TTCP Quarterly Data Newsletter



TTCP Quarterly Data Newsletter

With this quarterly newsletter, Top Tier Capital Partners (“TTCP”) is seeking to share insights into our data analytics platform. We’ve included; (1) TTCP’s performance benchmarking, (2) valuations on new investments and realizations, (3) a look at new financing rounds, and (4) analysis around valuations in Europe and the U.S. All data is from September 30, 2020, unless stated otherwise. 

-Top Tier Data Team

Portfolio Observations

Upper Quartile Now Approaching 4x TVPI

The graph above shows the performance of TTCP primary investments by vintage year. The number of funds is shown at top of each bar. Data from TTCP commitments as of September 30, 2020.

Goal of 1x DPI Around Year 7

This graph depicts the DPIs of TTCP primary investments with vintage year on the x-axis. The lines represent the DPIs of our median and top quartile funds. As is shown, TTCP funds are generally above the 1x mark by year 8 in our median funds and as early as year 6 in our top quartile funds. Data from TTCP commitments as of September 30, 2020, net of managers’ fees, gross of TTCP’s fees.

 

Industry Observations

Valuations Still Lower in Europe

Upon examining 77 new portfolio companies with known valuations from manager allocations, median early-stage valuations in Europe and Israel remain at about 50% of their U.S. early-stage counterparts. We are hearing anywhere from a 30-50% discount to the U.S. which is in line with anecdotal evidence. The companies are all of comparable quality, but less competition in Europe drives valuations lower. In terms of deal count, 40% were from Europe. However, some of this is skewed (Read more...)