The Rise and Rise of Private Equity

The past five years were fuelled with success for the private equity industry. During these years, more money has been raised, invested and distributed back to investors than ever before in the industry’s history. Let us give some figures: between 2000 and 2019 the number of Private Equity-backed companies in the US rose from lessContinue reading “The Rise and Rise of Private Equity”

Giant deal in the pharmaceutical sector: Bristol-Myers Squibb buys Celgene

Last 6th January, US drug manufacturer Bristol-Myers Squibb (NYSE:BMY) and Celgene Corporation (NASDAQ:CELG) announced that they have entered into a definitive merger agreement under which BMY would have acquired Celgene for an equity value of approximately USD 74bn. The board of the two firms welcome the acquisition which will imply that Bristol-Myers Squibb’s shareholders willContinue reading “Giant deal in the pharmaceutical sector: Bristol-Myers Squibb buys Celgene”

THE RISE OF GREEN ECONOMY, A NEW CHALLENGE FOR MANAGERS AND A NEW OPPORTUNITY FOR INVESTORS

Introducing the Green Economy Investors have always looked at various elements for their investments in order to make the best choices and historically it was mainly a matter of returns. Responsible investments began in the 1960s as a social criterion, with investors excluding stocks involved in tobacco production or in the South African apartheid regime.Continue reading “THE RISE OF GREEN ECONOMY, A NEW CHALLENGE FOR MANAGERS AND A NEW OPPORTUNITY FOR INVESTORS”

PART I – What happened in 2018? Bain & Company “Global Private Equity Report 2019”

1. PE funds produced another impressive surge in investment value in 2018, capping the strongest five-year stretch in the industry’s history. Fierce competition and rising asset prices continued to constrain deal count (i.e. the number of transactions fell by -13%, to 2,936 worldwide) with total buyout value jumped +10% to $582bn supported by a strongContinue reading “PART I – What happened in 2018? Bain & Company “Global Private Equity Report 2019””

US monetary policy influence on an increasingly globalised economy

From Quantitative Easing to Tightening Policies On Tuesday 16th December 2008, following the recession, the Federal Reserve lowered its benchmark interest rate to a range of 0 – 0.25%. The central bank also implemented the Quantitative Easing, which consists in purchasing US Treasuries and mortgage-backed securities to increase liquidity and stimulate the economy with newContinue reading “US monetary policy influence on an increasingly globalised economy”

Small investment bank boutiques cash in on mega M&A deals

(On the right side is Simon Warshaw and on the left side is Michael Zaoui)   While it’s normal that big name players take mega deals in M&A market, small investment bank boutiques in London have shared a bigger slice of the pie than ever before, and, many times, some of them are beating bigContinue reading “Small investment bank boutiques cash in on mega M&A deals”

US-China Trade War Effect on the EU

Back in March we introduced and briefly discussed Trump’s intention to impose tariffs on steel and aluminum goods. In less than a year those trade disputes escalated in a trade war, impacting not only the two involved countries but also other trading partners, including the EU. The disaffection versus international institutions has been driven byContinue reading “US-China Trade War Effect on the EU”

The Race has started for European PE firms to join the $100bn Club!

By Ascanio Rossini The race to become Europe’s first $100bn private-equity firm is accelerating as the recent fundraising boom shows. Europe’s largest investment firms, including Ardian, Partners Group and CVC Capital Partners, are closing in on $100bn in AuM after raising some of their largest-ever funds in recent years and launching new investment strategies inContinue reading “The Race has started for European PE firms to join the $100bn Club!”

ALL TIME CLASSIC! KKR’s first leveraged buyout battle ($25bn). The fall of RJR Nabisco. Yes! Barbarians are really at the gate.

Authors: Qitong Sun and Massimiliano Marchisio Date 30 November 1988 Type of transaction Leveraged Buyout Valuation 7.5-8.0x FY 1988 EBITDA of c. $3.1bn Bidder KKR Target company (sector) Financials RJR Nabisco (Tobacco & Food) FY1988 Rev./EBITDA $16.9bn/$3.1bn (margin c.18.3%) Rationale RJR Nabisco’s operations exhibited moderate and consistent growth, required little capital investment and carried lowContinue reading “ALL TIME CLASSIC! KKR’s first leveraged buyout battle ($25bn). The fall of RJR Nabisco. Yes! Barbarians are really at the gate.”

Alternative investments will hit record $14 trillion AUM in 2023. What about PE?

Alternative investments will hit record $14 trillion AUM in 2023. What about PE? The popularity of the alternative investments space does not come as a novelty in a period in which investors increasingly seek to shy away from the less attractive returns of traditional asset classes. The news is however, that forecasts see the industryContinue reading “Alternative investments will hit record $14 trillion AUM in 2023. What about PE?”