Private Equity

Rapid delivery needed in $7 bln online-postage bet

9 Jul 2021

Private equity firm Thoma Bravo is paying a stonking 67% premium for Stamps.com. That equates to a return on investment of less than 5% in the near term. A value so much higher than the market’s calls for exploiting e-commerce growth more aggressively and at priority-mail speed.

Review: The dark side of stakeholder capitalism

9 Jul 2021

Arif Naqvi promised to make money while doing good in emerging markets. But he treated his Abraaj private equity group’s cash as his own, pocketing $780 mln. “The Key Man” tells how he hoodwinked the likes of Bill Gates and TPG. It’s an overdue reality check for impact investing.

Viewsroom: Grocer buyouts, More China crackdowns

8 Jul 2021

Why are private equity firms clogging the aisles at Britain’s WM Morrison to pull off a near-$9 billion purchase of the supermarket chain? Aimee Donnellan and Peter Thal Larsen explain. And our Asia columnists discuss Beijing’s new attitude to U.S.-traded Chinese companies.

UK engineer finds limits of responsible capitalism

7 Jul 2021

Renishaw’s octogenarian founders have removed the “for sale” sign for the $5 bln group after buyers balked at pledges on jobs and R&D. The stance may be hard to sustain when they retire. Alternatives, like selling a stake to a trust or the state, may not ensure a rosy future.

Fortress’ vows to Morrisons look flimsy and finite

6 Jul 2021

A consortium led by the private equity group secured the British grocer’s support for an $8.7 bln takeover by pledging to treat suppliers well and not sell real estate. Yet its promises are not legally binding and expire in a year. The target’s board should have pushed for more.

Sumitomo looks past cracks in India’s credit scene

6 Jul 2021

The Japanese lender is paying Singapore’s Temasek $2 bln for control of non-bank Fullerton. Boss Jun Ohta’s latest deal takes SMFG into a complex, pandemic-ravaged market that wounded its target. The upside: He’s paying a relatively low price for a shot at high returns.

Morrisons feeding frenzy raises multiple dilemmas

5 Jul 2021

Apollo may become the third bidder for the UK grocer. Investors are hoping for more than the $8.7 bln agreed offer by Fortress. Rivals will have to pay up while potentially agreeing to tricky conditions. If the deal turns hostile the board – and shareholders – will be in a bind.

Fortress bid shunts Morrisons into premium aisle

3 Jul 2021

The British grocer agreed to an $8.7 bln takeover led by the SoftBank-owned investor. It’s higher than a recent approach from CD&R, and prospective returns look lower. Add in employee-friendly conditions accepted by the buyer, and private equity rivals will find it hard to beat.

TPG, waiting out first IPO boom, may ride another

1 Jul 2021

The private equity firm David Bonderman and Jim Coulter founded watched peers like KKR and Apollo ride into public ownership and extreme riches with the last market wave. Waiting, and watching rivals deal with growing pains and generational succession may prove to be a good call.

Atlantia’s M&A treasure chest has use-by date

30 Jun 2021

The infrastructure group is due a $10 bln cash windfall from the forced sale of its Italian motorway unit. Airports or toll roads are in high demand, while mobile payments bets are risky. Without a clear target, CEO Carlo Bertazzo should return more cash to investors or cut debt.

Private equity offers test for IPO market hunger

29 Jun 2021

British group Bridgepoint is listing in London to expand beyond buyouts into real estate or infrastructure. Shares in bigger rivals like EQT are soaring, implying a $6 bln-$7 bln valuation. Yet its niche core business and limited diversification call for a discount.

Shared-office buyout would need pandemic booster

29 Jun 2021

Private equity firm CC Capital briefly held talks with IWG over a $6 bln takeover, Sky says. Persuading founder Mark Dixon would require a big premium. And to get a decent return, a buyer would have to believe that flexible working will boom after the crisis. That’s a bold call.

Cox: Wall Street is back – and absolutely booming

28 Jun 2021

Following edicts from on high, hordes of investment bankers and asset managers are returning to their Manhattan headquarters. Deal pipelines are bulging, animal spirits are high and staff shortages are the primary obstacle. It’s a situation that’s going to last for some time.

Capital Calls: Microsoft, U.S. bank footprint

25 Jun 2021

Concise views on global finance: The $2 trillion software giant’s avoidance of antitrust scrutiny may be coming to an end; a new study challenges the received wisdom that American banks do better in faster-growing states.

Brunswick stake sale is step towards future deals

24 Jun 2021

The financial PR firm founded by Alan Parker sold 11% to private equity group BDT at a $700 mln valuation. The rejig will help fund expansion into new countries and areas like lobbying. But Parker and his co-investors will eventually want an exit. That means more transactions.

Capital Calls: Infrastructure, Doximity, Deliveroo

24 Jun 2021

Concise views on global finance: President Biden’s $1 trln bipartisan plan for U.S. infrastructure is a feat of political engineering. Meanwhile, medical-themed social network Doximity finds riches in niches, and UK delivery outfit Deliveroo serves up a favorable court ruling.

Buyout shoppers can spend more on Morrisons

21 Jun 2021

The British grocer rejected an $8 bln bid from Clayton, Dubilier & Rice. The 30% premium looks juicy, but the private equity firm will earn a decent return if Morrisons just delivers expected sales and margins. Extra cost savings or property sales would justify a bigger trolley.

Carlyle’s botched Indian lender deal is awkward

21 Jun 2021

The U.S. buyout firm’s quasi-takeover of $1.7 bln PNB Housing was halted by regulators on a technicality. The cosy plan protected state owners and side-lined minorities after fairer options failed. It’s embarrassing for star backers like Aditya Puri too. A rejig will be pricey.

Blackstone returns to China office at good time

17 Jun 2021

After mooted talks fell through last year, the U.S. private equity firm is back with a $3 bln bid for Soho China. Even with a generous premium, the implied return looks decent. With real estate assets hit by the pandemic, the deal is a sensible bet on the country’s recovery.

Waymo proves moonshots work better in the dark

16 Jun 2021

Alphabet’s self-driving unit snagged $2.5 bln of new funding despite executive departures and slow progress on its driverless cars. Waymo dealt with its potholes in private. Speculative businesses going public through SPACs may not get the chance to learn from their mistakes.