Private Equity

Blackstone unearths rough Chinese property gem

10 Mar 2020

The private equity firm is in talks to buy Soho China for $6.3 bln. A 101% premium is eye-catching, but the collection of skyscrapers – some designed by Zaha Hadid – look cheap. After Blackstone’s lucrative run selling to mainland buyers, this deal’s timing warrants attention.

Big shots will help women bridge startup gap

9 Mar 2020

The average value of a seed round for female-founded ventures tripled to $1.2 mln in the past decade. And a record number of outfits with women founders achieved “unicorn” status in 2019. The divide is still huge. Even so successes like Luckin Coffee will accelerate progress.

Hong Kong buyout-firm tax cut sends wrong message

5 Mar 2020

The city plans to reduce levies on so-called carried interest. Such gains are currently taxed like pay or other profit at rates well below global norms. With recent protests rooted partly in growing inequality, sparing private equity barons even that low burden risks a backlash.

Blackstone bets big on Boris British housing hedge

26 Feb 2020

The private equity giant is buying iQ Student Accommodation for $6 bln from Goldman Sachs in what it calls the biggest private UK real estate deal ever. It’s a play not on whether Brexit is a boom or a bust – but rather the continuing global allure of a proper English education.

Univision telenovela episode ends on low note

25 Feb 2020

Five buyout firms are selling out of the Spanish-language broadcaster at a sub-$10 bln valuation, including debt. TPG, Providence and others will exit their precrisis stakes at a hefty loss. Leverage amplified other problems. Univision’s new owners are aiming for a happier plot.

Revolut speeds towards a valuation paradox

25 Feb 2020

Nik Storonsky’s digi-bank is now worth $5.5 bln. To justify the price tag, he’ll need multiples of the $76 mln revenue it generated in 2018. Subscriptions for services like stock-trading help. But a lending push may eventually prompt investors to judge Revolut like a normal bank.

Unizo check-in borders on being inhospitable

25 Feb 2020

Bids for the Japanese hotelier have reached $1.9 bln, and could go even higher. The company is already loaded with debt, meaning that any buyout will require some serious housekeeping to generate a solid return. Blackstone, Lone Star or Fortress may be sweating their equity.

SoftBank hedge fund would suit Son, not investors

17 Feb 2020

Rajeev Misra, head of the conglomerate’s Vision Fund, may raise $4 bln from the likes of Abu Dhabi to bet on listed companies. There’s little downside for his boss, CEO Masayoshi Son. Those who plough money into the fund may regret backing a manager with a limited track record.

M&A bird in hand not always better than nothing

14 Feb 2020

Education software company Instructure’s board recommended a $1.8 bln buyout shareholders are unlikely to support, after initially backing a lower one. The board now looks hasty and out of touch. It shows why some bid targets, like printer-maker HP, prefer to play hard-to-get.

Golden Goose may have one more egg to give

14 Feb 2020

Carlyle is selling the Italian fashion brand to Permira for 1.3 bln euros, three times what it paid in 2017. It’ll be the fourth buyout shop to back it. Fast growth explains the appeal and a luxury valuation of 13 times EBITDA. Moncler buoys the case for a deal to pay off again.

KKR can profit from Gulf hospital emergency case

10 Feb 2020

Buyout funds including the U.S. group are eyeing the $1.9 bln NMC Health. Its value has sunk amid attacks by short-seller Muddy Waters, poor disclosure and forced sales by large shareholders. It’s a risky move, but the depressed share price offers any buyer a healthy cushion.

Private equity doublethink signals rude awakening

3 Feb 2020

Buyout bosses at last week’s confab in Cannes admitted deal valuations are too high, yet insist their returns will continue to beat listed stocks. That may be true for firms with niche sector expertise. Others will disappoint investors who pay the $2 trln industry’s high fees.

Japanese hotelier bidding war gets status upgrade

30 Jan 2020

Blackstone and Fortress raised their offers for Unizo. Both now trump Lone Star’s $1.6 bln deal, which cashes out the target’s bosses under murky terms. Activist investor Elliott may play kingmaker. The outcome could be a landmark for the country’s M&A and governance standards.

Thyssenkrupp’s ailments give edge to buyout barons

29 Jan 2020

Finnish lift maker Kone is offering 17 bln euros for the German steel giant’s elevator unit. That’s 6% more than the closest private equity bid. But competition regulators could hold up the juicier deal. Given its dismal profitability, Thyssenkrupp may prefer the cleaner option.

Soaring Swedish buyout shop looks overpriced

23 Jan 2020

The share price of $13 bln EQT has almost doubled since its September IPO. CEO Christian Sinding can point to good private-equity returns and a rapid rise in assets under management. That success may be harder to sustain given increasing competition for deals and capital.

Lazy days are over for buyout barons in China

16 Jan 2020

Dealmakers were gloomy at an annual forum in Hong Kong after a disappointing year. Private equity can no longer rely on minority stakes in a booming economy to juice returns. Tech bets are mostly off. The next batch of funds will work hard on traditional, unloved businesses.

BlackRock starts to tackle uneven climate record

9 Jan 2020

The world’s largest money manager is joining the planet’s biggest anti-pollution investor group. Larry Fink’s firm hasn’t always been a visible ESG champion – it even voted against the coalition’s proposals in the past. At least BlackRock is now hanging with the right crowd.

London’s new year IPO will buck sad 2019 trend

9 Jan 2020

KKR is looking to list one-quarter of its UK smart-meter group, Calisen. Last year the volume of London listings dipped as new offers were pulled and existing ones lurched. The strategic tailwinds behind Calisen’s sector should stop it being added to the pile of duds.

Infrastructure investors catch the tech bug

9 Jan 2020

Macquarie may be in talks to buy AirTrunk for over $2 bln. It follows a record year for data centre M&A which saw volumes triple. Growing consumption of the new oil is fuelling demands for storage warehouses. And the hunger for yield is building up towering multiples.

Buyout barons will be next to face pay backlash

6 Jan 2020

Private-equity managers can earn more than company CEOs or bankers, whose remuneration has drawn most scrutiny in recent years. The $4 trln industry is now too big to stay under the radar. A surge in company failures would make well-paid dealmakers easy targets for politicians.