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Like its peers, private equity firm Apollo was hit by a slump in dealmaking in the quarter that made it challenging to cash out of its private equity holdings for top dollar. Its asset management and retirement businesses, however, helped it cushion the blow. Apollo said its adjusted net income fell to $845 million from $917 million a year earlier. That resulted in adjusted net income per share of $1.42, lower than the average analyst forecast of $1.47, according to Refinitiv data. By contrast, private equity funds of Blackstone, Carlyle and KKR appreciated by 2.8%, 1%, and 2%, respectively.

☆ As earnings season winds down, investors turn to Tuesday's debt ceiling meeting
▼ + stars: | 2023-05-06 | by ( Zev Fima | ) www.cnbc.com time to read: +12 min

With only a small fraction of the S & P 500 left to report quarterly earnings, investors are now turning their focus to another major hurdle for the markets and economy: the debt ceiling crisis. Earlier this week, we looked back to debt limit crisis of 2011 for potential lessons. The protracted fight ultimately ended in an agreement in early August of that year, but it was a choppy summertime ride for investors. Within the portfolio, Wynn Resorts will report Tuesday, after the closing bell, and Disney will report on Wednesday, after the closing bell. Estee Lauder (EL) and Emerson Electric (EMR) reported earnings before the opening bell.

LONDON, May 4 (Reuters) - Blackstone (BX.N) is weighing options for Spanish gambling company Cirsa, including an initial public offering (IPO), people familiar with the matter told Reuters. The U.S. buyout group recently invited proposals from investment banks to manage a possible share sale and refinancing of Cirsa's debt, said the people, speaking on condition of anonymity. An IPO would follow a public share sale by Italian peer Lottomatica (LTMC.MI), backed by Apollo Global Management (APO.N), whose shares began trading in Milan on Wednesday. Cirsa, a casino operator, posted 552.5 million euros ($609.24 million) in earnings before interest, tax, depreciation and amortisation (EBITDA) for 2022. Based on Lottomatica's valuation, Cirsa could be worth several billions of euros, including debt.

☆ Air France-KLM in talks with Apollo for $550 mln cash injection
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +1 min

May 4 (Reuters) - Air France-KLM (AIRF.PA) said on Thursday it engaged with private equity firm Apollo Global Management (APO.N) for a 500 million euro ($550.70 million) capital injection for one of its engineering and maintenance units. The new financing arrangement if complete will help strengthen Air France-KLM’s and Air France’s balance sheet, the group said in a press release. Air France-KLM and Apollo Global Management entered into a similar solution last year where the private equity firm invested 500 million euro in the company to help repay French state aid. Earlier in April, Air France KLM agreed to revolving credit facilities (RCF) worth 2.2 billion euros, adding that these are linked to environmental, social and governance (ESG) targets. Air France KLM is due to report its first quarter results on May 5.

☆ Apollo to take aerospace supplier Arconic private in $5.2 billion deal
▼ + stars: | 2023-05-04 | by ( Pratyush Thakur | ) www.reuters.com time to read: +1 min

May 4 (Reuters) - Arconic Corp (ARNC.N) has agreed to be bought by Apollo Global Management Inc (APO.N) in a take-private deal valued at about $5.2 billion, the U.S. aerospace supplier said on Thursday. Apollo will pay $30 for each Arconic share held, representing a premium of 35.6% as of close on Feb. 27, a day before reports of deal talks emerged. The company, which supplies to Boeing Co (BA.N), had rebuffed an almost $10 billion offer from Apollo in 2018. Two years later, the company split into two publicly traded firms, Arconic Corp and Howmet Aerospace Inc (HWM.N). Arconic retained rolled products, aluminum extrusions, and building and construction systems business, while the engine products, fastening systems and forged wheels businesses were spun off to Howmet.

SAS has lost almost 60% of its value since it filed for Chapter 11 bankruptcy protection last July, seeking to slash costs and debt after wage talks with pilots collapsed. Apollo will mainly work with aviation regulators in Sweden and Denmark to secure approval, the first source said. The move comes as the airline looks for large investors and seeks to raise equity as part of its Chapter 11 bankruptcy plan. Denmark's finance ministry told Reuters it was looking for one or more shareholders to take a majority stake in SAS. The company also became the largest shareholder in Mexican airline Aeromexico (GRPAF.PK) in 2020 following Chapter 11 bankruptcy proceedings.

☆ Digital “Chicago Plan” fixes many financial woes
▼ + stars: | 2023-04-28 | by ( Edward Chancellor | ) www.reuters.com time to read: +7 min

The economists’ solution – often called the Chicago Plan – was to remove commercial banks from the money-creating business. One of the main problems of a central bank digital currency (CBDC) is that it would compete with old-fashioned bank deposits. With the digital money supply increasing in line with the economy’s potential growth, roughly as Friedman advised, inflation would soon come under control. Non-bank lenders like Apollo Global Management (APO.N) would have an enhanced role under the digital Chicago Plan. At present, there’s little chance of the digital Chicago Plan coming to pass.

☆ UK's THG gets buyout proposal from Apollo, shares jump
▼ + stars: | 2023-04-17 | by ( ) www.reuters.com time to read: +2 min

Apollo must announce a firm intention to make an offer by May 15 or walk away, the British company said. Oil services company John Wood Group (WG.L) said on Monday it is engaging with Apollo over a possible 1.66 billion-pound offer, while CVC Capital and Francisco Partners have tabled a 2.1 billion-pound takeover bid for payments provider Network International (NETW.L). Last week, EQT entered talks with veterinary pharma group Dechra (DPH.L) over a 4.63 billion-pound deal. THG, formerly known as The Hut Group, is set to publish full-year results on Tuesday. ($1 = 0.8063 pounds)Reporting by Muhammed Husain in Bengaluru; Editing by Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

☆ Deal close for Washington Commanders football team
▼ + stars: | 2023-04-13 | by ( Matt Egan | ) edition.cnn.com time to read: +5 min

If finalized, the sale would mark the end of the controversial ownership of the Washington franchise by embattled billionaire Daniel Snyder. News of the near deal was first reported by Sportico, which reported the team sold for $6 billion, a record for a North American sports franchise. Snyder purchased the team, then named the Washington Redskins for a reported $750 million in 1999. It adopted the Commanders name last year, after playing two seasons with the name Washington Football Team. “Today marks the end of a long, difficult chapter for all employees and fans of the Washington football organization,” read a statement from Lisa Banks and Debra Katz, two attorneys representing more than 40 former Washington Commanders employees.

☆ Only the big will crack the $1 trln LBO code
▼ + stars: | 2023-04-12 | by ( Jonathan Guilford | ) www.reuters.com time to read: +9 min

Lenders will only tiptoe back, meaning deals need the big checks and extra elbow grease in credit markets that favor the largest private equity firms. Private equity firms depend on borrowed money to reduce how much of their own they use in any single deal and to magnify returns as a percentage of their initial investment. Imagine a private equity firm acquires a company for $1 billion, then flips it five years later for $1.5 billion. Though the private equity industry is awash in so-called dry powder, fundraising is increasingly tilting to the largest fund managers. Buyout firms are apt to keep their plans more conservative to garner higher ratings – meaning, again, less leverage and more upfront cash.

Despite a rebound in fundraising and block trading activity, year-to-date IPO volumes came in at their lowest level since 2019. Equity capital markets (ECM) advisers, however, are optimistic of a recovery in listing activity in the latter part of the year. In the United States, IPO volumes jumped more than 50% from the fourth quarter of 2022, but were still 11% down from the same period last year. IPOs briefly flickered back to life in February, as companies including solar tech firm Nextracker (NXT.O) and Chinese sensor maker Hesai Group (HSAI.O) pushed ahead with their listings. RECOVERY DELAYEDIn Europe, investment bankers said the market volatility spurred by the banking crisis is likely to affect the pipeline of deals.

☆ Apollo assures investors deposit flight won't spill over to Athene
▼ + stars: | 2023-03-30 | by ( Chibuike Oguh | ) www.reuters.com time to read: +5 min

Reuters GraphicsIn a quarterly update to shareholders published on March 13, Apollo outlined how Athene's funding model is different than a bank's. In the wake of the banking crisis, however, Apollo has been fielding questions from analysts and investors about Athene's funding model. Following a meeting with Apollo executives, Hone wrote in a note last week that he does not anticipate a spike in withdrawals from Athene's annuity holders and that Athene's funding base was stable. Apollo said in its March 13 presentation to investors that it had seen inflows of $8.8 billion to Athene from the start of the year to March 10. Questions from investors and analysts to Apollo have focused on this subset of annuity policies that have a potentially higher flight risk.

The remainder was equity checks by the private equity firms. Typically, debt accounts for between 60% and 80% of the deal consideration, allowing the buyout firms to juice returns. REFINANCING RISKTo be sure, a handful of private equity firms have already been accustomed to this kind of refinancing risk. An upside to the shift toward equity financing, dealmakers say, is that the companies owned by the private equity firms have more cushion to absorb losses if their business deteriorates. Many of the leveraged buyouts that became bankruptcies in the wake of the 2008 financial crisis were the result of private equity firms saddling companies with debt to the hilt.

☆ U.S. regulators willing to share losses for sale of SVB, Signature Bank - FT
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +2 min

March 17 (Reuters) - U.S. regulators are willing to consider the prospect of the government backstopping losses at Silicon Valley Bank and Signature Bank (SBNY.O) if it helps push through a sale, the Financial Times reported on Friday, citing people briefed on the matter. The FDIC did not comment on the Financial Times report. [1/2] A notice hangs on the door of Silicon Valley Bank (SVB) located in San Francisco, California, U.S. March 10, 2023. The Financial Times said Blackstone Group and Apollo Global Management (APO.N) have expressed interest in buying parts of SVB's loan book. SVB Financial Group (SIVB.O), the parent company of Silicon Valley Bank, earlier on Friday filed for a court-supervised reorganization under Chapter 11 bankruptcy protection.

☆ Cautious calm returns to bank stocks as focus shifts to regulation
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +5 min

Focus is also shifting to the possibility of tighter regulation in the U.S. banking sector, particularly for mid-tier banks like SVB (SIVB.O) and New York-based Signature Bank, whose collapses last week roiled financial markets. Investors had been particularly concerned about the huge bond holdings, particularly in U.S. Treasuries, of Japanese lenders. However, Japanese finance minister Shunichi Suzuki said on Wednesday differences in the structure of bank deposits, meant local banks wouldn't face incidents similar to SVB's collapse. In an attempt to avert a similar crisis down the line, the Federal Reserve is also considering tougher rules and oversight for midsize banks similar in size to SVB. "A year after starting to raise interest rates, the Federal Reserve is still chasing evidence that higher borrowing costs are slowing the U.S.

☆ Investors tiptoe back into US bank stocks, regulators probe SVB collapse
▼ + stars: | 2023-03-14 | by ( Chris Prentice | ) www.reuters.com time to read: +6 min

March 14 (Reuters) - Bruised U.S. bank stocks regained some ground on Tuesday, as a sell-off sparked by Silicon Valley Bank's collapse gave way to bargain-hunting by investors hopeful that efforts to shore up confidence would avert a wider financial crisis. The S&P 500 regional banks index (.SPLRCBNKS) rebounded 1.4%, leaving it with a 26% loss over the past five sessions. Investors worry about the health of smaller banks, the prospect of tighter regulation and authorities' preference for protecting depositors before shareholders. Reuters Graphics Reuters GraphicsINVESTIGATIONSAs markets adjusted to the impact of SVB's collapse, regulars turned their focus to the circumstances around the bank's collapse. Officials are also examining stock sales by officers of SVB Financial Group, which owned the bank, the WSJ reported, citing people familiar with the matter.

☆ Silicon Valley Bank collapse: What you need to know now
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +3 min

March 14 (Reuters) - U.S. bank stocks jumped on Tuesday, recovering some ground after the failure of Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O) triggered heavy selling by investors who were already anxious about the impact on lenders of rising interest rates. Senator Elizabeth Warren called on Federal Reserve Chair Jerome Powell to recuse himself from an internal review of recent bank failures, saying his actions "directly contributed" to them. * Chancellor Olaf Scholz said Germans should not have major concerns and that regulators had learned lessons from the global financial crisis in 2008. MARKETS* U.S. regional bank shares bounced, with First Republic Bank (FRC.N) up 42.3% at $44.40 a share, a day after touching a record low of $17.53. * Global shares turned higher, ending a five-session rout, as U.S. inflation data bolstered bets on a smaller interest rate hike by the Federal Reserve next week.

Worries about potential contagion had also slammed bank shares in Asia and Europe as investors re-examined their risks, despite assurances from U.S. President Joe Biden and other global policymakers that the financial system is safe. In Europe, where some see lenders as less vulnerable, the banking index (.SX7P) first fell then recovered to rise 2.7%. Asian banking stocks had extended their declines overnight, with Japanese banks hard-hit despite reassurances from the Bank of Japan said about their capital buffers. Regulator FDIC had moved swiftly to close New York's Signature Bank SBNY.O as well as taking control of SVB. Citing people familiar with the matter, the WSJ said the investigators are also examining stock sales that SVB Financial Group's executives made days before SVB failed, adding that the Justice Department's probe involves the department's fraud prosecutors in Washington and San Francisco.

☆ Apollo, Blackstone eye SVB assets - Bloomberg News
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +1 min

[1/2] Customers wait outside as an employee enters the Silicon Valley Bank branch office in downtown San Francisco, California, U.S., March 13, 2023. REUTERS/Kori Suzuki/File PhotoMarch 14 (Reuters) - Apollo Global Management Inc (APO.N) and Blackstone Inc (BX.N) have expressed interest in a book of loans held by Silicon Valley Bank (SVB), a subsidiary of the defunct SVB Financial Services Group (SIVB.O), Bloomberg News reported on Tuesday. Last week, Californian regulators shut down tech lender SVB after a failed share sale that saw $42 billion of deposit outflows in a day and escalated worries of a contagion across financial markets. Apollo, Blackstone, and SVB did not immediately respond to Reuters' requests for comment. Reporting by Mehnaz Yasmin in Bengaluru; editing by Uttaresh VenkateshwaranOur Standards: The Thomson Reuters Trust Principles.

☆ Private equity giants including Apollo, Blackstone eye SVB loan book- reports
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +2 min

[1/2] Customers wait outside as an employee enters the Silicon Valley Bank branch office in downtown San Francisco, California, U.S., March 13, 2023. REUTERS/Kori Suzuki/File PhotoMarch 14 (Reuters) - Apollo Global Management Inc (APO.N), Blackstone Inc (BX.N) and KKR & Co Inc (KKR.N) have expressed interest in a book of loans held by Silicon Valley Bank (SVB), Bloomberg News reported on Tuesday, citing people familiar with the matter. Buyout giants Ares Management (ARES.N) and Carlyle Group (CG.O) are also looking to buy the loan book, the Financial Times reported, citing people familiar with the matter. The surge in interest in the book follows the tech lender's failure last week to raise equity to plug a $1.8 billion hole after selling its $21 billion portfolio of securities at a loss. On Monday, SVB said it was planning to explore strategic alternatives for its businesses, including holding company SVB Capital and SVB Securities.

☆ Venture capitalists weigh 'long-shot plan' to preserve parts of SVB -FT
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: 1 min

March 13 (Reuters) - Venture capital firms are working on a "long-shot plan" to preserve parts of Silicon Valley Bank (SVB) in a move to keep servicing their clients in the technology sector, the Financial Times reported on Monday citing people briefed on the effort. A group of several VC firms are in talks since late last week about how to enable SVB to continue lending to, investing in and advising companies and executives in the sector, the FT reported, adding General Catalyst, Andreessen Horowitz and Khosla Venture are among the firms involved in talks. Forming a consortium with Apollo Global Management Inc (APO.N) that could bid for portions of SVB is one of the proposals being discussed, the newspaper quoted people as saying. Reporting by Anirudh Saligrama in Bengaluru Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.

☆ JPMorgan, PNC among suitors for SVB Financial in deal excluding SVB Bank - Axios
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +1 min

March 13 (Reuters) - JPMorgan Chase & Co (JPM.N) and PNC Financial Service Group Inc (PNC.N) are among those in talks about acquiring SVB Financial Group (SIVB.O) in a deal that would exclude its commercial banking unit Silicon Valley Bank that is currently under U.S. control, Axios reported on Monday citing sources. Apollo Management (APO.N) and Morgan Stanley (MS.N) are also part of the discussions, Axios reported, adding Apollo was interested in financing a deal or acquiring some of the business. Reuters reported on Sunday that Silicon Valley Bank had received interest from PNC and Royal Bank of Canada (RY.TO) but that had cooled on Sunday as U.S. regulators invited bids for the failed lender. The U.S. Federal Deposit Insurance Corporation (FDIC) had given a Sunday afternoon deadline for bids for the failed Silicon Valley Bank, Reuters reported. Reporting by Lavanya Ahire in Bengaluru; Editing by Savio D'SouzaOur Standards: The Thomson Reuters Trust Principles.

☆ JPMorgan among suitors for SVB Financial in deal excluding SVB Bank- Axios
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +1 min

March 13 (Reuters) - JPMorgan Chase & Co (JPM.N) is in talks to acquire SVB Financial Group (SIVB.O) in a deal that would exclude commercial banking unit Silicon Valley Bank, which is currently under U.S. control, Axios reported on Monday, citing sources. PNC Financial Services Group Inc (PNC.N), Apollo Management (APO.N) and Morgan Stanley (MS.N) are also in talks with the defunct lender, Axios reported, adding Apollo was interested in financing a deal or acquiring some of the business. A PNC spokesperson told Reuters that it was "not in talks to acquire SVB Financial or Silicon Valley Bank," while the other companies did not respond to requests for comment. Reuters reported on Sunday that Silicon Valley Bank had received interest from PNC and Royal Bank of Canada (RY.TO) but that had cooled on Sunday as U.S. regulators invited bids for the failed lender. The U.S. Federal Deposit Insurance Corporation (FDIC) had given a Sunday afternoon deadline for bids for the failed Silicon Valley Bank, Reuters reported.

☆ Private equity firms lend less as demand cools
▼ + stars: | 2023-03-03 | by ( Chibuike Oguh | ) www.reuters.com time to read: +4 min

The amount of loans disbursed by direct lenders so far in 2023 has not shown any pickup, the Refinitiv data shows. Also weighing on deal volumes is the cost of borrowing from private equity firms. This has dampened demand for loans from private equity firms. For their part, private equity firms have also become more risk-averse when it comes to lending, as the economic slowdown and sticky price inflation erode the credit worthiness of some borrowers. To be sure, major deals using private equity firms as lenders are still getting done as banks have continued their retrenchment from risky debt.

This would help its investment bankers in their pitches to clients, especially for IPOs, one of the sources added. Klein is selling his business to Credit Suisse for $175 million, the two said earlier this month. Credit Suisse will focus on managing money for the wealthy after the carve-out. A spokesman for Credit Suisse declined to comment, as did a representative for Klein. Credit Suisse reported its biggest annual loss last year since the financial crisis and cut its bonus pool by 50% for 2022.

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