Private Equity

Snap may want to disappear from the public markets

22 Jul 2024

The $24 bln social media firm is staking its future in augmented reality with see-through glasses. Taking Snap private would allow breathing room. Even if insider Tencent and boss Evan Spiegel rolled shares, it would require a large check. But potential returns are worth it.

Rentokil flags debugged trend towards mega buyouts

22 Jul 2024

The $17 bln pest control company is being eyed by former BT CEO Philip Jansen, the Sunday Times says. More generous debt markets mean large takeovers are getting easier. But, while the returns on a Rentokil deal look juicy, shareholders may be wary of selling too cheaply.

Much of Blackstone’s success is out of its hands

19 Jul 2024

The $1 trln asset manager, which buys real estate and other assets with loads of debt, has always been vulnerable to rising rates. Now it is under pressure to deploy its mountain of cash. The die has been cast - the rest is up to the Fed.

EQT hit carries warning for buyout-firm investors

18 Jul 2024

The $40 bln private equity group’s shares sank after it missed analysts’ forecasts. The lesson is that predicting profits from selling companies is tough. It also suggests that a recent valuation run-up for listed managers is out of whack with tricky dealmaking conditions.

Match is a relationship better enjoyed in private

17 Jul 2024

For public investors, the owner of dating app Tinder’s profile has a red flag: slow growth. With shares down 80% since 2021, Starboard is the latest rabble-rouser pushing fixes. Strong cash flow and a cheaper valuation make the $9 bln company a better pairing for a buyout shop.

Buyout barons’ IPO castoffs trade may be repeated

16 Jul 2024

Clayton Dubilier & Rice’s $2.6 bln offer for software firm Exclusive Networks would see it scoop up a stock that has drifted since a 2021 listing. Majority-owner Permira would get a handy way to cut exposure. A long list of struggling initial offerings mean more deals may follow.

Axel Springer split could suit both parties’ needs

12 Jul 2024

Buyout firm KKR backed an 8 bln euro take-private of the media group in 2019. Now it may get the classifieds unit it likes while CEO Mathias Döpfner keeps news, the FT says. It would unpick an odd governance situation, and the German tycoon could get cash for a US media splurge.

Singapore’s Temasek has a sticky China problem

10 Jul 2024

The sovereign investor's $288 bln portfolio value is on the rise but its one fifth exposure to the world's second-largest economy is a drag. Temasek's private holdings and Singapore's close financial ties with Beijing make it hard for CEO Dilhan Pillay to make a big retreat.

Stubborn IPO lull defies supply and demand logic

9 Jul 2024

Despite solid market debuts by Reddit, Galderma and Viking, the $49 bln raised in the first half is the lowest tally since 2016. It’s vexing for buyout firms with $3 trln of assets to sell and investors with $10 trln in cash to spend. Economic theory suggests a price imbalance.

EQT’s $3 bln gaming play hits the right buttons

3 Jul 2024

The Swedish buyout shop looks set to clinch video game services group Keywords. The target’s business of translating games like ‘Clash of Clans’ for a wide range of clients helps insulate it from an industry rut. The chunky 96% premium can also make it a high scorer.

Ola sets a mileage test for India’s EV market

27 Jun 2024

Investors are resisting the electric scooter maker's mooted IPO price-tag. At $7 bln, it's 30% higher than the SoftBank-backed company's last fundraise. Bhavish Aggarwal's startup has an early-mover advantage and deserves a premium valuation but peers are catching up fast

The ragged end of private equity is unspooling

21 Jun 2024

Carlyle’s $7 bln purchase of Veritas was part of a multi-year software buyout frenzy, reaching over $100 bln in deals in 2022. Fueled by cheap debt, the bill is now due with rates up and results down, sparking a fight with creditors including feisty Elliott. It won’t be the last.

PAG’s downsized Asia fund could pay off handsomely

17 Jun 2024

China dealmaker Weijian Shan raised $4 bln for his firm's buyout fund, less than half the target, after refusing to cap exposure to the world's second-largest economy. He'll have more freedom than rivals to chase returns from discounted Chinese assets. That could be lucrative.

Oaktree can still score a skilful goal with Inter

6 Jun 2024

The US fund ended up owning the loss-making Italian club after the previous owner missed a payment. Fetching valuations similar to what Elliott secured for rival AC Milan looks tricky. Yet American interest in soccer and on-field success point to a sale price exceeding $1 bln.

Wall Street is contorting to replace China trade

6 Jun 2024

Investment banking revenue in the People's Republic is at the lowest level since 2014. Advisers are chasing fees in India, South Korea and Australia. The biggest hope for offsetting the loss of business from the region’s top economy lies in Japan, where talent is in short supply.

ESR buyout showcases depths of Hong Kong misery

27 May 2024

The $6 bln Asian real estate fund manager is mulling a take-private bid. While its complex business has been hit by high interest rates, a 60% fall from the stock's 2021 peak looks harsh amid a promising turnaround. Shareholders like OMERS can push for a high premium.

Covid buyout drama will unfold in tense third act

24 May 2024

Thoma Bravo’s 2020 takeover of software developer Instructure in many ways encapsulates the tech deal boom. A quick IPO capitalized on the era’s exuberance before debt and a slowdown took hold. The latest sale effort sets the stage for other uplifting or tragic denouements.

Latest cheap UK target can flip refusenik script

23 May 2024

Hargreaves Lansdown rejected an initial $6 bln tilt from a group including CVC. Like other recent British corporate prey, the financial adviser’s board sees the attention as opportunistic. But Hargreaves needs to cut its fees, and that may be better done away from public markets.

Timid post-Covid tech cleanup begins with mini-LBO

13 May 2024

Website builder Squarespace is going private, the latest deal for a tech firm in a post-pandemic funk. A price of 20 times EBITDA looks more modest when accounting for investors sticking around and improving cash flow. Opportunistic dealmakers aren’t yet swinging for the fences.

Peloton buyout would involve both pain and gain

10 May 2024

The exercise company might struggle to get funding for an LBO given it has little cash flow. But if lenders believe a turnaround story, decent returns are possible. Plus Apple might be a ready buyer in a few years. For private equity firms, returns and exits are a welcome rarity.