Private Equity
Global private equity firms are sitting on more than $2.1 trillion in “Dry Powder.” Their investment decisions and purchasing power will shape the public and private investment markets in ways that shape the future of the global economy. DailyAlts provides constant updates and insights on deal-making, regulatory shifts, global capital flows, and more.
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The monthly transaction report from the $280 billion New York State Common Retirement Fund showed an investment outlay of more than $4 billion in June. Significantly, and in a sign of the times, more than 75% of that was plowed into alternatives such as real estate ($2.2 billion) and private equity funds (over $1 billion).
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More Stories on Private Equity
OpenGate Capital’s Second Institutional Fund Closes With a Flourish
Private equity firm OpenGate Capital’s Second Institutional Fund raised $585 million versus a target of $450 million.
The enthusiastic support for OpenGate’s second institutional fund came from 23 investors located across seven countries. These included pensions, wealth managers, insurance companies, and asset managers. The fund’s oversubscription of 30% shows the global eagerness to place capital with reputed and focused private equity firms. The second fund is designated “OpenGate Capital Partners II & II-A, LP.”
Another Day, Another Massive Private Equity Buyout Fund
A KKR Asian Buyout Fund is now the talk of the alternative investment markets. KKR wants to raise a $15 billion buyout fund with a focus on Asian companies. The global private equity giant will start raising money in 2020, according to Reuters.
U.S. Private Equity Fundraising Hits New Record
A new report shows that 2019 broke the record for private equity fundraising A new Pitchbook report says that private equity firms have raised record capital for a year. By November 6, PE funds topped $246 billion in 2019, according to the report. There are still eight weeks left in the year. The record comes…
Brookfield Asset Management Launches Its Fifth PE Fund
The new Brookfield Capital Partners V reached total equity commitments of $9 billion, according to Brookfield Asset Management. The company released a statement this week outlining the goals of the private equity fund and its type of investors.
MBK Partners Eyes $6 Billion Buyout Fund
MBK Partners aims to raise up to $6 billion for a new buyout fund. The firm – operated by ex-Carlyle Group executives – could reach its first close by the end of the month, according to Reuters.
Will Walgreens Shatter the Private Equity LBO Record?
KKR and other PE Firms are Eyeing the Pharmacy Benefits Giant Walgreen Boots Alliance is talking to private equity firms about going private. CNBC reports that KKR is one of several shops thinking about buying the $55 billion company. Such a deal would be a massive purchase for one private equity shop. It could also…
Inmarsat Rejects Oaktree’s Push to Delay Court Hearing
Oaktree Capital had requested a delay to a takeover court hearing around the takeover of Inmarsat. The British satellite company, however, rejected the delay for the November 12 meeting. Oaktree wants greater insight into the status of Inmarsat’s U.S. spectrum holdings.
An Ares Management Earnings Recap
Ares Management shows strong revenue gains. Ares Management earnings arrived last week. Revenue grew by 94% to $466.5 million year-over-year while the reported earnings of $.23 a share represented a 153% increase over last year. Assets under management rose 15% to $144.3 billion. The Ares Management earnings report also showed a 14% increase in the…
Simplifya Exec John Vardaman: Cannabis and Banking Bring Transparency
Simplifya executive John Vardaman says that the Federal status of cannabis laws make it one of the most transparent industries for banking.
Melvin: Digesting KKR Earnings for Q3
KKR earnings came out this week. If you read the headlines surround the recent earnings report form KKR and Company (KKR), you would think the world had ended for the private equity and alternative investment firm. While earnings did drop 23% year over year, this was implied because the company did not sell many assets to generate incentive fees in the quarter. The media loved the topic, but it didn’t come up n the analyst and investors call in any significant way at all.
KKR & Co Reports 23% Drop in Quarterly Profits
KKR & Co announced a 23% year-on-year decline in quarterly profits today. The firm’s report showed a dip in revenue as asset sales slow among private equity firms. Overall, post-tax distributable earnings fell from $494.7 million in Q3 2018 to $388.8 million in Q3 2019.
Allworth Financial Buys RAA and Expands U.S. Reach
Allworth Financial is purchasing RAA, one of the country’s largest financial planning firms specializing in the airline industry. Based in Dallas, RAA manages roughly $2.8 billion of client assets. This brings Allworth’s AUM more than $7.5 billion.
Apollo Global Doubles Stake in Athene Holding
Apollo Global Management will buy an 18% stake in Athene Holding (NYSE: ATH). The $1.55 billion deal will see Apollo double its stake to roughly 35%. The purchase comprises about 35.5 million common shares.
Melvin: Recapping the Blackstone Earnings Report
The Blackstone earnings report is always an important quarterly event. Over my years in the investment business, I have learned to watch what people are doing with their money instead of what they say they are doing.
Private Equity Giant Blackstone Reports Third Quarter Earnings
Private Equity Giant Sees Big Jump in Fee-Related Earnings Private equity company Blackstone Group reported earnings for the third quarter of 2019. GAAP net income was $1.2 billion for the quarter and $2.9 billion year-to-date. Revenues were down with $1,735,113 versus $1,926,580 in the comparable quarter last year. Distributable earnings per share came in at…
Tim Melvin: The Case for Private Equity Replication
Private equity replication represents a unique opportunity for investors to avoid the high costs of PE investment. Forbes Magazine recently ran a story about the high barriers to entry for private equity investors.
New KKR Leadership in Americas, Europe, and Asia Pacific
KKR leadership changes occurred this week. The private equity giant promoted six people (in three pairs) to lead the firm’s private equity businesses in the Americas, Europe, and Asia-Pacific.
A “Shocking” End to Neil Woodford’s Flagship Fund
Neil Woodford is out as manager of the fund he founded. And now, the fund will shut down. Fund administrators closed the fund and said it was not in the best interest of investors to keep it open. Due to financial regulations, investors will not receive their capital back until mid-January 2020.
Private Equity Giant Thoma Bravo Eyes $15 Billion Fund in 2020
Thoma Bravo, the Chicago-based, software-focused private equity shop, is considering a megafund. Bloomberg reports the PE firm wants to establish a $15 billion megafund in early 2020.
LGT Capital Partners Announces Close of $1 Billion Asian Fund
LGT Capital Partners announced the successful raise of $1 billion. The Swiss alternatives manager will allocate the capital to its fourth private equity fund in the Asia-Pacific region.
Hilton Grand Vacations Might Experience a Bidding War
Hilton Grand Vacations may soon experience a bidding war from two private equity titans. Apollo Management has reportedly made an offer for the Orlando0based timeshare company. Early reports suggest a price of $40 per share. Its competitor Blackstone may also make an offer for Hilton Grand Vacations.
KKR & Co Cuts IPO Price for Latitude Financial
KKR & Co and its investment partners will lower the IPO price for their Australian non-bank lender Latitude Financial. A Reuters report indicates that the private equity giant could drop the price by at least 11%. This is likely a disappointment for KKR & Co. and its partners Deutsche Bank and Varde Partners. This is the second attempt to list Latitude, which was set to go public this week.
Two Private Equity Firms Buy Management Services Arm of AECOM
Private equity firms Lindsay Goldberg and American Securities are buying assets from construction giant AECOM. The target company issued a report this morning saying it agreed to a deal worth $2.4 billion for its management services division. That arm of the company provides logistics and technical services to the Federal government.
Cerberus Buys Closure Systems International from Reynolds Group
Cerberus Capital Management announced that one of its affiliates has entered into a definitive agreement to buy assets from Reynolds Group. The private equity giant will acquire the North American, Costa Rican, and Japanese businesses and related facilities of Closure Systems International.