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HONG KONG, May 2 (Reuters Breakingviews) - Money flowing into the People's Republic is getting uncomfortably hot. Yet recent reversals in New York, Hong Kong and Shanghai suggest that is driven by fickle short-term funds – exactly what Beijing doesn’t want. Reuters Graphics Reuters GraphicsFollow @mak_robyn on TwitterCONTEXT NEWSChinese spirit maker ZJLD shares closed down 18% lower than their initial public offering price on their trading debut April 27. The KKR-backed company raised $676 million in what was the biggest offering in Hong Kong since October 2022. Separately, the Ontario Teachers' Pension Plan, Canada's third largest pension fund, closed down its China equity investment team based in Hong Kong, Reuters reported on April 25, citing sources.
[1/2] The Nasdaq logo is displayed at the Nasdaq Market site in Times Square in New York City, U.S., December 3, 2021. So-called meme rallies are unusual share price gains, driven by social media sites patronized by individual traders. Magic Empire Global Ltd (MEGL.O), a provider of financial advisory and underwriting services, jumped 328% to $3.97 per share. It had closed at $0.93, shedding 7.2%, with a market capitalization of $18.8 million during regular market hours on Thursday. Both Top Financial and Magic Empire are currently two of the most watched stocks on Stocktwits, a website that is popular among retail investors.
My wife’s texts portray me as a deadbeat loser, and she questions why she’s stayed with me, lamenting what a burden it has been for her. I can’t get past the things she said and the betrayal I feel, and I am considering asking for a separation. But you’ll understand what brought it to mind: Neither you nor your wife are models of how spouses should behave. That your wife assumed her messages were private is established precisely by their brutal content. Yet the fact that you’ve wronged her doesn’t deny you the right to complain about what she’s been up to.
In this case, as in nearly every private equity acquisition, private equity firm benefit from a legal double standard: They have effective control over the companies their funds buy, but are rarely held responsible for those companies’ actions. This mismatch helps to explain why private equity firms often make such risky or shortsighted moves that imperil their own businesses. But it isn’t just that firms benefit from the law: They take great pains to shape it, too. The most prominent of these benefits is the carried interest loophole, which allows private equity executives to pay such low tax rates. Instead, Congress approved an amendment that largely exempted small and midsize companies owned by private equity firms from a new corporate minimum tax.
It's good to be Morgan Stanley these days. Amid a difficult market for Wall Street banks — thanks in large part to non-existent deal flow — Morgan Stanley's massive wealth business has been paying off big time. But Morgan Stanley's success isn't coming in a vacuum. -Meanwhile, UBS, arguably Morgan Stanley's biggest competitor in the space, was begrudgingly saddled with Credit Suisse's carcass. With wealth advisors, a key part of hiring includes offering "bonuses" that are actually loans.
James Stavridis, a retired Navy Admiral, is leading a new leadership program for Carlyle partners. Now, he's leading a new training course for the firm's partners called the Admiral Leadership Program. James Stavridis, a retired four-star Admiral, served in the Navy for 37 years before joining Carlyle in 2018. Inside Carlyle's first training program for partnersAbout 15 partners at Carlyle, from ESG to credit and tech, are participating in the Navy admiral's leadership program. Anna Tye, a partner on Carlyle's technology investing team, is also part of the leadership program.
NEW YORK, April 26 (Reuters) - Shares of Chipotle Mexican Grill Inc (CMG.N) soared to a record high on Wednesday after the burrito chain beat analysts' estimates for first-quarter profit and sales. Chipotle said its revenue rose 17% year-on-year to $2.4 billion, driven by higher restaurant sales, 41 new store openings, and increased demand from lower-income customers. Net income rose to $291.6 million, up 84% from the previous year, helped by lower avocado prices and lower delivery expenses. Chipotle's shares rose 14% to $2,030 in afternoon trading. More than a dozen Wall Street analysts hiked their price targets on the stock in reaction to the company's report.
Bloomberg deals in data — via its ubiquitous terminal — which serves as the lifeblood of Wall Street. (A funny nugget from the FT story: Bloomberg is not part of the Bloomberg Billionaires Index. In many ways, the Bloomberg terminal is the cockroach of Wall Street. Tiger Global's down bad. Here's more on Tiger Global's unique approach to investing in startups and why it backfired.
April 21 (Reuters) - Carlyle Group Inc (CG.O) is considering bringing in fresh backers for its investment in McDonald's Corp's (MCD.N) China operations, seeking a valuation of $8-$10 billion for the business, Bloomberg News reported on Friday. Carlyle, which controls McDonald's China along with Trustar Capital, could sell down part of their stakes in the fast-food giant in the deal while still retaining control, the report added, citing people familiar with the matter. In 2017, the U.S fast-food chain agreed to sell most of its China and Hong Kong business to CITIC and Carlyle for up to $2.1 billion. Trustar Capital is a private equity affiliate of CITIC Capital Holdings. Carlyle, McDonald's and Trustar did not immediately respond to a Reuters request for comment.
Glenn Youngkin will travel to Asia next week to meet with political and business leaders, adding more fuel to speculation that the Virginia Republican is considering a run for president. Youngkin will lead a state delegation on a trade-focused visit that includes stops in Taiwan, Japan and South Korea. Youngkin framed the visit, his first to Asia as governor, as a chance to strengthen his state's supply chains in the semiconductor, pharmaceutical and automotive industries. "I'm going to put our best forward to have that foreign direct investment come to Virginia," Youngkin, a former co-CEO of Carlyle Group, said during an interview on CNBC's "Squawk Box" on Friday. The planned six-day international visit, set to kick off Monday, prompted questions about whether he had presidential ambitions.
Most major private-investment firms are working to cut down on emissions their portfolio companies send into the atmosphere. It's also set targets to get three-quarters of its majority-owned power-and-energy portfolio companies' emissions that they generate directly and indirectly covered by Paris-aligned climate goals by 2025. A growing number of private-equity firms' pension-fund limited partners are under pressure themselves to either invest around environmental, social, and governance matters or shun investing through those lenses altogether. Firms' plans with their upstream investments tend to draw the most attention because they're involved in drilling for new oil and gas. If you're a private-equity firm and you continue to make new upstream investments, I don't believe you have a Paris-aligned plan.
NEW YORK, April 20 (Reuters) - The co-head of the private equity firm that owns Dominion Voting Systems said the company's $787.5 million settlement with Fox Corp (FOXA.O) held Fox accountable for spreading lies even if it did not apologize or admit wrongdoing. The settlement came with no apology or admission of wrongdoing on behalf of Fox, just an acknowledgement of the court's rulings finding some claims about Dominion to be false. Dominion and Staple Street achieved their goals by exposing the truth and Fox News' "offensive" actions and getting the media company to pay for them, Yaghoobzadeh said. In a statement following Tuesday's settlement, Fox said it was committed to the highest journalistic standards. Dominion funded the litigation through its own resources, without Staple Street or a third party providing financial backing, Yaghoobzadeh said.
Even before Tuesday's settlement, Staple Street's investment in Dominion had paid off handsomely. Yaghoobzadeh told reporters on Tuesday that Staple Street backed Dominion in its mission to shoot down lies against it. Staple Street investor Mark Hauser, managing partner of Hauser Private Equity, also welcomed the settlement news. "We are very pleased with the outcome and think that Staple Street has handled the situation very well on behalf of their investors. We’ve had a relationship with Staple Street since 2014 and think highly of their management team," he said.
April 17 (Reuters) - Shares of Manchester United PLC (MANU.N) fell 13% on Monday after a report said the Glazer family was confident of securing an investment that would allow them to retain ownership of the British soccer club. The family also expects the investment to help them double the value of the club over the next 10 years, ESPN reported, citing a source. Shares fell to their lowest since late NovemberA small portion of the club's shares is listed on the New York Stock Exchange. Any sale of the club would likely exceed the biggest sports deal so far - the $5.2 billion including debt and investments paid for Chelsea - sources had told Reuters previously. ($1 = 0.8083 pounds)Reporting by Akash Sriram in Bengaluru; Editing by Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.
Carlyle in talks to take stake in Manchester United - Sky News
  + stars: | 2023-04-15 | by ( ) www.reuters.com   time to read: +1 min
[1/2] A general view of the lobby outside the Carlyle Group offices in Washington, May 3, 2012. REUTERS/Jonathan Ernst/File PhotoApril 15 (Reuters) - U.S. buyout firm Carlyle Group Inc (CG.O) is in talks about a "major" investment in Manchester United soccer club as the auction of the Premier League team enters its final stages, Sky News reported on Saturday. Carlyle and Manchester United did not immediately respond to a Reuters request for comment. Sports industry news site Sportico reported earlier this month that Manchester United would accept a third round of bids from prospective buyers at the end of April. The Glazers bought Manchester United in 2005 for 790 million pounds in a highly leveraged deal that has been criticised for loading debt on to the club.
Farallon is not an activist investor but will pursue an activist agenda when it feels forced to do so. As the strategy of shareholder activism has become more mainstream, it has been utilized by a larger breadth of investors. The firm has been a shareholder of Exelixis since 2018 and is just now going public with their concerns. Farallon would also like to see Exelixis commit to a much larger share repurchase program than the $550 million it has announced. Farallon is nominating only three directors to this board, and it befuddles us as to how Exelixis does not see this as a gift.
If “Mean Streets,” “Taxi Driver,” “Raging Bull” and “Goodfellas” had never existed, Martin Scorsese would still occupy an exalted place in American cinema, strictly for his documentaries. His films on The Band, George Harrison, Bob Dylan, New York City, Italian opera and Fran Lebowitz constitute a singular catalog of movies, all of which are purely entertaining while exploring the complicated space where public image, art and personal history co-exist. Mr. Scorsese’s evident interests as a nonfiction filmmaker come together in “Personality Crisis: One Night Only,” his study of a less-than-obvious subject— David Johansen , onetime New York Doll and proto-punk rocker, who for several decades has also performed as Buster Poindexter , pompadoured lounge lizard and crooner of standards, novelty songs and the work of David Johansen. This is how Mr. Scorsese, credited as co-director with David Tedeschi , frames this portrait of a New York institution: during an early 2020 gig at the upscale Café Carlyle (which Mr. Poindexter refers to as a “boîte” and a “joint”), where the alter ego performs the work of the original.
The banking crisis that unfolded last month has created opportunities for BlackRock. The potential for a "transformational" deal would expand the world's largest money manager. The banking crisis that unfolded last month with the collapse of Silicon Valley Bank has emboldened BlackRock, the world's largest money manager with some $9 trillion of assets. The Financial Times reported last December that BlackRock had "discussed whether to pursue a takeover of private markets manager Carlyle but decided against it," citing three people with knowledge of those discussions. "We are asking ourselves to reimagine BlackRock," Fink said on Friday.
Higher costs and a shortage of available new parts are also delaying aircraft repairs, which risk pushing up air fares. Some makers of brand-name parts like General Electric Co (GE.N) stand to benefit because they also sell used parts, known as used serviceable material. Honeywell Aerospace Trading (HON.O), the U.S. conglomerate's used parts business, is among companies enjoying higher demand since 2021. Ultimately, the alternatives to new parts may bring relief but a congested supply chain must be fixed, said Benjamin Hockenberg, president of JSSI Parts & Leasing. "Certain models, certain situations, (used parts) will fill the void, but I think we also need to see a repaired supply chain," said Hockenberg.
Veritas, Carlyle end talks on Cotiviti stake sale - source
  + stars: | 2023-04-12 | by ( ) www.reuters.com   time to read: +1 min
April 11 (Reuters) - Veritas Capital ended talks with Carlyle Group Inc (CG.O) to buy a 50% stake in private healthcare technology firm Cotiviti Inc on valuation grounds, a source familiar with the matter said. Carlyle wasn't ready to stick to the valuation that had previously been discussed in the current market conditions and submitted a revised bid in recent days, which Veritas rejected, the source said. In February, Reuters reported that Carlyle was in talks to buy a portion of Cotiviti from Veritas Capital at a valuation of around $15 billion. Cotiviti, which went public in 2016, was acquired by Veritas in 2018 in a take-private deal valued at $4.9 billion, as the private equity firm looked to expand its Verscend healthcare IT business. Carlyle and Veritas declined to comment, while Cotiviti did not immediately respond to a Reuters' request for comment.
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.
Portugal and Ireland recently announced they are shutting down their "golden visa" programs. Their less-advantageous siblings, "golden visas," provide temporary residence permits in exchange for investment, as opposed to permanent citizenship. A golden taxInstead of banning golden passports and visas outright, countries should adjust the investment requirements to match their current needs, Arton says. A scandalous historyBut golden passports don't only raise the issue of inequality, the European Commission argues, they also pose a threat to national security. Last year, 282 of Ireland's 306 golden visa applications came from Chinese citizens, The Irish Times reported.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailIt's clear we're unable to get unemployment as high as the Fed would like, says David RubensteinDavid Rubenstein, The Carlyle Group co-founder and billionaire philanthropist, joins 'Squawk Box' to discuss his thoughts on the Fed, the banking crisis, and more.
Private equity firms including Providence Equity and Carlyle are also evaluating an offer for WGSN, two of the people said. Apax, Ascential, BC Partners, Carlyle, JPMorgan and Providence declined to comment. BC Partners has experience in owning information assets including the financial media and data firm Acuris, which it sold to Irish software firm ION Investment Group in 2019. Ascential generated 121.1 million pounds in adjusted EBITDA last year, up 36% from a year earlier. Revenue rose to 524.4 million pounds from 349.3 million pounds.
Blackstone has been exercising its right to block investor withdrawals from BREIT since November last year after requests exceeded a preset 5% of the net asset value of the fund. BREIT fulfilled withdrawal requests of $666 million in March, representing only 15% of the $4.5 billion in total redemption requests for the month, the firm said in a letter to investors. Total redemption requests for March were 15% higher than the approximately $3.9 billion demanded by investors in February but 16% lower than the $5.3 billion Blackstone received in January. The level of withdrawal requests is expected to normalize over time as Blackstone works through its backlog, Blackstone President Jonathan Gray said during an analyst earnings call in January. Blackstone shares were down 3.7% to $84.6 per share, in line with the broader market, which was also trading lower.
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