|Bid||0.00 x 1400|
|Ask||53.89 x 800|
|Day's Range||52.19 - 52.90|
|52 Week Range||26.88 - 55.17|
|Beta (3Y Monthly)||1.42|
|PE Ratio (TTM)||95.52|
|Earnings Date||Jan 29, 2020 - Feb 3, 2020|
|Forward Dividend & Yield||1.96 (3.74%)|
|1y Target Est||54.54|
(Bloomberg) -- Executives at Cadre eagerly watched SoftBank’s Vision Fund dole out billions of dollars to companies like Uber, WeWork and Slack Technologies. Then they got their chance.After presenting Cadre’s real estate platform and its budding technology to the fund’s representatives in New York, CEO Ryan Williams flew to Tokyo in early 2018 at the invitation of Masayoshi Son, who oversees the $100 billion fund. The talks were promising.But there was a hitch: Cadre co-founder Jared Kushner.SoftBank wanted him to divest his ownership stake in the company, according to two people familiar with the matter. The request, not previously reported, was meant to head off any possible conflicts of interest or any suggestions that people doing business with Cadre were trying to curry political favor. That’s because Kushner has become a top adviser to his father in law, President Donald Trump, overseeing a broad foreign policy portfolio.The SoftBank talks fizzled. Like Trump, Kushner declined to shed all of his business interests upon joining the White House. Asked about his Cadre holdings and possible conflicts, a spokesman for Kushner said he “took himself out of all decisions and operations and became only a passive shareholder in Cadre” when he moved to Washington.Cadre and SoftBank declined to comment about the matter or whether Kushner ever entertained selling his stake.SoftBank’s decision to take a pass was a missed opportunity for Cadre that frustrated some top executives. Founded five years ago by Williams with a Harvard classmate, Josh Kushner, and his brother Jared, the company has grown into a midsize real estate manager with more than $800 million invested through its web marketplace.Despite that growth, its biggest ambition hasn’t been realized. Williams’ vision was to make real estate investments easy for the masses, sort of an Amazon for the real-estate obsessed who want to buy and sell shares of commercial properties. Only accredited, high net worth individuals can participate under current regulations, however. Similarly, Cadre’s plans to use artificial intelligence to uncover hidden investment opportunities have run up against the limits of property data, which is scattered and disorganized.Along with those obstacles, Cadre has had to weave a path around the Kushners' rising political profile, executive departures and some inflated business claims, according to company documents reviewed by Bloomberg News and interviews with more than a dozen investors, current and former employees, and others with knowledge of its inner workings. Forceful PitchCadre's engagement with SoftBank exemplified those problems. When Vision Fund representatives traveled to Cadre’s offices in the Kushners’ historic Puck Building in downtown New York early last year, Williams’ executives made a forceful pitch.The Cadre executives said they were already making “data-enhanced” decisions. In a demo, executives typed in a street address to get all sorts of data that might interest an investor: net operating income, occupancy rate, lease terms. But Cadre hadn’t been using the tool; instead, Cadre had built it in the weeks ahead of the presentation, expressly to impress SoftBank, two people familiar with the matter said.After this article was published, a person close to Cadre disputed that account. “The only software Cadre showed during the SoftBank meeting was the standard platform demo that includes Cadre's primary marketplace and investing experience that thousands of customers have used. Anyone who suggests otherwise is completely misinformed or not telling the truth," the person said.There’s no indication that SoftBank questioned the viability of the software. Start-up companies seeking financing often present an aspirational version of their product, even if it’s not yet ready for commercial use. Vision Fund executives were impressed enough by the meeting to push Cadre up the chain to SoftBank’s Son, several people familiar with the matter said.Tech ProgressCadre declined to comment on the contents of its SoftBank pitch. The company has made progress with its technology, Williams told Bloomberg News in a September interview at the company’s offices. For example, he said, Cadre has enhanced its marketplace to allow investors to trade property stakes. In theory, if that secondary sales platform grew large enough to meet regulatory requirements for a liquid market, ordinary investors might be allowed to trade on the Cadre platform.The company has also started a project called Keystone to organize data in the way the company pitched to SoftBank. Williams said he believes Cadre will eventually be able to expand into other alternative asset classes, including infrastructure and energy.“You learn, you pivot, you make quick decisions about what’s working and what’s not working,” Williams said. “We’re not here promising we’re building crazy machine-learning models or predictive analytics that are going to replace the need for humans.”Cadre has good reason to position itself as a cutting-edge technology provider rather than a more pedestrian buyer of real estate. Investors eager to bet on a disruptive force have valued property technology firms like Cadre and the brokerage Compass at multiples of their revenue. Cadre’s last funding round, in 2017, valued it at $800 million, even though it had bought stakes in only a handful of properties worth far less. Traditional real estate firms are generally valued at a small fraction of the assets they oversee. Newfangled real estate firms have lost some of their shine lately. WeWork’s valuation has collapsed to about $8 billion, down from $47 billion just months ago, after a canceled initial public offering and a $9.5 billion rescue package from SoftBank. Compass, another firm backed by SoftBank that promises to pair technology with residential real estate brokers, has faced questions about whether its technology is game-changing.From Cadre, SoftBank wanted a significant stake that would have doubled the company’s valuation to $2 billion or more, according to people familiar with the matter.Small InvestorsWilliams says the idea for Cadre came after he realized that small investors had limited options for buying real estate: They could either plow money into their own residence or buy shares in broad-based real estate investment trusts. Why couldn’t investors instead buy slivers of several properties the way they could buy shares in companies? He wanted to “democratize” access to the asset class.Since then, Cadre has teamed up with developers and landlords to buy stakes in properties across the U.S. — more than two dozen multifamily, hotel and office properties from Maryland to Texas to California. The aim is to be highly selective about deals, using metrics including rent growth and rent affordability, to generate outsize returns for clients.In September, Cadre said it sold stakes in suburban apartment complexes outside Chicago and Atlanta for an internalized rate of return exceeding 20 percent. “It has been exciting to see the concept we envisioned proved out,” Williams said, “and to show our investors that we honor the trust they are placing in us.'”Cadre’s aspiration to offer sophisticated real estate investments to the masses is limited, for now, by regulations concerning investments sold privately. As a result, Cadre’s customer base is made up of institutions and high-net-worth individuals. Many of those wealthy clients are overseas.About 20 percent of Cadre’s funds come from outside the U.S., the company says. The company’s international clientele is mostly wealthy individuals and family offices, as opposed to institutions, according to Williams.“We haven’t done a ton of international marketing,” he said. “It’s a testament to the brand awareness.”Foreign-Policy RoleAs the SoftBank courtship made clear, Cadre’s interactions with foreign investors could make for particularly messy optics because of Jared Kushner’s hefty foreign-policy portfolio in the White House.Almost half of the Vision Fund’s money comes from the government of Saudi Arabia, where Kushner has developed deep diplomatic ties. Kushner’s Saudi forays included an all-night desert meeting in October 2017 with the crown prince, Mohammed bin Salman, about a year before the journalist Jamal Khashoggi was murdered at a Saudi consulate in Istanbul.Critics saw any SoftBank infusion in Cadre as a possible way for Saudi Arabia to curry favor with the Trump administration by enriching Kushner.Kushner’s lawyers have long said he follows all ethics rules.As he joined the White House, Kushner transferred stakes in dozens of other assets to close family. Cadre was an exception, two friends explained, because Kushner sees it as a once-in-a-lifetime opportunity, with great potential for gains. Kushner’s stake was recently valued at as much as $50 million, according to a federal financial disclosure.Cadre executives including Mike Fascitelli, the former CEO of Vornado Real Estate who oversees Cadre’s investment committee, were disappointed that Kushner’s involvement in the company had caused the missed opportunity, according to a person familiar with the deal talks.Williams’ exasperation over the Kushner scrutiny bubbled over in a February cover story in Forbes magazine. “Jared is a passive investor who has no operational control,” he told the magazine, adding that “I can’t force anybody, really, to sell their equity.”Kushner Cos.Without the Kushners, there would be no Cadre. The young firm tapped capital from the Kushner family and executives of Kushner Cos. (The overall size of those investments hasn’t been disclosed.)Cadre is housed in the 19th-century Puck Building, among the Kushners’ prized assets. Two floors up are the offices of Thrive Capital, the venture capital firm of Josh Kushner, who continues to advise Cadre. Cadre’s first two investments came as part of Kushner Cos. deals for apartments in Queens and suburban New Jersey, giving the start-up early viability.Now, Williams is trying to create distance between Cadre and Kushner Cos., people familiar with the matter say. Earlier this year, the Kushners bought a $1 billion portfolio of apartments in Maryland and Virginia, their biggest purchase in a decade. As with most of their acquisitions, they needed outside investors to complete the deal.Executives from Kushner Cos. approached Cadre about the prospect, putting Williams and other executives in the awkward position of having to decline, according to a person familiar with the talks. The size of the deal and the Kushner connection were both factors, the person said.The person close to Cadre said it was never approached with those investments.Kushner Cos. didn’t respond to a request for comment. A spokesman for Williams declined to comment on the Kushner Cos. decision.Although SoftBank took a pass, several name-brand investors have shown confidence in Cadre. George Soros and Andrew Farkas have backed the firm, along with major Silicon Valley firms including Khosla Ventures and Andreessen Horowitz. Goldman Sachs Group Inc. has invested its clients' money using the Cadre platform.Blackstone HistoryWilliams, a 31-year-old fitness devotee, had a short resume with similar blue-chip names when he began the company. After a stint at Goldman Sachs, he moved to the Blackstone Group as an analyst in its real estate division.There’s been some friction between Williams and Blackstone since his departure in 2014. Several of his former colleagues say he has at times overstated his role and accomplishments at the firm.Williams has said, for example, that he played a central role in the launch of a single-family home-rental business at Blackstone. A Cadre press statement also credited him with acquiring a $550 million hotel while at Blackstone, despite his relatively junior role.After he poached about a half dozen Blackstone employees to join him at Cadre, Williams was summoned to a meeting at Blackstone’s Park Avenue offices with Jon Gray, the billionaire heir apparent to the Blackstone CEO job who was then leading its real estate arm.When asked about the April 2016 meeting, a Blackstone spokesman, Matthew Anderson, said that the firm wouldn’t discuss private talks but that it “was an entirely cordial and pleasant conversation.”A video from a Google conference last year in which Williams talked about his decision to start Cadre caught the attention of a Blackstone-aligned person.“When I told Blackstone what I was doing,” Williams says in the video, “I’d just been promoted, they gave me this quick, accelerated path to partner and told me they’d let me go to Europe and help with the debt business out there.”Two people familiar with his role said Williams hadn’t been told he'd be promoted to partner. Through a spokesman, Williams declined to comment on those assertions.More: Kushners’ Blackstone Connection Put on Display in Saudi Arabia Team ‘Tagma’Cadre has also been hobbled by departures from its senior executive ranks. The team, known internally as “Tagma,” a Greek term used to describe an infantry battalion, recently lost several top staff including investment leaders and the head of human resources. The company has been searching for a chief investment officer for over a year.Just before the Tagma team pitched the Vision Fund, its chief technology officer, Jean Sini, left the company. Several people said Cadre’s lack of technology progress frustrated Sini, an alumnus of Intuit Inc. and Oracle Corp. Sini declined to comment.Got a tip?Click for a secure and anonymous link to Bloomberg reporters.The company’s technology efforts are now focused on automation and analysis of data about its own properties, with the hope that this could yield investing insights in the future.The big question for investors and potential partners is whether Cadre is merely a tech-enabled real estate company or a game-changer.“You can hire as many developers as you want,” said David Friedman, CEO of a property tech start-up known as Knox Financial that doesn’t compete directly with Cadre. He declined to speak specifically about Cadre. “But if your tech doesn’t deliver a new way of doing business that’s measurably more profitable, then you’re not a tech company.”Cadre's website alternates between describing what it can do now and where it hopes to go. “We acquire and aggregate data, create algorithms that use machine learning and statistics to derive insights, and visualize findings,” one page reads.It has also posted jobs for engineers who can help the company crunch data the way it wants. The ideal candidate? Someone who’s “driven to solve hard problems in novel, elegant ways.” (Updates to reflect post-publication comments from a person close to Cadre.)\--With assistance from Stephanie Baker and David Ingold.To contact the authors of this story: Caleb Melby in New York at email@example.comGillian Tan in New York at firstname.lastname@example.orgDavid Kocieniewski in New York at email@example.comTo contact the editor responsible for this story: Winnie O'Kelley at firstname.lastname@example.org, David S JoachimFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Fortress Investment Group on Friday raised its bid for Japan's Unizo Holdings by just 2.5%, still far below an offer from rival suitor Blackstone Group but keeping its hand in in what could become a long fight for the hotel operator. Unizo had at one stage turned to SoftBank Group-owned Fortress for help in fending off an offer from domestic travel firm H.I.S. Co Ltd. But the hotel operator is currently spurning all approaches, asking for control in how any potential owner would exit its investment. It extended its tender offer for a sixth time, until Nov. 29.
(Bloomberg Opinion) -- Having gained encouragement and some success during the rule of Prime Minister Shinzo Abe, foreign activist investors may be about to find Japan turning less hospitable. The government should be wary of alienating an ally that has aided its campaign to improve shareholder returns at the nation’s companies.Overseas investors will have to report when they buy 1% of a company related to national security, down from 10% now, under rules scheduled to be passed by the Diet by Dec. 9. While the Ministry of Finance has announced a list of exemptions following opposition from market participants, hedge funds and private-equity investors remain perturbed amid a lack of clarity over how the law will be applied.Dan Loeb, with tilts at Sony Corp. and Seven & i Holdings Co., and Paul Singer’s Elliott Management Corp. are among activist investors that have ventured into Japan since Abe unleashed the “third arrow” of his so-called Abenomics program: corporate governance reform. The premier was addressing a key problem of Japan Inc. Companies had long been awash with cash and stingy with buybacks or dividends, while minority investors often took a back seat.The push has shown progress, as my colleague Shuli Ren has noted. Buybacks in Japan almost doubled to 4.7 trillion yen ($43 billion) in the six months through September from a year earlier. Takeover battles such as the tussle for developer Unizo Holdings Co., are a sign of how things have changed. A bidding war involving foreign private-equity firms including Elliott, Blackstone Group and Fortress Investment Group would have been almost unthinkable before Abe.Stealth is a key weapon for activist investors, which buy large numbers of a company’s shares and then seek board seats to push for changes that will unlock value. Being forced to disclose when they have accumulated only 1% may tip off other investors to their interest, driving up the price and potentially making such strategies unprofitable.Japan’s Ministry of Finance has clarified that foreign asset managers will be exempt from a pre-notification requirement only when there is “no intention to influence management,” Goldman Sachs Group Inc. strategists led by Kathy Matsui wrote in an Oct. 20 note. “This issue continues to be difficult to reconcile in the context of the government’s mission to promote greater levels of engagement between investors and corporate managements, as well as to protect the interests of minority shareholders.”The list of sectors covered by the regulations is also broad. They include traditionally sensitive areas such as defense, agriculture, telecom, railways, nuclear power and utilities — but also categories such as information processing equipment, software and internet services, which typically rely on venture-capital funding. Deals such as Bain Capital’s buyout of Toshiba Corp’s memory-chip business last year are among those that might have been affected had the law been in place then. New York-based hedge fund Fir Tree Partners Inc. has invested in Kyushu Railway Co.Geopolitics appears to be the motivation for what looks like a counter-productive move for Japan. China is the obvious target of the tightened regulations. Japan is a key U.S. ally, and Washington has been growing increasingly wary of Chinese investment amid rising trade tensions. The U.S. is drawing up a “white list” of foreign states that would be subject to lighter scrutiny of acquisitions made in America. Passing a stricter national security law gives Japan a better chance of being included in that list, according to Bloomberg Law analyst Grace Maral Burnett.Abe’s government must tread carefully. Japan’s opening to overseas investors has benefited the stock market, with foreigners accounting for about 70% of Tokyo Stock Exchange turnover and 30% of market ownership, according to Goldman Sachs. Anything that forces the activists to pack up and go home would be a self-inflicted wound. To contact the author of this story: Nisha Gopalan at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
These days, investors are hearing more and more about private equity thanks in large part to a spate of deal-making by the likes of Blackstone Group (NYSE: BX), KKR and others. However, private equity ...
Zac Barnett and Richard Wheelahan, III By Oliver Estreich How does governance come into play for institutional asset managers. One key area is how leverage is managed, according to Richard Wheelahan, III, and Zac Barnett, the Co-Founders of Fund Finance Partners. Over the past decade Richard has advised fund sponsors and lenders, both as […]
Several seemingly random events that threaten the markets actually are linked, and one of them is an overlooked but massive bubble, Blackstone warns.
A leveraged buyout of the drugstore company would be tough to pull off, given the company’s size and the amount of equity likely needed to finance a deal.
Dara Khosrowshahi, chief executive of Uber Technologies Inc., was forced to quickly backtrack after calling the murder of Saudi journalist Jamal Khashoggi a “mistake,” comparing it to a fatal crash by one of his company’s self-driving cars.
“When we try to pick out anything by itself, we find it hitched to everything else in the universe,” wrote famed naturalist John Muir more than a century ago, referring to an epiphany he had while hiking in California’s Yosemite Valley. In our call of the day, Blackstone (BX)strategist Joseph Zidle offers a similar take, but with dollar signs instead of granite cliffs.
13Ds are filed with the Securities and Exchange Commission within 10 days of an entity’s attaining a greater than 5% position in any class of a company’s securities. Impactive Capital disclosed on Nov. 1 that it had purchased 44,744 shares of the audio- and video-content maker and distributor, lifting its stake to 3,700,000 shares. The purchases were executed at prices ranging from $5.94 to $6 per share from Sept. 25 through Oct. 10 and now give Impactive an 8.6% interest in Avid Technology.
Blackstone, a financial giant with $554 billion in assets under management, is now a significant investor in Bumble, while founder Whitney Wolfe Herd is getting a boost.
A global investment group has bought a recently-built apartment community in the Triangle for nearly $80 million.
Following the deal, Andrey Andreev who is the founder of MagicLab, will sell his stake to Blackstone and be replaced as chief executive officer by Whitney Wolfe Herd, Bumble's present CEO. Bumble began in 2014 as a dating platform for women to start discussions with potential male partners and competes with Match Group Inc's Tinder and Facebook's dating service.
Blackstone (BX) announced today that funds managed by Blackstone ("Blackstone") are taking a majority stake in MagicLab, which builds and operates leading dating and social networking apps, including Bumble and Badoo. Founded in 2006 by Andrey Andreev, MagicLab helped invent how people meet in the modern, mobile age. Over his career, Mr. Andreev has been at the forefront of innovation in the dating industry and has continued to invest in finding the most talented entrepreneurs and tech visionaries to mentor.
Paramount's purchase of the 753,000-square-foot complex is one of the biggest single sales in San Francisco history.
(Bloomberg) -- Nothing -- not a trade war with China, not the prospect of a slowing global economy, not a run-up in asset prices -- can curb Blackstone Group Inc.’s appetite for property. And as one of the world’s largest real estate investors looks for more to buy, the sky’s the limit on size.“Anything is really possible,” Kathleen McCarthy, Blackstone’s co-head of real estate, said in an interview with Bloomberg Television. “There’s just less competition.”Blackstone Chief Executive Officer Steve Schwarzman has long preached the virtues of scale. In a market where real estate assets “feel fairly fully valued in a lot of places,” that’s an added advantage, McCarthy said. The New York-based firm can deploy more capital faster and with greater certainty in complex situations.Including two deals since June for a total of almost $25 billion, Blackstone has acquired a billion square feet of warehouse space in the past decade. McCarthy said logistics remains her highest-conviction bet, followed by offices and rental housing in so-called innovation centers such as Seattle and Stockholm, and “high-quality” travel destinations in coastal markets.Blackstone’s play on e-commerce has shifted from large regional warehouses to smaller spaces in densely populated cities, because that’s what customers such as Amazon.com Inc. need to guarantee next-day or even day-of deliveries. By buying up multiple locations in the same areas, Blackstone gains control over supply, and with it pricing power.“We see technology totally transforming the way goods move from businesses to people,” said McCarthy, who co-heads real estate with Ken Caplan. “Our clients want to be as close as they can get to the ultimate consumer.”There is at least one serious competitor: Prologis Inc., which currently owns even more warehouse space in the U.S., has announced $14 billion of logistics deals in the past four months.E-commerce isn’t the only hot spot in real estate. Low interest rates have spurred demand for everything from nursing homes to apartment buildings.One consequence of all that competition for assets is ever-rising prices and, in residential areas, the soaring cost of housing. It’s such a problem on the West Coast, including in technology centers where Blackstone has been buying up rental properties, that Microsoft Corp., Google, Facebook Inc. and Apple Inc. have committed a total of $5 billion to alleviate the shortage of affordable space.While local governments in cities such as San Francisco have focused on price as the main barrier to affordability, McCarthy said the real issue is lack of supply and barriers to construction, such as zoning laws.“We can be a much bigger part of the solution,” she said. “We’re evaluating today a number of opportunities that would help us really add supply.”As of Sept. 30, Blackstone had $157 billion of investor capital in its real estate business. Its two classes of real estate funds, Opportunistic and Core+, generated gross returns of 13.6% and 8.7%, respectively, over the prior 12 months.To contact the reporter on this story: Erik Schatzker in New York at email@example.comTo contact the editors responsible for this story: Craig Giammona at firstname.lastname@example.org, Josh Friedman, Rob UrbanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Blackstone has agreed to buy a majority stake in the owner of Bumble, in a deal that values the dating app at about $3bn and highlights the private equity group’s push into tech start-ups. MagicLab, which also runs the dating app Badoo, will be run by Bumble’s founder and chief executive Whitney Wolfe Herde under the deal. MagicLab’s founder Andrey Andreev will sell his stake and step down from the company.
In response to the wildfires that have plagued much of California, Apria Healthcare — one of the nation’s largest providers of home healthcare and equipment services — announced a mobilized effort to deliver critical equipment to patients in need. As utility companies increasingly cut power to homes and businesses across the state, and select neighborhoods are placed under mandatory evacuation, patients are at risk of going without prescribed oxygen therapy. Given the need to focus attention on patients in these affected neighborhoods, Apria employees have been working around the clock to ensure critical equipment is being delivered to their doorstep.
Blackstone said on Thursday that Japanese hotel operator Unizo had missed a deadline to agree with conditions set for its proposed $1.6 billion takeover bid, but the U.S. buyout group was prepared to embark on more talks. Unizo was little known until it became a target for a hostile bid by travel agent H.I.S. Co in July, but has since attracted attention from top global funds looking to buy into Japan's property market on the cheap. Blackstone had told Unizo it would launch a tender offer or explore other options if Unizo did not agree to its offer of 5,000 yen a share, valuing the company at 171.1 billion yen ($1.6 billion) by Wednesday.
Blackstone said on Thursday that Japanese hotel operator Unizo had missed a deadline to agree with conditions set for its proposed $1.6 billion takeover bid, but the U.S. buyout group was prepared to embark on more talks. Blackstone had told Unizo it would launch a tender offer or explore other options if Unizo did not agree to its offer of 5,000 yen a share, valuing the company at 171.1 billion yen ($1.6 billion) by Wednesday. "Blackstone has not received Unizo's consent and entry into an agreement between Blackstone and Unizo with respect to the Blackstone offer," the U.S. buyout fund said in a statement.
U.S. buyout firm Blackstone Group said on Thursday that Japan's hotel operator Unizo Holdings had not agreed with conditions the U.S. buyout firm set for its proposed $1.6 billion takeover bid by deadline. Blackstone had told Unizo it would launch a tender offer or explore other options if Unizo did not agree to its offer to buy the company at 5,000 yen a share by Wednesday. "Blackstone has not received Unizo's consent and entry into an agreement between Blackstone and Unizo with respect to the Blackstone offer," the U.S. buyout fund said in a statement.
"It looks like things have lined up to go forward and I think there's good faith at this point to start things," Schwarzman said in an interview at a Reuters Newsmaker event in New York. American and Chinese officials have been racing to finalize a "phase one" interim trade agreement before new U.S. tariffs on Chinese imports, including electronics, toys, and laptops, take effect from Dec. 15.