Private Equity

Capital Calls: Peloton, Honest Co, Office Depot

5 May 2021

Concise views on global finance: Treadmill recall leaves investors in the workout app stranded; shares in Jessica Alba’s consumer packaged goods company opened more than 30% above their IPO price; the office-supply company paper-shuffles its way to a higher valuation.

KPN LBO looks doomed by arithmetic, nationalism

3 May 2021

The 12 bln euro Dutch phone company flatly rejected takeover approaches by buyout shops EQT and KKR, smacking its share price. Paying more would curb so-so prospective returns. Overcoming potential Dutch government resistance to a debt-laden bid is another challenge entirely.

EQT spins Micro Focus misfortune into gold

26 Apr 2021

The Swedish buyout firm may float software group SUSE for up to $10 bln, having paid its struggling UK owner $2.5 bln in 2018. It’s a classic corporate carveout on steroids. One lesson is that CEOs should put more effort into retaining possible upside when selling their castoffs.

Blackstone gamely reboots Indian IT deal

26 Apr 2021

The investor is selling control of Mphasis within its own funds. Sovereign money will join, validating a $2.8 bln commitment that includes a public offer. With U.S. cloud migration gaining pace even as the virus spikes in the company’s home, it may be a crafty self-passed parcel.

EQT pays an electrifying price for U.S. bus ride

23 Apr 2021

The Swedish buyout group is acquiring two of travel operator FirstGroup’s North American units for $4.6 bln. It’s a punchy valuation. To earn a decent return, EQT will have to boost growth by converting the iconic yellow school bus network into a fleet of clean electric vehicles.

Capital Calls: U.S. antitrust, Dyal-Owl Rock

21 Apr 2021

Concise views on global finance: Would-be U.S. trustbuster nominee Lina Khan suggests it’s not just tech companies to blame for Big Tech’s dominance; two U.S. investment firms’ planned merger and sale to a blank-check company has cleared a legal hurdle.

Capital Calls: SXSW

19 Apr 2021

Concise views on global finance: Rolling Stone publisher Penske Media is taking a 50% stake in hipster arts festival South By Southwest.

Blackstone sale delivers small logistics message

19 Apr 2021

It’s offloading Australian warehouses it rolled up to ESR and Singapore’s GIC for nearly $3 bln. The buyout shop’s real estate timing is always worth watching. In this case, it probably says less about a peak in e-commerce property than finding value in other parts of the chain.

Czech billionaire’s supermarket raid looks pricey

14 Apr 2021

Daniel Kretinsky doubled his stake in British grocer J Sainsbury to 10%, prompting talk of a takeover. The $7.5 bln chain has thrived during the pandemic, but a reopening economy will mean more competition and higher costs. A buyout would yield mediocre returns.

Capital Calls: Christine Lagarde, Bernie Madoff

14 Apr 2021

Concise views on global finance: The European Central Bank president’s quest for inflation will take a while to achieve its goal; investor gullibility will live on after the death of the Ponzi schemer in a U.S. federal prison.

Capital Calls: LVMH surges back to full health

13 Apr 2021

Concise views on global finance: The 300 billion euro luxury conglomerate’s first-quarter sales surpass pre-Covid-19 levels.

Capital Calls: Cellebrite good times

8 Apr 2021

Concise views on global finance in the Covid-19 era: The Israeli cracker of mobile-phone encryption is going public via a SPAC at a $2.4 billion valuation.

CVC’s Toshiba bid puts a breakup on the table

7 Apr 2021

The buyout barbarians at Tokyo’s gates may be offering more than $20 bln for the conglomerate. Toshiba has been struggling amid governance issues. But its assets could collectively be worth more than double CVC’s bid. Carving up the company could give shareholders a better deal.

Benettons avoid crash at end of Italian road feud

1 Apr 2021

Atlantia, part-owned by the clothing-to-infrastructure clan, looks set to sell its motorway unit for 9 bln euros to a group led by state investor CDP. The sale should end a row with Rome and cut debt. For the new owners, rising investment means the returns will hardly be racy.

Capital Calls: Volvo IPO, Walgreens, Saudi Arabia

31 Mar 2021

Concise views on global finance in the Covid-19 era: Geely’s mooted $20 bln valuation for its Swedish brand still looks ambitious; Amazon can't match the transatlantic pharmacy chain's in-store clinics; Mohammed bin Salman grabs private cash to pay for a switch away from oil.

Capital Calls: Twitter time-wasting, News Corp

25 Mar 2021

Concise views on global finance in the Covid-19 era: Congressional hearings on Big Tech get ever less productive; meanwhile, the parent of the Wall Street Journal snaps up Investor’s Business Daily.

Apollo at least manages one very clean exit

22 Mar 2021

The investment manager is merging Tech Data, a $7.2 bln company that it bought for $6 bln less than a year ago, with Synnex. It will ink a tidy paper profit of $2 bln. Unlike the departure of its founder, Leon Black, this is one its investors should have no trouble comprehending.

Robinhood SPAC rival makes tough U.S. trade

16 Mar 2021

Online brokerage eToro will go public via a blank-check firm with SoftBank and Third Point as backers. Its established access to crypto means the $10.4 bln valuation is doable. But growth depends on the U.S. market, which is crowded, and regulatory scrutiny is ramping up.

Blackstone checks in for another short hotel stay

15 Mar 2021

The buyout shop is going halves with Starwood Capital to buy mid-price operator Extended Stay in a deal worth $6 bln. Steve Schwarzman’s group has taken and then sold stakes in the company before. This time it could offload the business to another hotel chain after the pandemic.

Apollo inks status as mini-Berkshire sans Buffett

8 Mar 2021

The asset manager is buying the chunk of insurance company Athene it doesn’t own. The deal cleans up the structure, and Apollo is paying a cheap price. But it may become more stodgy investment firm than racy buyout shop. And its managers are a far cry from the Sage of Omaha.