed at managing state assets valued at over $900 billion. Modeled after Singapore's highly successful Temasek, Danantara is designed to consolidate Indonesia's state-owned enterprises (SOEs) and channel investments into key sectors to boost economic growth. This ambitious initiative is part of President Prabowo Subianto's vision to achieve an annual economic growth rate of 8%, a target that has not been met since the 1990s. By leveraging state assets and attracting foreign investment, Danantara seeks to transform Indonesia's economic landscape. Goals and Objectives of Danantara Danantara's primary mission is to accelerate Indonesia's economic development by investing in high-impact projects across diverse industries. The fund will focus on sectors such as: - Renewable energy: Supporting Indonesia's transition to sustainable energy sources.- Advanced manufacturing: Enhancing industrial capabilities and technological innovation.- Downstream industries: Adding value to raw materials and boosting exports.- Food production: Strengthening food security and agricultural productivity.- Artificial intelligence: Investing in cutting-edge technology to drive innovation. President Prabowo has emphasized that Danantara will not only serve as a financial powerhouse but also act as a development tool to promote sustainable and inclusive growth. By investing in these priority areas, the government aims to create jobs, improve infrastructure, and position Indonesia as a leader in global sustainability and technology trends. Funding and Management of Danantara Danantara will kick off with an initial investment of $20 billion in 2025, sourced from state assets, government-owned shares, and budgetary reallocations. Over time, the fund aims to manage more than $900 billion in assets, which would make it one of the world's largest sovereign wealth funds, rivaling established players like Singapore's GIC. However, some experts have raised doubts about the feasibility of reaching this valuation, given that Indonesia's state-owned enterprises were valued at $637.5 billion in 2023. The fund will report directly to President Prabowo and be overseen by a supervisory board. Muliaman Hadad, a former deputy governor of Bank Indonesia, has been appointed to lead Danantara. The government is expected to finalize the regulatory framework for the fund in the coming months to ensure transparency and accountability. Potential Impact on Indonesia's Economy If successful, Danantara could have a transformative impact on Indonesia's economy. By investing in critical sectors, the fund aims to: - Drive economic growth: Support President Prabowo's ambitious 8% annual growth target.- Create jobs: Generate employment opportunities through infrastructure and industrial projects.- Attract foreign investment: Enhance Indonesia's appeal to global investors by showcasing strategic investment opportunities.- Improve efficiency: Consolidate state assets under one entity to improve the management and performance of SOEs. Danantara's focus on renewable energy and advanced manufacturing aligns with global trends, potentially positioning Indonesia as a leader in sustainability and technology. Additionally, the fund's investments could help address long-standing challenges such as infrastructure deficits and reliance on raw material exports. Challenges and Criticisms Facing Danantara Despite the optimism surrounding Danantara, the fund faces several challenges and criticisms: - Asset valuation concerns: Critics have questioned whether Indonesia's state-owned enterprises can realistically reach the $900 billion valuation target, given their 2023 valuation of $637.5 billion.- Political interference: Since Danantara will report directly to the president, there are concerns that the fund could become a tool for political patronage rather than a genuine driver of economic growth.- Public backlash: The government's decision to reallocate $20 billion from the national budget to fund Danantara has sparked protests, particularly among students, who argue that the funds should be used for education and social services.- Transparency and governance: Ensuring transparent management and avoiding mismanagement will be critical to the fund's success. These challenges highlight the need for robust oversight, clear regulations, and public engagement to build trust in Danantara's mission. Can Danantara Transform Indonesia's Economy? Indonesia's launch of Danantara marks a bold step toward transforming its economy and achieving President Prabowo's vision of 8% annual growth. By consolidating state assets and investing in key sectors, Danantara has the potential to drive innovation, create jobs, and attract foreign investment. However, its success will depend on addressing concerns about asset valuation, political interference, and transparency. If Danantara can navigate these challenges, it could play a pivotal role in elevating Indonesia's global economic standing and delivering sustainable growth for its citizens.--Join the Future of Venture Capital Investing with NewnexNewnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and investment through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>&nbsp; We are digitalizing institutional investing to make VC as accessible as public markets while retaining the uniqueness of private markets. The mission is to unify 5,000+ VC/LP firms with 100,000 startups on a trusted platform for reference-only private deal-making.

Indonesia Launches Danantara: A New Sovereign Wealth Fund to Drive Economic Growth

Passive investing has gained significant traction in recent years, offering a straightforward approach to building wealth that consistently outperforms many professional fund managers. This article explores the benefits of passive investing, its performance compared to active management, and how investors can implement this strategy effectively. The Rise of Passive Investing Passive investing involves tracking a market index or benchmark rather than trying to beat it. This approach has grown in popularity due to its simplicity, low costs, and consistent performance. As of 2025, passive funds account for approximately 20% of the investment industry, representing nearly £280 billion in value. Outperforming Professional Managers One of the most compelling arguments for passive investing is its ability to outperform a large percentage of actively managed funds. Recent data shows that over a 15-year period, 92-95% of professional fund managers fail to beat their passive index benchmarks. This statistic highlights the difficulty of consistently outperforming the market through active management. Benefits of Passive Investing 1. Lower Costs Passive funds typically have significantly lower expense ratios compared to actively managed funds. While active funds may charge 1% or more in annual fees, many index funds and ETFs have expense ratios below 0.1%. 2. Broad Diversification By tracking an entire market index, passive funds provide instant diversification across hundreds or thousands of securities. This reduces the risk associated with individual stock selection. 3. Transparency Passive funds are highly transparent, with investors always knowing exactly which securities they own based on the tracked index. 4. Tax Efficiency Due to their low turnover, passive funds tend to generate fewer taxable events, potentially leading to better after-tax returns for investors. 5. Consistency Passive funds aim to match market returns rather than beat them, providing more predictable performance over time. Implementing a Passive Investing Strategy To implement a passive investing strategy effectively, consider the following steps: 1. Choose Your Asset Allocation Determine the right mix of stocks, bonds, and other assets based on your risk tolerance and investment goals. 2. Select Low-Cost Index Funds or ETFs Look for funds with low expense ratios that track broad market indices such as the S&amp;P 500, FTSE All-Share, or global stock market indices. 3. Regularly Rebalance Periodically adjust your portfolio to maintain your target asset allocation as market movements cause it to drift. 4. Stay Disciplined Avoid the temptation to react to short-term market fluctuations. Stick to your long-term investment plan. 5. Consider Tax-Efficient Accounts Utilize tax-advantaged accounts like ISAs or SIPPs to maximize the tax efficiency of your passive investing strategy. Performance Expectations While past performance does not guarantee future results, historical data provides insight into potential returns. Over the long term, the S&amp;P 500 has delivered average annual returns of approximately 10%. However, it's important to note that returns can vary significantly from year to year. For the five years ending in 2024, a typical passive fund tracking the FTSE All-Share index returned around 16.30% annually, outperforming many actively managed funds during the same period. Despite its many advantages, passive investing is not without challenges: 1. Market Inefficiencies In less efficient markets or during periods of high volatility, active management may have opportunities to outperform. 2. Lack of Downside Protection Passive funds will follow the market down during bear markets, potentially leading to significant losses in the short term. 3. Concentration Risk As certain stocks or sectors become more dominant in an index, passive funds may become overly concentrated in these areas. 4. Impact on Market Dynamics The growing popularity of passive investing has raised concerns about its potential impact on market efficiency and price discovery. Passive investing offers a compelling strategy for investors seeking to build long-term wealth while minimizing costs and complexity. By consistently outperforming a large majority of professional fund managers, passive investing has proven its worth as a core investment approach. As with any investment strategy, it's essential to consider your individual financial goals, risk tolerance, and overall portfolio composition. While passive investing can form the foundation of a solid investment plan, some investors may choose to complement it with selective active strategies or alternative investments to achieve their specific objectives. Ultimately, the simplicity, cost-effectiveness, and long-term performance of passive investing make it an attractive option for many investors looking to grow their wealth over time. --Join the Future of Venture Capital Investing with NewnexNewnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and investment through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>&nbsp; We are digitalizing institutional investing to make VC as accessible as public markets while retaining the uniqueness of private markets. The mission is to unify 5,000+ VC/LP firms with 100,000 startups on a trusted platform for reference-only private deal-making.

Passive Investing: A Simple Strategy to Outperform Professional Fund Managers

President Trump's unexpected announcement of new tariffs on Canada, Mexico, and China has sent shockwaves through global financial markets, with US stock futures plummeting and investors bracing for volatility. The move, which includes a 25% levy on imports from Canada and Mexico and a 10% tariff on Chinese goods, has ignited fears of a full-scale trade war and its potential impact on global economic growth. Market Reaction and Economic Concerns As news of the tariffs spread, US stock futures experienced a sharp sell-off. Dow futures sank over 600 points, while S&amp;P 500 and Nasdaq futures also saw significant declines. This dramatic downturn suggests that Wall Street is preparing for a turbulent opening when markets resume trading. The tariffs' reach extends beyond manufactured goods, with a 10% duty applied to energy imports from Canada, further complicating the trade landscape between the two nations. Economists warn of potential consequences, including higher prices for American consumers on goods ranging from groceries to cars, increased inflationary pressures, and a disproportionate negative impact on foreign economies compared to the US. Global Repercussions and Retaliation The international response to Trump's tariffs has been swift and decisive. Canada quickly announced counter-tariffs of 25% on US goods worth over $100 billion, with Canadian provinces taking the additional step of removing US alcohol from shelves. Mexico has promised to announce retaliatory measures, while China vowed to escalate the issue at the World Trade Organization. These immediate reactions from key trading partners highlight the potential for a rapidly escalating trade war, which could have far-reaching consequences for global commerce and diplomatic relations. Cryptocurrency Market Fallout The ripple effects of the tariff announcement have extended to the cryptocurrency market, with Bitcoin plunging below $100,000 for the first time in weeks. The flagship cryptocurrency's drop to $96,821 erased over $600 million from its market cap. This decline was part of a broader crypto market downturn, as investors shifted away from riskier assets amid growing economic uncertainty. Other major cryptocurrencies also suffered losses, with Ethereum and Solana experiencing significant drops. The selloff underscores the cryptocurrency market's vulnerability to geopolitical tensions and macroeconomic factors. Looking Ahead As markets digest the implications of these new tariffs, analysts are closely watching for further developments in global trade relations. The coming days and weeks will be crucial in determining whether these tensions escalate into a full-blown trade war or if diplomatic efforts can lead to a resolution. Investors and businesses alike are advised to stay informed and prepare for potential market volatility as the situation unfolds. The global economic landscape appears poised for significant shifts, with the potential to reshape trade relationships and economic policies for years to come.

The Ripple Effect: Global Markets Reel as Trump's Tariffs Spark Trade War Fears

India is poised for a historic year in its capital markets, with a wave of billion-dollar initial public offerings (IPOs) expected to hit the stock exchanges in 2025. This surge in public listings is set to surpass 2024’s impressive performance, even as economic headwinds and currency fluctuations pose challenges. Mega IPOs to Dominate the Market Investment bankers have identified at least seven companies preparing to launch IPOs valued at $1 billion or more. Among them are high-profile domestic players like online brokerage Groww, fintech giant Pine Labs (backed by PayPal), and eyewear brand Lenskart, which enjoys backing from SoftBank. Additionally, South Korean conglomerate LG is planning to list its Indian subsidiary, adding an international dimension to the listings. This year’s expected IPOs significantly outnumber last year’s three billion-dollar-plus listings, which included Hyundai’s Indian arm and Swiggy, a leading food and grocery delivery service. In 2024, India emerged as Asia’s top IPO market, trailing only the United States in global rankings. Capital Inflows and Market PerformanceAccording to projections from Indian brokerage Motilal Oswal, total equity fundraising through IPOs could surpass $23 billion in 2025, up from $19.6 billion raised across 336 IPOs in 2024. So far, 34 companies have received approvals to raise $4.8 billion, while another 55 companies await regulatory clearance for $11.4 billion in public offerings. “There’s a strong pipeline,” noted Sonia Dasgupta, CEO of the investment banking division at JM Financial, signaling sustained investor interest in Indian markets. Reliance Jio: The Potential Game-ChangerA wildcard in this year’s IPO rush is Reliance Jio, the telecom giant owned by Asia’s richest man, Mukesh Ambani. While Reliance Industries has not provided a definitive timeline for Jio’s public debut, industry insiders speculate that it could take place in the latter half of 2025. If realized, Jio’s IPO could be the biggest of the year. Strong Market Debuts and Domestic Investment SurgeDespite global economic concerns, IPOs in India have generally performed well. A recent study by Bank of Baroda found that 82% of IPOs launched in 2024 saw their stock prices rise post-listing. The strong performance has been fueled by rising domestic investments, as millions of Indian households continue to channel their savings into equity markets. “India is among the most expensive markets,” said Kunal Vora, head of equity research at BNP Paribas, pointing to India’s high price-to-earnings (P/E) multiples of around 20—compared to 14 in other major markets. Local institutional investors have become the backbone of Indian markets, surpassing foreign inflows for the fourth consecutive year. The number of Indians investing in mutual funds has quadrupled from 40 million in 2020 to over 180 million in 2024. This trend has helped sustain India’s high valuations despite global market volatility. Foreign Investment and Economic ChallengesHowever, foreign investors have been pulling back, withdrawing over $30 billion since October 2024. Many global investors remain hesitant due to India’s high stock valuations and broader economic concerns. The Nifty 100 index has dropped 12% since its September 2024 peak, reflecting weak corporate earnings and slowing GDP growth. Although India remains the fastest-growing major economy, GDP growth slowed to 5.4% year-on-year in Q3 2024, marking its lowest rate in nearly two years. The Indian rupee has also weakened against a strong US dollar, particularly following Donald Trump’s return to the US presidency. Cautious Optimism Among PromotersMarket experts note that while many Indian business owners were initially eager to launch IPOs, some are now reconsidering their timelines. Nitin Bhasin, head of institutional equities at Ambit Capital, observed a shift in sentiment: “Many promoters are happy to delay their IPOs by a month or two to gauge market conditions.”Additionally, some major IPOs have struggled post-listing. Hyundai Motor India, for instance, has seen its stock drop 8.7% since its October 2024 debut. Questions have also been raised about the quality of smaller IPOs and whether foreign companies are using the Indian market to withdraw capital rather than reinvest locally. A High-Stakes Year for Indian IPOsWith a robust IPO pipeline and strong domestic investor participation, 2025 is set to be a landmark year for India’s capital markets. However, challenges such as global economic conditions, stock overvaluation, and foreign investor sentiment could influence how these mega listings perform. As the year unfolds, market watchers will keep a close eye on India’s ability to maintain its IPO momentum in the face of economic uncertainty.

India’s IPO Boom in 2025: A Record-Breaking Year for Public Listings

<blockquote>FTV Capital has successfully completed its latest growth equity fundraise, securing $4.05 billion in capital commitments across two complementary funds:</blockquote> 1. FTV VIII: The firm's eighth flagship fund closed oversubscribed at $3.4 billion, surpassing its target and exceeding its predecessor fund FTV VII, which closed at $2.35 billion in March 2022. 2. FTV Ascend I: A new vehicle dedicated to smaller investments, which closed oversubscribed at $651 million. - The new capital allows FTV to support innovative, high-growth companies with equity checks ranging from $20 million to $300 million.- FTV VIII will target investments ranging from $60 million to $300 million.- FTV Ascend I will focus on investments between $20 million and $60 million.- Both funds will make control and minority equity investments in companies across the enterprise and financial technology landscape. FTV Capital's track record:- With this fundraise, FTV has raised over $10.2 billion since its founding in 1998.- The firm has invested over $6.7 billion in 149 portfolio companies.- FTV has realized over $7.4 billion from its investments. - In 2024, FTV deployed a record $1.6 billion and generated over $1.0 billion in realizations.- New investments include Arden, BillingPlatform, Kore.ai, Orbus Software, ParkHub, VALD, and Zema Global.- Significant realizations include Agiloft, Docupace, Egress, and Tango Card. FTV announced several promotions, including: - Karen Derr Gilbert: Expanded role as partner and chief operating officer- Mike Cichowski and Alex Malvone: Named co-heads of FTV Ascend- Brent Fierro and Paul Cabral: Promoted to partners---Join the Future of Venture Capital Investing with NewnexNewnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and investment through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io" rel="noopener noreferrer" target="_blank">www.newnex.io</a>&nbsp; We are digitalizing institutional investing to make VC as accessible as public markets while retaining the uniqueness of private markets. The mission is to unify 5,000+ VC/LP firms with 100,000 startups on a trusted platform for reference-only private deal-making. Disclaimer: The information presented in this article is based on available sources and may not be entirely accurate or up-to-date. We do not guarantee the accuracy of the content, and readers should conduct their own research and consult with financial professionals before making any decisions.

FTV Capital closes $4.05 billion growth fund

<blockquote>Vensana Capital, a Minneapolis-based venture capital firm specializing in medtech investments, has successfully closed its third fund, raising $425 million. This latest fundraising effort brings Vensana's total capital under management to approximately $1 billion.</blockquote> 1. Oversubscribed at its hard cap, indicating strong investor interest2. Focuses on medtech companies at both developmental and commercial stages3. Typically invests $30 million to $35 million per company4. Aims to support startups creating new clinical standards of care and improving healthcare efficiency, accessibility, and cost-effectiveness Vensana's investment strategy has proven successful, as evidenced by:- The acquisition of portfolio company Relievant Medsystems by Boston Scientific for $850 million in 2023- 20% of their investments historically being in Twin Cities-based companies- Supporting companies like CVRx, which has gone public and commercialized an implant for heart failure patients Kirk Nielsen, co-founder and Managing Partner, attributes the efficient fundraising process to investor support and satisfaction with the firm's strategy. He also notes that access to capital remains a challenge for many startups in 2025, highlighting the continued importance of venture capital in the medtech sector.----Join the Future of Venture Capital Investing with NewnexNewnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and investment through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>&nbsp; We are digitalizing institutional investing to make VC as accessible as public markets while retaining the uniqueness of private markets. The mission is to unify 5,000+ VC/LP firms with 100,000 startups on a trusted platform for reference-only private deal-making.---Disclaimer: The information presented in this article is based on available sources and may not be entirely accurate or up-to-date. We do not guarantee the accuracy of the content, and readers should conduct their own research and consult with financial professionals before making any decisions.

Vensana Capital raised $425 million third fund

<blockquote>In a move that's set to reshape the digital pay-TV landscape, Disney and Fubo have announced a groundbreaking merger of their TV streaming services. This strategic alliance will combine Disney's Hulu + Live TV with FuboTV, creating a streaming giant with 6.2 million subscribers and positioning it as the second-largest digital pay-TV provider in North America, just behind YouTube TV's 8 million subscribers.</blockquote> Deal Structure and ManagementUnder the terms of the agreement, Disney will acquire a 70% stake in the combined entity, which will continue to operate under the Fubo publicly traded company name. The current Fubo management team, led by Co-founder and CEO David Gandler, will oversee the operations of the merged business. Both Fubo and Hulu + Live TV will remain available as separate streaming services, offering consumers a choice of platforms. Financial AspectsThe deal includes significant financial commitments from major media players: - Disney, Fox, and Warner Bros. Discovery will make a $220 million aggregate cash payment to Fubo.- Disney will provide Fubo with a $145 million term loan in 2026.- A potential $130 million termination fee is payable to Fubo if the deal fails under certain circumstances. These financial terms highlight the substantial investment and faith major media companies are placing in this streaming consolidation effort. Strategic Impact and New OfferingsThis merger not only consolidates the streaming market but also resolves ongoing litigation between Fubo and Disney regarding the Venu sports streaming service. As part of the agreement, Fubo will create a new Sports &amp; Broadcasting service featuring Disney's networks, including ABC, ESPN, ESPN2, ESPNU, SEC Network, ACC Network, and ESPNEWS. This move is expected to significantly enhance the combined entity's sports content offerings, potentially attracting more subscribers interested in live sports programming. Market ReactionThe announcement of the Disney-Fubo merger sent ripples through the streaming industry, with Fubo's stock price surging nearly 200% in pre-market trading. This dramatic increase reflects investor optimism about the deal's potential to create a formidable player in the digital pay-TV market. However, the merger's completion is subject to several conditions, including regulatory approvals, Fubo shareholder approval, and other customary closing requirements. The market's enthusiastic response underscores the significance of this consolidation in the highly competitive streaming landscape, as investors anticipate the combined entity's enhanced ability to compete with industry giants. As the streaming wars continue to evolve, this merger between Disney and Fubo marks a significant milestone in the industry's consolidation. It remains to be seen how this new powerhouse will reshape the competitive landscape and what innovations it will bring to consumers in the ever-changing world of digital entertainment. --Join the Future of Venture Capital Investing with Newnex Newnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and investment through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a> We are digitalizing institutional investing to make VC as accessible as public markets while retaining the uniqueness of private markets. We are on a mission to bring 5,000+ VC/LP firms with 100,000 startups on a trusted, reference-only private deal-making platform.

Disney and Fubo Join Forces in Streaming Powerplay

Europe's venture capital (VC) ecosystem is playing a crucial role in fostering innovation and economic growth across the continent. Over the past decade, VC funds have invested €143.6 billion into more than 26,100 startups, significantly contributing to job creation and economic development. The impact of VC-backed companies on employment is substantial:- Companies supported by VC now employ over 1 million people in Europe- VC-backed firms achieved an 18% job creation rate in 2022, far surpassing the overall European job creation rate of 2%- Private equity and VC-backed companies added 7.2% more jobs in 2022, more than 3.5 times the overall European growth rate- The industry supported 10.9 million workers across the continent at the end of 2022, equating to 5% of the continent's workforce The European VC landscape has shown resilience and growth:- Venture capital investment into European startups reached $63 billion in 2023, invested across over 10,000 funding rounds- Europe's share of global venture capital increased from ~5% two decades ago to 20% in 2023- European VC funds have achieved net returns greater than 20% annually over a 10-year horizon, outperforming many global benchmarks European VC is driving innovation in key sectors:- Fintech, biotech, energy, and environment are major focus areas- €23 billion has been invested by VC in biotech and healthcare since 2014- The Information &amp; Communications Technology (ICT) sector added 13.8% more jobs in 2022, highlighting the industry's growth Despite progress, Europe faces challenges in scaling up its VC ecosystem:- The EU is lagging behind the US in productivity growth and R&amp;D investment- Many successful EU startups move elsewhere for financing, causing the EU to lose out on growth benefits and positive spillovers- The European Innovation Council (EIC) Fund provides equity to startups, but only until their early-growth phase, with investments capped at €15 million To address these challenges and further boost innovation, experts recommend:- Reducing regulatory frictions, especially those deterring pension funds and insurers from investing in VC- Implementing well-designed tax incentives for R&amp;D investments- Consolidating stock markets and reforming insolvency regimes- Giving public financial institutions like the European Investment Fund a more active role in kickstarting VC markets As Eric de Montgolfier, CEO of Invest Europe, states, "With the right support and incentives, [the VC industry] can go much further. That will drive more innovation, more world-leading start-ups, and multiply the rewards for all of Europe." By continuing to nurture its VC ecosystem, Europe can enhance its competitiveness, drive innovation, and ensure its position as a global leader in emerging technologies and sustainable solutions.

European VC funds have invested €143.6 billion into more than 26,100 startups

The Financial Conduct Authority (FCA) has amended investment rules to broaden access to Long-Term Asset Funds (LTAFs), opening new opportunities for retail investors and pension schemes while maintaining safeguards. The changes, effective December 20, 2024, remove barriers that previously limited Non-UCITS Retail Schemes (NURS) from investing in LTAFs. Key amendments include exempting LTAFs from the 15% limit on investments in other collective investment schemes for NURS. This simplification allows NURS to invest in LTAFs without restrictions, potentially increasing retail investor exposure to long-term, illiquid assets such as venture capital, private equity, and infrastructure. Despite easing restrictions, the FCA has retained the 20% cap on a NURS's portfolio exposure to LTAFs. This limit applies globally across holdings in LTAFs, qualified investor schemes, unregulated schemes, and unapproved securities, ensuring diversification and risk management. The changes also introduce new provisions to ensure NURS managers investing in LTAFs can meet redemption obligations, addressing liquidity risks associated with long-term illiquid assets. Sarah Pritchard, Executive Director of Markets at the FCA, emphasized that these rules allow retail investors and pension funds to invest in productive finance while recognizing the risks of long-term investments. For defined contribution pension schemes, the amendments offer greater flexibility to allocate funds into LTAFs, broadening their investment options. The FCA has also aligned third-party valuation requirements for LTAFs with the standards for NURS, streamlining operational processes. These regulatory updates reflect the FCA's commitment to balancing innovation in investment products with robust investor protection. The regulator will continue to monitor the impact of these changes and consider feedback on additional adjustments, such as registration requirements for depositaries and broader access to private market assets. ---Join the Future of Venture Capital Investing with Newnex <a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering collaborative and private investing and fundraising between VCs (GPs), Limited Partners (LPs), and Startups. Newnex simplifies syndication and co-investment for institutional investors, with a mission to connect 5,000+ VC and LP firms and 100,000 venture scale startups on a trusted platform for seamless, reference-only private deal-making. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>---Join SEINET - the exclusive network for tech and science product and industry leaders. SignUp Free <a href="http://www.startupeuropeindia.net/" rel="noopener noreferrer" target="_blank">www.startupeuropeindia.net</a>

FCA Expands LTAF Access for Retail Investors and Pension Schemes

In a significant development in the asset management industry, MetLife Investment Management (MIM) has announced its agreement to acquire PineBridge Investments. This press release details a strategic acquisition that aligns with MetLife's New Frontier strategy, aimed at accelerating growth in asset management. The deal, valued at up to $1.2 billion, will see MIM acquire PineBridge Investments, a global asset manager with approximately $100 billion in assets under management. The transaction structure includes $800 million in cash at closing, with additional payments tied to future performance metrics. This acquisition is expected to substantially boost MIM's assets under management to over $700 billion upon completion. It will also expand MIM's global footprint, with more than half of the acquired client assets held by investors outside the U.S., and about one-third in Asia. Michel Khalaf, MetLife's President and CEO, emphasized that this move "furthers our ambition to accelerate growth in asset management." John McCallion, MetLife's CFO and Head of MIM, highlighted the transaction's potential to enhance MIM's offerings in public and private credit, including a robust leveraged finance platform. The deal will bring new capabilities to MIM, including a collateralized loan obligation platform, multi-asset business, global equity strategies, and direct lending and European real estate businesses. Greg Ehret, CEO of PineBridge, expressed enthusiasm about the merger, stating it would "enhance our capabilities and elevate the value we deliver to clients." Subject to regulatory approvals and customary closing conditions, the transaction is expected to close in 2025. This acquisition marks a pivotal moment for both MIM and PineBridge, potentially reshaping their positions in the global asset management landscape.---Join the Future of Venture Capital Investing with Newnex <a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering collaborative and private investing and fundraising between VCs (GPs), Limited Partners (LPs), and Startups. Newnex simplifies syndication and co-investment for institutional investors, with a mission to connect 5,000+ VC and LP firms and 100,000 venture scale startups on a trusted platform for seamless, reference-only private deal-making. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>---Join SEINET - the exclusive network for tech and science product and industry leaders. SignUp Free <a href="http://www.startupeuropeindia.net/" rel="noopener noreferrer" target="_blank">www.startupeuropeindia.net</a>

MetLife Investment Management to Acquire PineBridge Investments: A Strategic Move in Asset Management

Italy has implemented a new competition law tying tax breaks on investment returns for first and second pillar pension funds to specific allocations in venture capital funds. The law, which came into effect on December 19, 2024, aims to encourage investments in the real economy while balancing the protection of pension schemes' financial strength. Key points:1. Tax exemptions apply if venture capital fund allocations reach 5% of qualified investments in 2025 and 10% from 2026 onwards. 2. Pension schemes can invest up to 10% of assets in equities through various vehicles, including venture capital funds in Italy, the EU, and the EEA. 3. The law covers both qualified investments and long-term savings plans (PIR). 4. Tax exemptions require holding qualified investments for at least five years. 5. Adepp, the Italian association of pension funds for professionals, welcomed the changes as a balanced approach. 6. A safeguard clause allows retroactive tax benefits for investments in innovative start-ups made before the law's enactment. This new legislation represents a compromise between encouraging investment in start-ups and maintaining the financial stability of pension schemes, while also addressing concerns about the developing nature of Italy's venture capital market. ---Join the Future of Venture Capital Investing with Newnex <a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering collaborative and private investing and fundraising between VCs (GPs), Limited Partners (LPs), and Startups. Newnex simplifies syndication and co-investment for institutional investors, with a mission to connect 5,000+ VC and LP firms and 100,000 venture scale startups on a trusted platform for seamless, reference-only private deal-making. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

Italy Introduces New Tax Incentives for Pension Fund Investments in Venture Capital

Kazakhstan is taking a bold step into the world of venture capital with the announcement of a new Fund of Venture Capital Funds. Prime Minister Olzhas Bektenov revealed the ambitious plan during a meeting with venture capital experts, business leaders, and international partners on December 19, 2024. The fund aims to attract $1 billion in private investment over the medium term, positioning Kazakhstan as a major player in the global tech ecosystem. Already, large Kazakh businesses have pledged over $100 million as initial capital, demonstrating strong domestic support for the initiative. Zhaslan Madiyev, the Minister of Digital Development, Innovation, and Aerospace Industry, highlighted Kazakhstan's dominance in the Central Asian venture capital scene, accounting for over 70% of the region's deals. The country has seen a remarkable sixfold increase in venture capital volume over the past five years, reaching $80 million. The fund's strategy focuses on investing in leading global, regional, and Kazakh venture funds, ensuring diversification and access to critical technologies. Key areas of interest include artificial intelligence, digital health, and other cutting-edge tech sectors. With the global AI market projected to reach $827 billion by 2030, the fund is well-positioned to capitalize on this growth. Prime Minister Bektenov emphasized the importance of creating an environment that retains local talent, supports startups at all stages, and attracts global expertise to Kazakhstan. This initiative opens doors for entrepreneurs, investors, and tech professionals looking to tap into the burgeoning Central Asian market. As Kazakhstan sets its sights on becoming a regional hub for innovation and technology, this new venture capital fund could be the catalyst that transforms the country's economic landscape and attracts international attention to its growing tech ecosystem. read more ... <a href="https://astanatimes.com/2024/12/kazakhstan-to-establish-1-billion-venture-capital-fund-backed-by-private-investment" rel="noopener noreferrer" target="_blank">https://astanatimes.com/2024/12/kazakhstan-to-establish-1-billion-venture-capital-fund-backed-by-private-investment/</a>OpenAI has taken a bold step in making artificial intelligence more accessible by integrating ChatGPT with WhatsApp and launching a phone service. This move brings the popular AI chatbot to billions of users through familiar communication channels. WhatsApp users can now chat with ChatGPT by simply adding a designated phone number to their contacts. To get started, open WhatsApp, add a new contact with the number +1 800-242-8478 (which spells out 800-CHATGPT). Save the contact as "ChatGPT" or any preferred name, and you're ready to start a conversation. For those in the United States, OpenAI has introduced a toll-free number (1-800-ChatGPT) that allows voice conversations with the AI assistant. This service offers 15 minutes of free interaction per month for anyone dialing from a US number, making AI engagement as simple as making a phone call. While the WhatsApp version comes with some limitations - it only supports text conversations, has a knowledge cutoff date of September 2021, and can't be added to group chats - it provides a straightforward way for users to experience AI without needing to create an OpenAI account. To use ChatGPT on WhatsApp effectively, keep your messages clear and concise for better responses. You can ask follow-up questions or request clarifications in the same chat thread. Remember that there may be daily message limits, although the service is free to use. This expansion is part of OpenAI's broader strategy to reduce barriers to AI adoption and showcase its potential to a wider audience. By leveraging familiar platforms like WhatsApp and traditional phone calls, OpenAI aims to make AI technology more approachable and less intimidating to the average user. As AI continues to evolve and integrate into our daily lives, initiatives like this play a crucial role in democratizing access to advanced technologies. While the current offering is described as experimental, it represents a significant step towards making AI a more common and accessible tool for people around the world.---Join the Future of Venture Capital Investing with Newnex <a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering collaborative and private investing and fundraising between VCs (GPs), Limited Partners (LPs), and Startups. Newnex simplifies syndication and co-investment for institutional investors, with a mission to connect 5,000+ VC and LP firms and 100,000 venture scale startups on a trusted platform for seamless, reference-only private deal-making. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

Kazakhstan’s $1 Billion Venture Capital Fund: A Game-Changer for Tech Innovation

BlackRock's annual Private Markets Outlook for 2025 highlights key trends and opportunities across various asset classes in the rapidly expanding private markets sector. The report projects significant growth, with the industry expected to expand from $13 trillion today to over $20 trillion by 2030. Private Debt- Continues to grow as a sizable and scalable asset class- Currently accounts for 10% of the $16.4 trillion alternative investment universe- Opportunities in asset-backed finance and global expansion, particularly in Europe and Asia-Pacific Infrastructure and AI- AI driving transformative shifts across industries- Investment opportunities across the entire AI value chain, including data centers and power infrastructure- AI data center capex expected to exceed $1.5 trillion by 2030 Private Equity- Resurgence in deal activity, jumping 21% in 2024 and exceeding pre-pandemic averages by 45%- Opportunities in healthcare, AI-driven LBOs, and the middle market- Increased focus on returning capital to investors Real Estate- Poised for growth after a challenging two-year downturn- Opportunities aligned with long-term structural trends such as aging demographics and demand for energy-efficient buildings- Asia-Pacific region offers compelling cyclical and structural opportunities BlackRock emphasizes that this new era of growth in private markets will be characterized by elevated investment activity, increased exits, lower financing costs, and growing demand for long-term capital. The firm expects all client segments, especially retail wealth, to increase their allocations to private markets as they seek long-dated, profitable assets. <a href="https://www.marketscreener.com/quote/stock/BLACKROCK-INC-176512022/news/BlackRock-2025-Private-Markets-Outlook-A-New-Era-of-Growth-48598644" rel="noopener noreferrer" target="_blank">https://www.marketscreener.com/quote/stock/BLACKROCK-INC-176512022/news/BlackRock-2025-Private-Markets-Outlook-A-New-Era-of-Growth-48598644/</a>

BlackRock 2025 Private Markets Outlook: $7 trillion growth projected

As 2024 draws to a close, the private equity landscape is showcasing a unique convergence of challenges and opportunities. Schroders Capital's Q4 2024 Private Equity Lens provides a view of the market dynamics, highlighting key trends, performance metrics, and areas of growth potential. 1. A Shift in Fundraising DynamicsPrivate equity fundraising in 2024 has seen a significant correction, with a cautious approach defining the market. While aggregate fundraising levels remain below the peaks of 2021–2022, this slowdown signals reduced competition and more attractive entry valuations. For investors, this environment creates fertile ground for identifying high-potential assets at reasonable prices.<ul><li>Fundraising activity reflects a healthy moderation, positioning the market for steady returns in 2025.</li><li>A recalibration in expectations could foster greater discipline in deal selection and portfolio construction.</li></ul> 2. Steady Deal Activity with an AI-Led UpsurgeDespite global economic headwinds, private equity deal-making has maintained momentum. Notably, the venture capital segment is experiencing a resurgence, driven by high-valuation rounds in artificial intelligence (AI). This trend underscores the sector's capacity for innovation and adaptation in a fast-evolving market.<ul><li>AI-related investments have propelled Series C valuations to approach 2021 highs.</li><li>Small- and mid-cap buyouts are trading at attractive discounts, providing a significant value proposition for investors.</li></ul> 3. Exit Markets StabilizingExit activity has begun to stabilize, particularly in sponsor-to-sponsor deals, even as trade sales struggle to regain momentum. This shift is accompanied by record secondary market activity, as Limited Partners (LPs) seek liquidity amid weaker exit conditions.<ul><li>Stabilization in exit markets provides reassurance for fund managers and investors.</li><li>The secondary market is poised to achieve $140 billion in deal volume by year-end, reflecting its role as a vital liquidity avenue.</li></ul> 4. Buyout Multiples and ValuationsThe recalibration of buyout multiples offers a favorable backdrop for investors. Small- and mid-sized buyouts are priced significantly lower than large-cap counterparts and public equities, creating a compelling case for allocation to this segment.<ul><li>Average entry EV/EBITDA for small- and mid-sized buyouts stands at 7.7x, a notable discount compared to large buyouts at 12.1x.</li></ul> 5. Resilience in Private Equity PerformancePrivate equity funds have demonstrated robust resilience, with buyout and venture capital funds returning to positive performance territory. This stability contrasts sharply with broader economic volatility, reinforcing private equity's appeal as a long-term asset class.<ul><li>Buyout funds have delivered steady, positive returns since 2022.</li><li>Venture capital funds have rebounded from the lows of 2022, driven by sectoral innovation.</li></ul> 6. The Role of Liquidity in a Challenging MarketThe heightened activity in the secondary market underscores the importance of liquidity for LPs navigating a constrained exit environment. With record volumes anticipated in 2024, this segment is expected to remain pivotal in private equity strategies. Preparing for a Promising 2025As private equity activity stabilizes, the industry is primed for growth opportunities in 2025. From recalibrated valuations to AI-driven innovation, the market offers fertile ground for informed investors. By navigating these dynamics strategically, stakeholders can capitalize on the evolving private equity landscape. This article leverages data and insights from Schroders Capital's Q4 2024 report, offering a forward-looking perspective on the trends shaping the private equity sector. For those positioned to act decisively, the next wave of growth is within reach. Download the Report here: <a href="https://www.schroders.com/en/malta/professional/insights/schroders-capital-private-equity-lens-q4-2024" rel="noopener noreferrer" target="_blank">https://www.schroders.com/en/malta/professional/insights/schroders-capital-private-equity-lens-q4-2024/</a>

Unlocking Opportunities in Private Equity: Insights from Schroders Capital Q4 2024 Report

In the rapidly changing world of finance and investing, a striking new trend is redefining traditional valuation models and investment strategies. I call it the "meme premium," a variable that's revolutionizing how we perceive market dynamics in the age of social media virality and cultural trends. Understanding the Meme PremiumI conceptualize the meme premium as the additional value or attention a company, product, or individual receives due to their viral popularity or meme status. This premium manifests in various ways, from inflated stock prices to accelerated product adoption and enhanced brand recognition. It's a testament to the growing influence of internet culture on real-world financial outcomes. The GameStop Saga: Meme Premium in ActionThe clearest example of the meme premium at work is the GameStop (GME) stock frenzy of early 2021. In a matter of days, GME's stock price surged from around $20 to a peak of $483, primarily driven by a coordinated effort from retail investors on the Reddit forum r/WallStreetBets. This unprecedented event not only caught Wall Street off guard but also demonstrated the collective power of internet communities in influencing market dynamics. Since then, other companies like AMC Entertainment, BlackBerry, and Bed Bath &amp; Beyond have experienced similar meme-driven price surges. As of November 2024, Palantir Technologies (PLTR) topped the list of best-performing meme stocks with a one-year return of 180.80%. These events have highlighted the growing influence of retail investors and the power of social media in shaping market trends. Quantifying the Meme PremiumWhile the concept of meme premium is relatively new, its effects are tangible and measurable. For instance, the Destiny Tech100 fund, which offers retail investors access to private tech companies, experienced a staggering 1,961% premium to its net asset value shortly after its debut. Despite having a portfolio worth only $52.6 million, the fund's market capitalization soared to almost $1.1 billion, demonstrating the power of the meme premium in action. The Elon Musk EffectNo discussion of the meme premium would be complete without mentioning Elon Musk, the CEO of Tesla and SpaceX. Musk's social media presence, particularly on X (formerly Twitter), has had a significant impact on Tesla's stock price and various other companies. His tweets have influenced stock prices of companies. Elon Musk's tweets have had a significant impact on stock prices and cryptocurrency markets, often causing dramatic fluctuations. Here are some notable examples: Lockheed Martin and Defense StocksOn November 26, 2024, Elon Musk criticized Lockheed Martin's F-35 fighter jet program on X (formerly Twitter), leading to a 3.8% drop in Lockheed's stock, wiping out nearly $5 billion in market value. His comments also affected other defense stocks like Northrop Grumman and RTX. Etsy SurgeOn January 26, 2021, Musk tweeted about purchasing an item on Etsy for his dog. This simple tweet caused Etsy's stock to surge in early morning trading, demonstrating the market's sensitivity to his social media activity. Dogecoin VolatilityMusk's tweets have frequently influenced the price of Dogecoin. For instance, on May 24, 2021, his tweet encouraging development ideas for Dogecoin led to a nearly 5% spike in its value against Bitcoin. His ongoing support and tweets about Dogecoin have often resulted in significant price movements. These instances highlight the considerable influence Musk wields over financial markets through his social media presence and meme posts and stocks. Implications for Venture Capital and InvestingThe rise of the meme premium poses both opportunities and challenges for venture capitalists and investors: 1. Shifting Valuation Metrics: Traditional valuation methods may need to be reconsidered to account for the potential meme premium a company might command. VCs and investors must now factor in a company's potential for viral popularity alongside traditional financial metrics. 2. Increased Volatility: Meme-driven investments tend to be highly volatile, requiring investors to have a higher risk tolerance and potentially shorter investment horizons. This volatility can lead to both spectacular gains and devastating losses in short periods. 3. New Marketing Strategies: Companies might increasingly focus on building a meme-worthy brand or cultivating a CEO with a strong social media presence to capture the meme premium. This shift could change how startups approach marketing and public relations. 4. Democratization of Investing: The meme stock phenomenon has led to increased retail investor participation, potentially democratizing access to high-growth investment opportunities. Platforms like Newnex, which connect institutional VCs and LPs to syndicate deals, may play a crucial role in bridging the gap between traditional investing and this new paradigm. The Role of Social Media and Retail Investors The meme premium was largely driven by retail investors coordinating through social media platforms. These investors often see themselves as underdogs taking on the financial establishment, using platforms like Reddit to discuss stocks, share research, and coordinate investment strategies. This collective action can lead to significant price movements, challenging the dominance of institutional investors. As meme culture continues to permeate every aspect of our digital lives, its influence on financial markets and venture capital is likely to grow. The meme premium represents a new frontier in valuation and investment strategy, one that blends traditional financial analysis with an understanding of internet culture and social dynamics. While the long-term permeability of meme-driven investments remains to be seen, it's clear that in today's market, the power of memes cannot be ignored. As we move forward, successful investors and venture capitalists will need to navigate this new landscape, balancing fundamental analysis with an appreciation for the cultural forces that are creating and sustaining a meme premium. In this evolving financial ecosystem, recognizing and adapting to the reality of the meme premium, investors are required to update to thrive in this new era of finance, where viral popularity can be just as important as traditional financial metrics. ---Join the Future of Venture Investing with Newnex<a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering seamless collaboration between General Partners (GPs), Limited Partners (LPs), and startups. Designed for institutional investors, our platform streamlines syndication and co-investment across both direct and LP deals. With a mission to unite over 5,000 VC and LP firms on a single, unified platform, Newnex enables effortless private deal-making based on reference-only transactions. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

The Meme Premium: How Internet Culture is Reshaping Venture Capital and Market Valuations

Venture capital (VC) firms are increasingly turning to secondary markets as a solution to long-standing liquidity challenges, aiming to improve distributions and enhance investor returns. This strategic pivot represents a shift from traditional reliance on IPOs and acquisitions toward private sales of startup shares, which offer greater flexibility in a volatile financial landscape. The Rise of Secondary Markets in Venture CapitalSecondary markets have seen significant growth in their role within venture capital. In 2020, VC transactions accounted for just 5% of the secondary market. By 2024, this share climbed to 14%, signaling an industry-wide shift. Secondary transactions primarily involve selling stakes in growth-stage companies, providing quicker liquidity and diversifying exit strategies. Why Venture Capital Needs Secondary MarketsVenture capital returns have been underperforming in recent years. In Q2 2024, the sector posted a return of -1.55%, lagging behind benchmarks like the S&amp;P 500 and Nasdaq Composite. Historically, VC outperformed the market with a 25-year average annual return of 18.96%, but that margin has shrunk over the past 15-, 10-, 5-, and 3-year periods.This underperformance has intensified pressure from LPs for better liquidity and results. Key metrics like the Distributions to Paid-In Capital (DPI) ratio have declined since 2021, exacerbated by a stagnant IPO market and heightened regulatory scrutiny of mergers and acquisitions. How Secondary Markets Create LiquiditySecondary markets enable venture capital firms to monetize their investments without waiting for public exits. Strategies such as sponsor-to-sponsor transactions, where one VC firm sells stakes to another, help avoid the high-risk “IPO-or-bust” model. This approach offers more control over exit timing and aligns VC practices with private equity-style fund management.Secondary funds often raise billions to acquire stakes in mature, high-growth companies. This portfolio diversification not only addresses liquidity challenges but also delivers stable distributions to LPs. Secondary market investments are proving to be an effective strategy, with many funds achieving strong returns despite a challenging environment. Challenges in the Secondary MarketWhile secondary markets offer significant benefits, they also come with challenges:<ul><li>Valuation Complexity: Accurately pricing startup shares can be difficult due to market volatility and limited financial transparency.</li><li>Discounts on Transactions: Secondary market deals are often executed at a discount, which can impact overall returns.</li></ul>Despite these hurdles, the growing emphasis on liquidity, fund management, and LP distributions is driving innovation in the secondary market space. The Future of Venture Capital: Adapting to ChangeThe adoption of secondary markets signifies a new era for venture capital, marked by active portfolio management and diversified exit strategies. As traditional paths like IPOs become less reliable, secondary transactions provide a viable alternative for maintaining liquidity and maximizing investor returns.By leveraging secondary markets, venture capital firms can stay competitive in an ever-evolving financial landscape. This innovative approach ensures sustained value creation for investors while addressing the liquidity and return challenges of modern VC investing. ---Join the Future of Venture Investing with Newnex<a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering seamless collaboration between General Partners (GPs), Limited Partners (LPs), and startups. Designed for institutional investors, our platform streamlines syndication and co-investment across both direct and LP deals. With a mission to unite over 5,000 VC and LP firms on a single, unified platform, Newnex enables effortless private deal-making based on reference-only transactions. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

How Venture Capital Firms Are Leveraging Secondary Markets for Liquidity and Higher Returns

Philanthropic venture capital is an innovative funding approach that combines principles from traditional venture capital with philanthropic goals. This model aims to support and accelerate the development of solutions to pressing social and medical challenges, particularly in areas where traditional funding sources may be limited or risk-averse. Key Features of Philanthropic Venture Capital 1. Patient Capital: Unlike traditional venture capital, philanthropic VC offers longer investment horizons, often aligning with the extended timelines required for drug development or complex social interventions.2. Focus on Social Impact: While financial returns are considered, the primary goal is to create significant social or medical impact rather than maximizing profits.3. Expertise and Resources: Philanthropic VCs often provide strategic guidance, access to networks, and specialized knowledge in addition to financial support.4. Risk Tolerance: These funds are typically more willing to invest in high-risk, early-stage ventures that have the potential for substantial societal benefits.5. Non-Dilutive Funding: In some cases, philanthropic VC can offer non-dilutive funding, allowing startups to retain more control over their ventures. Advantages of Philanthropic Venture Capital - Bridging Funding Gaps: It addresses critical funding shortages, especially in areas like early-stage drug discovery or social enterprises.- Attracting Additional Investment: The involvement of a philanthropic VC can signal credibility and attract larger investors.- Specialized Knowledge: Many philanthropic VCs focus on specific areas (e.g., multiple myeloma research), providing deep domain expertise.- Long-Term Vision: The extended investment horizons allow for the pursuit of ambitious, transformative projects. Philanthropic venture capital has been successfully applied in various sectors: - Healthcare: The Cystic Fibrosis Foundation's investment in drug development led to breakthrough treatments.- Education: Funds like the NewSchools Venture Fund have supported educational initiatives.- Social Enterprises: Organizations like the Robin Hood Foundation invest in poverty-fighting initiatives. While philanthropic venture capital offers many benefits, it's not without challenges: - Measuring Impact: Defining and quantifying social returns can be complex.- Potential Conflicts: Balancing financial sustainability with social mission can create tensions.- Scalability Concerns: Some critics argue that this model may not be easily scalable to address large-scale social issues. Philanthropic venture capital represents a powerful tool for driving innovation and social change, particularly in areas underserved by traditional funding mechanisms. By combining financial resources with strategic support and a focus on long-term impact, this model has the potential to accelerate the development of critical solutions in healthcare, education, and other vital sectors.

What is Philanthropic Venture Capital aka Venture Philanthropy

GP-led transactions have emerged as a transformative force in the venture capital and private equity secondary market, offering innovative liquidity solutions for fund managers and investors alike. These transactions, initiated by general partners (GPs), have grown from a niche approach to a mainstream practice, accounting for nearly half of all secondary transactions in recent years. Understanding GP-Led Transactions GP-led transactions typically involve the transfer of assets from an existing fund to a new vehicle managed by the same GP. This process allows GPs to retain control of high-potential assets while offering liquidity options to existing limited partners (LPs). Market Growth and Trends The GP-led segment has experienced remarkable growth, expanding from just $5 billion in volume in 2013 to $48 billion in 2022. This growth has continued, with GP-led deals accounting for approximately half of all secondary deal volume since 2020. The market's transformation suggests further acceleration in the near to medium term, as these transactions have effectively transferred secondary portfolio management responsibility from LPs to GPs. Economics for GPs GP-led transactions offer several economic benefits for general partners: 1. Extended Asset Management: GPs can retain control of high-potential assets beyond the original fund's lifespan, potentially increasing overall returns. 2. Fee Structure Reset: GPs can negotiate new fee structures for the continuation vehicle, often including:&nbsp;&nbsp;- Management fees typically ranging from 0.50% to 1.25%, lower than traditional primary funds.&nbsp;&nbsp;- Tiered carried interest structures, where full carry (usually 20%) is achieved only after certain performance hurdles are met. 3. Carried Interest Crystallization: GPs often roll over 100% of their crystallized carry from the existing fund into the new structure, aligning their interests with new investors. 4. Additional Capital Commitment: GPs frequently make new commitments to the continuation vehicle, typically 3-5% of the purchase price, further demonstrating alignment. 5. Ratchet Mechanisms: Many continuation funds implement ratchet mechanisms with different hurdles before the GP can begin to realize carry, enhancing alignment and potential upside. 6. Market Timing Flexibility: GPs gain the ability to maximize value by choosing the optimal time to exit investments. The Economics for New LPs New LPs investing in GP-led transactions often find attractive opportunities: 1. Access to High-Quality Assets: These deals frequently involve "trophy assets" that GPs want to retain, offering new LPs exposure to premium investments. 2. Potential Pricing Advantage: While pricing varies, new LPs may invest at a slight discount to the fund's fair market value (FMV) or Total Value to Paid-In (TVPI) multiple. This discount, typically ranging from 0-10%, reflects the concentrated nature of the investment and the need to incentivize new capital. 3. Attractive Risk-Reward Profile: New investors benefit from the GP's existing knowledge of the asset, potentially reducing risk while maintaining upside potential. 4. Immediate Exposure: Unlike primary fund investments, GP-led deals offer immediate and concentrated exposure to specific assets or portfolios. 5. Favorable Terms: New LPs often negotiate more investor-friendly terms compared to the original fund, including lower management fees and performance-based carry structures. Some investor-friendly benefits for New LPs include: 1. Lower Management Fees: Management fees in continuation funds are generally lower than in primary funds, typically ranging from 0.50% to 1.25%. 2. Performance-Based Carry Structures: Instead of the standard 20% carry, GP-led transactions often use tiered carry structures where the GP doesn't achieve full carry unless certain performance hurdles are met. 3. GP Commitment: GPs often roll over 100% of their crystallized carry from the existing fund into the new structure and make significant new commitments (typically 3-5% of the purchase price), demonstrating alignment with new investors. 4. Ratchet Mechanisms: Many continuation funds implement ratchet mechanisms with different hurdles before the GP can begin to realize carry, further enhancing alignment. 5. Enhanced Transparency: New LPs gain access to in-depth portfolio information beyond a fund's regular reporting, allowing for deep direct-style diligence of the assets. 6. Immediate Exposure: Unlike primary fund investments, GP-led deals offer immediate and concentrated exposure to specific assets or portfolios. 7. Governance Rights: New lead investors may negotiate for enhanced governance rights or input on key decisions related to the portfolio companies. 8. Deferral Options: In some cases, buyers may negotiate delayed payment methods, typically spreading payments over 6-12 months, which can enhance IRR. 9. Status Quo Option: Some deals offer a status quo option, enabling existing LPs to retain their legacy distribution waterfall without committing to new arrangements. These are some investor-friendly terms that are designed to align interests between the GP and new investors, provide enhanced economics for new LPs, and ensure continued focus on value creation in the underlying assets. Challenges for Existing LPs While GP-led transactions offer benefits, they also present challenges for existing LPs: 1. Liquidity vs. Upside Potential: LPs must decide whether to cash out or roll over their investment. This decision can be complex, potentially constraining their ability to fully realize anticipated returns. 2. Valuation Concerns: Ensuring fair valuation is crucial. LPs may worry about whether the transaction price truly reflects the asset's value. 3. Alignment of Interests: There's a potential conflict of interest as GPs act as both buyers and sellers. LPs must scrutinize the GP's motivations and commitment to the new vehicle. 4. Fee Structure Changes: Rolling over into the new vehicle may involve new fee arrangements, potentially impacting long-term returns. 5. Due Diligence Burden: LPs choosing to roll over may need to conduct additional due diligence on the new vehicle, incurring extra costs and time. 6. Limited Negotiation Power: Individual LPs may have limited ability to influence transaction terms, especially in larger funds. Market Dynamics and Trends 1. Growing Popularity: GP-led transactions have become a key liquidity management tool, driven by innovation and slowdowns in traditional exit routes like IPOs and M&amp;A. 2. Dry Powder Imbalance: The market currently faces a supply-demand disparity, with more GP-led opportunities than available capital, allowing buyers to be highly selective. 3. Focus on Quality: High-quality assets and well-structured deals attract significant attention, while challenging transactions struggle to close. 4. Importance of GP Commitment: Successful deals often involve GPs rolling over 100% of their crystallized carry and making substantial new commitments, typically 3-5% of the purchase price. 5.Regulatory Scrutiny: Increasing transaction volumes have led to calls for greater transparency and potential regulatory oversight, including proposals for fairness opinions and prompt notification of deals. Recent Examples 1. Lexington Capital Partners and Lightspeed Venture Partners: Lexington participated in a multi-asset transaction involving Lightspeed Venture Partners, acquiring stakes in multiple Lightspeed funds. 2. Coller Capital and Abry Partners: In August 2024, Coller Capital led a $1.6 billion GP-led credit transaction with Abry Partners, creating the largest credit continuation vehicle to date. Industry Focus and Preferences Buyers in the GP-led market show a preference for mature business models and industries with limited cyclical exposure. Buyouts compose 86% of GP-led market share, with healthcare, business services, industrials, and tech dominating interest. Capital-intensive industries have generally struggled to gain traction in these transactions. GP-led transactions have revolutionized the private equity secondary market, offering new avenues for liquidity and investment. While they present attractive opportunities for GPs to extend asset management and for new LPs to access high-quality assets, existing LPs face complex decisions that can impact their investment outcomes. As the market evolves, balancing the interests of all parties involved will be crucial for the continued growth and acceptance of these innovative structures. For both new and existing LPs, careful due diligence, a clear understanding of the underlying assets, and a thorough evaluation of the GP's track record and alignment are essential when considering participation in GP-led transactions. As these deals continue to reshape the private equity landscape, they offer both opportunities and challenges that investors must navigate with care and expertise. The future of GP-led transactions looks promising, with continued growth expected as they become an established part of the private equity ecosystem. However, success in this market will depend on maintaining high standards of transparency, alignment, and value creation for all stakeholders involved.

The Rise of GP-Led Transactions: Revolutionizing Private Equity Liquidity

Pension funds, the silent guardians of people's retirements, manage a staggering $76 trillion globally, with a whopping $4.6 trillion entrusted to them in the UK alone. How these vast sums are invested impacts the comfort and security of retirees. In this context, we drive into two key questions that shape pension investment strategies:<ol><li>Should pension funds prioritize local economic growth, or focus solely on maximizing returns?</li><li>And how do alternative investments like private equity stack up against traditional investment options?</li></ol> Balancing Returns and Local ImpactLet's start with the basics. The fiduciary duty of a pension fund is to generate the best possible returns to ensure retirees can maintain a comfortable standard of living after they stop working. Governments may advocate for investing in local economies, citing tax breaks offered to pension funds. However, when it comes to investment decisions, maximizing returns for pensioners must be the top priority. Without delving into the politics of it, local investments are attractive if they deliver strong growth potential. There are arguments put-forward by entrepreneurs that pension funds must invest locally, <a href="https://www.theguardian.com/business/article/2024/jul/12/british-chipmaker-graphcore-bought-by-japans-softbank" rel="noopener noreferrer" target="_blank">most recently by the founder of Graphcore</a>. This distills down to: Should the responsibility of driving economic growth fall on the shoulders of pensioners through their investments, or should retirees simply benefit from the economic growth generated by the broader economy? Exploring Alternatives UK FTSE 100 has historically delivered around 7% nominal returns compared that of 16.5% 5-year annualized returns of S&amp;P 500. UK Equities barely keeps pace with inflation, essentially eroding the purchasing power of retirees' savings. Pension funds are said to have averaged under<a href="https://getpenfold.com/news/pension-interest-rates" rel="noopener noreferrer" target="_blank"> 7%</a>. Alternative investments such as private equity (PE) has traditionally been generating<a href="https://www.klarphos.com/news-insights/a-simple-case-for-alternative-investments-to-enhance-portfolio-returns#:~:text=The%20study%20found%20that%20private,funds%20had%20an%20approximate%20historical" rel="noopener noreferrer" target="_blank"> 15-24% annualized returns</a> historically. Added to that the tailwind behind alternative investing makes it almost mandatory to have strong alternatives exposure. A breakdown of key advantages to add alternatives exposure:<ul><li>Diversification: Traditional equity markets are consolidating, meaning there are fewer publicly traded companies to invest in (listed equities have come down from 8000 in 1990s to less than 3700 today). Alternatives offer diversification, spreading risk and providing access to value creation in the private sector. Companies are staying private for longer periods, and a lot of the value creation is happening in private markets.</li></ul> <ul><li>Riding the Digital Wave: Many industries are undergoing a digital transformation, and a significant portion of the value generated from this shift resides in private markets. By incorporating alternatives, pension funds can gain exposure to these high-growth areas.</li></ul> <ul><li>Non-Correlation: Studies suggest that alternative asset classes have a low correlation with traditional investments.. This means that when traditional markets experience a downturn, alternatives may hold steady, further enhancing the overall resilience of a pension fund's portfolio. There is an alternative argument however that the private markets simply delay downsizing their valuations. But what matters ultimately is the returns upon exit, something to watch out for.</li></ul> Learning from the Pack:North American pension funds have been at the forefront of incorporating alternatives into their investment strategies. European funds are slowly opening up and developing expertise in selecting skilled fund managers and accessing the most promising markets for alternative investments. While maximizing returns remains paramount, strategically incorporating alternatives offers pension funds a powerful tool to fulfill their core mission: securing a comfortable future for retirees. However, navigating the alternatives industry is no easy task. There is much work to be done both from pensions funds and the alternatives industry overall. Alternative industry is famously complex, lacks transparency, has high fees, boasts of limited liquidity, and is ridden with regulatory restrictions. In addition, market timing is crucial as performance can vary significantly with economic conditions. By carefully selecting managers and diversifying with alternatives, pension funds can unlock higher returns, achieve better portfolio balance, and tap into the growth potential of the private sector. This, in turn, can translate to a better financial future for generations of retirees. References:<a href="https://www.theguardian.com/business/article/2024/jul/12/british-chipmaker-graphcore-bought-by-japans-softbank" rel="noopener noreferrer" target="_blank">Talent drain in the UK if pension funds don't invest locally</a><a href="https://getpenfold.com/news/pension-interest-rates" rel="noopener noreferrer" target="_blank">How pension interest rates work?</a><a href="https://www.klarphos.com/news-insights/a-simple-case-for-alternative-investments-to-enhance-portfolio-returns#:~:text=The%20study%20found%20that%20private,funds%20had%20an%20approximate%20historical" rel="noopener noreferrer" target="_blank">An aerial view of major alternative asset classes</a><a href="https://ifs.org.uk/publications/challenges-uk-pension-system-case-pensions-review" rel="noopener noreferrer" target="_blank">The case for UK pensions review</a><a href="https://ifs.org.uk/publications/challenges-uk-pension-system-case-pensions-review" rel="noopener noreferrer" target="_blank">Should pension funds invest in UK growth?</a><a href="https://www.hamiltonlane.com/en-us/insight/staying-private-longer#:~:text=There%20is%20growing%20evidence%20that,the%20sphere%20of%20public%20markets." rel="noopener noreferrer" target="_blank">Staying private longer leads to opportunity</a><a href="https://www.hamiltonlane.com/en-us/insight/staying-private-longer#:~:text=There%20is%20growing%20evidence%20that,the%20sphere%20of%20public%20markets." rel="noopener noreferrer" target="_blank">2024 pension updates from UK Spring budget</a>

Should pension funds invest in PE/VC?

BlackRock just published 2024 Private Markets Outlook. The Newnex team has parsed the key-takeaways from the report. There is a rapidly growing perception that the next decade of value creation is happening in private markets. We've seen reports including Family Offices pushing into private investments despite the good performing public equity. This timely report throws some more light into how private markets are expected to evolve in the coming years. Long-story short, private markets are set to soar. AI will be a game-changer. To begin with, there is no one-type of "private asset". Investors have to choose among the available assets to choose what's best for them. Private markets for the purpose of this report is a) Private Equity b) Private debt c) Infrastructure d) Real Estate. Our focus below is on PE. The Key take-aways for Private Markets with a focus on PE:<ol><li>Broad shifts in the economy and financial markets are positioning private markets to grow.</li><li>What are those broad shifts?</li><li class="ql-indent-1">Tightening lending standards resulting in banks reducing lending. Boom time for private debt and increasing reliability on equity financing.</li><li class="ql-indent-1">Companies are staying private longer, requiring a prominent place for private financing. Faster and flexible financing will drive growth.</li><li class="ql-indent-1">Fundraising in 2023 have been subdued, and as a result, less capital chasing investments. Hence more selective investments and good vintages.</li><li>Mega forces that are reshaping the world are:</li><li class="ql-indent-1">digital disruption and AI (private equity)</li><li class="ql-indent-1">the low-carbon transition (Infrastructure)</li><li class="ql-indent-1">the future of finance (private debt)</li><li class="ql-indent-1">demographic divergence (real estate)</li><li class="ql-indent-1">geographical fragmentation</li><li>Dry-powder, Capital calls and Distributions</li><li class="ql-indent-1">Private markets dry-powder set to touch $4tn, with the mega share with private equity ($2.5 tn).</li><li class="ql-indent-1">Capital calls increasing and outpacing distributions</li><li>Private Equity</li><li class="ql-indent-1">Rising interest rate, inflationary pressure, geopolitical and economic uncertainty, and correction in public markets drove slower PE activity.</li><li class="ql-indent-1">Valuations have declined from 11.9x EBITDA (2022) to 11.2x EBITDA (2023)</li><li class="ql-indent-1">Public-to-private transactions increased to 21% of deal value (compared to 15% the last 5 years)</li><li class="ql-indent-1">Less availability of debt has increased equity contributions in deal making</li><li class="ql-indent-1">Quality assets attract investments (industry leading companies, stable cash flow and return on capital)</li><li class="ql-indent-1">Good time to buy: Shortage of exit opportunities have left 75% of companies net cash-flow negative. Great secondary opportunity because (a) Sellers are motivated (b) Debt is hard to come by (c) innovative deal structuring including minority sales (d) corporate divestitures (e) moderated valuations</li></ol> BlackRock identifies that Artificial Intelligence will be a mega force having a horizontal and profound across industries. <a href="https://d1e00ek4ebabms.cloudfront.net/production/uploaded-files/2024-private-markets-outlook-stamped-69c37efb-c1de-4ffc-a214-646f5013ac32.pdf" rel="noopener noreferrer" target="_blank">Access the Full Report here</a>-------Join Newnex and scale venture capital investing. Consolidate LP, Direct and Co-investments in one place with <a href="http://www.newnex.io" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

$4tn dry powder and key-takeaways for PE from Blackrock's 2024 Private Markets Outlook

European startups fundraised recently - Nenwex Fortnight 

European Startups Funded recently - Newnex Weekly

The India opportunity: India's GDP&nbsp;reached&nbsp;a significant milestone&nbsp;of $3.75 trillion in&nbsp;2023, solidifying&nbsp;its position as the fifth largest economy globally.&nbsp;Additionally, India surpassed China to become&nbsp;the world's most populous&nbsp;nation.&nbsp; <a href="https://www.goldmansachs.com/intelligence/pages/how-india-could-rise-to-the-worlds-second-biggest-economy.html" rel="noopener noreferrer" target="_blank">Goldman Sachs has now projected</a> that India will surpass the United States and become the 2nd largest economy by 2075.&nbsp; <blockquote>Country - GDP (population)</blockquote><blockquote>China - $57 trillion (1.2 bn)</blockquote><blockquote>India - $52.5 trillion (1.5 -1.6 bn)</blockquote><blockquote>USA - $51.5 trillion (0.375 bn)</blockquote> While the United States is expected to maintain the highest per capita income among the 3 economies, due to its similar GDP size but significantly lower population, India and China are expected to experience dramatic growth over the next five decades. This positions India as a land of immense opportunity. Goldman Sachs' finds several positive drivers behind India's projected growth: PopulationWith approximately 67% of the population below the retirement age of 64 in 2023, India is in a favourable position to leverage on its demographic dividend. Over the next 20 years, India has a unique window during which dependency ratios is project to decline. Furthermore, the demographic transition in India is expected to be more gradual compared to other Asian countries, leading to increased savings rates among the population. Capital InvestmentThe Indian government has prioritized infrastructure development over the past decade and this trend is expected to continue into the future. This positions India favourably for private investor and foreign direct investment participation, contributing to the nation's progress. Domestic-demand Driven EconomyUnlike many other Asian countries, India has a robust domestic-demand driven economy. In 2023, domestic consumption accounted for approximately 50% of India's economic activity, and this figure is projected to grow. This reduced reliance on exports for economic growth is a significant advantage. India's Private SectorThe private sector plays a crucial role in India's growth story, contributing to both physical and digital infrastructure development. Companies such as Reliance, Tata, Wipro, and Adani are already well-positioned, with more innovative companies and conglomerates expected to thrive across various sectors, from services to digital innovation. The Digital EconomyIndia's software capabilities are widely recognized, but lesser-known internationally but highly impactful innovations such as the Aadhar card (digital biometric identification) and UPI (digital payments) are changing the country profoundly. Such innovations by both the government and the private industry at a billion population scale will accelerate the efficiency and effectiveness of India's growth. Despite the immense positive outlook, challenges remain. The key ingredient for India's success lies in productivity&nbsp;growth and the success in bringing more population into the real economy. To achieve this, it is essential to encourage greater workforce participation, especially by women. Furthermore, innovative approaches are necessary to develop and up-skill the Indian workforce to meet the dynamic requirements of the economy. The remarkable growth prospects of India and the on-going transition in its economy present an incredible opportunity for both domestic and international actors to participate in the India growth story. The projected trajectory of India's GDP, coupled with its favourable demographic dividend, investment focus, domestic-demand driven economy, thriving private sector, and digital innovation potential, places the country as a promising destination for global investments, collaborations, and engagement. ---Praveen Paranjothi is the CEO of Newnex, the digital-led VC, and the driving force behind Startup Europe India Network and India Techspora.

India to become the 2nd largest economy in 50 years - Goldman Sachs

Important news and events are happening every day. However, some news are more important than others, such as Warren Buffett's Annual Letter or the recent SVB crash. These important events make enormous news and disappear from our immediate memory as we go about our daily grind. But, these news ought to be regularly remembered for sound decision making. We therefore hope that the news we gather here would be an important and timely reference for you.
If we are missing anything, send us a message on Newnex or email to <a href="mailto:news@newnex.io" rel="noopener noreferrer" target="_blank">news@newnex.io</a>.
March 2023
NATO Innovation Fund 
1. Investment Management Team HQ to be in Netherlands <a href="https://www.nato.int/cps/en/natohq/news_213002.htm#hommels" target="_blank" rel="noopener noreferrer">nato.int/cps/en/natohq/news_213002.htm#hommels</a>
Credit Suisse sold to UBS
1. UBS buys Credit Suisse for $3.2bn - end of an era
<a href="https://www.cnbc.com/2023/03/19/ubs-agrees-to-buy-credit-suisse-as-regulators-look-to-shore-up-global-banking-system.html" rel="noopener noreferrer" target="_blank">cnbc.com/2023/03/19/ubs-agrees-to-buy-credit-suisse-as-regulators-look-to-shore-up-global-banking-system.html</a>
<a href="https://www.ubs.com/global/en/media/display-page-ndp/en-20230319-tree.html" rel="noopener noreferrer" target="_blank">ubs.com/global/en/media/display-page-ndp/en-20230319-tree.html</a>
2. Analysis of the takeover
<a href="https://www.imd.org/ibyimd/finance/credit-suisse-how-the-mighty-fell/" rel="noopener noreferrer" target="_blank">imd.org/ibyimd/finance/credit-suisse-how-the-mighty-fell</a>
First Republic Bank's woes
1. First Republic Bank secures $30bn of deposits in rescue from other banks <a href="https://www.bloomberg.com/news/articles/2023-03-16/us-pushes-first-republic-rescue-with-big-banks-after-stock-slump?leadSource=uverify%20wall" rel="noopener noreferrer" target="_blank">bloomberg.com/news/articles/2023-03-16/us-pushes-first-republic-rescue-with-big-banks-after-stock-slump?leadSource=uverify wall</a>
2. SVB contagion affects First Republic Bank <a href="https://www.wsj.com/articles/first-republic-bank-stock-rescue-what-to-know-a22a3d" rel="noopener noreferrer" target="_blank">wsj.com/articles/first-republic-bank-stock-rescue-what-to-know-a22a3d</a>
Samsung to invest $260bn in world's largest chip making base <a href="https://nationaltechnology.co.uk/Samsung_Worlds_Largest_Chip_Making_Base.php" rel="noopener noreferrer" target="_blank">nationaltechnology.co.uk/Samsung_Worlds_Largest_Chip_Making_Base.php</a>
Larry Fink (Blackrock) letter to shareholders
1. Annual letter to Investors <a href="https://www.blackrock.com/corporate/investor-relations/larry-fink-annual-chairmans-letter" rel="noopener noreferrer" target="_blank">blackrock.com/corporate/investor-relations/larry-fink-annual-chairmans-letter</a>
Credit Suisse collapse
1. Credit Suisse to borrow up to $54bn from Swiss central bank to prop up the bank <a href="https://www.ft.com/content/adb74b25-ee03-4bdd-8c7a-4dcc6c95fcac" rel="noopener noreferrer" target="_blank">ft.com/content/adb74b25-ee03-4bdd-8c7a-4dcc6c95fcac</a>
2. Shares in the Swiss lender plunged more than 30% at one point on Wednesday to <a href="https://www.theguardian.com/business/2023/mar/15/credit-suisse-shares-fall-low-top-investor-funding-saudi-national-bank" title="a record low of about 1.56 Swiss francs (£1.40) a share">a record low of about 1.56 Swiss francs (£1.40) a share</a> <a href="https://www.theguardian.com/business/2023/mar/15/credit-suisse-what-is-happening-at-swiss-bank-and-should-we-be-worried" rel="noopener noreferrer" target="_blank">theguardian.com/business/2023/mar/15/credit-suisse-what-is-happening-at-swiss-bank-and-should-we-be-worried</a>
Silicon Valley Bank crash reverberates across the world
1. European regulators criticise US ‘incompetence’ over Silicon Valley Bank collapse <a href="https://www.ft.com/content/5e4a8dde-c053-4510-8cd9-8aecb9082a6e" rel="noopener noreferrer" target="_blank">ft.com/content/5e4a8dde-c053-4510-8cd9-8aecb9082a6e</a>
2. SVB’s Collapse Is Causing Chaos in India’s Tech Sector <a href="https://www.wired.co.uk/article/svbs-collapse-is-causing-chaos-in-indias-tech-sector" rel="noopener noreferrer" target="_blank">wired.co.uk/article/svbs-collapse-is-causing-chaos-in-indias-tech-sector</a>
3. Bank of England's statement on Silicon Valley Bank <a href="https://www.bankofengland.co.uk/news/2023/march/statement-on-silicon-valley-bank" rel="noopener noreferrer" target="_blank">bankofengland.co.uk/news/2023/march/statement-on-silicon-valley-bank</a>
4. SVB protected by US regulators <a href="https://www.cnbc.com/2023/03/12/regulators-unveil-plan-to-stem-damage-from-svb-collapse.html" rel="noopener noreferrer" target="_blank">cnbc.com/2023/03/12/regulators-unveil-plan-to-stem-damage-from-svb-collapse.html</a>
5. Why was there a run on Silicon Valley Bank? <a href="https://noahpinion.substack.com/p/why-was-there-a-run-on-silicon-valley" rel="noopener noreferrer" target="_blank">noahpinion.substack.com/p/why-was-there-a-run-on-silicon-valley</a>
6. SVB collapses after failing to raise capital <a href="https://noahpinion.substack.com/p/why-was-there-a-run-on-silicon-valley" rel="noopener noreferrer" target="_blank">noahpinion.substack.com/p/why-was-there-a-run-on-silicon-valley</a>
7. Banks are designed to fail, and they do <a href="https://www.ft.com/content/09bfbb8d-22f5-4c70-9d85-2df7ed5c516e" rel="noopener noreferrer" target="_blank">ft.com/content/09bfbb8d-22f5-4c70-9d85-2df7ed5c516e</a>
8. SVB collapse explained by Nobel Prize winner <a href="https://finance-yahoo-com.cdn.ampproject.org/c/s/finance.yahoo.com/amphtml/news/economist-won-nobel-bank-runs-160025143.html" rel="noopener noreferrer" target="_blank">finance-yahoo-com.cdn.ampproject.org/c/s/finance.yahoo.com/amphtml/news/economist-won-nobel-bank-runs-160025143.html</a>
Signature Bank collapsed
1. Signature Bank becomes next casualty of banking turmoil <a href="https://www.reuters.com/business/finance/new-york-state-regulators-close-signature-bank-2023-03-12/" rel="noopener noreferrer" target="_blank">reuters.com/business/finance/new-york-state-regulators-close-signature-bank-2023-03-12</a>
UK launches £370m support to make UK a tech super power <a href="https://www.artificialintelligence-news.com/2023/03/06/370m-plan-launched-to-turn-uk-into-tech-superpower/" rel="noopener noreferrer" target="_blank">artificialintelligence-news.com/2023/03/06/370m-plan-launched-to-turn-uk-into-tech-superpower</a>
Cryptobank Silvergate has collapsed
1. Silvergate collapsed <a href="https://www.theverge.com/2023/3/8/23631320/silvergate-wind-down-liquidiation-announcement" rel="noopener noreferrer" target="_blank">theverge.com/2023/3/8/23631320/silvergate-wind-down-liquidiation-announcement</a>
February 2023
ChatGPT race
1. ChatGPT breaks record with 100million users <a href="https://dailyinvestor.com/world/8520/chatgpt-breaks-record-with-100-million-users-and-investors-come-flocking" rel="noopener noreferrer" target="_blank">dailyinvestor.com/world/8520/chatgpt-breaks-record-with-100-million-users-and-investors-come-flocking</a>
2. Google invests $300m in ChatGPT rival Claude <a href="https://www.theverge.com/2023/2/3/23584540/google-anthropic-investment-300-million-openai-chatgpt-rival-claude" rel="noopener noreferrer" target="_blank">theverge.com/2023/2/3/23584540/google-anthropic-investment-300-million-openai-chatgpt-rival-claude</a>
3. European Tech Champions Initiative (ETCI) launched along with 5 EU countries (Fund-of-funds) <a href="https://www.reuters.com/business/five-eu-countries-eib-launch-fund-help-promising-tech-companies-grow-2023-02-13/" rel="noopener noreferrer" target="_blank">reuters.com/business/five-eu-countries-eib-launch-fund-help-promising-tech-companies-grow-2023-02-13</a>
January 2023
ChatGPT
1. Microsoft confirms $10bn investment in OpenAI/ChatGPT <a href="https://www.forbes.com/sites/qai/2023/01/27/microsoft-confirms-its-10-billion-investment-into-chatgpt-changing-how-microsoft-competes-with-google-apple-and-other-tech-giants/" rel="noopener noreferrer" target="_blank">forbes.com/sites/qai/2023/01/27/microsoft-confirms-its-10-billion-investment-into-chatgpt-changing-how-microsoft-competes-with-google-apple-and-other-tech-giants</a>
Carry over from 2022
Inflation Reducation Act (IRA)
1. The Inflation Reduction Act (IRA) is a reconciliation bill that unlocks $370 billion in climate and energy investment in the United States <a href="https://www.spglobal.com/commodityinsights/en/ci/research-analysis/the-ira-bill-sets-the-ground-for-an-acceleration-of-clean-ener.html" rel="noopener noreferrer" target="_blank">spglobal.com/commodityinsights/en/ci/research-analysis/the-ira-bill-sets-the-ground-for-an-acceleration-of-clean-ener.html</a>
2. The Inflation Reduction Act contains $500 billion in new spending and tax breaks that aim to boost clean energy, reduce healthcare costs, and increase tax revenues. <a href="https://www.mckinsey.com/industries/public-and-social-sector/our-insights/the-inflation-reduction-act-heres-whats-in-it" rel="noopener noreferrer" target="_blank">mckinsey.com/industries/public-and-social-sector/our-insights/the-inflation-reduction-act-heres-whats-in-it</a>

Market movers in Investments, Tech and Impact world (2023)

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