Mon, Jun. 15, 6:34 PM
- Coty (NYSE:COTY) +7.5% AH after the NY Post reports it has acquired three beauty products and fragrance lines from Procter & Gamble (NYSE:PG) for as much as $12B combined.
- The businesses are believed to include PG's Max Factor, CoverGirl and Wella hair care brands, and would catapult Coty into the big leagues in the consumer space.
- Other bidders reportedly had included Henkel (OTCPK:HENKY) and P-E firms KKR, Clayton Dubilier & Rice and Warburg Pincus.
Wed, Jun. 10, 8:16 AM
- Singapore-based precision-engineering company MMI International is the latest victim of weakness in Southeast Asia, reports the WSJ, as KKR pulls its planned IPO of the company for the third time.
- A timeframe for try number four hasn't yet been set.
- Singapore is lower by 1.4% this year, and IPOs of just $41M compare to about $600M over the same time frame in 2014.
- KKR purchased MMI in 2007 for $700M and previously attempted to IPO the company in 2011 and 2012.
Wed, Jun. 10, 2:57 AM
- Bayer (OTCPK:BAYRY) has agreed to sell its Diabetes Care business to Panasonic Healthcare, a joint venture backed by buyout firm KKR, for €1B. The unit makes blood-glucose monitoring systems and lancing devices.
- Besides the diabetes sale, Bayer intends to list its plastics unit on the stock market, as it looks to focus on more lucrative life-sciences businesses.
- Previously: Rumored price for Bayer's diabetes device business continues to slide (Mar. 30 2015)
- Previously: KKR's Panasonic Health Care nearing deal for Bayer diabetes unit (Feb. 19 2015)
Tue, Jun. 9, 3:04 AM
- Stepping closer to shedding some more non-core assets, P&G (NYSE:PG) has received several binding offers for separate parts of its beauty business.
- Bidders, including Henkel (OTCPK:HENKY), Coty (NYSE:COTY) and P-E firms KKR (NYSE:KKR), Clayton Dubilier & Rice and Warburg Pincus, have made offers in the billions of dollars for P&G's haircare unit, cosmetics division and fragrance business.
- CEO Lafley said last August he would reverse the company's strategy of aggressive expansion and unload more than half of its brands.
- Previously: Personal care companies prep bids for P&G beauty brands (Apr. 16 2015)
Mon, Jun. 8, 8:04 AM
- A list of external managers used by the $305B retirement system includes giants like KKR, Carlyle Group (NASDAQ:CG), and Blackstone (NYSE:BX).
- The industry bellwether today will make public plans to reduce to 100 from 212, the direct relationships it has with private-equity, real estate, and other external funds, reports the WSJ.
- The move - coming under the leadership of CIO Ted Eliopoulos who took the reins last year - won't necessarily change Calpers' investment strategy nor the amount of assets managed internally vs. externally. The 100 left will just get a bigger pool of funds to manage, though they likely will be pushed to lower fees.
- As recently as 2007, Calpers had about 300 external managers.
Mon, Jun. 1, 12:17 PM
- KKR and Dubai-based Fajr Capital are close to buying a 25% stake in Lebanon-based fashion retailer Azadea Group, according to Reuters. Azadea operates across the Middle East, North Africa, Turkey, and Pakistan, and holds the franchise rights for brands like Gap, Zara, and Superdry.
- Sources say the stake being sold could fetch between $400M and $500M.
- The Middle East consumer sector is a popular one for investors given the region's young and increasingly wealthy population, and KKR's name has surfaced as a possible buyer in a number of deals.
Tue, May 26, 8:54 AM
- “The private wealth side is such an under-tapped segment, and way under-invested in alternatives,” says Brendan Boyle, Blackstone's (NYSE:BX) senior managing director of private wealth management. For Blackstone, $43B of its total $310B in AUM comes from private wealth - more than triple the amount of five years ago.
- Across all of P-E, family offices account for about 6% of capital, up from about 4% in 2010.
- By aiming at these new pools of wealth, private equity is looking to reduce its reliance on state and corporate pension plans, but it's not all about gathering assets - family offices often bring loads of expertise which can be put to use in the buyout game.
- "They didn't really pitch products," says a money manager for the founders of a consumer-products company, who was recently flown into NYC by KKR. "They brought out David Patraeus."
- Source: Bloomberg
Mon, May 11, 3:36 PM
- KKR will begin marketing the fund in Q3, reports Bloomberg, and is targeting $10B at a minimum.
- Competitor Blackstone collected $17B for its latest fund in seven months, according to sources, and Apollo Global last year completed the raising of $18.4B.
- KKR's 11th North America-focused fund, which started investing in 2012, raised $9B from 2011-2014, and was about 60% invested as of March 31. It's produced an annualized return of 21% after fees.
Tue, May 5, 3:46 AM
- Preparing the ground for its next flagship North American buyout fund, KKR (NYSE:KKR) is merging some of its private equity industry teams in the U.S. after several more of its leaders stepped down.
- KKR will combine its technology group with its media and communications team and merge its retail team with its consumer group.
- "We believe this realignment reflects the convergence of the internet, technology, media and communications industries, with end markets," said KKR executives Alexander Navab and Suzanne Donohoe.
Thu, Apr. 23, 8:27 AM
- Q1 economic net income of $599.4M or $0.62 per share vs. $630.3M and $0.77 one year ago.
- Private Markets revenue of $868M vs. $730.7M a year ago. ENI of $568.5M vs. $485.4M.
- Public Markets revenue of $50M vs. $145.6M a year ago. ENI of $2.8M vs. $97.8M a year ago.
- Capital Markets revenue of $44.4M vs. $69.2M a year ago. ENI of $28.1M vs. $47.1M.
- Distribution of $0.46 per share declared.
- Conference call at 10 ET
- Previously: KKR beats by $0.09, beats on revenue (April 23)
- KKR +1.5% premarket
Thu, Apr. 23, 8:10 AM
Wed, Apr. 22, 5:30 PM
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Tue, Mar. 31, 7:00 AM
- KKR (NYSE:KKR) and Hong Kong-based Anchor Partners are in talks to buy a majority stake in Groupon's (NASDAQ:GRPN) South Korean unit for around 350B won ($316M), Reuters reports quoting the Korea Economic Daily.
- The two firms are in final talks to acquire a 51% stake in e-commerce firm Ticketmonster.
- GRPN -1.5% premarket
Mon, Mar. 30, 8:09 AM
- David Swenson - the investment manager of the Yale endowment - ushered in the private-equity era nearly three decades ago with his success in allocating part of the portfolio to "alternative" assets, writes Andy Kessler. The so-called Swenson model has been widely copied since, and last year 765 P-E funds raised $266B, up 11% from 2013.
- Private-equity, however, has peaked, argues Kessler, noting a number of reasons, among them the ending of the three-decade-plus decline in interest rates, a slowdown in bank lending for the leveraged deals upon which P-E runs, and the threat of tax reform in which interest rate deductions for debt could be targeted.
- Most importantly though, says Kessler, P-E is an economic growth killer. Buying out a drugstore chain and loading it with debt isn't investing in the productivity of the economy. Instead, it does just the opposite - generating wealth for the endowments and pension funds invested, but destroying it for the economy.
- Kessler throws in one more reason P-E is done: The industry is fresh out of big targets. The bust of Energy Future Future holdings means utilities are out, and what's left in food following the Kraft purchase? Tech? Forget it, as the money required to service debt squeezes out what's needed for R&D.
- Among those reading this morning: BX, KKR, CG, APO, FIG.
- ETFs: PSP, PEX
Thu, Mar. 26, 11:37 AM
- Private-equity buyouts of $17.14B YTD are at their lowest level since 2012 as banks - with regulators looking over their shoulders - cut back on the amount of debt they'll extend for takeovers. Leveraged loan volume this year of $26.5B is 82% less than the same time frame in 2014, and the lowest since 2009.
- Fewer and smaller deals, along with less leverage means less risk, but also means lower returns for buyout firms. It also means lower prices for sellers.
- “The limitation on leverage has taken away some buying power and in some cases, created a gap between sellers’ expectations and the price that private-equity firms can justify paying,” says Carlyle Group's (CG -1%) Pete Clare.
- According to S&P Capital IQ, 21% of P-E deals this year have been financed with leverage at or above levels deemed risky by regulators; that's down from 35% in Q4 and 60% in Q3.
- Along with Carlyle, Blackstone (BX -0.9%) in its annual report warned leverage restrictions could hurt its business. Apollo Global (APO -1.7%) and KKR (KKR -1.2%) included similar language in both their 2013 and 2014 filings.
- Source: WSJ
- ETFs: PSP, PEX
Wed, Mar. 18, 9:25 AM
- A JPMorgan-led group holding the paper on a $1B revolver on the natural gas producer is nearing a deal to give Samson a waiver for an expected covenant breach, reports the NYPost. This comes as the Fed presses JPMorgan and other lenders to increase their reserves against energy-related loans.
- As part of the waiver deal, JPMorgan is expected to reduce the size of Samson's line of credit. A similar agreement last year cut the revolver from $1.8B to today's $1B.
- The waiver hardly gets Samson out of the woods as it has an interest payment due to junior creditors in August.
- KKR led the buyout of Samson for $7.2B in 2011.
- Previously: Report: KKR's Samson Resources near breaking loan covenants (March 11)
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