Private Equity

Morrisons’ epic saga could use a short circuit

20 Aug 2021

CD&R’s 9.7 bln pound swoop gazumps Fortress and extends the already-lengthy bidding war for the UK grocer. A UK Takeover Panel auction, as proposed at inhaler maker Vectura, might help. Given the increasingly paltry returns if things drag on, bidders might even welcome it.

There’s only one Steve Schwarzman, thankfully

18 Aug 2021

Blackstone’s boss dominates a $684 billion investment empire, leading the board, picking directors and extracting sizeable rewards. Even rivals at KKR and TPG can’t compare. As long as Blackstone makes abnormally high returns, it can keep blowing a raspberry at good governance.

The Exchange: Buyout bonanza

17 Aug 2021

Thomas H. Lee’s Scott Sperling has been investing in private equity deals for more than two decades. As the industry is hotter than ever, he talks to Lauren Silva Laughlin about how nothing and everything have changed.

Capital Calls: Walmart plays both ends of the trade

17 Aug 2021

Concise views on the global economy: The U.S. retailer expects strong sales throughout the year despite a surge in Covid-19.

UK defence buyout tests government poker hand

16 Aug 2021

Private equity-backed Cobham is offering a 63% premium for rival Ultra Electronics. To get Britain’s approval for the 2.6 bln pound deal, it will make commitments on jobs and research. If those pledges are robust, owner Advent will have to work hard to earn a good return.

Vectura tussle chips away at money’s winning might

13 Aug 2021

The inhaler maker endorsed a bid from Philip Morris that was 6% above one from Carlyle. Juicier shareholder returns and deeper pockets to invest prevailed over distaste for Big Tobacco. But the noisy debate makes scrutinising deals on broader stakeholder grounds look more normal.

Private equity barks up right pet-makeover tree

13 Aug 2021

Hellman & Friedman is splurging $3.5 bln on unloved German pet food supplier Zooplus. The online retailer is crying out for more investment and better management to cash in on the e-commerce and pet-ownership booms. Even with minimal debt, returns could turn out best in show.

Inhaler fight offers investors false moral choice

9 Aug 2021

Philip Morris International raised its 1 bln pound bid for UK pharma group Vectura, beating Carlyle’s sweetened offer. Shareholders that shun tobacco may prefer the buyout firm. But PMI has more strategic know-how and Carlyle could sell in a few years. Price should be decisive.

Capital Calls: U.S. jobs, BBQ IPOs, Wm Morrison

6 Aug 2021

Concise views on global finance: The Delta variant puts a leisure job boom at risk; two grill makers’ floats show the IPO market isn’t frozen; Fortress strikes in the bidding war for a UK supermarket.

Reheated CVC soccer plan faces better Spanish odds

5 Aug 2021

The sporty buyout fund wants to invest 2.7 bln euros in La Liga, mirroring a proposal that flopped in Italy’s Serie A. At just over 10 times commercial revenue, the higher-flying Spanish league’s valuation is lower. Yet the latest deal’s chances of finding the net look safer.

Ackman’s SPAC tries to run before it can walk

3 Aug 2021

The hedgie wanted his blank-check vehicle to buy 10% of Universal Music for $4 bln and live on to find a second deal. His structure was already non-standard. Adding exotic features brought a clash with regulators trying to set SPAC norms. Ackman’s next attempt needs to be vanilla.

Private equity enjoys its wet hot American summer

3 Aug 2021

KKR’s earnings more than doubled in the latest quarter, following a pattern set by Blackstone and Carlyle. All are basking in rising valuations, hyperactive M&A and investors’ quest for higher returns. Even a Democrat-led White House is, for now, making the buyout barons richer.

The Exchange: How UK’s vaccine taskforce did it

3 Aug 2021

Clive Dix was part of a crack team of business execs and scientists that secured Covid-19 jabs for Great Britain. They applied a venture capital approach that can be used to tackle other public sector challenges. The former chairman discusses lessons learned and looming threats.

Capital Calls: Aussie oil deal, Fund services M&A

2 Aug 2021

Concise views on global finance: Santos’ improved and agreed offer for Oil Search comes at a discount to its rejected first attempt; Sanne’s dealmaking poker face looks set to be vindicated.

EQT makes hay while clouds begin to gather

22 Jul 2021

The $46 bln buyout group’s shares rose 11% after first-half earnings soared. CEO Christian Sinding is selling companies in frothy markets while return-hungry investors pile into his funds. Higher interest rates would undermine both trends, as well as EQT’s richly priced equity.

Capital Calls: Volvo, Moderna, Mediobanca

21 Jul 2021

Concise views on global finance: The Swedish automaker boosts its appeal ahead of a possible IPO by buying out its Chinese joint venture partner; joining the S&P 500 will cut both ways for the vaccine maker; another Italian tycoon ups his stake in the Italian investment bank.

Capital Calls: BBQGuys go easy on the hot sauce

20 Jul 2021

Concise views on global finance: An e-commerce company for grill connoisseurs is going public via a blank-check company with a valuation that befits its side-dish status.

Permira $2 bln deal advertises buyout desperation

14 Jul 2021

The UK firm is buying 10% of listed classifieds group Adevinta from eBay. It gets a stake at a discount and might make a good return. But investors could make the same bet themselves without ponying up fees. It highlights the challenges private equity groups face deploying funds.

Capital Calls: Bank of America, EU carbon prices

14 Jul 2021

Concise views on global finance: the U.S. lender beat earnings forecasts, despite a less-than-stellar performance in the activities that boosted rivals; and European Commission reforms should push up the cost of greenhouse gas emissions.

Swedish tech investor benefits by slimming down

12 Jul 2021

Most listed investment firms trade at a discount to the net value of their assets. Kinnevik’s recent decision to hand its stake in e-tailer Zalando to shareholders has made it an exception. Shedding future winners from its $9 bln portfolio will be vital to preserving its status.