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☆ Private equity superstores overstock the shelves
▼ + stars: | 2023-11-08 | by ( Liam Proud | ) www.reuters.com time to read: +8 min

LONDON, Nov 8 (Reuters Breakingviews) - Private equity investors seem happier these days shopping for returns at specialty shops over supermarkets. U.S. private equity funds raised some $240 billion in the first nine months of 2023, according to research outfit PitchBook, 13% less than a year earlier. New York-based CD&R in August raised $26 billion for its 12th-generation private equity fund while Eurocentric CVC managed an even more eye-popping $29 billion in July. A better explanation, from the consultants who advise LPs on where to put their cash, is that private equity supermarkets may be cannibalising themselves. Until they can prove otherwise, the more scattered private equity superstores risk losing more ground to the specialists.

Persons: Clayton, Blackstone, Steve Schwarzman, Marc Rowan, don’t, Rowan, Rob Lucas, Blackstone’s, they’re, Lucas, Jeffrey Goldfarb, Thomas Shum Organizations: Reuters, Rice, CVC Capital Partners, Apollo Global Management, Blackstone Capital Partners IX, “, IX, CVC, Apollo, Blackstone, U.S, Thomson Locations: Dubilier, New York, Blackstone, Asia, Luxembourg, Europe, Americas

☆ Sainsbury’s gain is private equity’s pain
▼ + stars: | 2023-11-02 | by ( ) www.reuters.com time to read: +2 min

LONDON, Nov 2 (Reuters Breakingviews) - Red hot competition in the UK grocery market is favoring the largest players. Sainsbury’s CEO Simon Roberts reckons the 6.5 billion pound group has been taking market share from rivals including discounters Aldi and Lidl. That may not be good news for Sainsbury’s smaller peers like Morrisons and Asda, owned by Clayton, Dubilier & Rice and EG Group respectively. Both Sainsbury’s and Tesco have held their market shares relatively stable since 2021, when CD&R bought Wm Morrison. Sainsbury’s is currently valued at 5 times forward EBITDA, according to LSEG data.

Persons: J Sainsbury’s, Simon Roberts reckons, Wm Morrison, Aimee Donnellan, Aston Martin, Neil Unmack, Streisand Neto Organizations: Reuters, Aldi, Tesco, Clayton, Rice, EG, R, Asda, Morrisons, Pfizer, Thomson Locations: Britain’s, Asda, Dubilier

☆ Private equity bites off mostly what it can chew
▼ + stars: | 2023-08-17 | by ( Jonathan Guilford | ) www.reuters.com time to read: +4 min

Private equity firms notched nearly $300 billion of acquisitions worldwide through Aug. 15, according to Dealogic data. Deals in the $1 billion to $5 billion range are running closest to the same pace as 2022. STG, for example, secured a loan to value of more than 40% from private lenders. With capital tighter, it’s easy to understand why buyout firms are pursuing humbler deals more likely to exceed the minimum returns investors expect. GTCR’s plan to buy 55% of Worldpay at a $17.5 billion valuation requires an equity check equivalent to 15% of the buyout firm’s assets.

Persons: Simon & Schuster, STG, Clayton, Rice, Banks, Ares Capital’s, hasn’t, Jeffrey Goldfarb, Sharon Lam Organizations: KKR, New York Stock Exchange, Reuters, Avid Technology, GTCR, TPG, Francisco Partners, Bain Consulting, Thomson, & $ Locations: New York, U.S, can’t, Dubilier

☆ CD&R to take packaging firm Veritiv private in $2.3 billion deal
▼ + stars: | 2023-08-07 | by ( ) www.reuters.com time to read: +1 min

Aug 7 (Reuters) - Veritiv (VRTV.N) on Monday agreed to be bought by private equity firm Clayton, Dubilier & Rice (CD&R) in a $2.3 billion deal that would take the packaging firm private. Under terms of the deal, CD&R would pay $170 per in cash for each share of Veritiv common stock, representing a nearly 20% premium to its last close. Shares of Veritiv, which is set to report second-quarter results on Aug. 8, were trading up 18% at $167.20 before the bell. Morgan Stanley served as exclusive financial advisor to Veritiv for the deal, which is expected to close in the fourth quarter of 2023. Reporting by Kannaki Deka in Bengaluru; Editing by Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

Persons: Clayton, Morgan Stanley, Veritiv, Kannaki, Shailesh Organizations: Thomson, & $ Locations: Dubilier, Bengaluru

☆ Buyout barons feast on excesses of last boom
▼ + stars: | 2023-07-21 | by ( Jonathan Guilford | ) www.reuters.com time to read: +7 min

That opens up plenty of potential loopholes which could allow borrowers to keep their old loans even after a deal. Lenders explicitly allow a company’s so-called “permitted holders” - typically its management or long-time investors - to assume responsibility for the debt. For example, one definition of a change of control is where the majority of board seats change hands. That means the company’s debt can stay put, news service 9fin reported. Interest rates for loans provided by private lenders have risen from 6.2% to 11.6% over a similar time frame.

Persons: Clayton, Rice, Breakingviews, 9fin, Cooper’s, Blackstone, Datacenters, Murray, dealmakers, Peter Thal Larsen, Sharon Lam, Streisand Neto Organizations: YORK, Reuters, Partners, P, Reuters Graphics Reuters, Cornerstone, Focus Financial, Stone, Point, Smart, Securities, Exchange, NRG Energy, QTS Realty Trust, Foresight Energy, American Consolidated Natural Resources, Foresight, P Global Market Intelligence, Thomson, & $ Locations: Dubilier, Delaware

☆ Michael Jordan is selling his majority stake in the Charlotte Hornets
▼ + stars: | 2023-06-16 | by ( Jessica Golden | ) www.cnbc.com time to read: +2 min

Charlotte Hornets owner Michael Jordan responds to a question during a news conference at Spectrum Center in Charlotte, North Carolina, Oct. 28, 2014. Basketball legend Michael Jordan has agreed to sell his majority stake in the National Basketball Association's Charlotte Hornets to wealthy investors Gabe Plotkin and Rick Schnall, a representative for Jordan confirmed Friday. Jordan took a majority stake in the Hornets in 2010 for $275 million. Under the ownership of the six-time NBA champion Jordan, the Hornets have struggled, only making the playoffs two times. Plotkin acquired a minority stake in the Hornets in 2019 and has served as an alternate governor on the NBA Board of Governors.

Persons: Charlotte, Michael Jordan, Basketball Association's Charlotte, Gabe Plotkin, Rick Schnall, Jordan, Plotkin, Schnall, Clayton, Dan Sundheim, J, Cole, Eric Church Organizations: Charlotte Hornets, Spectrum Center, Basketball Association's, Basketball Association's Charlotte Hornets, Hornets, NBA, of Governors, Tallwoods, NBA's Atlanta Hawks, Hawks, D1, North Carolina, Hornets Sports & Entertainment, G League, Greensboro Swarm, Spectrum, Forbes Locations: Charlotte , North Carolina, Dubilier

☆ Exclusive: ICU Medical to compete against GE Healthcare for Medtronic units -sources
▼ + stars: | 2023-03-29 | by ( David Carnevali | ) www.reuters.com time to read: +2 min

GE Healthcare and private equity firms Carlyle Group Inc (CG.O) and Clayton, Dubilier & Rice (CD&R), which have been pursuing rival offers separately, are also through to the second round, the sources added. Carlyle is bidding through its newly formed healthcare investment platform Atmas Health, according to one of the sources. Medtronic has been taking offers for its patient monitoring and respiratory interventions businesses even as it presses on with preparations to spin them off to its shareholders. ICU Medical, GE Healthcare, Carlyle and CD&R declined to comment. The patient monitoring technology portfolio includes Nellcor pulse oximetry and BIS brain monitoring, while the respiratory interventions business comprises ventilators and breathing systems.

☆ CD&R to take Focus Financial private in over $7 bln deal
▼ + stars: | 2023-02-27 | by ( ) www.reuters.com time to read: +2 min

Feb 27 (Reuters) - Focus Financial Partners Inc (FOCS.O) has agreed to be taken private by affiliates of buyout firm Clayton, Dubilier & Rice (CD&R) in an all-cash transaction valued at more than $7 billion including debt, the companies said on Monday. The buyout firm's offer highlights how private equity firms are pouncing on the plunge in valuations to snap up companies. CD&R and Stone Point will fund the deal, which is expected to close in the third quarter of this year, with fully-committed equity financing. Stone Point and fellow private equity firm KKR & Co (KKR.N) owned New York-based company Focus prior to its listing in 2018. Jefferies LLC and Goldman Sachs are financial advisers to Focus, while Moelis & Co, Truist Securities Inc and BofA Securities are among advisers to CD&R.

☆ Buyout barons reach deep into their bags of tricks
▼ + stars: | 2023-02-15 | by ( Jonathan Guilford | ) www.reuters.com time to read: +7 min

NEW YORK, Feb 15 (Reuters Breakingviews) - Debt necessity is proving to be the mother of private equity invention. With the cheap borrowing that fueled record-breaking years of leveraged buyouts gone, firms are digging deeper into their bags of tricks. Private equity firm Silver Lake, which bought a stake alongside the IPO, said it might take control. Besides putting private equity firms into weaker negotiating positions, the competing incentives also threaten conflicts of interest with limited partners. ...THERE’S A WAYIf the U.S. Federal Reserve avoids engineering a recession, private equity should be able to revert to its tried-and-true formula soon enough.

☆ Private equity firm CD&R proposes to buy Focus Financial for $4.1 bln
▼ + stars: | 2023-02-02 | by ( ) www.reuters.com time to read: 1 min

Feb 2 (Reuters) - Private equity firm Clayton, Dubilier and Rice is weighing a $4.1 billion buyout offer for investment adviser Focus Financial Partners Inc (FOCS.O), according to a regulatory filing on Thursday. The offer price of $53 per share marks a nearly 15% premium to stock's last close on Wednesday. Shares of Focus Financial were up 12.4% at $52 in premarket trading. Private equity firms, with billions of dollars of cash and a mandate to invest, have offered some respite in an environment that is still tough for dealmaking as fears of an economic downturn intensify. Reporting by Niket Nishant; Editing by Shinjini Ganguli and Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

A trading book includes loans banks have earmarked for sale and are thus marked-to-market, while a banking book is where a lender holds loans and other assets not intended for disposal. This implies a heavy discount of 15 pence on the pound if banks sell the loans at that level. Banks make money also by charging the borrower a fee to provide loans, then sell the loans to third party investors. Reuters could not ascertain the exact size of the hit on the loans sold. On the flipside, loans sold by banks can generate attractive gains for buyers.

☆ Costcutter owner Bestway buys Sainsbury's stake
▼ + stars: | 2023-01-27 | by ( James Davey | ) www.reuters.com time to read: +4 min

Sainsbury's shares were up 4.5% on Friday, hitting their highest since April and leading gainers on the FTSE 100 (.FTSE) index. The 3.45% stake makes Bestway Sainsbury's sixth largest investor, Refinitiv Eikon data showed. Asda was purchased by brothers Mohsin and Zuber Issa and private equity company TDR Capital for an enterprise value of 6.8 billion pounds, while Morrisons was bought by U.S. private equity firm Clayton, Dubilier & Rice for 7 billion pounds. Sainsbury's proposed 7.3 billion pounds takeover of Asda was blocked by Britain's competition regulator in 2019. Shares in Sainsbury's closed on Thursday at 239.4 pence, valuing the business at 5.6 billion pounds.

☆ Britain's Morrisons puts faith in better pricing to win back customers
▼ + stars: | 2023-01-26 | by ( James Davey | ) www.reuters.com time to read: +2 min

Morrisons, owned since 2021 by U.S. private equity firm Clayton, Dubilier & Rice, was overtaken as Britain's fourth-largest grocer by market share by German-owned discounter Aldi last September, according to researcher Kantar. Monthly industry data has consistently shown the group underperforming rivals including market leader Tesco (TSCO.L) and No. Sales in the three weeks before Christmas were up 2.5% year on year, said Morrisons, which has a UK grocery market share of 9.1%. In the financial year to end-October, Morrisons reported a 15% drop in core earnings (EBITDA) to 828 million pounds ($1.03 billion) while underlying sales fell 4.2%. Analysts had suggested that Morrisons' debt burden following CD&R's 7 billion pound purchase has impacted its ability to maintain price competitiveness.

☆ CD&R Hires Former Marsh & McLennan CEO Dan Glaser as Operating Partner
▼ + stars: | 2023-01-09 | by ( Miriam Gottfried | ) www.wsj.com time to read: 1 min

Marsh & McLennan’s market capitalization climbed to over $80 billion during the decade Dan Glaser spent as its chief executive. Dan Glaser , the former chief executive of insurance broker and benefits company Marsh & McLennan Cos., is joining private-equity firm Clayton, Dubilier & Rice LLC as an operating partner. Mr. Glaser, who said in September that he would be retiring after a 40-year career in insurance, will work for a new financial-services unit that CD&R recently launched, firm executives said.

☆ The private-equity firm behind Italian soccer champs AC Milan is quietly building a financial services powerhouse
▼ + stars: | 2023-01-05 | by ( Hayley Cuccinello | Dakin Campbell | ) www.businessinsider.com time to read: +4 min

RedBird Capital is best known as the private-equity owner of soccer club AC Milan. But the sports dealmaker is quietly building a financial services arm to rival its flashier bets. RedBird Capital is one of the buzziest names in dealmaking when it comes to sports and Hollywood. In August, the New York City-based private equity firm bought soccer club AC Milan for $1.2 billion. The firm's philosophies for financial services and sports are one and the same: taking advantage of fragmented environments with firms that have long-term recurring cash flow.

☆ How Gerry Cardinale became the go-to dealmaker for the likes of the Yankees, AC Milan, and Ben Affleck
▼ + stars: | 2022-12-29 | by ( Hayley Cuccinello | Dakin Campbell | ) www.businessinsider.com time to read: +20 min

He bought the soccer club AC Milan in August, earning the attention of the Italian press. This past spring, AC Milan won its first national title in 11 years. Claudio Villa/AC Milan via Getty Images Show less Cardinale at a training session for AC Milan. For instance, the teams sell each other's merchandise in their stadiums, and the YES Network airs AC Milan games. "Now we have a new phase of expansion and internationalization of AC Milan with Gerry."

☆ Clayton Dubilier & Rice Banks $10 Billion So Far for Latest Buyout Fund
▼ + stars: | 2022-09-18 | by ( Laura Kreutzer | ) www.wsj.com time to read: 1 min

Buyout shop Clayton, Dubilier & Rice has collected around $10 billion in an initial closing of its latest private-equity fund, raising the money in around four months, according to people familiar with the effort, as investors funnel more of their private-equity commitments to experienced managers. The amount raised so far puts the New York firm roughly halfway toward a $20 billion goal for the Clayton Dubilier & Rice Fund XII LP and comes as the overall fundraising market for private-equity firms has grown more challenging. Through this year’s first half, firms worldwide raised $247 billion for new funds, 43% less than in the same period last year, according to data provider Preqin Ltd.

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