|Bid||26.58 x 800|
|Ask||26.61 x 800|
|Day's Range||26.40 - 26.99|
|52 Week Range||15.09 - 27.00|
|Beta (3Y Monthly)||1.56|
|PE Ratio (TTM)||11.04|
|Earnings Date||Oct 29, 2019 - Nov 4, 2019|
|Forward Dividend & Yield||1.47 (5.53%)|
|1y Target Est||27.62|
(Bloomberg) -- Carlyle Group LP is considering a sale of Golden Goose, the Italian luxury sneaker brand favored by celebrities from Selena Gomez to Taylor Swift, people with knowledge of the matter said.The private equity firm is working with Bank of America Corp. on the potential deal, according to the people, who asked not to be identified because the information is private. Golden Goose, known for its vintage style footwear emblazoned with the brand’s iconic star on the side, could fetch more than 1 billion euros ($1.1 billion), the people said.Golden Goose, founded in 2000 by Venetian designers Francesca Rinaldo and Alessandro Gallo, makes sneakers that can sell for 400 euros a pair. It generates annual earnings before interest, taxes, depreciation and amortization of about 80 million euros, the people said.Deliberations are at an early stage, and there’s no certainty they will lead to a transaction, the people said. Representatives for Carlyle and Bank of America declined to comment.Carlyle acquired Golden Goose from Ergon Capital Partners SA in 2017. The deal valued the business at about 400 million euros, people with knowledge of the matter said at the time.To contact the reporters on this story: Sarah Syed in London at email@example.com;Dinesh Nair in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Dinesh Nair at email@example.com, Ben Scent, Colin KeatingeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Central bankers just don’t seem to be getting along.Federal Reserve officials cut interest rates yet divided by the most since 2016, while a split over stimulus within the European Central Bank became more public.The discord reflects an opaque outlook for the global economy as it took fresh hits from an oil-supply shock and volatile money markets.To get a better sense of what’s going on, here is a collection of this week’s analysis and enterprise from Bloomberg Economics:Powell the ‘Artful Dodger’ Declines to Signal What Comes NextPowell Seeks to Regain Control Over Fed Funds With IOER TweakFederal Reserve Chairman Jerome Powell left markets guessing over where he sees U.S. interest rates heading after he and colleagues cut their benchmark for the second time this year. Central bankers at the New York Fed were especially busy trying to restrain a spike in money market rates.Draghi’s QE Triumph Hinged on ECB Colleagues From Tiny NationsDraghi’s Stimulus Shot Is No Cure for Europe’s JapanificationA Tale of Two Japan Economies is a Cautionary Lesson for WorldDivisions were also evident in the ECB. Still, its willingness to go big on radical measures in President Mario Draghi’s era gives some pause to those in Japan, who haven’t seen such a tack yield the desired results. Yuko Takeo took a look at how low inflation, an exchange rate that’s difficult to rein in, and slower growth could be part of Europe’s Japanification in the longer run, despite -- or because of -- aggressive monetary policy. Yuko and Hannah Dormido also looked at the two Japanese economies.Oil-Price Shock Couldn’t Come at Worse Time for World GrowthCrippling Oil Attacks Jolt Saudi Economy Burdened by OPEC CurbsThe attack on Saudi Arabia’s oil facilities -- and subsequent record run-up in global oil prices -- had everyone on edge over what the geopolitical shock could do to an already-ailing world economy. The jolt came alongside sour data out of China, including the slowest single month of industrial output growth since 2002, and is a special pain point for emerging economies nursing their current account and fiscal deficits. And it’s no help to a Saudi economy whose oil and gas sector accounts for about half of gross domestic product and that already was on track for a slowdown this year, even if prices have recovered a bit.Don’t Bank on a Global Recession Just Yet, BIS Chief SaysGlobal Economy Seen Sliding Toward Weakest Growth in a DecadeWhy Germany May Need to Fight Recession With Spending: QuickTakeRecession fears might have been calmed by Bank for International Settlements chief Agustin Carstens, who told Bloomberg Television that a global recession is “still far from being something sure.” The Organization for Economic Cooperation and Development still warned that global growth is the weakest in a decade. Iain Rogers explains Germany’s aversion to big spending.Wall Street Used to Crunch Numbers. They’ve Moved On to StoriesThe Carlyle Group finds that talk isn’t cheap: Narrative economics can lend clues to how corporate investors could talk the economy into a recession. That’s because their increasing citation of living in a “late-cycle” environment could impact investment decisions that end up self-fulfilling, Craig Torres explains. The group’s study of earnings calls to explore that link is part of a growing subset of economics research, championed by the likes of Nobel prize-winning economist Robert Shiller.British Welfare Reform Travels From Idea to Infamy in a DecadeA decade ago this month, the U.K. undertook a massive overhaul of its welfare system, bundling six types of benefits into a single payment called Universal Credit. As David Goodman reports from London, the roll-out started in 2013 but has been log-jammed by delays, IT glitches, and controversies. And an almost decade-long austerity drive has limited the payouts just as Brexit is about to happen.Vietnam Becomes a Victim of Its Own Success in Trade WarHaving racked up the trade-war wins, Vietnam now is bumping against some limits to its capacity to absorb new business on the sidelines of U.S.-China tensions. While fresh production and investment have made for short-term victories, businesses are finding that the Southeast Asian nation’s infrastructure, labor force, and regulatory atmosphere often aren’t up to snuff.To contact the reporter on this story: Michelle Jamrisko in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Kennedy at email@example.com, ;Nasreen Seria at firstname.lastname@example.org, Malcolm ScottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
NEW YORK, Sept. 19, 2019 /PRNewswire/ -- The Carlyle Group's (CG) global airport investment platform, CAG Holdings, today announced the appointment of Dr. Gerrard P. Bushell, former President and CEO of the Dormitory Authority of the State of New York (DASNY), as Executive Chair of The New Terminal One Development Project at JFK and Chair of CAG Holdings. Dr. Bushell will be responsible for delivering the New Terminal One Development Project at JFK International Airport.
(Bloomberg Opinion) -- The stock market is getting an initial public offering of a major buyout firm after a long drought. EQT AB’s listing in Stockholm has genuine scarcity value, but a desired valuation above that of American peer Blackstone Group Inc. demands a leap of faith.EQT has taken many portfolio companies public in its 25-year life, and it knows a recent history of profitable growth helps. The Swedish firm has certainly enjoyed a big expansion lately. It has raised 34 billion euros ($38 billion) from investment clients since the beginning of 2015, 80% more than it amassed over the preceding 20 years. Half of EQT’s 40 billion euros of assets under management are in just two funds raised in 2018 and earlier this year.This distorts its current financial performance. Private equity firms get their revenue from management charges levied on the funds they’ve raised, and later from performance fees when their investments do well. EQT’s cash-gathering spurt means its income is now dominated by management fees of almost 500 million euros over the past 12 months. That’s more than twice their 2016 level.There’s more to come. A jumbo EQT infrastructure fund that closed in March will make a bigger contribution to revenue in 2020. The firm will soon be ready to do another big round of fundraising. Assume this is between 10 billion euros and 15 billion euros and, with an average management levy of about 1.4%, it could add as much as 210 million euros to annual fee income.But management fees are a function of how much money a firm can raise; performance fees show how effective it is at using those funds. EQT aims broadly to double clients’ money and has done so in the past. If it can do that on the sums amassed in the last four years, shareholders’ slice of the performance fees could be more than 2 billion euros over time.Suppose EQT closes another big fund sometime in 2020 and performance fees tick up slightly. Revenue could then be roughly 700 million euros next year. With a 50% operating margin and 12% tax rate, earnings would be about 310 million euros. The narrow IPO market capitalization range of 5.5 billion euros to 6 billion euros is on that basis 18 to 19 times next full-year earnings.That valuation is a big discount to Swiss peer Partners Group Holding AG, which is warranted given Partners is more diversified, with many small funds invested globally and a 13-year track record on the public markets. EQT is concentrated by fund, strategy and geography.Still, the valuation is a premium to U.S. peers Carlyle Group LP, KKR & Co. and Blackstone, which trade between 11 and 17 times. After a couple more jumbo fundraisings, EQT would actually look cheap. But IPO investors should bear in mind that sustained fundraising success would depend largely on investment performance being delivered — and EQT proving it can replicate its historic returns doing far bigger buyouts than before.To contact the author of this story: Chris Hughes at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Osram Licht AG recommended a 3.7 billion-euro ($4.1 billion) takeover bid from AMS AG on the basis of price, risking a backlash from labor groups worried about potential job cuts that may come with the deal.The terms of AMS’s 38.50 euro-a share proposal eclipse Osram’s lingering concerns about how the takeover will be funded, the German lighting maker said in a statement on Monday. The Munich-based former Siemens AG unit had previously backed a lower offer from private equity groups Bain Capital and Carlyle Group LP.The show of support for AMS gives the Austrian sensor maker a boost in a months-long battle for Osram, which came into play after a series of profit warnings more than halved its share price over the course of a year. Bain and Carlyle are considering increasing their 3.4 billion-euro offer, people familiar with the matter said last month, which could switch the initiative back their way.Osram said differences remain with ASM over “some important strategic elements” that require further discussion, though that may not be enough to appease unions and employee representatives, who make up half of Osram’s supervisory board. They have questioned AMS’s planned savings from the deal, saying they would lead to job losses and facility closures in Germany.“The decision today was made against the wishes of the employee representatives,” said Johann Horn, leader of the IG Metall Bayern. “Even the management board is not convinced of the concept that AMS has tabled.”AMS Chief Executive Officer Alexander Everke defended his company’s credentials, saying its “commitments are the same if not better than that of Bain and Carlyle.” Osram shares traded 0.5% higher at 37.70 euros per share as of 10:24 a.m. in Frankfurt, while AMS declined as much as 4.9% in Zurich.Investor SupportMeetings between AMS and its investors across Europe, the U.S. and Asia over the last two weeks revealed “strong support” for its plan to buy Osram, AMS said in a separate statement on Monday. It reduced the minimum acceptance rate for its offer to 62.5% from 70%, though won’t be able to count on Osram CEO Olaf Berlien, who will not tender his personal stock.AMS shareholders still need to approve a capital raise to finance the transaction that will increase debt, but that “will be reduced to where it was before the deal within two years,” Everke said.The bidding war began in July, when AMS offered to counter a bid from Bain and Carlyle. AMS’s proposal was cleared last week by the country’s financial watchdog, allowing offers to remain open until Oct. 1.(Adds union comment in fifth paragraph. A previous version of this story corrected to say Osram recommended, not rejected, the offer by AMS.)To contact the reporter on this story: Oliver Sachgau in Munich at email@example.comTo contact the editors responsible for this story: Anthony Palazzo at firstname.lastname@example.org, John Bowker, Andrew NoëlFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- U.S. business may have been talking itself into a slowdown.That’s one way of reading a study by the Carlyle Group, using techniques from narrative economics –- an emerging field set to gain momentum with the publication of Nobel prize-winner Robert Shiller’s much-anticipated book on the topic.The Carlyle researchers wanted to know what stories people –- in this case, corporate executives –- were telling others, and maybe themselves, about the economy. So they used algorithms to search hundreds of earnings calls, as well as conversations with the 277 firms in Carlyle’s portfolio. And they spotted a sharp rise in use of the term “late-cycle’’ at the end of 2018 and into the first six months of this year.“There was no external objective reality that we could look at then to say, ‘we are late-cycle’,” says Jason Thomas, Carlyle’s director of research. But “there was clearly something in the water,’’ he says -– driven by the calendar, which showed the U.S. economy’s expansion was about to become the longest ever. And, right on cue, “we’ve seen a deceleration in capital expenditure.’’‘Watch the Narratives’Some of that slowdown was likely induced by trade-related tensions, though most of the study covered the period before President Donald Trump stepped up hostilities with China in the middle of this year.The researchers were looking for something beyond the numbers, spurred by the idea that beliefs can shape what people do -- and narratives shape beliefs.In the recent history of economics, rational expectations theory treated people as though they were some kind of calculator, while behavioral economics tried to dig deeper into the psychology of decision-making. Narrative economics goes a step further -- asking how social media networks like Twitter, Trump’s favorite megaphone, are turbo-charging the spread of stories, and their impact on how people act.For investors, these stories offer new data to mine. Shiller says it’s a vital area for academic study too.“To best predict economic activity, we need, among other things, to watch the narratives,’’ he said in his 2017 American Economic Association presidential address.Central bankers can’t just watch. They need to promote their own narratives, too –- and it’s getting harder.Former Fed Chairman Alan Greenspan’s pronouncements were seen as the most authoritative story around. Markets hung on his words, while Congress invited him to testify on everything from world demography to energy policy. But something happened to central-bank credibility in the financial crisis. The public and lawmakers became more skeptical of their ability to see ahead.At the Kansas City Fed’s annual symposium in Jackson Hole, Wyoming last month, central bankers discussed the new roles they have to play.“I’m a shaman,” said Stefan Ingves, governor of Sweden’s Riksbank. “I’m a weatherman, I’m a showman, and I’m an economist.’’ But above all: “I’m expected to be, and I am, a storyteller. I tell stories about the future.”“And if I’m successful in my storytelling,” he added, “people say: ‘Hmm, that’s reasonable.’’’Many central banks -- aside from the Bank of Jamaica, which promotes its inflation target with reggae music -- are old-school when it comes to communications. That includes the Fed, which is expected to deliver a second-straight cut of 25 basis points to its benchmark interest rate this week.Message Received?Fed Chairman Jerome Powell stands at a podium during press conferences, with pieces of paper for reference and no illustrative media, except for forecasts that are handed out four times a year. When he’s done, markets parse his words -– typically seizing on one or two catchphrases –- and then run off with their own narrative about what they mean.The central banks don’t always do a good job of tracking how their message is received in real-time. But that’s exactly what sophisticated investors are doing, says Pedro Domingos, an expert in machine-driven linguistic processing who leads a research unit at hedge fund D.E. Shaw.Artificial intelligence can take the “maelstrom of information on social media” and turn it into something quantitative, says Domingos. He says central banks need to get deeper into the storytelling game, because “you can’t bring a knife to a gunfight.”A case in point was the Fed’s plan to trim the bond portfolio it accumulated during and after the financial crisis.The operation, known as balance-sheet runoff, was announced in June 2017. The Fed decided that the shrinkage wouldn’t exceed $50 billion a month, and said it would be a background process with little visible impact -- “like watching paint dry,” former Chair Janet Yellen said.Coup de MessageIt was hard for economists to quantify the effects on economic growth, or longer-run interest rates. But that didn’t matter. This battle was going to be won or lost on narrative grounds.By mid-2018, stock commentators began to cite “quantitative tightening’’ as the market’s main nemesis.As stocks sold off after the Fed’s rate increase on Dec. 19, Powell said at his press conference that the Fed didn’t see the runoff “creating significant problems.’’ Everyone from Trump -- who urged the Fed to “stop the 50 Bs’’ -- to economists and investors seemed to disagree. And just two days later, New York Fed President John Williams began to shift the story, indicating the Fed would be flexible in its approach.The lesson is that even a highly credible institution like the Fed can be vulnerable to a coup de message.“Emerging narratives determine expectations,” says Domingos. “And expectations determine everything else.’’Watch Them SpreadThat may be critical in the U.S. now. Unemployment is low, and forecasters expect the economy to keep growing for at least the next two years. Yet more people are asking their favorite crystal balls –- whether it’s Google or the Treasury yield curve –- if a recession is likely.Thomas, the Carlyle Group economist, says narratives are “mimetic.’’ Once somebody starts making a statement, or asking a question, it gets repeated . Computers can watch the process unfold on social media. -- and even track who the first movers are.Shiller has compared the process to an epidemic. “We need to incorporate the contagion of narratives into economic theory,’’ he writes in the new book’s preface. “Otherwise, we remain blind to a very real, very palpable, very important mechanism for economic change.’’\--With assistance from Rich Miller.To contact the reporter on this story: Craig Torres in Washington at email@example.comTo contact the editors responsible for this story: Margaret Collins at firstname.lastname@example.org, Ben HollandFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
IBD Stock of the Day Carlyle Group taps a hot stock market trend and boasts a solid profit outlook. CG stock is eyeing a buy point.
Moody's Investors Service ("Moody's") downgraded Arctic Glacier U.S.A., Inc.'s ("Arctic Glacier") Corporate Family Rating (CFR) to B3 from B2, and affirmed the company's Probability of Default Rating (PDR) at B3-PD. In addition, Moody's downgraded the ratings on the company's first lien credit facilities to B3 from B2, consisting of its $437 million principal ($413 million outstanding) first lien term loan and a $60 million revolving credit facility. "Arctic Glacier's downgrade stems from a rapid and material deterioration of credit metrics in 1H19, largely resulting from very unfavorable weather in most regions the company serves, with debt-to-EBITDA increasing roughly a turn in 2Q19 alone to about 7 times from about 6 times at 1Q19", said Brian Silver, Moody's Vice President and lead analyst for Arctic Glacier.
Moody's Investors Service ("Moody's") has today downgraded the corporate family rating (CFR) of ION Trading Technologies Limited (IONTT) to B3 from B2, as well as its probability of default rating to B3-PD from B2-PD. Concurrently, Moody's has downgraded ION Trading Technologies S.a.r.l instrument ratings to B3 from B2 on the term loans due in 2024 as well as the revolving credit facility due in 2022.
The John F. Kennedy Center for the Performing Arts made its fundraising goal for the Reach, its three-pavilion expansion, with two days to spare before its grand opening. The project hit its goal on Sept. 5, just before the Reach opening festival was set to begin Sept. 7. The Reach has been under construction for more than two years, but it’s been in the works for more than half a decade. That time frame included an ill-fated plan to build one of the expansion's three pavilions on the Potomac River.
Global investment firm The Carlyle Group L.P. (CG) (“Carlyle”) priced its offering of $425 million of 3.500% senior notes due 2029 of Carlyle Finance Subsidiary L.L.C., its indirect subsidiary. The notes will be fully and unconditionally guaranteed by The Carlyle Group L.P. and its indirect subsidiaries Carlyle Holdings I L.P., Carlyle Holdings II L.P. and Carlyle Holdings III L.P. Carlyle intends to use the net proceeds from the sale of the notes to redeem all of the outstanding 5.875% Series A Preferred Units (the “Preferred Units”) of The Carlyle Group L.P. and the remaining proceeds, if any, will be used for general corporate purposes.
Moody's Investors Service ("Moody's") assigned initial ratings to MHI Holdings, LLC ("MHI" or the "company"), including a B2 corporate family rating ("CFR") and a B2-PD probability of default rating, as well as B2 ratings for the company's first lien bank credit facilities. The ratings outlook is stable.
The partnership will initially focus on public and private companies with established brands, proven business models and an enterprise value of up to $10 billion, as well as family businesses that can benefit from Carlyle’s resources and expertise. Carlyle and Mr. Doyle will source opportunities internationally across sectors, and will initially put an emphasis on the consumer and retail sectors in North America and Europe.
(Bloomberg) -- The former Domino’s Pizza Inc. chief who oversaw a period of blistering growth for the restaurant chain is teaming up with Carlyle Group LP to buy other consumer companies that can benefit from a technology overhaul.Patrick Doyle, who left his post as Domino’s chief executive officer in 2018, will work with Carlyle to acquire established brands worth as much as $10 billion, according to a statement Wednesday. The partnership will focus on both public and closely held companies, including family businesses, initially targeting the consumer and retail sectors in North America and Europe.“We are looking for established companies that consider technological and digital improvement a top priority but haven’t yet had the adequate resources or expertise to pursue this evolution of their businesses,” said Jay Sammons, Carlyle’s head of global consumer, media and retail, who will be working with Doyle.Carlyle, which oversaw $223 billion as of June 30, is banking on technology, media and telecommunications as a key to its growth. This week, the Washington-based firm said it’s backing HireVue, which uses artificial intelligence to help companies make hiring decisions. Carlyle has also invested in DiscoverOrg, which uses data to help companies drive their sales, marketing and recruiting efforts.Doyle, who took over as CEO at Domino’s in 2010, gained experience turning around a consumer company through technology. During his tenure, the chain doubled its market share to become the world’s top pizza company based on retail sales. Its decision to embrace tech -- from mobile-ordering capabilities to “hot spot” delivery for locations without an address -- is largely credited with the overhaul.Doyle, 56, will contribute personal capital to each acquisition, the companies said.To contact the reporters on this story: Anne Riley Moffat in New York at email@example.com;Heather Perlberg in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Crayton Harrison at email@example.com, ;Alan Mirabella at firstname.lastname@example.org, Josh Friedman, Vincent BielskiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
SALT LAKE CITY, Sept. 3, 2019 /PRNewswire/ -- HireVue, provider of the most comprehensive suite of AI-driven talent assessment and video interviewing solutions, today announced that global investment firm The Carlyle Group (CG) has signed an agreement to invest in HireVue as its majority investor. Existing shareholders, including TCV, Granite Ventures and Sequoia, together with HireVue management, will remain minority investors. Over its 15-year history, HireVue has transformed the way companies discover, hire and develop the most diverse set of top talent.
(Bloomberg) -- Carlyle Group is taking a majority stake in a firm that uses AI as private equity shops ramp-up deals in the fast-growing technology sector.Carlyle is backing HireVue, which deploys artificial intelligence to help companies make hiring decisions, according to the firms. Early investors including TCV, Granite Ventures and Sequoia Capital will remain as minority partners. Carlyle declined to disclose the value of the deal.The investment is the latest in an area Carlyle considers core to its growth -- global technology, media and telecommunications. It has already committed $30 billion to the sector and this deal is being led by its Menlo Park, California-based growth team.Carlyle is acquiring the stake through its $18.5 billion private equity fund at a time when buyout firms have been benefiting from an industrywide fundraising boom. That has helped the Washington-based company amass $223 billion in assets.Carlyle has also invested in DiscoverOrg, which uses data to help companies drive their sales, marketing and recruiting efforts. Other firms are seeking to make more growth equity investments as well. Blackstone Group Inc. hired Jon Korngold in January to build and lead a new platform at the company focused on growth.Based just south of Salt Lake City, HireVue clients have included Hilton Worldwide Holdings Inc., JPMorgan Chase & Co. and Delta Air Lines Inc. The company uses AI tools to assess and discover talent and has a video interviewing platform that is widely adopted.HireVue is led by Chief Executive Officer Kevin Parker, the former CEO of project-management software maker Deltek Inc. HireVue’s board includes Matthew Miller, a partner at Sequoia Capital. Goldman Sachs Group Inc. was HireVue’s financial adviser for the transaction.To contact the reporter on this story: Heather Perlberg in Washington at email@example.comTo contact the editors responsible for this story: Alan Mirabella at firstname.lastname@example.org, Vincent BielskiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- It will be the biggest initial public offering of a private equity firm for a decade. EQT AB’s prospective shareholders will need to believe the stock will fare better than those of its U.S. counterparts.The big U.S. buyout firms went public in a rash of listings kicked off by Blackstone Group Inc. in 2007. Raising capital helped them to develop their businesses – but shareholder returns since have been mixed. Until this year, Blackstone and Carlyle Group LP had seen their stock underperform the S&P 500 index.True, Switzerland’s Partners Group Holding AG has far outpaced its local benchmark since going public in 2006; but the overall impression is that private equity sits ill with public markets.Enter EQT. The Swedish firm, founded by the Wallenberg family 25 years ago, confirmed Monday it will seek to raise at least 500 million euros ($548 million) in a Stockholm IPO. It said a year ago it wanted to raise capital. The question was how. EQT could surely have found the money privately. The industry likes chewing on itself: Blackstone last month agreed to buy a minority stake in BC Partners, a British leveraged buyout firm.The advantage of an IPO is that the company’s existing owners get the chance to cash in their holdings over time. The Wallenbergs still own 23% of EQT. The remainder is held by 70 individuals, with around 45% owned by just ten people. Together, they will reap an undisclosed sum in the deal.EQT’s economics aren’t dissimilar to those of conventional asset managers. Only 25-30% of future revenue will come from its slice of the gains on portfolio investments. Most income will be from recurring management fees. Earnings were 110 million euros in the first half. Annualize that and apply an 18 times multiple, somewhere between the U.S. firms and Partners, and the equity valuation would be around 4 billion euros before factoring new money raised in the IPO.The partners have agreed not to sell further holdings for three to five years after listing “without consent”; there doesn't appear to be an immediate succession issue looming. That offers some comfort this isn’t a thinly veiled rush for the exit.The share-price performance of the U.S. peers is partly down to their arcane governance, something that is being remedied. Blackstone and Carlyle said this year they were converting from partnerships to corporations. Valuations have climbed accordingly. The good news is that EQT has always been a corporation and will have a one-share, one-vote governance structure from the get-go.Pension funds and wealthy investors are throwing money at private equity, so EQT’s market is growing. Having a proprietary pot of capital makes sense – it helps to seed new funds when clients are wary of innovation. The big unknown is the firm’s ability to secure the best investment opportunities. Right now, deal-makers are long on capital but short on targets. EQT’s Scandinavian connections set it apart. That should help it to grow in an industry that already has more money than it knows what to do with – but it’s no guarantee.To contact the author of this story: Chris Hughes at email@example.comTo contact the editor responsible for this story: Edward Evans at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Carlyle Group LP is considering a U.S. listing for Addison Lee after attempts to sell the London minicab company generated muted interest, according to people familiar with the matter.Carlyle would sell the company into a so-called special purpose acquisition company, a firm that’s floated in an initial public offering in order to raise funds for a deal, the people said. Addison Lee would take on the public listing in New York after the takeover is completed, they said, asking not to be identified because the deliberations are private.The private equity firm is working with investment banks Jefferies Financial Group Inc. and Cowen Inc. on the potential listing, the people said. Discussions are at an early stage and no final decisions have been made, the people said. Carlyle could still opt to keep the unit for longer or sell it instead of pursuing the listing, they said.Representatives for Carlyle and Jefferies declined to comment. Representatives for Addison Lee and Cowen couldn’t immediately be reached for comment.Carlyle bought Addison Lee in 2013 for about 300 million pounds ($366 million) including debt, a person briefed on the matter said at the time. The business has been hit by fierce competition from ride-hailing businesses, particularly Uber Technologies Inc. The minicab firm reported a wider pretax loss of about 39 million pounds in the 12 months to August 2018, compared to a loss of 21 million pounds a year earlier, while revenue rose 13% to 390.3 million pounds.\--With assistance from Sarah Syed, David Hellier and Matthew Monks.To contact the reporters on this story: Dinesh Nair in London at email@example.com;Aaron Kirchfeld in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Daniel Hauck at email@example.com, Amy Thomson, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Carlyle Group is the latest big name to emerge in a years-long attempt to untangle an elaborate nickel-trading fraud that ensnared major metals brokerages.ED&F Man Capital Markets Ltd. is seeking a court order allowing its lawyers to question two former employees of a Carlyle unit known as Vermillion Asset Management, according to a document filed earlier this month with a U.S. court in New York. Carlyle funds took in more than $110 million from a firm tied to the alleged $300 million scam, the document states.ED&F Man has “reason to believe that the witnesses can offer relevant information,” and has “no present intention” to make the two men parties to litigation the firm has initiated in the U.K., according to the document filed by ED&F Man. Carlyle and the two former staffers aren’t accused of any wrongdoing in the document.Representatives of ED&F Man and Carlyle declined to comment.The Carlyle links were discovered as part of a series of long-running lawsuits by ED&F Man and others against several Hong Kong firms accused of using fake warehouse receipts to sell the same nickel holdings to multiple buyers.Bogus ReceiptsIn late 2015, ED&F Man purchased around $300 million of nickel from Hong Kong-based Come Harvest Holdings and Mega Wealth International before selling the metal on to Australia and New Zealand Banking Group Ltd. The metal itself was stored across Asia, with brokers trading warehouse receipts as proof of ownership, according to the document.The scheme came to light when the Sydney-based bank looked into selling the nickel and discovered that most of the receipts were probably fake.The courtroom drama will be an unwelcome reminder for Carlyle of its ill-fated stumble into commodities hedge funds with the 2012 purchase of Vermillion, which lent to commodities traders around the world, including Asia, and secured loans by taking title of the metals. The unit was later shuttered after one of its key funds lost more than 97% of client assets in the wake of soured futures bets.Shortly after leaving Vermillion, the two employees -- Matthew Olivo and Ian McGuinn --received a combined $350,000 from Genesis Resources Inc., a second firm at the center of the alleged fraud, according to the document filed by ED&F Man.Bank AccountsMcGuinn, who was head of business development and marketing at Vermillion, helped Genesis with market analysis and initial planning to start a hedge fund, according to a person with knowledge with the matter. Genesis paid McGuinn a consulting fee, though it didn’t end up going into that business, the person said.A spokeswoman for McGuinn declined to comment.Olivo, a director of structured investments at Vermillion until April 2016, did not respond to email and LinkedIn requests seeking comment.ED&F Man and ANZ filed claims in Hong Kong courts to gain access to bank account information for Come Harvest and Mega Wealth as well as U.S.-based Genesis Resources, the broker that helped put the deal together.Fund flows totaling more than $110 million to Carlyle funds were discovered as a result of the bank-account trawl, with “significant portions of these payments” traced to money ED&F Man paid Come Harvest, according to the document.Representatives for Come Harvest, Mega Wealth and Genesis Resources declined to comment. Previously a lawyer for Come Harvest and Mega Wealth said they were “vigorously” contesting ED&F Man’s claims.To contact the reporters on this story: Benjamin Robertson in London at firstname.lastname@example.org;Jonathan Browning in London at email@example.com;Heather Perlberg in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Shelley Robinson at email@example.com, Patrick Henry, David GlovinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Austrian sensor maker AMS will go ahead with a takeover bid for Osram that values the German lighting group at 4.3 billion euros ($4.8 billion), it said on Wednesday, setting the stage for a potential bidding war. Osram said it had waived an agreement that so far has prevented AMS from making a bid to rival that of private equity investors Bain Capital and Carlyle , confirming an earlier Reuters story that had pushed Osram shares to a five-month high. The stock closed 3.1% higher at 36.25 euros, well above the 35.00 euros per share private equity offer but below the 38.50 euros per share AMS has promised.
This Is JenCap's 9th Acquisition, Making It One of the Largest Specialty Insurance Distribution Platforms in the U.S. NEW YORK, Aug. 20, 2019 /PRNewswire/ -- JenCap Holdings (JenCap), a specialty insurance business, announced today that it has agreed to acquire privately-held Aran Insurance Services Group (Aran), a specialty program administrator with offices in Arizona, Colorado, Massachusetts and New York. Founded in 2009, Aran has been led by Tim Kenny and John LaCava who have built one of the leading program administration insurance platforms in the country.
Favorable markets and conversions into C-corps, which kick-started post the 2017 tax overhaul, are providing a boost to shares of private equity firms.