Newsletter Edition 51
Dec 19, 2024
4 min read
Databricks Nears $9.5 Billion Funding Round, Poised for $60 Billion Valuation
San Francisco-based data analytics and artificial intelligence company Databricks is closing in on a historic $9.5 billion venture capital funding round, according to Reuters. Led by Thrive Capital and Andreessen Horowitz, the oversubscribed round is nearly double its original target and expected to finalize this week. The funding would value Databricks at over $60 billion, with shares priced at $92.50.
Other key investors include Insight Partners and Singapore’s sovereign wealth fund GIC. Alongside the equity raise, Databricks is negotiating $4.5 billion in debt financing, including a $2.5 billion term loan from direct lenders.
This funding round follows Databricks’ September valuation of $43 billion. The 11-year-old firm, which projects $3.8 billion in revenue for the next fiscal year, plans to allocate a portion of the funds to buy back expiring restricted stock units (RSUs) from early employees and cover associated tax costs—a strategy previously used by Stripe during its $6.5 billion raise at a $50 billion valuation.
Investors in the round will receive preferred shares, though Databricks and its investors have declined to comment on the ongoing funding.
Founded in 2013, Databricks offers a cloud-based platform enabling enterprises to build and manage data and AI applications. The firm has capitalized on the surge in AI adoption, providing tools to help businesses deploy AI models using their existing data. This latest raise cements Databricks’ status as a leader in the rapidly expanding AI and data analytics sectors.
Carlyle Raises $7.1 Billion for Third Credit Opportunities Fund
Global investment firm Carlyle has closed its third Carlyle Credit Opportunities Fund (CCOF III) with $7.1 billion in investable capital, making it the largest credit fund in the firm’s history. The fund, 30% larger than its predecessor, brings Carlyle’s total capital for its opportunistic credit strategy to approximately $17 billion.
CCOF III includes $5.7 billion in commitments from a diverse group of global investors and leverage. To date, the fund has invested or committed $2.4 billion, representing 33% of its capital, across 25 deals in North America, Europe, and Asia-Pacific. The strategy focuses on providing tailored financing solutions to family- and founder-owned businesses, sponsor-backed firms, and companies in special situations.
“Private credit continues to play a vital role in the global capital markets, and we see tremendous opportunity to put capital to work in this asset class,” said Mark Jenkins, Carlyle’s Head of Global Credit.
Since 2017, Carlyle’s Credit Opportunities strategy has deployed $22 billion across sectors such as sports, media and entertainment, residential real estate, software and technology, and financial services. With the success of CCOF III, Carlyle is well-positioned to capitalize on the growing demand for private credit solutions globally.
https://www.privateequitywire.co.uk/carlyle-raises-over-7bn-for-third-credit-opportunities-fund/
Warburg Pincus Raises $2.2 Billion for Inaugural Multi-Asset Continuation Fund
Warburg Pincus has secured over $2.2 billion in commitments for the first close of its inaugural multi-asset continuation fund. The commitments come from prominent investors, including HarbourVest Partners, Ardian, and the Canada Pension Plan Investment Board (CPP Investments), according to a report by Alternatives Watch.
This transaction highlights HarbourVest’s growing influence in the secondary market, building on its active participation in high-profile deals. In October, HarbourVest led Insight Partners’ third continuation fund, which raised $1.5 billion in commitments. Earlier this year, the firm finalized its $15.1 billion Dover Street XI private equity secondaries fund, supplemented by $3.4 billion for its Secondary Overflow Fund V, which co-invests in select secondary transactions alongside Dover XI.
Warburg Pincus’s continuation fund offers flexibility for existing limited partners, allowing them to choose between immediate liquidity by selling their stakes or maintaining exposure by rolling their interests into the new fund. This structure aligns with the growing trend of using continuation vehicles to extend the lifecycle of high-performing assets while providing liquidity options to investors.
The first close of the multi-asset continuation fund underscores Warburg Pincus’s innovative approach to portfolio management and its ability to attract significant institutional backing, marking another milestone in the evolution of private equity secondaries.