|
|
   |
| The Daily Pitch |
| PE, VC and M&A |
| Your edge on global private capital markets |
|
|
|
|
|
| |
| Fueled by private capital, Volo Sports wants to take over your social life |
|
 |
| (Courtesy of West Wilson) |
|
|
By Jessica Hamlin, Senior Funds Columnist
Private equity's latest dating play has nothing to do with the apps.
In November 2024, PE firm Bluestone Equity Partners made a $21 million growth investment to expand Volo Sports, an operator of a network of adult sports leagues, through acquisitions. This capital injection drove Volo's purchase of the country's second-largest social sports company, ZogSports.
Over the past decade and a half, Volo has grown from a 16-person bocce ball league in Baltimore's Federal Hill neighborhood to a sprawling, cross-country collection of youth leagues and co-ed sports teams, largely targeting young professionals in their 20s and 30s in urban areas.
Bluestone's investment is one example of private capital looking to meet the demand for in-person events. Rates of loneliness have surged in the US, leading the surgeon general in 2023 to declare a nationwide loneliness epidemic.
In June 2025, 21% of respondents to a Gallup poll described themselves as lonely, the highest level since March 2021, with rates particularly high among young adults ages 18 to 29.
Investors have poured money into startups looking to curb this wave. This autumn, Clyx, a company that promises to "help you find your people offline," raised $14 million from VCs, and meditation app developer Talkspace acquired Wisdo Health, a VC-backed social health and peer support app.
Since 2021, Volo has shown top-line growth of 250% and quadrupled its player registrations since 2021, it said. So far in 2025, it has received more than 750,000 player registrations across more than 4,500 leagues. |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
The growth of the AI economy is a paradigm shift from previous generations of startups. Stripe’s Indexing the AI economy report reveals that AI companies are hitting growth milestones faster than ever—all while rewriting the rules on monetization and customer engagement.
Three key trends found in this report:
- AI companies hit revenue milestones in record time, reaching $1 million ARR 4 months faster than past waves of startups.
- Many AI companies are going global from Day 1, selling in twice as many countries early on.
- AI companies are accelerating growth and adoption with new monetization strategies.
This isn’t just about speed. The most successful AI companies are building valuable new products that their customers love, laying the foundation for tomorrow’s economy.
Read the report |
|
|
|
|
|
| |
|
|
• Qatar's partnership with Orix shows Tokyo's governance reforms are working, as PE dealmaking takes off in Japan. Find out more
• Crypto specialist Grayscale Investments has filed to go public, amid a banner year for crypto IPOs. Read more
• Just out: Our Q3 valuations data for public companies in the medtech sector. Get our analysts' report today |
|
|
|
|
|
| |
| Distributions in mirror are closer than they appear |
|
By Nathan Schwartz, Senior Quantitative Research Analyst
While still far below historical norms, US buyout distribution yields have been steadily improving over the past two years. But it is not exits driving that recovery. Instead, the increase in capital returned to LPs reflects a reliance on liquidity management tools.
When considering the pace of recent exits, the implied distribution yield would be markedly lower than what is reported. The exit-implied distribution yield stands at a dismal 11.8%, but estimated distributions yields for Q3 are 35% higher at 16%, according to our Q4 2025 Quantitative Perspectives: Balancing Act report. |
|
This gap suggests that GPs are keeping distributions afloat through continuation vehicles, net asset value loans and dividend recapitalizations.
Dividend recaps have been a favored lever in the past couple of years. These transactions are common in low-rate environments, when borrowing costs are minimal. Yet since 2024, we have seen record levels of dividend recaps despite the high all-in yield environment.
There are early signs of exit-driven liquidity improvements, however. US PE dealmaking and exit activity have picked up meaningfully in 2025, and the market is working through the backlog of unrealized exits. If this momentum holds, the buyout liquidity picture could continue to brighten in the coming quarters.
A healthier exit environment would not only bolster distributions but could also reignite fundraising. LPs that have not received distributions on time or in full may be less inclined to redeploy capital into new buyout vehicles. A sustained recovery in exits would help recycle cash back to LPs, potentially easing fundraising headwinds and getting the PE capital flywheel back on track.
Until then, liquidity management tools will remain essential in sustaining buyout distributions and bridging the gap until exit markets fully recover. |
|
|
|
|
|
|
|
|
|
|
| |
|
|
Smart reads that caught our eye.
• Nvidia isn't putting all its eggs in one basket. Learn about why the GPU giant keeps backing startups that are competing with one another. [The Information]
• Why does it feel like Google is losing the AI race? Demis Hassabis, its top AI executive and a Nobel prize winner, is focused on the long term, big picture impact of AI, not just money. [Reuters]
• AI could leave companies backstepping on zero carbon promises. Sustainability executives at some of the world's largest companies are now facing a major issue as data center energy needs continue to grow. [Bloomberg] |
|
|
|
|
|
| |
|
| | | |
