Narrow exits will fatten fattest buyout fat cats 10 Jan 2024 Some private equity shops may be forced to start accepting discounted valuations on a record $2.8 trln of unsold investments. Others like KKR and EQT are best positioned to hold out. This disparity should help 25 firms, with 22% of the industry’s firepower, pad their dominance.
European payments LBO would be rewarding but messy 18 Oct 2023 CVC may bid for Milan-listed Nexi, Bloomberg reported. A $16 bln buyout could earn handsome returns, even if the group just performs as analysts expect. But Nexi’s private-equity shareholders like Hellman & Friedman know this, forcing buyers to either cough up or bring them in.
Apollo may get noodle LBO thrown back in its face 12 Oct 2023 The buyout group could gobble up the UK-listed owner of the Wagamama chain for $862 mln. It looks like a good deal for the acquirer. Apollo’s decision to drop its John Wood takeover this year shows it’s no soft touch, but investors can still hold out for a better dish.
Bain’s Chindata buyout saga verges on absurd 13 Jul 2023 The US investment firm last month offered $2.9 bln for the Chinese data centre operator it already controls after potential rival bids yielded nothing. Now a state-backed group has bested Bain’s offer by 15%, yet is being ignored. It’s an odd way to get the best deal all round.
Private equity gears up for a deal fest Down Under 11 Jul 2023 Blackstone, EQT, CVC and peers are shifting resources to Australia, partly due to geopolitical tension. The country’s stumbling economy will also leave property, consumer and other firms ripe for buyouts. That means M&A battles – once inflation, rates and debt markets settle.
Buyout barons make bloody return in Europe 3 May 2023 Silver Lake and Bain are facing off to buy German company Software AG amid a revival in takeovers. Cheap stock prices mean deals can work despite debt constraints. But a limited pool of targets will make it hard to deploy $2 trln of dry powder, and stay disciplined.
Telecom Italia breakup can please all its masters 15 Feb 2023 The sickly telco needs to cut its 25.4 bln euro debt pile. Selling its fixed-line grid to KKR offers a fix, provided the government gets a stake in the strategic asset. For major investor Vivendi, the upside would be a chance to sell Telecom Italia’s revamped service business.
KKR can limit the pain of Elliott’s telco blitz 13 Feb 2023 The activist is disrupting the buyout group’s bid for German phone masts firm Vantage Towers. With a 5.6% stake, Paul Singer’s fund is expected to block the delisting until it gets a big payout. But unlike previous Elliott campaigns, KKR has various ways to insulate itself.
Nordic bidding war is tricky model for LBO revival 25 Jan 2023 Bain Capital and Triton are locked in a battle for $1.2 bln Finnish maintenance firm Caverion. High debt costs make buyouts challenging, but the target has a cheap valuation, a simple turnaround story and green appeal. That combination may not be easy to replicate.
EQT embodies private markets’ two big problems 18 Jan 2023 Shares in the $28 bln buyout group fell 6% after CEO Christian Sinding flagged a fundraising slowdown. Another issue is that, like its rivals, the Swedish firm spent big when asset prices were high. Its relatively steady fund valuations may not yet reflect all the future pain.
Buyout investors are heading for a cash crunch 23 Aug 2022 The $2 trln industry’s backers, such as pension funds, often rely on past profits to meet calls for fresh capital from KKR and others. But that doesn’t work in a slump. Since alternative cash-raising methods are costly, private equity’s appeal as an asset class may take a hit.
KKR-led hospital deal calls for surgical precision 5 Jul 2022 To make a $14 bln buyout of Ramsay Health Care work may involve amputating parts in Europe and a tricky sale and leaseback operation. And since due diligence started back in April, higher interest rates and a new Australian government further complicate the delicate procedure.
Capital Calls: U.S. jobs, Didi probe, Pharma LBO 2 Jul 2021 Concise views on global finance: The U.S. added 850,000 jobs in June but the recovery isn't happening everywhere. Meanwhile, Didi is hit with an investigation by a Chinese regulator days after its U.S. listing, and a pharma buyout by EQT and Goldman is a game of hot potato.
China’s lengthening lowball list lures lawyers 1 Dec 2020 A bid to take $4.8 bln China Biologic private is the latest underpriced offer for a U.S.-listed Chinese firm. Cayman Islands’ dockets are filling up with shareholder complaints about similar deals. Miring transactions in lawsuits may force acquirers to pay more up front.
EQT finds LBO immunity formula for virus era 7 Apr 2020 Air Liquide is in talks to sell its disinfectant unit to the Swedish private equity firm for around 900 mln euros. Even with rising medical demand, the purchase looks brave given its rich valuation. Still, the risk of future epidemics could see the buyout group double its money.
Golden Goose may have one more egg to give 14 Feb 2020 Carlyle is selling the Italian fashion brand to Permira for 1.3 bln euros, three times what it paid in 2017. It’ll be the fourth buyout shop to back it. Fast growth explains the appeal and a luxury valuation of 13 times EBITDA. Moncler buoys the case for a deal to pay off again.
German lighting mess has glimmer at end of tunnel 7 Oct 2019 AMS’s failed bid for Osram leaves the Munich-based group looking friendless and saddled with a blocking stake that might deter private equity. Yet Bain and Advent could afford to offer more without destroying their returns. If they do, it may suit seller, unions and even AMS.
KKR finds risky media bargain with Axel Springer 12 Jun 2019 The private equity group is partnering with the German company’s founding family to buy out minority investors for 3 bln euros. It gets a racy digital listings business at the price of a sluggish newspaper publisher. Yet the lack of control limits KKR’s options if growth slows.
German $6 bln flop shows private equity’s dilemma 14 May 2019 Hellman & Friedman and Blackstone axed a takeover of listings group Scout24, after too few investors accepted. Rising valuations for peers like Auto Trader made the offer look stingy. Buyout groups want assets that promise growth, but frothy markets mean they’d have to overpay.
KKR’s Taipei deal hints at Asian daring 23 Jul 2018 The buyout firm led by Henry Kravis is leading a $1.6 bln takeover of chemicals maker LCY. Taiwan has been a tough market for private equity, including KKR. Slow growth and tensions with China add concerns. As dry powder in the region grows, the risk calculus may be changing.