Alt Investments
VC Investments Defy Rising Public, Private Market Volatility - KPMG
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The VC sector has drawn family office and other wealth management money in recent years.
Venture capital investment in the US totaled $28.2 billon across
the US in the third quarter of this year, spanning 2,265 deals,
shrugging off uncertainty in public and private markets,
according to a quarterly report by KPMG
Enterprise.
The VC sector has drawn family office and other wealth management
money in recent years because its illiquidity premium is
sufficiently attractive so far for investors concerned about low
yields in more established markets. Preqin, a research firm that
tracks VC and other alternative investments, recently noted that
VC assets under management rose to $856 billion as of December
2018, a record.
In its report, KPMG Enterprise said the quarter's top deal in the
US and globally was the $785 million raised by e-cigarette
manufacturer Juul Labs. While there were no billion-dollar deals
this quarter, the US continued to see “numerous deals” between
$100 million and $500 million, the report said. These deals
covered sectors including financial services, mobility,
automotive, healthcare and insurance.
"VC investment in the US continues to lead the way globally and
is likely driving a lot of the investments in other regions,
including Europe and Latin America," Conor Moore, national
private markets group leader in the US, said. "The VC firms and
corporates getting squeezed out in the US are now embracing
opportunities to invest in other regions."
At $7.7 billion invested so far this year, the total sum of VC
invested in first-time financings for the US is likely to result
in one of the most robust years on record, despite a slowdown in
deal volume.