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Credit Suisse Loses Secondary Exec | Blackstone's BREIT Redemptions | Florida Pulls $2 Billion From Blackrock
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Happy Friday! As the week wraps up, the scramble for secondary market talent continues with news from our own Rod James that Jeremy Duksin has left the private funds group at Credit Suisse to join Robert W. Baird & Co., where he will co-head a secondary advisory team. Meanwhile, The Wall Street Journal’s Miriam Gottfried reports that Blackstone Inc. said it would limit redemptions, at least temporarily, from its Blackstone Real Estate Income Trust Inc., the firm’s nontraded real estate investment trust and one of the largest private-markets vehicles catering to wealthy investors. And Florida’s Chief Financial Officer Jimmy Patronis said the state treasury would begin pulling out $2 billion of assets currently managed by BlackRock over the firm’s
support for environmental, social and governance investing, as the Journal’s Angel Au-Yeung reports.
There’s more on these stories and so many more so check them out and have a great weekend…
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Jeremy Duksin has been with Credit Suisse since 2010, according to his LinkedIn profile. PHOTO: MIKE SEGAR/REUTERS
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One of the most senior secondary private-equity bankers at Credit Suisse has left the investment bank, WSJ Pro Private Equity’s Rod James reports, citing several people with knowledge of the matter. Jeremy Duksin, a managing director and global head of capital solutions at Credit Suisse, plans to join Robert W. Baird & Co. as co-head of the midmarket investment bank’s secondary-advisory business, two of the people said. Mr. Duksin had been with Credit Suisse since 2010, according to his LinkedIn profile.
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Blackstone Inc. shares took a big hit after the investing giant’s real-estate fund aimed at wealthy individuals said it would limit redemptions, The Wall Street Journal’s Miriam Gottfried writes. Blackstone Real Estate Income Trust Inc., more commonly known as BREIT, said Thursday in a letter posted to its website that the amount of withdrawals requested
in October exceeded its monthly limit of 2% of its net-asset value and its quarterly threshold of 5%. That spooked Blackstone shareholders, who sent the company’s stock down nearly 10% at one point Thursday morning. More recently, they were down 6.8%, giving the company a market value of more than $100 billion.
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Florida Chief Financial Officer Jimmy Patronis announced Thursday that the state’s treasury would begin pulling out $2 billion of assets that are currently under management by BlackRock, Angel Au-Yeung reports for The Wall Street Journal. The sunshine state cited the firm’s support for environmental, social and governance investing. The regulatory divide among states over the role that ESG issues in investment decisions by state and local pensions is creating fresh challenges for asset managers seeking capital from
certain systems.
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$21.5 Billion
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The volume of private capital fundraising in China so far this year, a dramatic slowdown from the $115.9 billion raised during all of 2021, according to data provider Preqin Ltd.
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Ari De SA Cavalcante Neto, chief executive officer of Arco Platform Ltd., speaks during an interview in Sao Paulo, Brazil in 2019. Photo: Rodrigo Capote, Bloomberg News
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General Atlantic and Dragoneer Investment Group have offered to acquire outstanding class A common shares of publicly traded educational technology company Arco Platform Limited for $11 a share, according to a press release. A preliminary nonbinding proposal said that Arco’s founders support the proposed deal and will roll 100% of their class A shares and class B common shares into the deal, the release stated.
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Warburg Pincus has agreed to purchase specialty insurance program manager K2 Insurance Services from fellow private-equity investor Lee Equity Partners, according to a press release. San Diego-based K2 Insurance Services provides managing general agents with centralized services that include technology, actuarial claims and distribution and capacity relationships, the release stated.
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Midmarket firm Stellex Capital Management said it invested in A. Stucki Company in partnership with Eldridge Industries. Pittsburgh-based Stucki offers rail equipment and services and operates 21 facilities across the United States, Mexico and Brazil, according to a press release.
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Palladium Equity Partners invested in San Diego-based public affairs and communications firm Southwest Strategies LLC. Financial terms weren’t disclosed.
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Riverstone Credit Partners, a credit unit of energy-focused Riverstone Holdings, has closed a $160 million sustainability-linked senior secured term loan with Hoover CS, a provider of sustainable packaging and fleet management services that is backed by energy-focused firm First Reserve.
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Our add-on deal interactive tool allows you to sort and analyze volumes of add-on deal data compiled by WSJ Pro. View more.
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Weekend Read: Survival Guide to Inflation and Economic Turbulence
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C-suite executives and other business leaders are planning for a period where inflation is sticky, interest rates are rising, the geopolitical landscape is fraught with tumult and the economy is slowing.
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Here’s a guide from WSJ’s C-Suite newsletters on how executives are tackling these challenges.
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An agreement to sell a stake in two properties, including the MGM Grand Las Vegas, marks one of the largest U.S. casino deals this year. PHOTO: BRIDGET BENNETT FOR THE WALL STREET JOURNAL
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Blackstone Inc. has agreed to sell its 49.9% stake in two Las Vegas hotels in a deal that values the properties at $5.5 billion, Peter Grant and Miriam Gottfried report for The Wall Street Journal, citing people familiar with the matter. The deal would be one of the largest U.S. casino transactions this year and would bring a profit of more than $700 million for Blackstone in less than three years, including rent from the operator, people familiar with the matter said.
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Clairvest Group Inc. has sold its stake in DTG Enterprises Holdings, Inc. to Macquarie Asset Management as part of a recapitalization of the company, which provides recycling services for customers across the commercial, industrial and construction industries, according to a press release. Clairvest initially backed the company in 2020, the release stated.
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Omnes Capital and other private shareholders have sold France-based Mistral Group to software company Aptean. Omnes backed the company, which provides enterprise resource planning technology to agriculture and construction equipment distributors, in 2018.
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Sheridan Capital Partners took an ownership stake in health-care advisory firm ADVI Health. Financial terms weren’t disclosed.
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Private-equity backed Mercer Advisors bought Regis Management Company, a wealth management firm with $5 billion in assets, Andrew Welsch reports for sister publication Barron’s. Denver-based Mercer Advisors is backed by private equity firms Oak Hill Capital and Genstar Capital.
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Altor Equity Partners, a private-equity firm focused on Northern Europe, is seeking €3 billion, the equivalent of $3.16 billion, for Altor Fund VI AB, according to documents presented to the Massachusetts Pension Reserves Investment Management Board. The state pension manager considered a commitment of up to €100 million to the fund at its Dec. 1 board meeting. Altor targets midmarket companies in the Nordic region and DACH region of Europe and raised €2.5 billion for its fifth fund back in 2019, according to the firm’s website.
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Creation Investments Capital Management, an impact investment firm focused on emerging markets, has raised more than $270 million for Creation Investments Social Ventures Fund V, the firm said in a news release. Creation Investments focuses its flagship funds on investments that provide capital access to the unbanked in Mexico and India. Investors in the new fund include emerging markets fund-of-funds manager 57 Stars, asset manager Ascension Investment Management and Swiss impact investment firm Blue Earth Capital AG, the release stated.
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Publicly traded KKR & Co. announced promotions of 27 professionals who will become the firm’s newest managing directors on Jan. 1. The newest MD class includes three members of the firm’s private-equity team: George Aitken in Sydney, Hans Arstad in Stockholm and Stavros Mercouris in London, according to a news release.
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Commonfund Capital Inc. said that Mark Hoeing, managing director and head of private equity, will become president of the firm effective Jan. 1, as current president and chief executive Peter Burns plans to retire on June 30, 2023. Mr. Hoeing has been with Commonfund Capital for 17 years, according to a press release.
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Capital Dynamics has named Managing Director Andrea Mazzaferro as the firm’s new head of primaries in Europe, succeeding Mark Drugan, who is retiring from Capital Dynamics after 34 years, according to a press release. Mr. Mazzaferro joined Capital Dynamics in 2018.
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San Francisco-based private-equity firm Argand Partners said it has hired Ford Harrington as a vice president and Peter Derby as an associate. Mr. Harrington joins from Madison Dearborn Partners portfolio company Navisite, where he led corporate development. Mr. Derby previously served as an associate at AlpInvest, where he focused on co-investments, according to a news release.
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The Pentagon has established a new unit to lure private funding for technology deemed critical to national security, citing concern over China’s military advances, Sharon Weinberger and Doug Cameron write for the Journal. On Thursday, the Defense Department announced the creation of the Office of Strategic Capital, which will seek to employ loans, guarantees and other financial tools not typically used by the U.S. military, which relies mainly on contracts and grants.
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Lawmakers should pass legislation that would impose strict rules on cryptocurrency exchanges, including rules to limit or prohibit the conflicts of interest that contributed to FTX’s collapse, Commodity Futures Trading Commission Chairman Rostin Behnam said Thursday as the Journal’s Dave Michaels reports. Speaking to members of the Senate Agriculture Committee, Mr. Behnam said he still supported a bill that would give his small agency authority to police trading in bitcoin, ether and other digital assets classified as commodities. FTX and its founder Sam Bankman-Fried also lobbied in support of the legislation before the firm’s collapse last month.
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Corporate funding markets appear to be thawing as finance chiefs at a number of highly rated companies face a year-end deadline decision: Refinance near-term debt coming due with bonds at higher rates now or turn to shorter-term options on the chance rates might be lower in the new year, Nina Trentmann writes for CFO Journal.
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Fortress Investment Group LLC has joined the growing legions of large private markets firms forming dedicated private wealth platforms to raise capital from wealthy individuals and families. The firm has launched Fortress Private Wealth Solutions, which will be led by Managing Directors Nils Wilson and Adam Bobker. Mr. Bobker joined the firm in November from BlackRock, where he served most recently as managing director and head of the firm’s private wealth advisory group and alternative investment sales, according to a press release.
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