May 25, 2023 | GroveStreet, In the News
GroveStreet Managing Partner Frank Angella is quoted in the Wall Street Journal about the rise in healthcare venture fundraising in 2023 saying “LPs understand this is a long-cycle investment thesis and still believe the core drivers are intact.” As recent performance metrics are distorted with inconsistent valuation adjustments, there is more focus among LPs on the long-term promise of advances in biotechnology and digital health, including the application of AI and ML to ever-larger data sets to identify new treatments. Notwithstanding large reserves of dry powder, investments in early-stage startups are down as many GPs are holding out for mid-to-later-stage companies that had raised capital at lofty valuations. LPs should monitor these trends and their implications on valuations. On the ground, one thing is clear – entrepreneurs are having to do more with less, an operating environment that has historically led to strong returns. Read more here (for WSJ subscribers): https://www.wsj.com/articles/venture-fundraising-in-healthcare-rises-as-investment-in-startups-slows-67f3bd7c
May 8, 2023 | In the News
Venture investors are assiduously monitoring the evolution of AI as it appears poised to have transformational implications on tech companies and beyond. Just a few months ago big tech seemed poised to monopolize large language models (LLMs.) The recent release of several open-source LLMs appears to have shifted the market from “bigger is better” to “cheaper / more efficient / more customizable is better.” Our team believes this trend in AI warrants close attention. Read more here: https://bdtechtalks.com/2023/05/08/open-source-llms-moats/
May 4, 2023 | In the News
Managing Partner Catherine Crockett and Vice President Eric Garofano comment on trends in 2022 year-end venture valuations, specifically the emerging divergence in carrying values. Variation in the marks for the same company across GPs renders benchmarking less meaningful and reminds LPs of the importance of close monitoring of business fundamentals of portfolio companies. Read more here: Click here to download this paper in PDF format
Apr 28, 2023 | GroveStreet, In the News
Managing Partner Frank Angella speaks with Pitchbook on evolving trends in GP commitments and key LP considerations when assessing whether managers have ‘skin in the game.’ Investors should ascertain the source and composition of the GP commitments to get a true gauge of alignment. Read more here: https://pitchbook.com/news/articles/gp-commitments-private-equity-fundraising
Apr 21, 2023 | GroveStreet, In the News
Atlas Holdings exits its investment in International Wire Group (“IWG”), a leading designer and manufacturer of highly-engineered copper-based wire products with operations across the US and Europe. Atlas acquired IWG in April 2019 and transformed the business, unleashing strong growth and driving operational excellence. Olympus acquired IWG for $900M and Atlas will continue as a minority investor. GroveStreet first became an Atlas Holdings LP in 2014. Read more about the deal here: https://www.privateequitywire.co.uk/2023/04/21/320302/olympus-pay-900m-wire-maker-iwg
Mar 17, 2023 | In the News, Uncategorized
New Heritage exits its investment in Rhythmlink, the market-leading designer and manufacturer of single-use brain health and neurodiagnostic electrodes. New Heritage first invested in Rhythmlink in February 2019 and sold the Company to Graham Partners after successfully executing a strategic and operational growth plan that sets up Rhythmlink for continued expansion. GroveStreet first become a New Heritage LP in 2014. Read more about the deal here: https://www.newheritagecapital.com/new-heritage-capital-exits-investment-in-portfolio-company-rhythmlink/
