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Industry Recognizes Altvia with Two Private Equity Wire 2022 Awards

The Private Equity Wire US Awards recognize excellence among private equity fund managers and service providers in the US across a wide range of categories. Voting is conducted via an online poll of the entire Private Equity Wire userbase, where participants are asked to make their choice among the shortlisted firms in each category. The nominated firms are based on a widespread survey of more than 100 GPs and other key industry participants. Winners were announced last night during an awards ceremony and networking event held at The University Club in Manhattan. 

“We are delighted to be recognized by the industry amongst our competitors with this prestigious award. As the private equity industry rapidly adopts new technologies to drive improvements and efficiencies, we help our clients more effectively raise and deploy capital, optimize workflows, collaborate cross-functionally, and analyze performance across their investments as part of their path to the top,” commented Brie Aletto, President and CEO of Altvia, on the accomplishment. “Altvia is privileged to have strong employees and customers that have supported our continued growth and are robust contributors to winning these awards.” 

Learn more about how our award-winning solution can help you win deals in a hyper-competitive market.

About Alvtia

Altvia is a market-leading provider for CRM, investor and deal management systems specifically built for Private Capital Market firms. The company’s mobile-optimized platform (AIM, ShareSecure, Correspond, and Answers) is transforming the way GP’s deliver continuous value, real-time decision support, and secure communications to their valued constituents. Marquee firms across multiple verticals including IVP, Livingbridge, Tailwater Capital, and RCP Advisors trust Altvia to optimize operational functions and enable critically important communications. Altvia is a Marlin Equity Partners portfolio company. Learn more at www.altvia.com

About Private Equity Wire

Private Equity Wire provides highly relevant and actionable information for GPs, service providers, and LPs.

Marlin completes significant majority growth investment in Altvia

DENVER, July 26, 2022 /PRNewswire/ — Altvia is pleased to announce that Marlin Equity Partners (“Marlin”) has completed a significant majority growth investment in Altvia, a market leader in software solutions for the alternative asset space. Altvia’s comprehensive platform, comprising a verticalized CRM built on Force.com, investor engagement offerings, and analytics engine, helps hundreds of asset managers more effectively raise and deploy capital, optimize workflows, collaborate cross-functionally, and analyze performance across their investments. 

The transaction enables Altvia to further expand its leadership position within the software ecosystem for alternative asset managers by accelerating product innovation and supporting the go-to-market function. 

“We are incredibly proud of the market-leading products and loyal customer base that we have built at Altvia,” said Brie Aletto, CEO of Altvia. “Marlin shares our strategic vision of equipping private capital market participants with purpose-built systems to drive world-class partnerships between Limited Partners and General Partners. We are thrilled to partner with Marlin as we enter the next phase of growth.”

“Participants in the private capital markets are rapidly adopting new technologies to drive improvements and efficiencies as they navigate increasing demands from regulatory bodies, ESG impacts, and expanding partnerships with Limited Partners,” said Nick Lukens, a managing director at Marlin. “We look forward to providing our operational expertise and financial support to further advance Altvia’s position in the market, accelerate technological innovation, and enhance its existing product capabilities for its current and future customer base.”

About Altvia

Altvia is a market-leading provider for investor and deal management systems specifically built for private capital market firms. Founded in 2006, Altvia has hundreds of clients and supports over 40,000 Limited Partner investors. The company’s mobile-optimized platform (AIM, ShareSecure, Correspond and Answers) is transforming the way General Partners deliver continuous value, real-time decision support and secure communications to their valued constituents. Marquee firms across multiple verticals trust Altvia to optimize operational functions and enable critically important communications. For more information, please visit www.altvia.com.

About Marlin Equity Partners

Marlin Equity Partners is a global investment firm with over $8.1 billion of capital under management. The firm is focused on providing corporate parents, shareholders and other stakeholders with tailored solutions that meet their business and liquidity needs. Marlin invests in businesses across multiple industries where its capital base, industry relationships and extensive network of operational resources significantly strengthen a company’s outlook and enhance value. Since its inception, Marlin, through its group of funds and related companies, has successfully completed over 200 acquisitions. The firm is headquartered in Los Angeles, California, with an additional office in London. For more information, please visit www.marlinequity.com.

Altvia President & CEO Brie Aletto Shares Insights With PreSales Collective

Recently our President and CEO, Brie Aletto, had a conversation with PreSales Collective in a presentation titled The Rise from SE to CEO: In Conversation with Brie Aletto.

The company asked Brie to provide details on her path to becoming Altvia’s leader and one of the driving forces behind our triple-digit growth. That journey involved serving in many roles, from a solutions consultant that helped IQNavigator scale from $10 million to $47 million to co-leading TalentReef $3M to $30M in ARR.

Below are some highlights from that interesting interview. You can also watch it in its entirety on YouTube.

Aspiring Meteorologist Turned Company Executive: Brie’s Career Journey

The presentation starts with Brie explaining that as a college student, she envisioned herself pursuing a career as a meteorologist or another role on TV. “I was never going to go into sales, and definitely never into software,” she says with a smile. But graduating into a tight job market, she got her first job working in customer support for a software company.

While that wasn’t her “dream job,” she can now reflect on how pivotal that role was in her career. It allowed her to learn about all the facets of running a business, from operations and system implementation to sales and marketing.

Ultimately, she gravitated toward sales, and the role of sales engineer “fell into her lap.” Being what she describes as the “entertainer” in sales pitch calls ended up feeling very natural to her. Over time, that role expanded into other sales and marketing responsibilities.

Later, when joining Altvia in an operations capacity, she could see how advantageous her sales engineering background was when it came to understanding the “big picture” at her new company. It also made her an excellent candidate when the CEO position opened up.

Brie’s Leadership “Light Bulb” Moment

Although Brie was involved in student government and other leadership activities growing up, she wasn’t sure that being a decision-maker within a company was for her. But, as she started building a team, she eventually realized that letting her employees spread their wings and take on more responsibilities would be good for them and for her. That’s when mentorship became a passion for her.

Brie shares that she recently read a book that uses the phrases expert leader (the person in the room that people look to because they have the expertise) and spanning leader (someone who is an asset because of their overarching understanding of the business).

She acknowledges that it takes time and effort to relinquish control to others but that it’s an important step for those looking to advance their careers.

Tips for Gaining Visibility Within Your Company

The interviewer also asks Brie how she made herself visible and a viable candidate for taking on added responsibilities and new roles. Brie begins her answer by noting that it’s common for product experts to fear that their expertise will, ironically, keep them from advancing since that means the company will no longer have them as their “go-to” technical person.

To keep from being pigeonholed, she recommends taking action to get involved in other areas. She gives the example of solution consultants getting a seat at the table regarding developing the product roadmap. You’ve got to make yourself the “connective tissue” across your organization, Brie says.

What Makes an Incredible Leader?

Next, Brie is asked about what makes someone a good leader, what advice she has for first-time leaders, and how long-time leaders can energize their leadership style. She laughs about the cliches that come to mind but says they’re true. You’ve got to surround yourself with the right people, empower your people to do their best work, and be willing to offer praise but also have tough conversations, for example.

The last of these is the most difficult for her. But she says the ability to offer constructive criticism is essential and something every aspiring leader must learn.

As for things seasoned leaders can do to inspire their teams, Brie acknowledges that’s a significant challenge. However, she mentions employee engagement surveys as a way to determine what’s important to the people you’re leading.

She also explains a few frameworks like EOS (entrepreneurial operating system) and GWC (get it, want it, capacity to do it) that leaders can use to run their business and understand their employees.

The Importance of Mentorship

In another part of the conversation, the interviewer asks Brie about mentorship—the role it’s played in her career, how to find a mentor, etc. She says that it starts with determining whether the person and company you work for value you and the contribution you make. If they don’t, she says, you should consider moving on. 

But when you find a potential mentor, she points out that mentorship can be a two-way street. If you’ve got something to offer a potential mentor—a task you take off their plate or some other way you can assist them or their team—you’re more likely to establish a relationship that will benefit both of you.

Brie also points out that, in most cases, having one mentor isn’t enough. You’re wise to seek out mentor/mentee relationships with multiple people who are experts in their area.

Insightful Answers to Great Attendee Questions

The interview then moves on to Brie answering excellent questions from webinar attendees. Many of them are follow-ons to the mentorship discussion. For example, how do you find a mentor when you’re already in a somewhat senior role? And, how should you pursue finding a mentor outside your company? 

Others address the challenges Brie has faced as a woman in a male-dominated industry, how she walks the line of being humble yet confident, and others.

The discussion is full of insights for any sales engineer—or anyone, really—looking to enjoy their work and advance their career! We encourage you to check it out. And if you have questions about products and services, contact us today to request an informative demo.

Leveraged Buyout (LBO) Model for Private Equity Firms

Leveraged buyouts (LBOs) are a cornerstone of private equity, where financial engineering meets strategic acquisition. In an LBO transaction, PE firms acquire companies using a substantial amount of debt, aiming to amplify returns by leveraging the acquired company’s assets and cash flows. But, what does that even mean? How do LBOs work? And what are the implications for both the investors and companies involved?

What is a Leveraged Buyout (LBO)?

A leveraged buyout is a financial transaction in which a PE firm acquires a company primarily using borrowed funds, with the expectation that the target company’s cash flows will be sufficient to service the debt. The PE firm typically contributes a portion of equity capital, often alongside limited partner investors, while the remaining purchase price is funded through various debt instruments.

What does an LBO process look like for PE Firms?

Before making an acquisition, PE firms conduct their due diligence through a series of steps, including analyzing a potential company’s assets, cash flows, and cash expenditures. If the deal seems to have potential, the PE firm negotiates a price and outlines a deal structure. Next, they source capital to take ownership of the business, and then implement strategic changes and cost-cutting measures to accelerate growth (and revenue).

To determine if a deal is worth pursuing, firms use an LBO model for evaluation, which, as the Corporate Finance Institute explains, can get pretty complicated due to the unique factors that go into such a deal. These include, but are not limited to:

  • A high degree of leverage
  • Multiple tranches of debt financing
  • Complex bank covenants
  • Issuing of preferred shares
  • Management equity compensation
  • Operational improvements targeted in the business

Once evaluating these factors, firms need to measure key metrics to ensure the deal is favorable, such as:

  • Debt/EBITDA
  • Interest Coverage Ratio (EBIT/Interest)
  • Debt Service Coverage Ratio (EBITDA – Capex) /  (Interest + Principle)
  • Fixed Charge Coverage Ratio (EBITDA – Capex – Taxes) / (Interest + Principle)

When analyzing these metrics, firms should also conduct what’s called a sensitivity analysis. This analysis forecasts LBO outcomes based on different assumptions and scenarios, such as changing the EV/EBITDA acquisition multiple, the EV/EBITDA exit multiple, and the amount of leverage (ie: debt) used.

If using a templated LBO model, it’s essential to keep in mind that certain models use specific assumptions. In Firmex’s templated LBO model, for example, it assumes 100% acquisition of the target company, that the most recent year-end balance sheet is the closing balance sheet, that there are no step-ups in asset values, and that there will be no amortization of goodwill from an acquisition. If these assumptions don’t apply to your deal, factor that in during your analysis. 

How to structure an LBO:

At the heart of an LBO lies the intricate structuring of financing. PE firms work closely with investment banks and lenders to craft a capital structure that optimizes returns while managing risk. This structure typically involves a mix of senior secured debt, subordinated debt, and equity financing.

  • Senior Secured Debt: This forms the backbone of the LBO financing and is usually collateralized by the assets of the acquired company. Senior debt holders have priority in repayment in the event of bankruptcy or liquidation, providing a level of security for lenders.
  • Subordinated Debt: Also known as mezzanine financing, this type of debt sits between senior debt and equity in the capital structure. It often carries higher interest rates and may include equity kickers such as warrants or convertible securities, providing lenders with additional upside potential.
  • Equity Financing: PE firms contribute equity capital to the transaction, typically ranging from 20% to 40% of the total purchase price. This equity investment serves as a cushion against potential losses and aligns the interests of the PE firm with those of its investors.

How do PE firms ensure success with LBOs?

Positive Cash Flow:
Central to the success of an LBO is the target company’s ability to generate sufficient cash flows to service the debt. PE firms conduct extensive due diligence to assess the target company’s financial health, market position, growth prospects, and operational efficiency. By identifying opportunities to improve efficiency, increase revenue, or reduce costs, PE firms aim to enhance the target company’s cash flow generation potential.

Value Creation:
Another key point to understand is that PE firms execute LBOs with the ultimate goal of creating value for their investors. This means that the fund managers are hyper-focused on value creation in their portfolio companies. This value creation can take various forms, including operational improvements, strategic initiatives, and financial engineering. Over the investment horizon, the fund managers work closely with the portfolio company’s management teams to implement value-enhancing strategies and position the company for a successful exit.

Exit Strategies:
Exit strategies for LBO investments vary but typically include selling the company to a strategic buyer, conducting an initial public offering (IPO), or recapitalizing the company to distribute cash to investors. The timing and method of exit depend on market conditions, industry dynamics, and the specific objectives of the PE firm and its investors.

In conclusion, leveraged buyouts represent a powerful tool for PE firms to unlock value and drive growth in target companies. By leveraging debt to finance acquisitions, PE firms amplify returns while carefully managing risk. However, successful LBOs require rigorous due diligence, disciplined execution, and strategic value-creation initiatives. As a cornerstone of the PE industry, LBOs continue to shape the landscape of corporate finance and investment, driving innovation, efficiency, and shareholder value.

Unlock value, drive growth, and amplify returns with Altvia. Discover how our comprehensive suite of solutions streamlines your due diligence, execution, and strategic value-creation initiatives for successful leveraged buyouts. To learn more about Altvia’s solutions, start a conversation with our team.

Altvia CEO Brie Aletto – Featured Panelist at MIW SPEAK Event

As noted on their website, the organization called Mergers & Acquisitions “has been honoring the Middle Market’s Most Influential Women for 7 years and in 2022, we’ll tap into this powerful group of executives to have them share their views on the market and professional growth advice to help provide INSPIRATION to the next generation.”

Altvia CEO Brie Aletto was honored to share her insights at an MIW SPEAK event. Brie joined Suzanne Yoon, Founder and Managing Partner, Kinzie Capital Partners, and Julia Karol, President and COO, Watermill Group, in a session titled MIW Maximizing Growth at Portfolio Companies. Withum Partner and Market Leader, Transaction Advisory Steve Brady moderated the session. 

We provide highlights of the event below.

What Does Growth Mean to You?

Julia answers this question by saying that to her firm, growth means that when they have finished working with a business in a stewardship role, they leave it “strong and thriving,” with an excellent management team in place and performing optimally.

Brie notes that top-line growth is important to the PE/VC-backed businesses that Altvia works with and that technology like Altvia solutions can be vital to driving that growth. She says that the Rule of 40 is the metric we strive for with our clients.

Suzanne shares that because her firm is involved in deals where they provide first-time institutional capital, they see growth as helping companies with established offerings develop more efficient processes. Often this involves assisting companies to implement operational technology to accelerate their growth.

What Are the Challenges and Opportunities Around the Use of Advanced Technology?

Brie tackles this question first, pointing out that growth-stage businesses must support the implementation of tech solutions all the way up to the company’s board. It’s also critical in acquisition to keep legacy employees in place so that they can transfer their knowledge to new team members. She goes on to describe some of the tools—like video capture tools for capturing and sharing meeting insights—that are crucial for businesses looking to grow and expand. Fund lifecycle management solutions like Altvia’s also help firms manage fundraising and deal pipelines and make fund managers more competitive.

Julia emphasizes that having access to necessary data is critical. She shares that companies used to focus on implementing enterprise resource planning (ERP) systems. These large, expensive solutions could damage a business if the company implemented them incorrectly. That risk has made many companies fearful of technology in general today. However, choosing the right tools and implementing them the right way reduces that risk. 

Suzanne adds that all areas of every business today use technology in some way. From communication tools to HR systems, companies should equip every department with solutions that help them operate better. She also mentions that the “old-line” businesses they often work with are increasingly transitioning to cloud-based solutions. Suzanne goes on to note that Kinzie Capital Partners uses Altvia solutions.

How Does the Ability to Attract and Retain Great Talent Affect Growth?

From Suzanne’s perspective, identification, assessment, and development are the three pillars of human capital management. She says that companies must address all three deliberately and rigorously. That includes having a strategy for staying in front of recruiters. Suzanne also mentions how costly bad hiring decisions can be and, consequently, how important human capital assessment tools are.

Julia states that one of the most important things companies can do is align incentives with the metrics or goals of the business. “If you get that right, you’re three-quarters of the way there,” she says. She also mentions that a sense of purpose is essential to today’s employees. Companies used to talk about purpose in terms of business strategy. However, now it’s vital to ensure that employees feel like they’re part of something and understand the “why” behind their work.

Brie expresses that she’s encouraged to hear Suzanne and Julie focus on the people and culture sides of businesses. She notes that one of Altvia’s top three goals for this year and an important metric we’re tracking is employee retention. Brie also agrees with Suzanne’s point about how employees view growth and development in their careers as significant factors in their loyalty to their employer. Altvia has implemented a tool to assess and align personal development goals with company goals.

In addition, she highlights the importance of the positive culture that exists when you have the right mix of energetic new employees and seasoned veterans, along with technology that takes some of the training burdens off those veterans.

View the Session and Learn More About Altvia

This interesting and informative event concludes with the panelists sharing their thoughts on marketing and sales. You can hear all that Brie and the other panelists have to say on maximizing growth at portfolio companies by viewing the recording of the session.

To learn more about Altvia’s industry-leading solutions for alternative investment firms and request a demo, visit our website.

Altvia Earns Built In’s 2022 Best Places to Work in Colorado Award

DENVER, Jan. 5, 2022 /PRNewswire/ — Built In today announced that Altvia was honored in its 2022 Best Places To Work Awards. Specifically, Altvia earned a place on 2022 Best Places To Work in Colorado. The annual awards program includes companies of all sizes, from startups to those in the enterprise, and honors both remote-first employers as well as companies in the eight largest tech markets across the U.S.

“In an extremely competitive employment market, attracting and retaining our team members is of utmost importance to the ongoing growth and advancement of any business,” stated Brie Aletto, CEO of Altvia. “I’m proud and grateful of the efforts we take at Altvia to build a collaborative and inclusive culture, and to subsequently be recognized for those initiatives as one of the top places to work.” 

Built In determines the winners of Best Places to Work based on an algorithm, using company data about compensation, benefits and companywide programming. To reflect the benefits candidates are searching for more frequently on Built In, the program also weighs criteria like remote and flexible work opportunities, programs for DEI and other people-first cultural offerings. 

“It is my honor to extend congratulations to the 2022 Best Places to Work winners,” says Sheridan Orr, Chief Marketing Officer, Built In. “This year saw a record number of entrants — and the past two years fundamentally changed what tech professionals want from work. These honorees have risen to the challenge, evolving to deliver employee experiences that provide the meaning and purpose today’s tech professionals seek.”

About Built In’s Best Places To Work

Built In’s esteemed Best Places to Work Awards, now in its fourth year, honor companies across numerous categories: 100 Best Places to Work, 50 Best Small Places to Work, 100 Best Midsize Places to Work, 50 Companies with the Best Benefits and 50 Best Paying Companies, 100 Best Large Companies to Work For, and 50 Best Remote-First Places to Work. Learn more – www.builtin.com

About Altvia

Altvia translates data into intelligence so you can unleash the power of your relationships. As the premier platform for private equity built on top of Salesforce, Altvia combines future-focused technology with proven processes to fundamentally improve the communication and relationship between GPs, LPs, and Portfolio Companies. Learn more – www.altvia.com

CONTACT: Altvia Growth, growth@altvia.com

Altvia and Preqin Announce Strategic Partnership

DENVER, Nov. 30, 2021 /PRNewswire/ — Private capital market platform, Altvia, has partnered with Preqin, the industry’s most comprehensive alternative assets data provider, to integrate Preqin data with Altvia’s CRM and investment management platform. 

Through the integration, mutual clients can now seamlessly enrich their Altvia CRM with Preqin’s Investor and Contact data for private equity and venture capital. The offering will centralize essential data into one solution, saving users time, bringing new visibility to the investment lifecycle, and driving enhanced workflow efficiency. 

For over a decade, Altvia witnessed the evolution of the alternative asset industry while working with hundreds of fund managers, investor relations teams, and partners. As competition rises for both capital and deals, Altvia identified the need to improve General Partner (GP) to Limited Partner (LP) communications and provide firms with integrated communications tools.

Brie Aletto, President and CEO of Altvia says: “Preqin integrates seamlessly with Altvia’s CRM, boosting productivity, improving data integrity, and ensuring security. The combination of these products enables fund managers to leverage better insights from their data, strengthen existing relationships, and effectively track the fundraising pipeline.”

Alex Meier, Preqin’s Global Head of Channel Sales, says: “We are excited to partner with Altvia and to offer a powerful integration for our mutual clients. Our customers are increasingly reliant on fast, intuitive technology to spot trends, connect to the decision-makers quickly, and improve time to market.”

Altvia and Preqin will continue to expand their integration offering, bringing best-in-class data and technology solutions to their shared clients. 

About Altvia

Altvia translates data into intelligence so you can unleash the power of your relationships. As the premier platform for private equity built on top of Salesforce, Altvia combines future-focused technology with proven processes to fundamentally improve the communication and relationship between GPs, LPs, and Portfolio Companies. Founded in 2006 and powering top-tier firms around the globe, Altvia serves clients on six continents and continues to expand operations. Learn more: www.altvia.com

About Preqin

Preqin is the Home of Alternatives™, the foremost provider of data, analysis, and insights to the alternatives industry. The company has pioneered rigorous methods of collecting private data for almost 20 years, so that 170,000+ global professionals can streamline how they raise capital, source deals and investments, understand performance, and stay informed. Through close partnerships with its clients, Preqin continuously builds innovative tools and mines new intelligence to enable them to make the best decisions every day. Learn more: www.preqin.com.

CONTACT: Altvia Partners, partners@altvia.com 

SOURCE Altvia Solutions, LLC

Related Links

https://altvia.com/ 

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Altvia Wins Private Equity Wire’s “Best Secure Workflow Management Provider”

DENVER, Oct. 21, 2021 /PRNewswire/ — Altvia, a market-leading provider of cloud-based CRM, deal management, and investor lifecycle systems for private capital markets firms, was awarded the Private Equity Wire’s “Best Secure Workflow Management Provider” Award for 2021 amongst top players in the space. 

secure workflow
Altvia – Best Secure Work-flow Management Provider

Voting for the awards is conducted via an online poll of the entire Private Equity Wire readership, where participants are asked to make their choice among the shortlisted firms in each category.

The GP manager categories cover fund performance and fundraising success across a range of private markets investment strategies – including Buyout, Growth, Venture, Fund of Funds, Secondaries, Co-Investment, Debt, Real Estate, and Real Assets.  The service provider categories span all the key areas of the broader private equity ecosystem. Altvia’s workflow management platform supports hundreds of private equity and venture capital firms via a market-leading solution of CRM, LP Portal, and data analytics solutions. 

Kjael Skaalerud, CRO of Altvia, accepted the award on behalf of the company at the awards reception in New York City.  “This is a very exciting time in our category, as more and more fund managers embrace technology to stay competitive. It was great to be recognized by PE Wire and we are excited to continue delivering as a strategic partner to our clients,” said Skaalerud.

Altvia has seen significant growth and evolution over the past 18 months since the Bow River recapitalization of Altvia.  Based on the overarching momentum and growth in the PCM industry, Altvia is poised for a record fourth quarter of welcoming new customers to the portfolio while continuing to provide market-leading solutions for the current users of the platform.

About Altvia

Altvia is a market-leading provider for CRM and investor & deal management systems specifically built for Private Capital Market firms. Founded in 2006, Altvia has hundreds of world-class clients and supports over 40,000 LP investors. The company’s mobile-optimized platform (AIM, ShareSecure, Correspond, and Answers) is transforming the way GP’s deliver continuous value, real-time decision support, and secure communications to their valued constituents. Marquee firms across multiple verticals including IVP, Livingbridge, Tailwater Capital, and RCP Advisors trust Altvia to optimize operational functions and enable critically important communications. Learn more at www.altvia.com.

PitchBook Report Provides Insights on Private Fund Strategies Through H1 2021 Sponsored by Altvia

Investment industry stakeholders are always eager to get data about recent past periods so that they can use it to inform their decisions going forward. That’s especially true given what the industry (and the world in general) went through in 2020. And no organization is better positioned to provide that data than PitchBook. Recently, Altvia commissioned a PitchBook report—Private Fund Strategies Report Q2 2021 on the results of different private fund strategies for the first half (H1) of 2021. It provides analysis and performance results for:

  • Private equity
  • Venture capital
  • Real estate
  • Real assets
  • Private debt
  • Fund of funds
  • Secondaries

The report also includes excerpts from a Q&A session with Altvia SVP of Industry Solutions & Strategy Jeff Williams, plus lists of top funds of different types by size.

Below are some highlights from the report.

Industry Overview

Looking at the industry from a high level, PitchBook notes that “fundraising in H1 2021 was ahead of H1 2020, with $545.4 billion versus $531.9 billion, and even further ahead of H1 2019, which raised $436.8 billion.” And this is true even though fewer funds were raised in 2021 than in 2020 or 2019. So, we saw more money going to fewer but larger funds.

The report also provides a table of year-over-year changes by each of the private fund strategies. For example, private equity funds raised $479.6 billion which was a YoY decrease of 17.9% on a fund count of 598, which was a YoY decrease of 27.4%.

Fund “Step-Ups”

As PitchBook explains: “When a fund manager raises a follow-on fund—also known as a successor fund—it often believes that a target larger than the previous fund is merited due to increasing deal values, a shift upmarket in strategy, or even just the feeling that bigger is always better and a downsized fund would be a poor signal to send the marketplace. Allocators may also hold the cynical perspective that it grows the basis on which management fees are charged. The difference in fund size between a fund and its successor is the step-up.”

The report includes a very visual representation of step-ups for different types of funds and how they’ve tracked from 2006 to 2021.

Private Fund Strategies: Overviews and Graphical Data

The core of the Private Fund Strategies Report Q2 2021 provides an overview of each fund type along with data in the form of graphs and charts. The visuals make it easy to see metrics both at a point in time and as trends.

It’s engaging information punctuated by several very interesting observations, like:

  • Globally, venture funds raised a staggering $88.6 billion through H1 2021, bringing the 12-month rolling average to an all-time high. At its current pace, we anticipate 2021 global VC fundraising to eclipse the record $136.6 billion set in 2018.
  • Perhaps it is the pandemic, but real estate appears to be in a funk lately, at least as it pertains to fundraising.
  • Private debt fundraising kept a steady course in the first half of 2021. Low interest rates, subdued default rates, and the longer-term pivot toward alternative strategies aided allocators in committing $62.1 billion across 66 vehicles.
  • H1 2021 is off 2020’s record-setting pace for secondaries, but the $32.8 billion closed through June is still more than any prior calendar year, aside from 2020 and 2017.

Top Funds by Size

The Private Fund Strategies Report Q2 2021 concludes with lists of top funds by type and size. It’s fascinating to see how many of the most well-known funds are doing—EQT IX, Copenhagen Infrastructure IV, Ares Capital Europe V, and many others. Get your copy of this in-depth and informative report!

Altvia SVP Jeff Williams Guest Authors Openview Labs Article On IPO Trends

Altvia’s SVP of Industry Solutions & Strategy, Jeff Williams, authored an article for OpenView Labs titled Why Are We Seeing Fewer Venture Capital-Backed IPOs? In it, Jeff discusses IPO trends and what they mean for firms.

 He starts the article by recalling:

“I have what many would consider an oddly-vivid memory of VC-backed IPOs in 2007. Midway through that year, I got my start as an investment analyst at a VC fund-of-funds. Within just months I had seen several portfolio companies go public, and venture investors taking a company public immediately cemented itself in my mind as the manifestation of just how great American capitalism is. Maybe it’s the delusion from all of those years I spent creating Excel masterpieces, but I can’t help—in looking back—feeling that they just don’t make VC-backed IPOs like they used to.”

After framing things up that way, Jeff goes on to share stats on the decline both of publicly-listed companies and venture-backed IPOs:

  • The number of publicly-listed companies reached 7,607 in 1997 and has declined nearly every year since, with just 3,618 by the end of 2017
  • From 1993-2000, the average number of yearly IPOs was 451. In the period 2000-2016, the average dropped to 108.

Assessing IPO Trends: Are IPOs Extinct or Just Evolved?

In Jeff’s experience, the VC-backed IPO hasn’t gone extinct, it’s simply evolved.

When considering IPO trends, he notes that, “Venture investors and their portfolio companies have found lucrative exits and large capital infusions without the hassle of being a public company by way of the Growth Equity and Buyout funds that have stepped in to acquire venture-backed companies that historically would’ve gone public.”

He goes on to explain that the number of publicly-listed companies of all sizes has declined, but that Micro- and Small-cap companies have been most affected by this change.

As for why this is happening, Jeff points out that conducting an IPO is very expensive. And on top of that, simply being a public company involves maintaining important-but-costly Sarbanes-Oxley compliance.

And, it’s Jeff’s view that, “IPOs still have their place and they haven’t gone away entirely, but they’ve become more appropriate strategic raises for larger, more-established companies.”

The article is an interesting and insightful read on IPO trends. Check out Why Are We Seeing Fewer Venture Capital-Backed IPOs? on the OpenView website.