Private Equity

Apollo’s Italy gambling IPO plays it suitably safe

21 Apr 2023

The US buyout fund is finalising a $3 bln listing of Italian betting firm Lottomatica. That will help slash the company’s debt and fund growth in Europe’s second-biggest gaming market. But the price discount suggests the IPO market remains a domain for the cautious and the needy.

Capital Calls: AT&T’s magic number falls short

20 Apr 2023

Concise views on global finance: The $140 billion telecom giant, now free from its tangled M&A past, has one metric to deliver on: cash to support its dividend. But that figure fell 64% in its first-quarter results.

Guest view: Direct lending may be entering new era

13 Apr 2023

Private credit funds have grown nearly seven-fold since the 2008 financial crisis to reach $800 billion. As banks grapple with leveraged loans on their balance sheets, buyout firms are seeking out other sources of financing. It’s a big opportunity, says Oaktree’s Armen Panossian.

KKR places a bet on American political dysfunction

11 Apr 2023

The buyout shop is now a 30% owner of FGS, a communications firm with a big presence in Washington. The timing couldn’t be better: U.S. companies claim public policy decisions are crimping business. That affects KKR too. Tapping into the advisory gravy train is a hedge of sorts.

KKR’s FGS deal sets new bar for comms valuations

6 Apr 2023

The private equity group may buy 30% of the WPP-owned financial communications firm. The high price allows employees to cash out over $200 mln, meaning a few may leave. The best hope for KKR is that FGS’s revenue is increasingly stable and growing, justifying the higher multiple.

Capital Calls: Syngenta IPO delay

28 Mar 2023

Concise views on global finance: The Shanghai Stock Exchange has canceled a hearing to review the agrichemicals group's listing plans, leaving investors fearing the worst in China.

Deutsche Bahn $16 bln sale has non-obvious endgame

24 Mar 2023

The German railways group may sell logistics arm DB Schenker for over $16 bln to cut debt. The most obvious fit is rival DSV. But selling to private equity or French shipping giant CMA CGM could mean fewer job cuts, which may be more appealing to Deutsche Bahn’s state owner.

Blackstone’s Finnish fiasco adds to property slump

10 Mar 2023

Steve Schwarzman's firm defaulted on a $313 mln securitised loan backed by Nordic offices, after failing to win support from bondholders. More messy workouts are likely as troubled deals come due. It’s an opportunity for savvy players, and another worry for European real estate.

A $5 bln cleaning deal uncovers buyout dirty work

8 Mar 2023

Diversey, a maker of hand sanitizers and floor sealers, broke through the M&A dry spell to find a buyer. As part of the sale, majority owner Bain will accept a discount and roll over some of its stake. It’s a sign of just how much elbow grease it takes in private equity nowadays.

SAP ends pointless M&A roundtrip with Qualtrics

7 Mar 2023

The $150 bln software giant may sell its stake to Silver Lake. A $12 bln valuation implies mediocre returns for SAP, which bought the survey group in 2018. The buyout firm may struggle to put much debt on the target, crimping its profit, but it looks like a more logical owner.

TPG starts a dicey dance with death Down Under

7 Mar 2023

The private equity firm is offering $1.5 bln for funeral-services firm InvoCare. The target could use some help after losing market share. But the 41% premium means the buyer would be piling on debt as interest rates rise. Making a decent return would require some deft footwork.

Capital Calls: World Bank, Bumble, Wood Group

23 Feb 2023

Concise views on global finance: The U.S. picks ex-Mastercard boss Ajay Banga to run the multilateral development bank; while the dating app’s shares are down, private equity owner Blackstone is still in the money; the UK oil services group has turned down three bids from Apollo.

Energy transition’s $12 bln deal becomes forex bet

22 Feb 2023

Brookfield and MidOcean have reduced their offer for Australia’s coal and gas-heavy Origin Energy, but only by 1%. Large investors also will be paid partly in U.S. dollars. If exchange rates move only slightly, it would more than compensate them for the price cut.

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.

Debt is poor fix for Italian soccer’s malaise

8 Feb 2023

Having rejected private equity suitors, Italy’s top football league may turn to Wall Street banks to borrow up to 1 bln euros. The cash may give Serie A’s ailing TV rights business extra time. But without a governance shake-up, gorging on debt would extend its losing streak.

Brookfield’s $13 bln climate power play may trip

8 Feb 2023

The asset manager and partner MidOcean want to cut their offer price for Origin Energy, AFR reports. Gas rules are in flux and shares 20% off the bid, supporting a reset, but the target is boosting its earnings outlook. Too much resistance risks short-circuiting a good thing.

Carlyle’s new boss will be virtuoso second fiddle

6 Feb 2023

Harvey Schwartz never quite made CEO at former employer Goldman Sachs. But his years of experience at the sharp-end of finance should help the $13 bln buyout firm as it chases bigger rivals. Given Carlyle’s top-heavy structure, a willingness to share power is probably an asset.

KKR tries its luck again with Telecom Italia bid

2 Feb 2023

After two failed attempts, the buyout firm is seeking control of the telco’s network, valued at 20 bln euros. A sale would solve the group’s persistent debt headache. To overcome resistance from major shareholder Vivendi, KKR will need backing from the government in Rome.

Blackstone shows scale is also a curse

26 Jan 2023

The asset manager missed its goal of gathering $1 trln, but it has more than doubled funds in five years. Its property fund recently benefited from deep pockets. Still some wobbles show why the tension between pleasing public and private investors won’t go away.