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| The Weekend Pitch |
| June 29, 2025 |
| The Daily Pitch is powered by PitchBook’s industry-defining research and best-in-class data |
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| (Josie Doan/PitchBook News) |
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Continuation funds, tools widely championed by PE firms to help antsy LPs cash out of their investments, are gaining ground in private credit.
Once seen as a haven from market downturns and volatility, private credit is showing it is not immune to liquidity pressures as realizations from deals slow and returns from older vintages disappoint investors.
I'm Madeline Shi, and this is The Weekend Pitch. You can reach me at madeline.shi@pitchbook.com or on X @Madelin94615831.
It is ideal for a private credit fund—which typically spans seven to eight years—to wind down its holdings by the end of its term and deliver a DPI multiple of at least 1.0x. And yet, direct lending funds—the largest segment of private credit—have generated a median DPI of 0.87x for the 2017 vintage year, 0.71x for 2018 and 0.64x for 2019, according to PitchBook data through Q3 2024.
While these returns outperform most other private market strategies of the same age, including PE and VC, a DPI of less than 1x still means LPs haven't fully recouped their invested capital and may be hesitant to commit to new funds. |
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| (3DSculptor/Getty Images) |
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Space-tech startups are gaining more attention and capital from VCs, with this year’s funding on track to surpass 2024’s dip, though deals remain focused on mature startups. According to PitchBook data, how much capital has the space tech vertical raised so far this year?
A) $3.3 billion
B) $2.4 billion
C) $5.1 billion
D) $6.6 billion
Find your answer at the bottom of The Weekend Pitch! |
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PE adapts amid a fuzzier outlook
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The PE ecosystem entered 2025 with strong momentum that was halted by broad market uncertainty at the beginning of Q2. Investors must now balance these new market headwinds with the desire to reignite that momentum.
Despite the hiccups, IPO activity has gotten off to a healthy start this year, according to our 2025 US Private Equity Outlook: Midyear Update. But the challenge is whether the IPO window will remain open for PE-backed companies. Similarly, the recent market slowdown will likely stall overall exit activity, further limiting distributions to LPs and hampering fundraising in the back half of the year. |
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Surveying ESG and impact investing practices
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| (Jenna O'Malley/PitchBook News) |
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We've launched our 2025 Sustainable Investment Survey and would like to hear what challenges private market ESG and impact investors face. We invite you to share your views on topics including:
- Are concessionary returns really the expectation of impact investors?
- Are your clients advocating for the use of ESG or against, or are you stuck in the middle with both?
- What sustainable investment themes are most financially attractive right now?
All who complete the survey will have the opportunity to enter a prize drawing, and for each completion, PitchBook will make a donation to World Central Kitchen. |
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“The reality is it is small today, and it’s probably not going to grow in a significant fashion anytime soon.”
—Kunal Shah, managing director at iCapital, a marketplace of alternative asset strategies for wealth managers and their clients, speaking to PitchBook’s Alexander Davis on the challenges VC faces courting private wealth. |
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Keep an eye out for these insights and research reports coming out this week:
- Q2 2025 Venture Monitor First Look
- Q2 2025 Global PE First Look
- May 2025 Global Markets Snapshot
- Analyst Note: The Return of Evergreen Funds
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Answer: A.
VCs have poured $3.3 billion into space tech startups this year. But while the funding puts 2025 on pace to beat 2024, deal count remains heavily muted. You can read more about where investors are concentrating their capital within space tech by reading Leah Hodgson’s latest. |
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This edition of The Weekend Pitch was written by Madeline Shi and Jacob Robbins. It was edited by Heather West and Laura Schinagle.
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