Hargreaves Lansdown IPO looks for high price 8 May 2007 At the midpoint, the UK financial adviser's shares would be priced at a slight premium to peers. That implies no conventional IPO discount. That may seem aggressive, but Hargreaves is a sector star. It has scale and is growing faster than rivals. Its chutzpah may be justified.
Highland IPO caters to credit bulls 2 May 2007 Hedge funds, private equity now CDO funds are joining the asset managers queuing to go public in the US. Highland is the latest. But IPOs of European structured credit funds have had mixed results. US investors should be wary too.
TPG may have to sell itself at a discount 1 May 2007 Alternative asset managers are being valued at around 30% of assets under management. On that basis, the US buyout firm is worth $10bn. But TPG isn t floating on the stock market, it's selling a stake to pension funds. These investors should demand a pricecut for illiquidity.
Deutsche Boerse overpays for ISE 30 Apr 2007 The Germans $2.8bn bid for the US options platform values it in line with CBOT, another inplay derivatives market. But the deal s return may not cover its cost. It looks more like a defensive move to keep bidders from Deutsche Boerse s own door. But the deal s return won't cover its cost. It looks more like a defensive move to keep bidders from Deutsche Boerse s own door.
Dollar fall is not over yet 30 Apr 2007 Traders attribute the currency s slide against the euro to a slowing economy. Higher inflation and the big trade deficit don t help. But it could be much worse. The major US trading partners are still willing to buy US assets. That should keep the dollar s fall moderate. The currency hit an alltime low of $1.37 against the euro. Blame the slowing economy, higher inflation and a still big trade deficit. But as long as the major US trading partners are still willing to buy US assets, the pace of decline is likely to stay moderate.
Centaurus plays pilot fish role with Group 4 30 Apr 2007 It looks like the hedge fund has stuck E150m into the security group s equity in the hope of it being auctioned to private equity. Its involvement in the Atos buyout shows Centaurus is keen to partner with private equity on deals. Now it may be prospecting for targets.
Are ratings agencies out of the subprime woods? 25 Apr 2007 Could be. Its revenues from structured finance ratings skyrocketed in a quarter when subprime mortgage deals ground to a halt. But investors are right to remain wary. Subprime defaults aren t the structured finance world s only Achilles heel. Could be. Moody's revenues from structured finance ratings skyrocketed in a quarter when subprime mortgage deals ground to a halt.
Madrid nobbled stock market regulator 25 Apr 2007 That's how it looks if the CNMV's exboss is to be believed. He wanted to punish Enel and Acciona for alleged abuses in stock market law. But he was overruled by political appointees on CNMV's board. If true, this is an outrage.
Japan starts to flex global investment muscles 24 Apr 2007 The government is slowly moving towards a more aggressive approach to its $3.8tn portfolio. The model is Singapore s Temasek. Japan won t easily match Temasek's 18% annual return. Its fund is too big and it is starting too late. But active management is a good idea.
Equity bridge stretches from US to Europe 23 Apr 2007 Banks will provide temporary equity to KKR and Pessina to help make the numbers work on their £12bn agreed bid for Alliance Boots. The bullmarket financing tool is new to Europe. It s great for KKR, which doesn t round up equity partners now. But the banks take risks. The bullmarket financing tool is new to Europe. It s great for KKR, which doesn't need to find equity partners. But the banks take risks.
Private equity exits will also test demand 23 Apr 2007 Underwriters just had their best two quarters since the turn of the century. They raised more than $30bn in IPOs. That sounds like a boon for young, growing companies. But most of the deals were exits for private equity investors and more are coming.
Derivatives market’s big question: who owns what? 20 Apr 2007 Today s top traders were still learning to count when backoffice snafus brought down brokers like Hayden Stone and Loeb Rhoades. Those firms were swamped by unmatched trades when markets turned sharply. Despite progress, today s derivatives shops run a similar risk.
Investors should keep ABN’s feet to the fire 20 Apr 2007 The shares have rallied unusually since hedge fund TCI put pressure on the Dutch bank to break up. But it s too soon for complacency. Investors should back TCI s proposal that ABN should focus on creating shareholder value. That s good insurance if current bid talks fail.
Cerberus snaps up canny subprime deal 20 Apr 2007 The price tag for mortgage lender Option One could fall by half by the time the private equity firm has to hand over a cheque. What s more, Cerberus could slash a heap of costs if it merged the business with another mortgage lender it controls GMAC s ResCap.
Tetragon success gives hedge fund rivals hope 19 Apr 2007 In the wake of Brevan Howard, 3i and Queen s Walk, plans for rival hedge fund permanent capital listings are being pulled or scaled back. But the successful listing of Polygon s "synthetic bank" shows it can be done. It s just very hard work and may not be worth the effort.
Turquoise: Where’s the beef? 18 Apr 2007 The investment bankowned trading system has put a little more flesh on the bones by signing up a US clearing service to handle trades. But is Turquoise real? It still hasn t got a chief executive or a trading platform. Until it starts spending real cash, the jury is out.
Clear Channel investors should capitulate 18 Apr 2007 The Bain/Lee buyout group raised its offer for the radio company to $27bn, or $39 a share. It still doesn t pass the valuation smell test. But given the business risks Clear Channel would need to assume to enhance value on its own, investors would be smart to snatch the cash.
London still lags in hedge-fund business 17 Apr 2007 The City s share in this $1.5tn sector has doubled in four years, but only to 21%. That s half as much as in the New York area. Should the UK government fight to keep up the momentum? Not necessarily. What s good for hedge funds might not be good for the country.
Americans may find London even more expensive 17 Apr 2007 The pound has crossed the $2 line. That s a far higher value for sterling than a comparison of prices would justify. But the US trade deficit will keep the dollar under pressure. Sterling isn t likely to decline until the financial services sector deflates.
Banks well rewarded in $25bn Sallie Mae LBO 16 Apr 2007 The student lender paid some $175m in fees to Wall Street last year. JPMorgan and Bank of America should now have a lock on that business. This could be worth over $800m to the two banks' shareholders in the first year, and it may grow quickly.