Venture Capital & Private Equity

Stock Market Overview: $SPY & Nasdaq

The S&P 500 ETF ($SPY) and the Nasdaq Composite saw fluctuations as part of broader market activity:

• $SPY (S&P 500 ETF):
  The SPY experienced some volatility over the week but ended the week with a small increase. On March 17, 2025, the SPY opened at $562.79 and closed at $563.98, reflecting a +1.17 (+0.21%) increase on the week. This shows resilience despite broader market uncertainties, with fluctuations between a high of $570.95 and a low of $558.03.

• NASDAQ Composite:
  On March 17, 2025, the Nasdaq Composite closed at 17,808.66, with notable fluctuations throughout the week. The overall trend remained relatively stable despite the mixed performance in tech stocks and broader economic concerns.

Mergers & Acquisitions (M&A) Activity

March 17-23 was a dynamic week for mergers, acquisitions, and partnerships. Several significant deals were announced:

• Global M&A Activity:
  A total of 590 deals were announced globally, totaling $83.95 billion in value. Notably, 25 transactions exceeded $500 million, which collectively accounted for 88% of the total deal value, showcasing the ongoing trend of high-value M&A transactions.

• Media Industry Scrutiny:
  The Federal Communications Commission (FCC) has indicated that it might block major media mergers based on corporate Diversity, Equity, and Inclusion (DEI) policies. This has added a layer of complexity to deals such as Paramount-Skydance, Verizon-Frontier, and U.S. Cellular-T-Mobile US.

• Travel Sector Acquisition:
  American Express Global Business Travel extended its merger agreement with CWT, giving additional time to address legal challenges, including a lawsuit from the U.S. Department of Justice’s Antitrust Division.

Venture Capital Highlights

Venture capital also had a week of growth, with several companies securing funding:

• Perplexity’s Funding Discussions:
  AI-powered search engine startup Perplexity is reportedly in talks to raise $1 billion at an $18 billion valuation. This round of funding highlights the growing investor confidence in AI-driven technologies.

• Mercury’s Successful Raise:
  Mercury, a financial services platform, successfully raised $300 million in funding, achieving a valuation of $3.5 billion. This deal reflects the increasing demand for digital banking services and financial platforms.

• Underdog’s Expansion:
  The fantasy sports and betting app Underdog secured $70 million in Series C funding, pushing its valuation to $1.2 billion. This move aims to expand its market presence and create new growth opportunities in the sports tech sector.

Private Equity Deals and Investment Trends

Private equity also experienced some major shifts, with new acquisitions and investments taking place:

• Bain Capital’s Acquisition of Namirial:
  Bain Capital acquired Namirial, a provider of digital transaction management solutions, for €1.1 billion. This move further strengthens Bain’s portfolio in the growing digital services sector.

• Brigade Capital’s Purchase of Family Dollar:
  Brigade Capital Management purchased Family Dollar from Dollar Tree for $1 billion, marking a significant shift in the retail space.

• Francisco Partners Acquires Quorum Software:
  Francisco Partners, a leading private equity firm, acquired Quorum Software, a provider of energy software. The acquisition aims to enhance Francisco's position in the energy sector and expand its portfolio of digital solutions.

Additional Notable Transactions

• StubHub’s IPO Filing:
  StubHub, the online ticket marketplace, filed for an initial public offering (IPO) to return to the public markets amidst growing competition in the ticketing industry.

• Crusoe Energy’s Sale:
  Crusoe Energy sold its Bitcoin mining business to NYDIG, marking a significant shift in the cryptocurrency mining landscape as the company focuses on its core operations in energy and sustainability.

Looking Ahead: Positive Market Sentiment

Investment bankers are predicting an uptick in deal-making in 2025, spurred by the anticipated interest rate cuts and an improved policy outlook post-federal election. Preliminary data and the current pipeline indicate a positive outlook for M&A, venture capital, and private equity investments.

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SWS