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☆ India’s $1 bln education buyout is a studied bet
▼ + stars: | 2023-06-21 | by ( ) www.reuters.com time to read: +2 min

MUMBAI, June 21 (Reuters Breakingviews) - The biggest merger in Indian corporate history has opened the door for private equity giant EQT (EQTAB.ST) to enter the country’s education finance market. The deal is touted as the largest ever PE buyout in the country’s financial sector and values Credila at roughly 101 billion rupees ($1.2 billion), or roughly 37 times earnings in the last financial year. The target specalises in education financing for those looking to universities in the United States, the UK and Canada for higher education. The buyers will also inject 20 billion rupees into Credila, which should help give the company, already a market major, an edge over rivals including state-controlled banks and the Warburg Pincus-backed Avanse Financial Services. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: HDFC, Credila, BPEA EQT, Warburg Pincus, Shritama Bose, Robyn Mak, Thomas Shum Organizations: Reuters, Chrys Capital, Bajaj Finance, Financial, Twitter, Virgin, Thomson Locations: MUMBAI, Swedish, United States, Canada, India, Credila, Cava

☆ How to land a job with Blackstone, Apollo, KRR, and other private equity titans
▼ + stars: | 2023-06-06 | by ( Kaja Whitehouse | ) www.businessinsider.com time to read: +6 min

Private equity is often seen as the Holy Grail of finance jobs — but breaking in can be challenging. We also have data on private equity pay and the industry's top recruiters. Here is what we found about pay at private equity firms, including Blackstone, Apollo, and Bain Capital. Private equity recruiting has been starting earlier than ever Getty ImagesPrivate equity firms like to recruit young talent from investment banks. These days, the private equity recruiting process has started earlier than ever, resulting in middle-of-the-night interviews with offers being made — and blown up — all before Labor Day.

Persons: —, bymuratdeniz, Blackstone, Samantha Lee, Drew Angerer, Skye Gould, Jon Gray, Grace Koo, Read, Carlyle, Alex Crisses, Thoma Bravo, Warburg Pincus, Wharton's, Axel Springer Organizations: Blackstone, KKR, Service, Apax Partners, Oaktree, of Foreign Labor, Apollo, Bain Capital, Labor, General Atlantic, PJT Partners, Partners, dealmakers, Wall, University of Michigan Locations: Carlyle, Blackstone, Axel

☆ VC Ian Chiu's passion for education began when he shared his secrets to getting scholarships in a book. Now he helps edtech startups make a difference as a top investor at Owl Ventures.
▼ + stars: | 2023-05-30 | by ( Madeline Renbarger | ) www.businessinsider.com time to read: +4 min

At 18, Ian Chiu started writing a book with his brothers on how to land college scholarships. Now as managing director at Owl Ventures, Chiu has coached founders that are edtech success stories. If you ask Owl Ventures' Ian Chiu about the moment he first realized he could help others through education, he will immediately have an answer. So the three brothers decided that writing a guidebook on getting scholarships could be a fun project to share their newly acquired knowledge. But beyond the business side, writing the book also showed Chiu how his work helping others access better education opportunities could make a difference in people's lives.

☆ Investment consortium to buy Syneos Health in $7.1 bln deal
▼ + stars: | 2023-05-10 | by ( ) www.reuters.com time to read: +1 min

May 10 (Reuters) - An investment consortium, comprising of Elliott Investment Management, Patient Square Capital and Veritas Capital, has agreed to buy Syneos Health Inc (SYNH.O), in a deal valued at $7.1 billion, including debt, the contract research firm said on Wednesday. Syneos said the consortium will pay about $43 per share in cash, which represents a premium of about 12% to the company's last close of $38.45. The deal comes at a time when Syneos faces challenges in winning new business, as many of its clients, which includes medium-sized biotechs, have cut spending as they have found it difficult to raise funding in a post-COVID-19 market downturn. Deal comes days after a private-equity groups including Warburg Pincus and Advent International agreed to buy Baxter International (BAX.N) biopharma solutions unit for $4.25 billion. Reporting by Bhanvi Satija and Khushi Mandowara in Bengaluru; Editing by Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

☆ Investment consortium to take Syneos private for $4.46 billion
▼ + stars: | 2023-05-10 | by ( ) www.reuters.com time to read: +2 min

May 10 (Reuters) - An investment consortium, comprising of Elliott Investment Management, Patient Square Capital and Veritas Capital, has agreed to take Syneos Health Inc (SYNH.O) private for $4.46 billion, the contract research firm said on Wednesday. Syneos said the consortium will pay about $43 per share in cash, which represents a premium of about 12% to the company's last close of $38.45. The acquisition is valued at $7.1 billion including debt. Syneos, which helps pharmaceutical companies with clinical trials and marketing their drugs, currently carries a debt of nearly $3 billion. The company reported a total backlog of contracts of $9.83 billion, as of March 31, 2023, down from $11.63 billion at the end of the first quarter of 2022.

☆ Baxter Selling Biopharma-Solutions Arm for $4.25 Billion
▼ + stars: | 2023-05-08 | by ( Colin Kellaher | ) www.wsj.com time to read: 1 min

Baxter expects net after-tax proceeds of about $3.4 billion from the sale. Photo: Kristoffer Tripplaar/Sipa USA/Associated PressBaxter International on Monday said it agreed to sell its biopharma-solutions unit for $4.25 billion, as the medical-products maker continues to streamline its focus. The Deerfield, Ill.-based company is selling the unit to private-equity firms Advent International and Warburg Pincus .

The buyout consortium has turned to other private equity firms to help fund the deal as direct lenders, one of the sources added. There is no certainty that Warburg Pincus and Advent will successfully complete negotiations to acquire the unit and Baxter may still opt to sell to another bidder or keep the business, according to the sources. Baxter, Warburg and Advent did not immediately respond to requests for comment. Baxter's biopharma solutions unit supports drugmakers in the formulation, development and commercialization of drugs typically given by infusion or injection, such as biologics and vaccines. The company said dialysis operations, which are a part of Baxter's renal care unit, had become a drag on its margin.

☆ Exclusive: The University of California has invested billions in venture capital firms since 2000 and it has lost hundreds of millions so far. Here's why.
▼ + stars: | 2023-04-11 | by ( Ben Bergman | Darius Rafieyan | ) www.businessinsider.com time to read: +6 min

Insider obtained UC Investments' returns through a Public Records Act request. Unlike many other financial institutions, VC funds are not required to show their return on investment in startups. UC Investments, which has been managed by Jagdeep Singh Bachher since 2014, declined to comment. Though selling early produced an initial windfall, UC Investments could have ultimately missed out on substantial gains from these VC funds. By comparison, UC Investments earned a 8.3% return for its investment in public markets.

☆ Warburg Pincus Cashes Out of Polyplus in Lucrative Exit
▼ + stars: | 2023-04-05 | by ( Maria Armental | ) www.wsj.com time to read: 1 min

Warburg Pincus notched a hefty gain on its 2020 investment in gene-therapy technology company Polyplus-transfection SA, the latest in a string of healthcare transactions with big payoffs for the private-equity firm. Warburg Pincus stands to make a more-than fourfold return on its initial investment through a sale to strategic buyer Sartorius AG for about €2.4 billion, or roughly $2.62 billion, according to people familiar with the deal announced last week. Polyplus co-owner ArchiMed, a European healthcare investment specialist, could reap a much greater gain as it first backed the company in 2016 at a valuation of less than €10 million, according to a person familiar with the deal.

☆ Check out the 9-slide pitch deck Quantexa, a data intelligence startup, used to raise $129 million at a $1.8 billion valuation
▼ + stars: | 2023-04-04 | by ( Callum Burroughs | ) www.businessinsider.com time to read: +2 min

Quantexa, a data intelligence startup, has become a unicorn following its latest funding round. The London-based company has raised $129 million in a round led by GIC. The startup positions itself as a "decision-making" platform that provides companies with the best data available to help reduce costs and optimize growth. The new investment values the business at $1.9 billion, bringing Quantexa's total funds raised to $370 million. The company had seen a lot of inbound interest from investors leading into this funding round, Marria added.

[1/2] Goldman Sachs CEO David Solomon speaks during the Goldman Sachs Investor Day at Goldman Sachs Headquarters in New York City, U.S., February 28, 2023. REUTERS/Brendan McDermidHONG KONG/SHANGHAI, March 31 (Reuters) - A flurry of top financial executives have visited China for the first time since the COVID-19 pandemic as global financial giants seek to cement their relations with Beijing at the start of President Xi Jinping's new term. International financial institutions and investors are welcome to expand in China, the chairman of the country's securities regulator said. Goldman Sachs' Solomon and Blackstone (BX.N) CEO Stephen Schwarzman met Peng Chun, chairman of China Investment Corporation (CIC), this week, according to official social media posts from the $1.35 trillion sovereign wealth fund. Meanwhile, Chip Kaye, Warburg Pincus's CEO, met Beijing's major Yin Yong during his visit to the city last week, according to a municipal statement from Beijing.

"Not only are these big banks not sitting around and waiting for the phone to ring, they are also being proactive." Amid the nation's most troubling turmoil in banking since the global financial crisis nearly 15 years ago, the big banks are flexing their collective muscle. The 2008 financial crisis humbled the banking behemoths; the 2023 crisis of regional banks has now only cemented their power. For an increasingly stretched financial system, the big banks provide a needed stability. The flight to safety that is benefiting the big banks will have a cost, however.

It would help organize a $2.25 billion stock sale for SVB to fill the funding gap caused by the bond portfolio sale, two of the sources said. It is unclear whether Goldman has held onto all or part of the bond portfolio or sold it. In a regulatory filing on Tuesday, SVB said its bond portfolio sales to Goldman were done at "negotiated prices". Goldman was not paid the underwriting fee it had agreed for the stock sale because that deal fell through, two of the sources said. UNDISCLOSED ROLESVB did not disclose in its stock sale prospectus to investors that Goldman was the acquirer of the bond portfolio it sold at a loss.

Warburg has approached a number of Chinese investors including local government-backed entities and state-backed financial institutions for the new yuan fund, the people with knowledge of the matter said. The U.S. private equity (PE) firm plans to primarily focus on the healthcare and industrial technology sectors in China with the yuan fund, one of the people said. "RMB (yuan) funds are relatively independent and self-sustainable," he said. Sensitive sectors will remain closed to global private equity groups even if they raise yuan funds, she added. Emerging markets-focused Affirma Capital is also targeting a 2 billion yuan raising in its debut fund and reached first close at 1.5 billion yuan by end-2022, a person close to the situation said.

☆ 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.

☆ Warburg Pincus moves closer to buying a stake in Chinese fund Zhong Ou
▼ + stars: | 2023-02-13 | by ( ) www.reuters.com time to read: +2 min

Italian banking group Intesa Sanpaolo (ISP.MI) disclosed in its 2021 annual report that its board had approved the sale of a 23.3% stake in Zhong Ou to Warbug Pincus. The planned 23.3% stake sale to Warburg Pincus was confirmed on Monday by a source familiar with the transaction. The CSRC did not say how big a stake Warburg Pincus will buy in Zhong Ou, which has more than 350 billion yuan ($51.3 billion) of assets under management (AUM). In the regulatory feedback, the CSRC asked Warburg Pincus to explain how it would support Zhong Ou's development. The regulator also requested further proof from Warburg Pincus that it's a leading global player with good international reputation and performance.

☆ IONOS shares slip below IPO price at start of trading
▼ + stars: | 2023-02-08 | by ( Pablo Mayo Cerqueiro | ) www.reuters.com time to read: +1 min

LONDON, Feb 8 (Reuters) - Shares in German web hosting company IONOS dipped below the price of its initial public offering (IPO) on Wednesday after Europe's first major stock market debut since Porsche (P911_p.DE) in September. Shares started trading at 18.40 euros apiece and were changing hands at around 18.00 in morning trading. Books closed on Tuesday with a final IPO price of 18.50 euros, the company said. The deal piqued the interest of a significant number of investors, with roughly 750 meetings set up to market the IPO, the source added. Underwriters for the deal may use an "over-allotment" option to issue additional shares, giving the company a free-float of 17.3%.

☆ IONOS sets IPO price guidance at lower end of range
▼ + stars: | 2023-02-06 | by ( ) www.reuters.com time to read: +1 min

LONDON, Feb 6 (Reuters) - German web hosting firm IONOS plans to sell shares at the lower end of the targeted price range in its initial public offering (IPO) on the Frankfurt bourse, a deal seen as a potential icebreaker for the reopening of European markets. The company is offering stock at 18.50 to 19.50 euros ($19.94-$21.02) per share, compared with the original price range of 18.50 euros to 22.50 euros, according to a bookrunner message seen by Reuters on Monday. Books were covered across the full deal size shortly after its official launch on the morning of Jan. 30. The deal is seen as a test of equity investors' appetite for newly publicly traded companies after IPO activity plunged in 2022. ($1 = 0.9277 euros)Reporting by Pablo Mayo Cerqueiro; Editing by Jason Neely and Jan HarveyOur Standards: The Thomson Reuters Trust Principles.

☆ Adani’s battle with Hindenburg leaves investors sizing up exposure to the global banking sector
▼ + stars: | 2023-01-31 | by ( Seema Mody | ) www.cnbc.com time to read: +4 min

Indeed, Indian banks make up 0.6% of the group's sector loans, according to JPMorgan. This may seem low but the total exposure to the Adani Group is still around $9 billion, wrote Saurabh Kumar, an analyst at JPMorgan. Gautam Adani, chairman of Adani Group. Jefferies analyst Prakhar Sharma writes that, for now, the risk to Indian banks is low, saying, "we don't see material risk to the Indian banking sector." Of the seven companies operated by the Adani Group: Adani Green Energy, Adani Power and Adani Ports are sitting on the most net debt, according to analysts.

[1/2] A trader works at the Frankfurt stock exchange in Frankfurt, Germany, February 22, 2022. REUTERS/Timm Reichert/File PhotoBERLIN/LONDON, Jan 27 (Reuters) - German web hosting firm IONOS is targeting a market capitalisation of up to 3.15 billion euros ($3.42 billion) in Europe's first major initial public offering (IPO) since sports car maker Porsche last September. Subject to regulatory approval of the IPO prospectus, the offer is expected to run from Jan. 30 to Feb. 7. IPO investors are typically offered a discount to a peer group in compensation for the risk of buying a new stock. Montabaur-based IONOS offers web hosting services and cloud applications to consumers and SMEs in countries including the United States, Germany, Britain, France, Spain and Poland.

Oklahoma City-based Chesapeake has been trying to divest its entire South Texas operations to focus on natural gas-producing acreage in other parts of the United States. The deal it has clinched falls short of meeting the demands of activist investor Kimmeridge Energy Management, that is among the 15 largest Chesapeake shareholders, to exit South Texas entirely. Chesapeake is continuing with efforts to divest them, though it's unclear if it will do so until market conditions change, according to the sources. Chesapeake and WildFire did not respond to comment requests. Since then, it has built a position in the Eagle Ford producing upwards of 16,000 net barrels of oil equivalent per day, according to its website.

BERLIN/FRANKFURT, Jan 17 (Reuters) - United Internet (UTDI.DE) subsidiary Ionos said on Tuesday it would undertake a prime standard listing of its shares this quarter on the Frankfurt Stock Exchange, as the web hosting company readies for an initial public offering (IPO). The offered shares are expected to come from the holdings of the subsidiary's two existing shareholders, United Internet and Warburg Pincus, with United Internet to retain a majority stake after the IPO, Ionos said. United Internet shares were up 1.8% to 22.23 euros in early Frankfurt trading. The intention to float document did not provide details on the target issue price or the number of shares to be offered. A source familiar with the matter told Reuters last week that Ionos could achieve a valuation of 5 billion euros ($5.42 billion) in a stake sale.

Dec 20 (Reuters) - Private U.S. oil and gas companies are increasingly turning to a niche financing structure that securitizes their production, providing a funding avenue for producers and owners as traditional sources become more expensive or simply dry up. With banks pressured by stakeholders to restrict loans to the oil and gas sector over its environmental impact, private energy producers - more reliant on bank lines than listed peers - are able to maintain access to outside finance through this niche product. While the first rated PDP securitization was completed in September 2019 by Raisa Energy, volatile commodity prices and a wave of producer bankruptcies in 2020 stymied its initial application. The investment bank helped arrange, among others, a $750 million ABS sold by Jonah Energy in October - currently the largest PDP securitization completed. GROWING APPEALAs well as financing day-to-day operations, private equity firms that own energy producers are exploring using PDP securitizations as an investor pay-day.

☆ India's Tata Motors looks to sell part stake in Tata Technologies via IPO
▼ + stars: | 2022-12-12 | by ( ) www.reuters.com time to read: +1 min

BENGALURU, Dec 12 (Reuters) - Indian automaker Tata Motors Ltd (TAMO.NS) said on Monday it was exploring the sale of a portion of its stake in Tata Technologies through an initial public offering (IPO). Tata Technologies, a product engineering and digital services company, was founded in 1989 as a unit of Tata Motors. The automaker held a 74.43% stake in the company as of March 31, the latest annual report showed. Tata Motors in 2018 called off a deal to sell an about 43% stake in Tata Technologies to private equity firm Warburg Pincus for $360 million, citing delays in securing regulatory approvals and performance not meeting thresholds. The 2022 fiscal annual report showed increased sales at Tata Technologies drove a 46% jump in Tata Motors' revenue from other operations.

But many are delaying IPOs amid a stock market rout that has raised concerns over frothy tech valuations. In a statement to Reuters, Snapdeal said it has decided to withdraw the IPO prospectus "considering the prevailing market conditions", without elaborating. It adding that Snapdeal may reconsider an IPO in future depending on its need for capital and market conditions. The change of Snapdeal's plans comes as tech stocks in India that listed in recent years face investors' wrath. In August, TPG and Prosus-funded Indian online pharmcy PharmEasy withdrew papers for its $760 million IPO, while Warburg Pincus-backed seller of wireless earphones, boAT Lifestyle, also withdrew its papers in October.

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