|Bid||37.97 x 900|
|Ask||38.04 x 1000|
|Day's Range||37.25 - 38.09|
|52 Week Range||29.82 - 46.55|
|Beta (3Y Monthly)||1.41|
|PE Ratio (TTM)||36.49|
|Forward Dividend & Yield||0.25 (0.67%)|
|1y Target Est||46.38|
The world of private equity involves some of the world's most prominent asset managers. On Aug. 9, BlackRock (NYSE:BLK) closed a deal to invest $875 million for a 30% stake in Authentic Brands, the owner of Sports Illustrated, Nine West, Juicy Couture and many others. The investment was the first from the asset manager's new private-equity fund, Long Term Private Capital, which finished raising $2.75 billion in April from several cornerstone investors. Authentic Brands is the fund's first significant investment. InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhat makes BlackRock's private equity fund different is that it intends to make investments for the long haul. * 10 Cheap Dividend Stocks to Load Up On "For institutional investors who want equity exposure, there's a need for an additional type of investment on the continuum between publicly traded equities and leveraged buyout style private equity - one that is potentially more rewarding than public equities but less risky than highly-leveraged buyouts," said Mark Wiseman, Chairman of BlackRock's alternative investors division in April. Most private equity firms buy a company, add leverage to help pay for the acquisition, find some growth either organically or through bolt-on purchases, and then sell it of five to seven years later for several times the original equity investment. Private equity investing can be very lucrative. However, unless you've got billions to invest, many of the best opportunities are unavailable to the retail investor. To gain access to these private equity deals, there are some ways a regular Joe can do it. Here are seven options on how to invest in private equity without being a billionaire. Ways to Play Private Equity: BlackRock (BLK)Source: Shutterstock For those investors who aren't familiar with BlackRock, it's one of the largest asset managers in the world with $6.8 trillion in assets under management (AUM) as of the end of June. It operates iShares, the largest ETF provider in the world, with $2 trillion in AUM. iShares provides ETFs at relatively inexpensive management expense ratios. However, when you have $2 trillion in assets to generate fees from those ETFs, the revenues accumulate pretty quickly. In BlackRock's Q2 2019, iShares ETFs accounted for 39% of the company's base fees in the quarter. The company's ongoing foray into alternative investments such as private equity is going to take a long time to catch up to iShares' fee generation. In the second quarter, alternative investments accounted for just 8% of BlackRock's $2.9 billion in base fees.So, if you buy into BLK stock because of its Long Term Private Capital Fund, it's important to remember that it's but a small piece of the BlackRock pie; albeit a very interesting and innovative approach to private equity investing. Buying into BlackRock is a great way to play private equity while still hedging your bets. Brookfield Business Partners (BBU)Brookfield Business Partners (NYSE:BBU), the private equity arm of Toronto-based Brookfield Asset Management (NYSE:BAM), announced Aug. 13 that it was buying Genworth Financial's (NYSE:GNW) 57% stake in Genworth MI Canada, one of Canada's largest mortgage insurance providers. Brookfield is paying C$48.86 a share for the C$2.4 billion controlling interest. Genworth MI Canada is one of just three companies that provide mortgage insurance in Canada. This is the kind of deal Brookfield likes to make. It's paying a reasonable price for an asset that's got a lot of upside outside of Canada. "This hints at potential global expansion of MIC (Genworth MI Canada) operations … which could drive enhanced growth and profitability," National Bank of Canada analyst Jaeme Gloyn wrote in a note to clients. Under Genworth Financial's ownership, the Canadian unit was unable to operate in any countries where the parent operated. Now, it will be able to head south with a strong financial backer in its corner.Brookfield is known for adding value to its investments while remaining patient about its exit. The company will do what needs to be done to deliver excellent returns for shareholders. * 10 Stocks Under $5 to Buy for Fall BAM is one of my favorite stocks to hold forever because they understand capital allocation better than most. Blackstone Group (BX) Source: Shutterstock New York-based Blackstone Group (NYSE:BX) is one of the world's largest alternative asset managers with $512 billion in assets under management. On July 1, it completed its conversion from a publicly-traded partnership to a corporation. The company made the switch to make it easier for investors to own its stock. By converting, investors no longer need to file a Schedule K-1 for their taxes, making the paperwork from the investment far less cumbersome.Of the 150 largest U.S. public companies, Blackstone ranks first in terms of its long-term 10-year growth rate for revenues and earnings as well as its pre-tax margin and dividend yield. So, despite being one of the best-run businesses in the country, its partnership structure limited the market for its stock.For example, 58% of the largest 150 companies referenced above are included in U.S. long-only and index ETFs. By comparison, BX is only included in 21% of the U.S. long-only and index ETFs. That's all because it wasn't a corporation.As far as private equity goes, Blackstone has $171 billion in assets under management. Those assets are invested in more than 97 companies with combined revenues of more than $76 billion and employing more than 400,000 people around the world. At the current moment, it has $75 billion in available capital. Onex (ONEXF)Source: Shutterstock One of two Canadian private equity companies on the list, Onex (OTCMKTS:ONEX) has been in the news a lot lately for its acquisition of WestJet Airlines (OTCMKTS:WJAFF), Canada's second-largest airline behind Air Canada (OTCMKTS:ACDVF).On Aug. 13, the Canadian Competition Bureau OK'd the transaction. Previously, Canada's Transport Minister, Marc Garneau, approved the C$3.5 billion deal. Originally, Onex was prepared to pay C$35.75 a share. However, the ongoing troubles with the Boeing 737 Max reduced the price by C$4.75 to C$31. The deal's expected to be approved by the remaining Canadian regulators who have yet to render a decision. The transaction should close in the fourth quarter of 2019.Although WestJet is one of Onex's highest-profile acquisitions in its 35-year history, it manages more than C$39 billion in assets including C$6.9 billion of its own capital. Of the $39 billion, approximately 69% is invested in private equity with the rest in cash (18%), credit (12%) and fixed-income investments, as well as a small amount in real estate (1%). Onex's private equity investing has generated a gross multiple of capital invested of 2.6 times and a 27% gross IRR (internal rate of return) on realized, substantially realized, and publicly traded investments. * 15 Growth Stocks to Buy for the Long Haul Like Brookfield, it's a patient investor. Compass Diversified Holdings (CODI)Compass Diversified Holdings (NYSE:CODI) is by far the smallest of the private equity stocks listed in this article with a market cap of just $1.1 billion.Not only does CODI take majority-ownership stakes in middle-market businesses in North America, it also provides debt and equity for its subsidiaries to grow. It currently owns eight different companies.2019 has been a hectic year for CODI selling two of its businesses for large amounts. On July 1, it announced the sale of Clean Earth, one of the largest specialty waste processors in the U.S, for $625 million. The sale netted Compass Diversified $200 million which it used to eliminate the outstanding debt on CODI's revolving credit facility. In February, CODI sold Manitoba Harvest Hemp Foods to Tilray (NASDAQ:TLRY) for $316.6 million. Manitoba Harvest gives Tilray a big piece of the U.S. hemp foods market. Compass Diversified will turn around and find one or two new platform companies on which to grow. Once upon a time, CODI owned Fox Factory Holding (NASDAQ:FOXF), makers of bike and truck shocks, until it took FOXF public in 2013. With just eight businesses owned, it has a much easier job managing its investments. If you're patient, CODI will reward you over the long haul. Ways to Play Private Equity: Invesco Global Listed Private Equity ETF (PSP)The first of two available private equity ETFs, the Invesco Global Listed Private Equity ETF (NYSEARCA:PSP) has an exceptionally high management expense ratio of 2.03%. The ETF tracks the performance of the Red Rocks Global Listed Private Equity Index. The index typically invests in 40 to 75 private equity companies including BDCs, MLPs, and other investment vehicles. Currently, PSP has 68 holdings with 41% allocated to U.S. companies, another 16% to the UK, and Switzerland at 6%. If you like to invest in mid-cap and small-cap stocks, PSP allocates just 29% to large caps. Of its top 10 holdings, one of the companies listed in this article (Blackstone) is held in its largest holdings. Brookfield Business Partners, Onex, and Compass Diversified are also held. Over the past 10 years, PSP has generated an annualized total return of 9.5%, which is a decent, if not great return over the period. * 10 Stocks Under $5 to Buy for Fall If you're wondering why the fee is so high, it incorporates the fund fees of the 68 holdings in the ETF. The management fee itself is 0.50%. ProShares Global Listed Private Equity ETF (PEX)Not nearly as large an ETF in terms of assets with just $18.8 million, the ProShares Global Listed Private Equity (BATS:PEX), the ETF tracks the performance of the LPX Direct Listed Private Equity Index, a diversified global portfolio of listed private equity companies whose primary business is direct investments in private enterprises. It currently owns 30 stocks, including Onex, which is the ETFs second-largest holding, accounting for almost 10% of the entire portfolio. The largest holding in PEX is Ares Capital (NYSE:ARCC), a BDC with nearly $8 billion in market cap. It's hard to believe, but PEX is 75 basis points more expensive than PSP at 2.78% annually. Excluding the acquired fund fees from the ETFs 30 holdings, it charges 0.60%. There's no mystery why private equity ETFs haven't grown their net assets beyond $220 million. You're probably better off just putting money into an ETF that holds some of the companies listed above. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 7 Ways to Play Private Equity Without Being a Billionaire appeared first on InvestorPlace.
Genworth's (GNW) pending divestment of Genworth MI Canada for $1.8 billion marks a step forward toward closure of Genworth???s takeover by China Oceanwide Holdings Group.
Shares of insurer Genworth Financial Inc. soared 15.6% in premarket trade Tuesday, after the company said it has agreed to sell a majority stake in Genworth MI Canada to Brookfield Business Partners LP for about C$2.4 billion ($1.8 billion). Brookfield will pay C$48.86 per Genworth MI Canada share to acquire a 56.9% stake in the company, which is a private sector residential mortgage insurer. Genworth is making the sale to increase the chance of closing the acquisition of the company by China Oceanwide Holdings Group Co. Ltd. and its affiliates. Genworth shares have fallen 17% in 2019, while the S&P 500 has gained 15%.
Genworth said it would sell the stake in Genworth MI Canada Inc to investment manager Brookfield Business Partners LP for C$48.86 per share, a 4.1% discount to the Canadian unit's close on Monday. The U.S. insurer had already announced that it would explore a sale for Genworth MI Canada as Canadian regulators are yet to approve the deal with Oceanwide [OWREAC.UL]. Genworth's shares were up about 18% at $4.55 before the bell.
Shares of Genworth jump after Brookfield Business Partners LP, the publicly traded investment arm of Brookfield Asset Management, announces an agreement to buy majority control of Genworth MI Canada, one of the country's largest mortgage insurers.
RICHMOND, Va. , Aug. 13, 2019 /PRNewswire/ -- Genworth Financial, Inc. (NYSE: GNW) ("Genworth") and Brookfield Business Partners L.P. (NYSE: BBU) (TSX: BBU.UN) ("Brookfield Business Partners") ...
Brookfield Business Partners L.P. (BBU) (BBU-UN.TO) ("Brookfield Business Partners") announced today an agreement (the “Purchase Agreement”) to acquire an aggregate of 48,944,645 common shares (the “Acquired Shares”) of Genworth MI Canada Inc. (“Genworth Canada” or “the business”) (MIC.TO), representing an approximate 57% controlling interest in the business, from Genworth Financial, Inc. (GNW) for approximately C$2.4 billion (US$1.8 billion) or C$48.86 per share. Immediately prior to entering into the Purchase Agreement, Brookfield Business Partners did not own any common shares in the capital of Genworth Canada (“Shares”). Genworth Canada, through its subsidiary Genworth Financial Mortgage Insurance Company Canada, is the largest private sector residential mortgage insurer in Canada, providing mortgage default insurance to Canadian residential mortgage lenders, making homeownership more accessible to first-time homebuyers.
Brookfield Business Partners L.P. (BBU) (BBU-UN.TO) (“Brookfield Business Partners”) today announced that the Toronto Stock Exchange (the “TSX”) has accepted a notice filed by Brookfield Business Partners of its intention to renew its normal course issuer bid for its limited partnership units (the “units”). Brookfield Business Partners believes that in the event the units trade in a price range that does not fully reflect their value, the acquisition of units may represent an attractive use of available funds. Under the normal course issuer bid, the Board of Directors of the general partner of Brookfield Business Partners authorized the partnership to repurchase up to 5% of the total issued and outstanding units, or 4,050,188 units.
BROOKFIELD, NEWS, July 31, 2019 -- Brookfield Business Partners L.P. (NYSE: BBU) (TSX: BBU.UN) (“Brookfield Business Partners”) announced today financial results for the.
Revenues of $319.8 million and net loss of $28.0 million, or ($0.09) per common unitAdjusted net income attributable to the partners and preferred unitholders(1) of $4.7 million.
Brookfield Business Partners L.P. (BBU) (BBU-UN.TO) (“Brookfield Business Partners”) today announced that the underwriters for its public offering (the “Offering”) of 8,760,000 limited partnership units (“units”) that closed on June 28, 2019 have partially exercised their option (the “Over-Allotment Option”) to purchase an additional 1,070,000 units at a price of $39.40 per unit. Brookfield Business Partners will receive additional gross proceeds of approximately $42,158,000 from the exercise of the Over-Allotment Option. Closing of the partial exercise of the Over-Allotment Option is scheduled to occur on or about July 24, 2019.
HAMILTON, Bermuda, July 08, 2019 -- Teekay Offshore Partners L.P. (Teekay Offshore or the Partnership) (NYSE:TOO) announced today the following change to the Board of Directors.
Date: Wednesday, July 31, 2019Time: 10:00 a.m. (Eastern Time) BROOKFIELD, NEWS, July 03, 2019 -- You are invited to participate in Brookfield Business Partners’ (TSX: BBU.UN).
BROOKFIELD NEWS, June 27, 2019 -- Brookfield Business Partners L.P. (NYSE:BBU) (TSX:BBU.UN) ("Brookfield Business Partners") today announced that it has closed the previously.
NEW YORK, June 25, 2019 /PRNewswire/ -- On June 21, 2019, Teekay Offshore (TOO) announced an updated valuation figure for the Company's consolidated assets of $5.3 billion across 60 vessels or approximately $2.80 per unit, net of all obligations. JDP Managing Partner Jeremy Deal commented: "While there are many ways to value a business, one of the easiest is to simply look at the net book asset value. In a leasing business with a large moat such as TOO's, over time, management should be able to achieve a premium over net book asset value.
All amounts in U.S. dollars BROOKFIELD, News, June 20, 2019 -- Brookfield Business Partners L.P. (NYSE:BBU; TSX:BBU.UN) (“Brookfield Business Partners”) today announced that.
NEW YORK , June 19, 2019 /PRNewswire/ -- JDP has released a presentation on its website titled "The Numbers Don't Lie: Interpreting the Brookfield Offer for Teekay Offshore." JDP Managing Partner ...
Note: On June 18, 2019, the press release was corrected as follows: The publication type was changed to Announcement and the last two disclosures were changed to the following: This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. Revised release follows. New York, June 17, 2019 -- Moody's Investors Service ("Moody's") noted that Brookfield WEC Holdings Inc. (B2 stable) pursuit of a $325 million add-on to its existing first lien term loan (rated B2) is credit neutral.
BROOKFIELD NEWS, June 06, 2019 -- Brookfield Business Partners L.P. (NYSE:BBU) (TSX:BBU.UN) ("Brookfield Business Partners") together with its institutional partners, today.
BROOKFIELD NEWS, May 31, 2019 -- Brookfield Business Partners L.P. (NYSE:BBU) (TSX:BBU.UN) ("Brookfield Business Partners") together with its institutional partners.