Alternative Investing Report - September 6, 2024

_{*as of 9/5}

As of now, there are no high-profile tech IPOs on the horizon for the remainder of the year, and analysts do not foresee an increase in activity until late next year or possibly even 2026. While there were some notable IPOs in the spring, such as Reddit and Astera Labs, and an uptick in activity in Q2, on the whole 2024 has been a slow year.

➨ TAKEAWAY: A thriving IPO market is important for venture-backed companies, as it represents one of the principal ways for investors to have a successful exit. There is some evidence that IPO activity picks up in post-election years, so there is optimism that 2025 will bring more excitement.

Alternative asset manager Apollo Global Management has preliminary plans to start a secondary trading market for private credit. Other major players have branched out into the secondary market, including JP Morgan Chase, who among other things, recently brokered trades of distressed debt in Pluralsight, a struggling tech company.

➨ TAKEAWAY: Buying and selling direct loans is still somewhat rare, but as more companies decide to enter the market, more liquidity options become possible. While it may not be ideal for borrowers to have their debt change hands and have loan details become public, the increased ability for lenders to get rid of debt they no longer want to hold is a positive development.

In this episode of Smart Humans, Slava Rubin talks with SafeGraph CEO Auren Hoffman about angel investing, venture capital, and how he invests into data businesses.

🏡 Top-rated school districts: Investors, take note - an average home near a public elementary school rated a 9 or 10 by GreatSchools costs 78.6% more than an average home within the same county.

🪙 Ethereum performance: Since switching to a “proof-of-stake” model two years ago, Ethereum has underperformed Bitcoin by 44% and Solana by 53%, as its transaction count has dropped to its lowest relative level since July 2020.

🏀 Michael Jordan card: The GOAT’s 1984 Star rookie card just topped the $1 million mark, and has seen four record sales in the past week. It is now getting more hype than his historically more popular 1986 Fleer card, with its relative rarity a driving factor.

🚀 Medtech VC: While venture investment in medtech companies rose by 3.3% year-over-year in Q2, M&A activity has been limited. However, the successful IPO of Tempus could make some late-stage companies more attractive to investors.

🏡 Detroit’s rebound: The median home sale in the Motor City went from $58,900 in 2009 to $250,000 as of May, as crime rates hit 57-year lows and more major corporations are investing in revitalizing the downtown area.

💲Small business tax deduction: Vice President Harris proposed expanding the tax break for small businesses from $5,000 to $50,000, as she set a goal of receiving a record 25 million new small business applications in her first term if elected.

Monday: 🚀 OpenAI looks for funding, 🏡 Commercial RE Update
Tuesday: 💸 Unrealized gains tax,  🏡 Data center boom
Wednesday: 🔥 Collectibles records, 📉 X plunges in value
Thursday: ⚽ PE & Women’s Sports, 🎨 Sotheby’s struggles

Have a great weekend!