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| The Daily Pitch |
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| Your edge on global private capital markets |
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| Good morning. In today's Daily Pitch, we look at why US LPs have their sights set on Europe, and speak with a New York state senator working to regulate AI. And in case you missed it, our latest PitchBook Benchmarks report has data through Q1 2025, with preliminary returns through Q2. |
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| Fresh US capital offers lifeline for European GPs |
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| (Drew Sanders/PitchBook News) |
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By Emily Lai, Private Equity Reporter
As policy uncertainty and protectionist trade measures prompt more American LPs to diversify and invest abroad, interest in Europe is growing—but the continent’s managers will need to adapt quickly.
A recent survey by placement agent Campbell Lutyens found that 24% of US LPs now plan to increase their PE exposure in Europe this year, while 12% intend to reduce exposure in the US.
The survey’s findings were underscored by Jim Pittman, the global head of PE at Canadian asset manager British Columbia Investment Management Corporation, during the IPEM industry conference in Paris last month. “LPs and GPs are pointed a bit more to Europe than to the US, given the uncertainty around geopolitical situations and tariffs, but it is not easy to repoint to Europe quickly,” he said.
Although the change is expected to be gradual, it will likely have a significant impact on Europe given the size of the US market.
PitchBook’s Q3 2025 European PE Breakdown showed that fundraising in Europe slowed considerably this year because the subdued exit market has restricted distributions to LPs.
As a result, LPs are consolidating their allocations with a narrower set of established managers. So far this year, 40% of new fund closes have come from firms on their fourth to sixth fund.
“The bigger GPs are still doing fairly well on their fundraising. The mid-market firms looking for fundraising will find it much more difficult, or much more episodic, and it really does depend on their key LPs,” Pittman added. |
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• Just out: Our Q3 valuations data for public companies in the enterprise SaaS sector. Get our analysts' report today
• Our recent Allocator Solutions report tackles the question of how important manager selection is in private markets, using a portfolio simulation to estimate performance. Access the expert analysis |
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| Q&A: Co-author of NY's AI safety bill tells VCs to 'talk to us' |
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| New York Capitol building (Michael M. Santiago/Getty Images) |
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By Jacob Robbins, Technology Reporter
New York state Sen. Andrew Gounardes co-authored the Responsible AI Safety and Education Act, and he has one takeaway from getting it passed in June: VCs and the tech community are not approaching AI regulation honestly.
So far, only California has enacted an AI safety bill into law, but New York could be next if Gov. Kathy Hochul signs the bill, known as the RAISE Act. And more states could soon follow as a ban on state regulation ultimately didn't make it into President Donald Trump's "One Big Beautiful Bill" over the summer.
Gounardes sat down with PitchBook for a wide-ranging conversation about regulating AI.
The opposition's argument is that it’s too early to regulate AI, and that they would rather leave it to the federal government as opposed to having a patchwork of laws. What’s your response?
I want you to imagine we have data suggesting that wearing a seat belt or seat harness in a car could dramatically save your life should you get into a crash, and that data is both coming from within the auto industry and from outside experts. And then imagine Detroit saying "if you force us to put a seat belt in a car you are going to decimate the American automobile industry."
Do you feel like the arguments coming from the VC and tech community are in good faith?
Once they saw us gaining traction and momentum they started to throw anything against the wall to stop, using some of the most spurious arguments you can easily see right through.
It just became clear to us that this was not a fight that was being fought strictly on the substantive merits of what is good or bad policy.
There might be a perception that you’re 100% anti-AI. Are there some things you think AI will be good for? Are you actively against AI?
I am not a Luddite. And I am not one of these technology doomsayers, the last parts of our conversation notwithstanding. I actually believe there is incredible promise and potential from the smart development of AI. |
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Smart reads that caught our eye.
• The US Army is looking for PE investments. As the Trump administration pushes further to establish a relationship between the government and the private capital industry, the US Army held a forum with some of PE's biggest names to propose funding projects such as data centers and rare earth mineral processing. [Financial Times]
• Are new visa restrictions having an impact on US business schools? Applications for MBA programs in the US declined in 2025, while international applications for programs across East Asia, India and Europe all rose. [The Wall Street Journal]
• Bitcoin holders are legitimizing their wealth through mainstream financial institutions. Asset managers are now taking bitcoin via ETFs in exchange for shares in their funds, with BlackRock having already completed about $3 billion worth of these transactions. [Bloomberg] |
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| Since yesterday, the PitchBook Platform added: |
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318
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589
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185
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26
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| The Daily Benchmark: 2019 Vintage Global Secondaries Funds |
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