Private Equity

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.

Buyout barons’ dirty secret shows hard times ahead

12 Sep 2024

Since 2013, 47% of the value created by private-equity dealmakers came from selling companies at higher multiples than they paid. That boon is fading now that valuations seem stretched. KKR, Blackstone and others face lower returns or fights over high-growth targets instead.

China brokerage deal has more bark than bite

9 Sep 2024

The merger of Guotai Junan and embattled rival Haitong will create the country’s largest brokerage with assets of $225 bln. The overcrowded sector needs consolidation, but this deal probably won’t aid Beijing’s goal to foster a squad of world-beating investment banks.

Fuji Soft’s $4 bln sale needs a rethink

9 Sep 2024

Shares of the IT software specialist are trading 7% above the price of an agreed takeover offer from buyout firm KKR, and above a higher price its rival sponsor Bain is dangling at the target. After wrestling with a sale, the Japanese company has left too much value on the table.

Buyout barons’ music fest punt is oddly compelling

6 Sep 2024

Private equity and countercultural live events might seem worlds apart. Yet KKR’s recent $1.4 bln purchase of the Superstruct group that runs 80 music festivals has many of the factors buyout shops look for. Scope for a healthy return implies more will take the plunge.

Private equity spoils of war bound to spread again

5 Sep 2024

Bigger funds and more fees have boosted buyout-firm valuations. Even at 26 times earnings, Blackstone trails smaller peer Ares. The shop led by Michael Arougheti is benefiting from a focus on credit and deploying its $450 bln, but an M&A revival and investing masses loom large.

Blackstone $16 bln AI deal borrows from SPAC boom

5 Sep 2024

A group led by Steve Schwarzman’s firm is paying a large sum to buy data centre operator AirTrunk from Macquarie. By tinkering with EBITDA, the buyer can present a low valuation multiple for a purchase in a hot sector. It's unnecessarily reminiscent of the blank-cheque froth.

Tech’s also-rans are ripe for the plucking

30 Aug 2024

Buyout barons are back to spending their $2.6 trln of dry powder, scooping up software companies like PowerSchool and Squarespace. With regulators restraining Big Tech and public market investors increasingly discerning, beleaguered sellers might be ready to take the money.

NFL gives buyout barons a view from cheap seats

28 Aug 2024

The US football league is giving private equity firms access to a coveted investment venue. Returns like the one on the $6 bln Washington Commanders are tempting enough for Carlyle and others to accept tough terms and cede some profit. It’s a steep price for a lousy ticket.

KKR bank sale will gauge India’s fee-paying power

26 Aug 2024

The sponsor is looking for a buyer for Avendus, an investment bank rising up league tables and advising on hot deals, possibly including Swiggy's $1.2 bln IPO. It's a good time to push a sale of the tech sector's banker of choice after an earlier attempt to offload it stalled.

China’s big ball of money has nowhere else to go

23 Aug 2024

Beijing's warnings slowed a rush into government debt sparked by moribund stocks and falling home prices. With US rates set to fall, investing more abroad would be an option if it weren't for capital controls. Unless they're relaxed, the bond-buying frenzy is likely to restart.

Worldline buyout offers rare shot at easy returns

15 Aug 2024

The $2.5 bln French payment firm is an obvious target thanks to its depressed share price. Private equity buyers can wring out a decent return even with zero profit growth in the next few years. And seeing as France is only a minor market, the state is unlikely to meddle.

India convincingly overcomes its IPO demons

14 Aug 2024

Cautious pricing is paying off. E-bike maker Ola surged on its debut and e-commerce platform Brainbees jumped 46%. The success by the unprofitable SoftBank-backed firms clears the way for big deals that will help the country retain Asia's IPO crown as other venues falter.