Private Equity

Singapore’s banking giant DBS is coming of age

12 Nov 2024

The $90 bln Singapore lender will start returning capital to shareholders through share buybacks. Incoming CEO Tan Su Shan will retain sufficient firepower to pursue bold M&A, though changing US policy in its Asian backyard may merit a cautious turn.

Rubber meets road for divergent buyout-shop models

7 Nov 2024

Strong quarterly results and the US election lifted enthusiasm for Apollo, Blackstone, Carlyle and KKR. After pursuing different paths to gather nearly $3 trln of combined assets, however, their opportunities and risks vary. Those leveraged to insurance are under fresh pressure.

German M&A flurry is powered by lasting tailwinds

4 Nov 2024

Teutonic deal volumes are below their 2021 peak, like everywhere else. Yet a burst of activity, including the $15 bln privatisation of DB Schenker and $16 bln Covestro sale, show signs of life. Radical changes to the country’s industrial model imply an enduring rebound.

China pins stimulus on money merry-go-round

23 Oct 2024

Beijing plans to swap some of its $9 trln of local government debt into bonds with full, rather than implicit, state backing. The rejig will lower rates of interest, lengthen maturities and allow provinces to issue more debt to banks. That will juice spending for a while.

EQT defers exit brainteaser with school deal

22 Oct 2024

Swedish firm EQT is reinvesting in education group Nord Anglia alongside Neuberger Berman for $14.5 bln, instead of a sale or listing. It highlights how buyout groups are keeping assets for longer. In this case, that comes with rising regulatory risks, and limited exit options.

Growth-hungry EQT boss faces an M&A puzzle

17 Oct 2024

The $40 bln buyout group’s CEO Christian Sinding is practically shouting from the rooftops that he wants to buy a private-markets peer. So-called secondaries targets, the biggest of which is Ardian, make sense. But it’s a sellers’ market and EQT’s Swedish stock may be a turnoff.

Measured UK tax hike can avoid dealmakers’ Brexit

16 Oct 2024

Chancellor Rachel Reeves has to raise money in her Oct. 30 Budget and may up capital gains tax from 28% to 35%. That would require 2,000 buyout barons to pay $120,000 extra on their funds’ profits. Such a small hit would probably stave off a threatened private equity exodus.

Fiery family feud is opportunity for Korea Inc

16 Oct 2024

Watchdogs are looking into a messy takeover battle between $12 bln Korea Zinc's founding houses. One has teamed up with Bain, the other with Asian fund MBK. Each is decrying its rival's tactics. The saga throws a timely spotlight on the country's governance shortcomings.

CD&R $17 bln French deal may hinge on big retreat

15 Oct 2024

Paris is concerned about the future of critical medicines if the private equity firm buys a stake in Sanofi’s consumer unit. CD&R can promise bigger investment and still get a decent return. Giving up control by bringing in a Gallic co-investor might also soothe the government.

Direct lenders’ golden moment is over

10 Oct 2024

The core of private credit that’s focused on buyout debt surged after the pandemic, spurring the industry to $850 bln in assets. Yet with public markets roaring, returns will fall. Rather than replacing Wall Street banks, private players like Ares will have to cooperate instead.

Sanofi sale is critical health check for mega LBOs

10 Oct 2024

The French pharma company is deciding whether to sell its consumer drugs unit to Clayton Dubilier & Rice or PAI for $17 bln, says Bloomberg. It helps that volatile equity markets make an alternative listing riskier. A successful deal could give large buyouts a shot in the arm.

Debt feast helps buyout firms through IPO gloom

7 Oct 2024

Dividend recaps, where private equity managers pile debt onto a company to give themselves a payday, are booming, with $17 bln in the US last month. Since public offerings look tough, it’s a handy cash-raising alternative. The trend will continue, if the economy plays ball.

Tokyo Metro IPO is a big deal with big caveats

7 Oct 2024

Japan’s largest listing in half a decade comes to market with rising passenger traffic and solid earnings to back its $2 bln share sale. The subway operator also carries a sizable debt load and a massive stock overhang that raises questions about the government's ownership.

German IPO gives buyout shops scant cause to cheer

4 Oct 2024

Academic publisher Springer Nature rose 7% on its Frankfurt debut. But it had been offered at a tangible discount to help owner BC Partners offload a long-held stake. Private equity sellers in a similar position won’t get much encouragement to take the plunge too.

Bain jets towards first-class lounge Down Under

2 Oct 2024

The private equity firm is selling 25% of Virgin Australia to Qatar Airways for an undisclosed sum ahead of an IPO. Fold in last year’s dividend recap and assume it’s growing like larger rival Qantas, and the airline is en route to delivering Bain a sky-high 40%-plus return.

Blackstone polishes its diamond bet to perfection

25 Sep 2024

The buyout shop may target a $4 bln valuation for rock certifier IGI, seven times what it paid last year. Restructuring the Belgium-founded business into an India-led entity and floating it in Mumbai where valuations sparkle helps. At least the company's dressing-up makes sense.

KKR outmanoeuvres Bain in $4 bln Japan showdown

20 Sep 2024

The two buyout giants are tussling over IT specialist Fuji Soft after Bain dangled a potentially higher offer. But KKR has found a clever way to put itself ahead without raising its price. Future buyers should take note: in a hot market like Japan, creative tactics will be needed.

Axel Springer split gives M&A freedom to news unit

19 Sep 2024

The company’s media assets, like Bild and Politico, will go to a group including CEO Mathias Döpfner in a $15 bln breakup, while KKR gets the classifieds division. The buyout firm has the most valuable bit, but mogul Döpfner gains a debt-free balance sheet with an eye on deals.

Larry Fink’s private index dream may be holy grail

19 Sep 2024

The boss of $137 bln BlackRock wants to create benchmarks and passive investment products for alternative assets like buyouts and direct lending. Packaging up illiquid funds will be tricky, and data quality is patchy. A repeat of Fink’s success with public markets seems unlikely.

For global firms, India IPOs are a honey trap

17 Sep 2024

Hyundai and LG Electronics are each keen to float their local subsidiary on Mumbai bourses. Rich valuations are on offer. Companies have been burnt, though, by chasing additional listings around the world. The risk of getting hurt looks particularly bad in India.