Startups and Private Equity Investors Bet on a Remote Work Future
Since the end of the pandemic, more employers have begun to signal an end to remote work schedules, however a swath of technology startups and their private equity investors are betting that these conditions are here to stay. Silicon Valley investors have taken interest in the trend, with a group of high-profile firms including Sixth Street, Indus Valley Capital and Sequoia Capital leading the charge. Corporate spending on remote-work technology is expected to surpass $352B this year, up from $332B in 2021. More recently, San Mateo, CA-based tech startup Remotebase has experienced a monthly 30% revenue growth, with annual revenue surging by nearly 600%. In addition, remote-work startup Firstbase has raised $50M in a Series B funding round that was led by VC firm Kleiner Perkins.
"Remote work is a durable phenomenon...The demand for global hiring has taken off as many companies shift to a remote-first or hybrid model..."
Ravi Gupta, Sequoia Capital
Private Funding Pulse Check
Goldacre has participated in a $2.4M Seed funding round for Faradai, an AI Powered Energy and Sustainability Intelligence company
Apheris, a deep tech company, has finalized on a $8.7M Seed follow-on round that was led by Ross Mason's Family Office Dig Ventures
Horizons Ventures engaged in a Series A investment with Juvena Therapeutics, a biotechnology research company for chronic and age-related diseases, totaling $41M
Premji Invest took part in a $21M Series B deal with The Sleep Company, Asia's first SmartGrid Mattress company
Midterm Election Polls Reveal Inflation is a Key Factor for Voters
In the polls leading up to Tuesday's midterm elections, would-be voters routinely cited inflation as one of their top concerns. Many Americans look to blame either Democrats or Republicans for rising prices, however data points to inflation being a bi-partisan issue that has been "socially corrosive and politically destabilizing". Regardless of the results of this week's elections, inflation remains a global issue that has been exacerbated by a lack of investment into the energy industry. Both fossil fuel and renewable energy supply chains remain crippled, leading to higher prices across the board. As a result, many politicians have reaped the congressional rewards of higher inflation but may have just as much difficulty in finding a solution as their predecessors had.
"It is understandable that some people are questioning whether or not too much support was provided...In those dark days of the pandemic, the [bank] judged that the bigger policy mistake would have been to do too little, rather than too much."
Philip Lowe, Reserve Bank of Australia
Chimera Capital Launches ETF to Track Abu Dhabi's Largest Stocks
According to a Bloomberg report, investors will now be able to gain macro exposure to Abu Dhabi's largest companies via an ETF. New York, NY-based hedge fund Chimera Capital will be sponsoring the FTSE ADX 15 ETF, tracking the 15 biggest Abu Dhabi-based companies which mirrors the FTSE ADX 15 Index. The index has outperformed nearly all developed and emerging markets since its inception in March, posting a return of 7.6%. The yearly return has been boosted by heightened oil prices and a flurry of new Middle East public listings. The new index will feature a number of prominent companies including IHC, First Abu Dhabi Bank and Alpha Dhabi Holding.
"While the Middle East’s exchange-traded funds industry remains in its infancy, Chimera Capital’s new ETF will bring the total developed by the firm to 10. It has funds passively tracking stocks listed in countries including Saudi Arabia and the U.S."
Farah Elbahrawy, Bloomberg
European Private Equity Platform Targets Private Markets
According to an annual review released by McKinsey, the private capital industry grew to $10 trillion last year and is projected to hit nearly $18 trillion by 2026. Moonfare, a Berlin, Germany-based FinTech startup, has launched a platform exclusively for family offices seeking to target private markets. According to a survey by the company, roughly 60% of family offices have increased their allocations to the private markets. Additionally, over 50% of participants hold a positive outlook for the asset class over the next year. In the same survey, more than 70% of respondents held a negative outlook for public equities and fixed-income. Moonfare has attempted to bridge the gap for family offices, offering a unique path to early liquidity by leveraging an exclusive partnership with Lexington Partners, the largest and longest running operator of PE secondary investments.
"Like all wealth and money managers, family offices have experienced a sudden shift in the investment landscape. They need to adjust to meet the needs of the next generation. Inflation has reached levels many have not experienced before, and 60/40 stock-bond portfolios are down by almost 20%. Our results show that many family offices have been quick to adapt to current macroeconomic conditions, while keeping an eye trained on emerging opportunities..."
LPL Financial Holdings Inc. has announced that the firm has entered into a definitive agreement to acquire Financial Resources Group Investment Services, comprised of 800 advisors and approximately $40B in assets (Yahoo)
Choreo, an RIA backed by Parthenon Capital, has acquired Petaluma, CA-based RIA Enso Wealth Management with $1.8B in AUM (WM)
Marking its 60th deal since 2006, Captrust has announced the addition of Danda Trouvé Investment Management, operating out of Prairie Village, KS with $125M in assets (Cision)
Written by:
Andrew Popp | Data Research Associate
FINTRX delivers an industry-leading suite of private wealth data and research solutions to the alternative investment space and private capital markets. Engineered to help clients identify and access family office and RIA capital intuitively, the FINTRX platform ensures accurate and updated data and research on 850,000+ private wealth records globally. To subscribe to our newsletter and see previous versions click below.
