CVC’s Darwinian pay policy puts rivals on the spot 26 Apr 2024 The buyout shop, which manages $200 bln, allocates 40% of fund profits to staff on a deal-by-deal basis, rather than pooling the spoils. Rivals say it hurts teamwork, but CVC’s returns suggest it works. If the newly public firm keeps out-raising peers, others may follow suit.
Cruise-ship IPO bets the rich will always float 23 Apr 2024 Viking is seeking an $11 bln valuation in its US listing — a premium price relative to the larger Carnival and Royal Caribbean. As ballast, it offers a focus on high-end customers and less debt than peers. Investors will be reliant on the whims of the few, in more ways than one.
CVC insiders’ delayed payday is still pretty sweet 22 Apr 2024 The soon-to-list buyout shop will bar employees from selling stakes for three years, and then only let them do so slowly. It helps get IPO investors on board, and suits bosses too. By the time they cash out, CVC should be worth a lot more than its 13 to 15 bln euro float price.
Walmart-backed IPO makes brick-and-mortar AI pitch 17 Apr 2024 Ibotta is chasing a $2.6 bln public valuation for one of marketing’s oldest tricks: rebates on in-store purchases. Its data-gathering is simple – customers scan receipts – yet solid and profitable. But efforts to cover the company in a high-tech sheen look like a stretch.
Microsoft-backed IPO breaks rule of 40 at bad time 16 Apr 2024 Cybersecurity firm Rubrik is going public despite failing the sector’s metric to judge success. Sure, the company backed by the $3 trln giant is starting to rely on stable subscriptions. But it’s burning cash. Based on others that flout the rule, a low valuation is in store.
CVC may leave some money on the table – for once 15 Apr 2024 Valued in line with private-market peers EQT and Blackstone, the group could be worth 20 bln euros. Yet its IPO is raising little new money, and selling shareholders will keep big stakes. That gives CVC a reason to play it safe, unlike when it’s selling portfolio companies.
Tech FOMO prices at a disturbingly high level 9 Apr 2024 Destiny Tech100, a newly listed fund with only $53 mln of stakes in private firms such as SpaceX and OpenAI, is now worth about $700 mln. Investors are clearly overeager to get in earlier on hot trends. A multiple of 13 times net asset value resets the Silicon Valley hype bar.
Rabanne-owner IPO offers a scent of prestige 9 Apr 2024 Perfumes-to-skincare conglomerate Puig wants to list in Madrid. At a discount to beauty giants L’Oréal and Estée Lauder, the Spanish group may be worth $18 bln. European markets remain fragile, but premium fragrances’ rising appeal may turn the listing into a rare bright spot.
A Dr Martens sale may cause multiple blisters 4 Apr 2024 An investor thinks the struggling $1 bln UK bootmaker could sell itself. Low valuations may woo buyers, but a bid is unlikely to make up for a 75% share slide since the group’s IPO. A rushed exit may also dampen top investor Permira’s effort to list sneaker brand Golden Goose.
GameStop saga ends. Winner: capital markets 3 Apr 2024 The game retailer cashed in on meme stock mania, revamped management, but failed to reinvent itself. Reddit-fueled investors, eager to fight shortsellers, may just lose their shirts. It would be a costly lesson that, some broken pockets aside, the market was working all along.
Shein’s fast fashion comes with fast-finance risks 28 Mar 2024 Influencers and US shoppers love the online retailer, but the one product that’s not yet for sale is the company’s shares. If all goes very right, a $200 bln valuation in a mooted IPO isn’t unthinkable. Yet Shein’s business model may shift as quickly as its cut-price clothing.
Europe’s IPO window opens slowly for buyout barons 28 Mar 2024 CVC floated beauty retailer Douglas, whose shares fell, while EQT received a warmer welcome for skincare group Galderma. In this Viewsroom podcast, Breakingviews columnists explain how to interpret the mixed message for private equity groups sitting on $3 trln of unsold assets.
Tata’s forced IPO will only bring problems 28 Mar 2024 A central bank decision requires the $194 bln holding company of the Indian cars-to-tech conglomerate to list. It could lump Tata Sons with a huge discount and also spotlight the special tax treatment the group’s ultimate owners enjoy. That could force an even bigger upheaval.
Commodity trading giants get in cotton M&A spin 26 Mar 2024 Singapore's Olam has bested Louis Dreyfus' offer for one of Australia's largest processors of the fibre. The two suitors have battled Down Under in the past, and Olam looks to have the edge for a second win. But the volatility of earnings in this small deal warrants caution.
European private equity IPO door is only half open 22 Mar 2024 Buyout firms tested the market with cautious pricing for two beauty companies’ listings. Although Galderma performed, Douglas’s debt pile spooked investors. For sellers sitting on $3 trln of unsold assets the message is clear: discounts work, but only for healthy businesses.
Reddit looks awkward in its new business suit 21 Mar 2024 Going public at a hefty $6.4 bln shows investors think the social media site can turn a profit. But Reddit still looks a poor fit for public markets given its reliance on moderators who manage its forums for free. Their interests are at odds with advertisers and shareholders.
AI hype will be hard to puncture 20 Mar 2024 Short-seller Hindenburg is attacking $80 bln Equinix, whose data-center investments have been pumped up by artificial-intelligence exuberance. US regulators are also starting to target some of the hot air. Even so, the valuation bubble is more likely to deflate slowly than pop.
Cars are moving into the fast lane for Tata 15 Mar 2024 Autos were once group Chair Natarajan Chandrasekaran’s top headache. Now he’s splitting $43 bln Tata Motors into commercial and passenger vehicles. That's doable because luxury unit Jaguar Land Rover no longer burns cash. The rejig paves the way for more dealmaking too.
Buyout shops take risky exit to bypass deal crash 14 Mar 2024 A lack of M&A and IPOs has left private equity portfolios with $3 trln of companies, many past their sell-by dates. As a result, firms are increasingly cashing out backers while keeping assets. There are guardrails on the structures now, but they could easily spin out of control.
ByteDance’s TikTok woes are never-ending sideshow 14 Mar 2024 US lawmakers edged closer to banning the short-video app. Co-founder and CEO Liang Rubo has grappled with the epic four-year-long fight while rejigging the business at home to focus on e-commerce. ByteDance remains in IPO limbo but its fortunes have not fallen too far.