Tech Conglomerates Eye Financial
December 20, 2018
revealed its predictions for the private equity, venture capital and
emerging technology industries in 2019. Predictions are developed by
PitchBook analysts and are based on industry trends surfaced through
PitchBook data as well as conversations with prominent industry pundits
and influencers. In addition to predictions, analysts also weigh caveats
and other considerations that may impact 2019 industry outcomes.
Trending in 2019:
PitchBook 2019 Private Equity Outlook
•GP stakes will experience ongoing
•Secondaries activity hits another
•Short-term returns fall for PE
funds, but performance improves relative to public equities.
•PE fundraising will grow for
•Private debt fundraising rebounds
but remains below 2017 levels.
•Multiples in public and private
markets will converge further.
•Take-privates will increase in
"PE multiples continue climbing as both dealmaking and fundraising
remains robust," said James Gelfer, senior strategist at PitchBook. "As
traditional private market strategies become more crowded, we expect PE
investors to turn their focus to innovative new approaches including, GP
stake deals and secondary transactions, as well as geographic expansion,
particularly in China."
PitchBook 2019 Venture Capital Outlook
•IPO's proportion of total VC exit
value hits new decade high.
•New participants in VC continue
•Median early-stage valuation
step-ups will hit 2.0x in 2019.
•Median angel & seed deal size
will continue to climb.
•Growth in median fund size
•Banks back more institutional
"Capital has poured into the venture ecosystem at an accelerated rate in
2018, which has created an ever-growing population of unicorns and has
placed upward pressure on deal sizes and valuations for angel, seed and
early stage private companies," said Cameron Stanfill, analyst at
PitchBook. "What's more, strong returns in recent years have encouraged
a host of new entrants into the ecosystem, further stiffening
competition and driving up price tags. For investors hoping for
liquidity through IPO in 2019, poor public equity performance or
extended volatility in 2019 would likely cause a significant slowdown in
public listings as companies could choose to postpone IPOs in a
less-than ideal market."
PitchBook 2019 Emerging Technology Outlook
secular shift away from pure-play shared mobility applications toward
bundled mobility-as-a-service (MaaS).
•Autonomous vehicle partnerships
and M&A activity will remain elevated.
•North America and Europe will
move toward bundling consumer fintech products and services.
•Technology conglomerates to make
a grand entrance into the financial services sector.
"While some industries are in the midst of unbundling, we expect bundled
solutions to mark the next wave of development for certain emerging
technologies such as ridesharing, autonomous vehicles and fintech," said
Robert Le, analyst at PitchBook. "Looking ahead to 2019, we expect major
players in ridesharing to expand into bundled mobility services, while
fintech business will adopt the China model of packaging micro-services
into large-scale products."