Energy efficiency starts to attract the big bucks 25 Apr 2022 Brookfield’s potential $4 bln pitch for UK boiler repair group HomeServe sounds like small fry for a group with $690 bln of funds. But decarbonising buildings is a key growth area in the energy transition. Institutional investors are manoeuvring to ensure they don’t miss out.
EU greenwashing fix gets off to dodgy start 14 Apr 2022 Some 4 trln euros of funds are now deemed sustainable under European disclosure rules governing ESG investing. Yet the EU yardstick for such a definition is vaguer than for some private sector players. At the very least this is confusing; at most it actually aids greenwashing.
Money-manager deal gets asset allocation all wrong 6 Apr 2022 Perpetual’s $1.8 bln bid for J.O. Hambro owner Pendal would create an Australian giant with $180 bln under management. A 39% premium on a depressed valuation paid for using 75% in stock is hardly compelling, though. It’s a wise investment that can be structured better.
Capital Calls: U.S. truck drivers go missing 4 Apr 2022 Concise views on global finance: Bonuses and concessions from Washington aren't enough to fill the industry's empty cabs.
Capital Calls: Chip supply chain bites own tail 31 Mar 2022 Concise views on global finance: Semiconductor factories rely on machines made by ASM International. Paradoxically, the firm is having trouble finding the chips it needs. Untangling the mess will take a while.
AIG life IPO marks 5,000 days of post-crisis slog 29 Mar 2022 That’s how long it took to fix the global insurer after its 2008 bailout. It has now reached a point where, with a little help from Blackstone and even BlackRock, it can float its life and retirement business, probably worth at least $22 bln. It’s a key moment in AIG’s reboot.
National Grid gas sale has green edge on Macquarie 28 Mar 2022 The $54 bln UK company is selling 60% of its gas pipelines arm to a group led by the Australian finance house. The $13 bln deal has financial benefits for both. But National Grid’s switch to electricity is more immediate than the buyers’ plan to pump hydrogen through the pipes.
Prologis has to go extra mile for Blackstone sheds 22 Mar 2022 The property giant offered over $23 bln for Mileway, which owns European warehouses. Sky-high valuations and frenetic M&A imply it’s a good time for Steve Schwarzman’s group to cash out. But limited city space and booming online deliveries mean asset values can keep rising.
Russians lose private banks’ golden goose status 21 Mar 2022 Spooked by sanctions, wealth managers are treating all Russian clients as suspicious. That limits the scope to offer lucrative loans or new products to customers who have $213 bln stashed in Swiss banks. Higher compliance costs will turn them from cash cows to financial baggage.
Frozen Russia investors can copy hedge fund trick 17 Mar 2022 Many asset managers with exposure to Russian stocks and bonds have locked their funds. One solution is to park illiquid assets in a separate vehicle – a tool known as side-pocketing. But before approving the move, regulators should ensure it’s not an excuse to charge extra fees.
EQT makes savvy $7 bln play for buyout big leagues 16 Mar 2022 The Swedish group is acquiring Baring Private Equity Asia. The price looks reasonable. And by paying mostly in stock, CEO Christian Sinding is putting his share-price premium to good use. EQT will finally have a global presence, helping it go toe-to-toe with U.S. giants like KKR.
Capital Calls: White House embraces digital dollar 9 Mar 2022 Concise views on global finance: President Joe Biden was initially lukewarm about the United States issuing its own cryptocurrency, but the financial fallout from Russia’s invasion of Ukraine has forced his hand.
Russia exodus tests fund managers’ liquidity limit 2 Mar 2022 Western funds worth over $4 bln have suspended redemptions after Moscow froze equity trading, while MSCI may kick the country out of its emerging market benchmarks. The crisis once again exposes the flimsiness of asset managers’ promise that customers can sell when they want.
Capital Calls: Ford’s private equity playbook 2 Mar 2022 Concise views on global finance: The Detroit automaker’s reorganization plan makes explicit the goal of squeezing its traditional car business for cash to fund its electric future.
Capital Calls: Albertsons, Target 1 Mar 2022 Concise views on global finance: Supermarket chain Albertsons considers repackaging itself – again. Meanwhile, rival U.S. retailer Target beats earnings expectations, but with a performance at odds with its cut-price valuation.
Allianz’s U.S. fund misery is only half over 18 Feb 2022 Europe’s largest insurer has set aside $4.2 bln to compensate savers for complex derivative bets that went wrong. The figure, less than the $6 bln claimed, looks positive for shareholders. But with so much extra cash, U.S. regulators may impose a heftier fine to even things out.
Brookfield tries to keep up with the Schwarzmans 10 Feb 2022 The Canadian firm thinks it can close a $70 billion value gap with Blackstone by breaking itself in two. It will, if CEO Bruce Flatt can get investors to prize his asset management business like Steve Schwarzman’s. But Brookfield would swap one complex structure for another.
Credit Suisse self-flagellation is risky but right 10 Feb 2022 The Swiss bank lagged rivals as revenue fell 12% in the fourth quarter. That’s partly because CEO Thomas Gottstein is putting safety first. The danger is that clients flee and star bankers defect after bonuses shrank by 32%. Yet avoiding future mistakes is the top priority.
Amundi’s mini-BlackRock status comes with a catch 9 Feb 2022 The French fund powerhouse now has 2 trln euros of assets, and is in fast-growing areas like passives and ESG. Yet Amundi’s strength in selling funds partly relies on its bank partners’ loyalty, which might change. That weakness helps explain a less-than-stellar stock price.
Macquarie boss channels Goldman’s Gus Levy 8 Feb 2022 Alongside a “record” quarter, Shemara Wikramanayake touts her $53 bln bank’s “cautious” approach. At the same time, she is aggressively positioning it for the energy transition, evoking the former Wall Street CEO’s long-term greedy mantra. Volatility demands resolve and balance.