Samsung may finally listen to pushy shareholders 24 Jan 2024 Palliser and other outsiders want the South Korean conglomerate’s defacto holding firm, Samsung C&T, to boost returns. It’s underperformed for years but if a court ruling goes in the favour of group leader Jay Y Lee next month, he’ll have a new reason to listen to agitators.
Davos holds up funhouse mirror to shifting world 22 Jan 2024 Delegates from the Middle East and India made a splash at last week’s World Economic Forum, reflecting their wealth and investment appeal. Europeans and Chinese were subdued. Big Tech looks the winner from AI. This year’s Swiss conflab arguably exaggerated more than it distorted.
Jack Bogle’s ghost haunts Vanguard’s crypto plans 19 Jan 2024 The asset manager’s rival BlackRock is plunging into digital currency with a bitcoin ETF that brought in over $1 bln in a week. That strategy, divergent from Vanguard, highlights the desperation to differentiate. Bogle’s former firm’s decision to shun crypto may leave it behind.
Private credit gets the slice-and-dice treatment 19 Jan 2024 Managers like Blackstone and Blue Owl are selling ‘collateralised loan obligations’ backed by privately issued debt. Such alchemy, common in traditional lending, helps lenders raise cheap funds. It also adds complexity, and makes private credit more dependent on flighty markets.
Ola IPO will drive Indian EVs back to the future 19 Jan 2024 The SoftBank-backed e-scooter maker is revving up to go public at a mooted $8 bln valuation. The deal, plus a burgeoning home market, marks a moment reminiscent of an earlier mania for Chinese upstarts like Nio. Investors hoping for a similar ride, though, may be disappointed.
General Atlantic buys infrastructure for its IPO 16 Jan 2024 The US buyout firm is taking control of UK specialist asset manager Actis. The deal gives it $12.5 bln of assets in hot markets and geographies. Boss Bill Ford is trying to build a more diversified firm ahead of a possible float. His pitch to investors just got stronger.
Bain is keeping the private in private equity 16 Jan 2024 Rivals like Apollo and KKR went public more than a decade ago, over time de-emphasizing their buyout roots, especially amid a recent deal drought. In this Exchange podcast John Connaughton of Bain Capital explains why his firm isn’t following them, and how the market is healing.
CVC’s German perfume float may fail the smell test 15 Jan 2024 The buyout fund wants to list beauty retailer Douglas in Frankfurt, valuing its equity at roughly 7 bln euros. It’s time for CVC to offload an asset it’s held since 2015. But high debt and slower online sales than peers are reasons for investors to turn up their noses.
BlackRock deal buys Larry Fink optionality on exit 12 Jan 2024 The asset manager’s $13 bln purchase of infrastructure firm GIP is a smart bet on private markets. Fink’s relationships give the tie-up an edge and history with GIP’s founder smooths integration. It’s transformational enough that Fink could retire, if only he were less ambitious.
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.
Peer pressure is new activist tool for Japan Inc 10 Jan 2024 The Tokyo Stock Exchange is set to name all the companies which responded to its push for better capital efficiency and returns. The bourse is betting transparency will shame the rest into action. Success could pull investors and M&A bankers alike to the $6 trln market.
Blackstone partly cracks new private equity code 9 Jan 2024 Buyouts have been a drag on big asset managers whose investors now prize steadier income. The firm led by Steve Schwarzman wants to square the circle by raising capital with no expiry date from rich individuals. A risky outcome is that it perversely incentivizes a spending spree.
Harvard ouster is a win for activists, not activism 5 Jan 2024 Corporate cage rattler Bill Ackman won his bid to oust President Claudine Gay from the elite US university. The process was different from activism at companies, where boards rather than CEOs are the natural target. Corporate change is laborious; investors should be glad of it.
Kim Kardashian will be kicked off Instagram 22 Dec 2023 The influencer is worth $1.7 bln, which could climb with her shapewear brand’s IPO. That’s value that doesn’t flow to the owners of platforms sustaining content creators’ fame, like Elon Musk or Mark Zuckerberg. The best way for them to pull some back: suspend her privileges.
Wintershall saga reaches logical $11 bln endgame 21 Dec 2023 After flirting with a listing and rival suitors, the BASF-owned German oil group is to merge with $3 bln Harbour Energy. The UK-listed buyer gets a relatively cheap way to bulk up in gas assets. The sellers get to stick around for the ride, courtesy of some funky financing.
US defense minnows will storm the barricades 20 Dec 2023 Even as conflict in Ukraine leads American arms makers to boost production, the political mood is turning against giants like Lockheed Martin. With half the $415 bln handed to American defense contractors not receiving a competitive bid, newcomers will make battlefield gains.
Chinese equities are ready for long march upwards 14 Dec 2023 Share prices and valuations in the world’s second-largest economy are near 2016 lows. Foreigners have retreated but any recovery will depend on Beijing and domestic buyers. Patient investors willing to stomach geopolitical tensions and other risks could earn big rewards.
General Atlantic laces IPO shoes with hook nearby 12 Dec 2023 A tech stock recovery coupled with consumer IPO successes bode well for a listing of the growth equity investor. But valuations could recoil as fast as they rose. While General Atlantic knows the value of pouncing quickly, TPG’s path to an IPO shows waiting has merit, too.
Muddy Waters sticks a pin in Blackstone’s rump 8 Dec 2023 The short-seller says a mortgage fund run by Steve Schwarzman’s firm is doomed by struggling office properties. The reality may be more nuanced. But Muddy Waters is challenging a fundamental Blackstone selling-point: its ability to outrun the market, in real estate or elsewhere.
Capital Calls: KKR’s green bargain 7 Dec 2023 Concise views on global finance: The buyout group is offering 1.4 bln pounds for battery and smart metering company SMS. It’s a cheap price. Yet the high rates that have pummelled the stock may soon ease.