Private Equity

Capital Calls: Corporate America blowback

15 Jun 2021

Concise views on global finance: An investor lawsuit against Trump-era rules on shareholders' proposals is the latest sign of the tables turning.

Viewsroom: Private equity gets funky, HK hiring

10 Jun 2021

Blackstone, KKR, Carlyle and other firms are flipping the leveraged buyout playbook with deals that, while less dependent on debt, don’t always add up for their backers. Meanwhile, investment banking is fast becoming the fragrant harbor’s monoculture. Our columnists discuss.

Medline deal subdues the buyout club

7 Jun 2021

Blackstone, Carlyle and Hellman & Friedman are buying a majority stake in the $34 bln medical supplies maker. Compared with past club deals, there’s less leverage and financial wizardry, but also less scope for friction, with the founding Mills family keeping a strong upper hand.

Capital Calls: Russia and US, Clothing IPOs, Food

3 Jun 2021

Concise views on global finance: The Kremlin tells its national state fund to get out of greenback-denominated assets; Rent the Runway thinks about going public; the FAO’s global food index hits its highest level in nearly a decade.

Capital Calls: AMC craziness, Pro lacrosse

2 Jun 2021

Concise views on global finance: The movie-theater chain raised $230 million from a hedge fund, which promptly sold the shares at a profit; New England Patriots owner Robert Kraft and Alibaba's Joe Tsai are betting on the latest U.S. effort to professionalize the preppy sport.

Investors place bold bets in UK deal tussle

28 May 2021

Shares in five takeover targets including Spire Healthcare and John Laing are trading at or above agreed offers. Big shareholders like Allianz are protesting lowball bids while merger arbitrageurs are betting on higher prices. But buyers have plenty of reasons to hold firm.

Chinese buyer can put spring back in Reebok’s step

26 May 2021

Owner Adidas thinks Anta Sport and Li Ning, as well as private equity firms, may bid for the ailing brand, worth maybe $1.8 bln. Buyout barons have scored big apparel wins. But a red-hot domestic market means Chinese groups are best-placed to succeed where the German firm failed.

FirstGroup rebels may rue waiting for the next bus

25 May 2021

Two shareholders of the UK transport operator may vote against a $4.6 bln sale of its U.S. businesses to EQT. While no knockout, the price looks fair given the lack of other certain offers. A delay could destabilise the company when it needs to focus on opportunities at home.

Bain discount auto IPO is cheap for a reason

25 May 2021

The private equity firm is listing French car parts seller PHE to raise 450 mln euros to pay down debt and prep for M&A. Europe’s fragmented after-sales market is due an overhaul. The jalopy-like multiple reflects uncertain growth and the threat from cheap-to-run electric motors.

Capital Calls: BlackRock/Exxon, Media deals, SPACs

25 May 2021

Concise views on global finance: The giant asset manager will vote for three dissident nominees for Exxon Mobil’s board; boutique adviser LionTree has benefited from a rash of media deals; Lordstown Motors show why blank-check merger projections can’t be relied upon.

North Sea oil IPOs had best take the plunge soon

24 May 2021

Ex-Centrica boss Sam Laidlaw is mulling a float that may see his Neptune Energy group valued at $10 bln. Equity markets are skittish and rival driller Wintershall Dea also wants to list. But question marks over gas demand make it riskier for owners CVC, Carlyle and CIC to wait.

Capital Calls: Apollo, Microsoft

20 May 2021

Concise views on global finance: The second of the asset manager’s three founders moves on; the software firm is pulling the plug on Internet Explorer.

Capital Calls: Retail sales’ wild ride

19 May 2021

Concise views on global finance: Some U.S. retailers are reporting better growth than others, but there’s still much to play for.

KKR makes pricey punt on infrastructure frenzy

19 May 2021

The U.S. group is buying UK-based rail and roads investor John Laing for 2 bln pounds. A 35% premium to net asset value looks steep. But KKR can triple its target’s war chest to exploit a post-Covid spending boom, and holding on to the asset allows for more modest returns.

Capital Calls: AT&T’s bankers, Blackstone in Italy

17 May 2021

Concise views on global finance: The U.S. telecom giant’s unwinding of its purchase of Time Warner is a gift for advisers on Wall Street; a court rules that the U.S. private equity firm’s 2013 purchase of Corriere della Sera’s HQ was valid.

UK’s LBO rush risks a buyout baron faceplant

14 May 2021

Britain has drawn two-thirds of Europe’s $21 bln of take-private deals this year. That will rise if KKR and Cinven clinch John Laing and Sanne. A fast recovery helps, but many takeovers look pricey. The problem is that cash-rich buyout barons have little choice but to spend.

SoftBank fund paper gains are easy come, easy go

12 May 2021

CEO Masayoshi Son touted the Vision Fund’s 30% internal rate of return for backers including Saudi Arabia. It's driven by unrealised profit on recently floated companies like Coupang and DoorDash. Unwinding just one quarter of valuation uplift would take the IRR down nearer 10%.

Buyout shop’s UK healthcare punt needs steady hand

12 May 2021

Clayton, Dubilier & Rice is buying UDG Healthcare for $3.7 bln. It’s a way to profit from Big Pharma’s need to cut costs and outsource drug development. But a post-crisis share bounce means the price isn’t cheap, and high returns aren’t assured. Some savvy dealmaking may help.

Capital Calls: Uber, Roblox

11 May 2021

Concise views on global finance: Free rides for Covid jabs won’t help the ride-hailing app’s labor battle with Washington; the online games platform’s year-on-year growth decelerated sharply in April.

Capital Calls: KKR

6 May 2021

Concise views on global finance: The private equity firm is investing in Charter Next Generation in an employee-friendly deal.