Happy Friday. Here’s what we’ve got today…

• A look at the growing viability of IPO exits this year

• Plus, a possible Italian banking takeover

Taking it public:

The public market is back on the table this year as an exit path.

After a tepid 2023, IPO volume jumped in the back half of 2024 — fourth quarter proceeds of $54.2 billion marked a 94 percent year-over-year increase (in evidence of the slow start, full-year growth came in at just 6.9 percent).

This cycle also appears to be particularly well-suited to sponsor-backed exits. With a market-wide retreat from the speculative binge of 2021, investors are showing a greater-than-normal appetite for the type of mature, stable businesses typically brought to market by private equity.

Data compiled by Pitchbook show a median share price gain for sponsor-backed companies of 20.7 percent in 2024 versus a median loss of 6.8 percent for venture-backed IPOs.

The IPO calendar is starting to fill up with a roster of large sponsor-backed floats.

Blackstone, Carlyle, and Hellman & Friedman-backed medical supplies business Medline and Thoma Bravo-backed cybersecurity company Sailpoint are among those expected to launch in the coming months. Other possible offerings before year-end include CDPQ's Allied Universal, Roark Capital's Inspire Brands, Advent International's Aimbridge Hospitality, and BDT & Company's Panera Bread.

EQT CEO Christian Sinding says his firm is also looking at options.

"Markets are bright and open, and we have several companies that are ripe for exit," Sinding told analysts on the firm’s Thursday earnings call. “Public markets still have a lot of challenges, but the companies we took public last year performed well — that was down to their size, liquidity, and the quality.”

EQT has already been one of the more active participants so far this cycle. Last year, the firm raised $8.6 billion via public offerings through listings including Galderma Group, Kodiak Gas Services, and Waystar Holding.

“We have a handful of IPOs planned for the year,” he added. “It depends on market conditions, but we are prepared to surf the wave.”

On the sell-side, bankers are already seeing momentum build.

Last quarter, Morgan Stanley, Goldman Sachs Group, and Citigroup posted 102 percent, 98 percent, and 95 percent increases in underwriting revenue, respectively.

“There's no question equity activity picked up,” said Goldman Sachs CEO David Solomon on the group’s fourth-quarter earnings call.

It’s still early innings, though, says Solomon.

“[Equity underwriting] volumes are running 25 percent below 10-year averages. And IPOs are even more significantly below 10-year averages.”

“I do think some of this is sponsor monetization because sponsors have had their portfolios marked a little bit higher, they've been slow, and they're kind of waiting for growth to bring up some of the values.”

“But I do see an acceleration of activity, and I expect it to continue. And there's no fundamental reason why equity volumes ultimately shouldn't run at 10-year averages.”

• Diageo (NYSE: DEO) is exploring strategic options for its Guinness beer brand, including a potential sale or spinoff that could value the unit at over $10 billion.

• Monte dei Paschi di Siena launched a €13.3 billion takeover bid for Italian investment bank Mediobanca.

• OneDigital, backed by Onex, agreed to acquire PWL Capital, a Canadian wealth management firm with $5.5 billion in assets under management.

• Bain Capital is preparing to sell Italmatch, a specialty chemicals company, in a deal that could value the business at €1.5 billion.

• AXA IM Prime and Patria Investments acquired a 15 percent stake in European middle market buyout firm Latour Capital.

• PSG Equity agreed to acquire Corilus, a Belgian software platform for healthcare providers, from Rivean Capital.

• Everstone Capital agreed to acquire a majority stake in Wingify, a Delhi-based SaaS conversion optimization platform, for around $200 million.

• Access Holdings and Wafra have hired William Blair to advise on the possible sale of Spotless Brands, a 205-location car wash operator, which could be worth around $3 billion, per Reuters.

• HongShan agreed to acquire Marshall, a UK-based audio equipment maker, from Altor for $1.1 billion.

• Bain Capital raised its takeover offer for Insignia Financial (ASX: IFL) to A$3.1 billion, matching CC Capital's competing bid.

• Physician's Choice, a supplements and probiotics manufacturer, is exploring a sale that could value the company at over $500 million, per Reuters.

• Sword Health acquired Surgery Hero, a UK-based digital prehabilitation platform.

• Levine Leichtman Capital Partners acquired ALL4, a Philadelphia-based air quality consulting firm, from JMH Capital Partners.

• Esusu agreed to acquire Celeri, a fraud prevention software provider for the residential real estate industry.

• Triton Partners is exploring the sale of Kelvion, a cooling equipment manufacturer.

• Northpointe Bancshares, a Michigan-based bank backed by Castle Creek Capital Partners, filed for an IPO to raise up to $201 million.

• Latticework Capital Management and Edgehill Management invested in Life Science Connect, a Pittsburgh-based life science digital media platform.

• Waste Eliminator, a portfolio company of Allied Industrial Partners, acquired FC Sanitation, a Georgia-based provider of municipal and construction waste collection services.

• Aiga Capital Partners invested in Cenergy Power, an Aliso Viejo-based developer of utility-scale and commercial solar projects.

• Tortuga Growth Partners invested in and merged SmarTek21, a U.S.-based product engineering firm, with Retro Rabbit, a South African financial technology design firm.

• Ridgemont Equity Partners acquired Strata Information Group, a higher education IT managed services provider, from Fort Point Capital.

• BlueMatrix, a portfolio company of Thoma Bravo, acquired Street Context, an email intelligence and analytics provider for capital markets, from 8VC, Portage, Point72 Ventures, and Generation Ventures.

• A GP Günter Papenburg-backed consortium increased its takeover bid for German steelmaker Salzgitter to €1.1 billion, per Bloomberg.

Tech, Vertical SaaS, & Misc. Enterprise

• Databricks, a data intelligence platform, raised $10 billion in Series J funding co-led by Thrive Capital, Andreessen Horowitz, DST Global, GIC, Insight Partners, and WCM Investment Management, with participation from Ontario Teachers' Pension Plan, ICONIQ Growth, MGX, Sands Capital, Wellington Management, QIA, Temasek, Macquarie Capital, and Meta.

• Fundraise Up, an AI-powered fundraising platform for nonprofits, raised $70 million in minority growth investment led by Summit Partners, with participation from Telescope Partners.

• Clay, an AI-powered sales intelligence platform, raised $40 million in Series B expansion funding led by Meritech Capital.

• Baya Systems, a developer of chiplet-ready system IP tech, raised $36 million in Series B funding led by Maverick Silicon, with participation from Synopsys, Matrix Partners, and Intel Capital.

• Basetwo, an optimization platform for pharmaceutical and chemical manufacturing processes, raised $11.5 million in Series A funding led by AVP, with participation from Glasswing Ventures, Deloitte Ventures, Global Brain Ventures, Shimadzu Corporation, Chiyoda Corporation, and Qora71.

• Grepr, an AI-powered observability cost optimization platform, raised $9 million in seed funding led by Andreessen Horowitz, with participation from Boldstart Ventures.

• StormHarvester, a Belfast-based wastewater management software platform, raised £8.4 million in Series A funding led by YFM Equity Partners, with participation from Emerald Technology Ventures.

• Mobly, an event marketing technology platform, raised $4.3 million in seed funding co-led by Jump Capital and Eniac Ventures, with participation from Peterson Ventures, Tenzing.VC, and Peak Ventures.

Fintech

• Method Financial, a financial connectivity API provider, raised $41.5 million in Series B funding led by Emergence Capital, with participation from Avra Capital, Samsung Next, Andreessen Horowitz, Y Combinator, and Ardent Venture Partners.

Consumer & Media

• ShopMy, an influencer marketing platform, raised $77.5 million in Series B funding co-led by Bessemer Venture Partners and Bain Capital Ventures, with participation from Menlo Ventures, Inspired Capital, and AlleyCorp.

Healthcare

• Retro Biosciences, a San Francisco-based biotech developing therapies to extend human lifespan by 10 years, is raising $1 billion in Series A funding.

• Lindus Health, a clinical trial services platform, raised $55 million in Series B funding led by Balderton Capital, with participation from Visionaries Club, Creandum, Firstminute, and Seedcamp.

• Arctic Therapeutics, an Icelandic biotech developing treatments for dementia and skin diseases, raised €26.5 million in Series A funding from EIC Fund, Kaldbakur, Sanos Group, Cerebrum DAO, and The Lurie Family Foundation.

Industrials, Greentech, & Other

• Ati Motors, a developer of industrial robots, raised $20 million in Series B funding co-led by Walden Catalyst Ventures and NGP Capital, with participation from True Ventures, Exfinity Venture Partners, Athera Venture Partners, and Blume Ventures.

• ENAPI, a Berlin-based EV charging platform, raised €7.5 million in seed funding led by Voyager Ventures, with participation from Project A, Seedcamp, and Helloworld VC.

• Spaceium, a developer of in-space refueling stations, raised $6.3 million in seed funding led by Initialized Capital, with participation from Y Combinator, Zeno Ventures, Olive Tree Capital, DTX Ventures, 16Z Scout Fund, Crosscourt Ventures, Giangels, Calm Ventures, Alumni Ventures, Spacedust Ventures, Capitalize Funds, Outfit Ventures, and Mergus Ventures.

• GCM Grosvenor raised $800 million for its inaugural Elevate Fund to seed emerging private equity firms, with CalPERS contributing $500 million as anchor investor.

• Madrona raised $770 million across two funds: $495 million for Fund X targeting early-stage AI and cloud software investments, and $275 million for Acceleration Fund IV focused on Series B and C rounds.

• Incline Equity Partners raised $500 million for its second Ascent Fund.

• SV Angel raised $370 million across its second growth fund ($330 million) and tenth seed fund ($40 million).

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