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☆ Private equity acquires a taste for drug development
▼ + stars: | 2023-01-09 | by ( David Carnevali | ) www.reuters.com time to read: +6 min

Jan 9 (Reuters) - Private equity firms that deemed drug development too risky for their liking in the past are increasingly investing in the sector, raising dedicated funds and coming up with deals that compensate them for the uncertainty involved. These deals are not structured as the leveraged buyouts that private equity firms are mostly known for. In most cases, the drug makers start paying the money back to the private equity firms when the drug is being developed, either by issuing equity, tapping cash on hand or borrowing. They also share a slice of the newly developed drug's revenue with the private equity firms once it's approved. Private equity firms also provide capital to spin out drugs into new companies.

☆ Direct ChassisLink changes hands in $3.6 billion deal-sources
▼ + stars: | 2022-12-15 | by ( ) www.reuters.com time to read: +1 min

The deal marks a win for Apollo, which acquired a majority stake in Charlotte, North Carolina-based Direct ChassisLink and logistics and digital supply chain solutions company Blume Global from EQT in 2019 for around $2.5 billion, including debt. Excluding Blume's remaining value, Apollo made two times the money it invested, according to a person familiar with the matter. Blume separately raised money from outside investors in 2021 at a valuation of $500 million. Direct ChassisLink controls a fleet of over 151,000 marine and 100,000 domestic chassis. Reporting by David Carnevali in New York; Editing by Josie KaoOur Standards: The Thomson Reuters Trust Principles.

"The successful completion of the capital increase is a key milestone for the new Credit Suisse," its chief executive Ulrich Koerner said in a statement. Credit Suisse had already raised 1.8 billion francs by placing stock with a group of institutional investors led by Saudi National Bank (1180.SE). The exercise of subscription rights left only 16.4 million shares unsold. These are due to be sold on the market at or above the offer price of 2.52 Swiss francs, Credit Suisse said. Credit Suisse, has been battered by mishaps, including a $5.5 billion loss on U.S. investment firm Archegos.

Credit Suisse has already placed some 1.8 billion francs worth of shares with a group of institutional investors led by Saudi National Bank. "The rights issue is the necessary start to the process, said Jerome Legras of Axiom Alternative Investments. REVAMP AND RECORD LOWSCredit Suisse shares, which have plumbed record lows, were buoyed last week as its leadership sought to reassure markets. After closing above 3 Swiss francs on Monday, they have retreated slightly, finishing Wednesday’s session at 2.851 Swiss francs. Crucially, they have held above the deal subscription price of 2.52 Swiss francs and were at 2.821 Swiss francs, down around 1% in mid-session trade on Thursday.

☆ Blackstone gets a slap from efficient markets
▼ + stars: | 2022-12-08 | by ( Jonathan Guilford | ) www.reuters.com time to read: +9 min

NEW YORK, Dec 8 (Reuters Breakingviews) - Private markets seemed, for a while, the perfect antidote to the weirdness of public markets. Those models typically move much more slowly than the rapidly changing prices served up by public markets. These charms became much more potent during the stresses of Covid-19, when it became clear that public markets are not always a ruthlessly efficient price-discovery mechanism. RESILIENCE OR INTRANSIGENCECovid briefly scrambled the world, but bigger changes are coming that may scramble the calculus for private markets. During Covid, public markets seemed backward-looking, overreacting to the present moment while private markets were able to focus on the future.

[1/2] Leon Black is pictured here in Beverly Hills, California, U.S. May 1, 2018. Pierson's lawsuit in a New York state court in Manhattan seeks unspecified damages from Black for sexual assault and intentional infliction of emotional distress, and from Epstein's estate for negligence. Her law firm Wigdor LLP also represents Guzel Ganieva, a former Russian model who in June 2021 sued Black for defamation, saying he falsely claimed she tried to extort him after accusing him of rape. In a Nov. 19 letter to the Wigdor firm, Estrich said: "Mr. Black never sexually assaulted anyone anywhere at any time." His former associate Ghislaine Maxwell is appealing her conviction and 20-year prison sentence for enabling Epstein's abuse of underage girls.

NEW YORK/LONDON, Nov 22 (Reuters) - FTX has a total cash balance of $1.24 billion, a court filing by advisers on the stricken crypto exchange's restructuring showed ahead of U.S. bankruptcy hearings set for later on Tuesday. Its cash balance as of Sunday was "substantially higher" than previously thought, Monday's filing by Edgar Mosley of Alvarez & Marshal, a consultancy firm advising FTX, said. The details of FTX's cash balances came ahead of a hearing in Delaware on FTX's so-called first-day motions. FTX, led since the bankruptcy filing by new CEO John Ray, has accused Bankman-Fried of working with Bahamian regulators to "undermine" the U.S. bankruptcy case and shift assets overseas. Since the implosion of FTX, some crypto players are taking to decentralized exchanges known as "DEXs" where investors trade peer-to-peer on the blockchain.

☆ Crypto lender Genesis says no immediate plans to file for bankruptcy
▼ + stars: | 2022-11-21 | by ( ) www.reuters.com time to read: +2 min

Nov 21 (Reuters) - Cryptocurrency lender Genesis said on Monday it has no immediate plans to file for bankruptcy, days after the collapse of crypto exchange FTX forced it to suspend customer redemptions. "We have no plans to file bankruptcy imminently. Also, the Wall Street Journal reported, citing sources that the company approached crypto exchange Binance seeking an investment but Binance decided against it, fearing a conflict of interest down the line. Last week, Genesis Global Capital suspended customer redemptions in its lending business, citing the sudden failure of Sam Bankman-Fried's crypto exchange FTX. Crypto exchange Gemini, which runs a crypto lending product in partnership with Genesis, tweeted on Monday that it was continuing to work with the company to enable its users to redeem funds from its yield-generating "Earn" programme.

☆ Special Report: FTX's Bankman-Fried begged for a rescue even as he revealed huge holes in firm's books
▼ + stars: | 2022-11-16 | by ( Angus Berwick Anirban Sen Elizabeth Howcroft Lawrence Delevingne | Angus Berwick | Anirban Sen | ) www.reuters.com time to read: +22 min

Sequoia was shocked at the amount of money Bankman-Fried needed to save FTX, according to the sources, while Apollo first asked for more information, only to later decline. The booklet flagged the risks of crypto trading, particularly how sudden sales of tokens could trigger a "domino effect" that would lead to a "cascading set of liquidity failures." Using profits from Alameda, Bankman-Fried launched FTX in 2019. From almost nothing in 2019, FTX handled about 10% of global crypto trading this year, a September document shows. At one point, he lived in a penthouse overlooking the Caribbean, valued at almost $40 million, according to two people who worked with FTX.

☆ Credit Suisse’s fuzzy Apollo deal better than none
▼ + stars: | 2022-11-15 | by ( Liam Proud | ) www.reuters.com time to read: +3 min

The U.S. buyer, which already has about $523 billion of client money, will also manage the remaining $20 billion of Credit Suisse’s packaged loans and mortgages, in return for a fee. The Apollo deal and other smaller transactions will only reduce Credit Suisse’s risk-weighted assets by roughly $10 billion by mid-2023, which is less than half of the $22 billion that Körner said was sitting in the unit at the end of September. Credit Suisse also said that the final sale price will depend on discount rates. Follow @liamwardproud on TwitterloadingCONTEXT NEWSCredit Suisse on Nov. 15 said it would sell the bulk of its securitised products business to Apollo Global Management. As a result of the deals, Credit Suisse’s risk-weighted assets will fall by about $10 billion.

☆ Private equity firm TPG reports 60% drop in earnings as asset sales plummet
▼ + stars: | 2022-11-09 | by ( Chibuike Oguh | ) www.reuters.com time to read: +3 min

SummarySummary Companies Fee-related earnings beat estimatesTPG's stock rises nearly 8%NEW YORK, Nov 9 (Reuters) - Private equity firm TPG Inc (TPG.O) said on Wednesday its after-tax quarterly distributable earnings fell more than 60% due to a plunge in asset sales across its private equity, growth, real estate and impact businesses. However, TPG's fee-related earnings, a closely watched measure that captures income from management fees, was flat at $121 million. "What we're seeing is that investors don't care so much about performance fees but about fee-related earnings and its growth trajectory," said BMO Capital Markets analyst Rufus Hone. "Fee-related earnings is predictable; every dollar of fee-related earnings is worth $2 of performance fees," Hone added. During the quarter, TPG said its private equity funds appreciated by 2.3%, growth funds rose by 3.8% and impact funds were up 2.9%, though real estate funds depreciated by 0.4%.

☆ Here are Wednesday's biggest analyst calls: Tesla, Netflix, Carvana, Exxon, Meta, Apple & more
▼ + stars: | 2022-11-02 | by ( Michael Bloom | ) www.cnbc.com time to read: +7 min

Bernstein reiterates Tesla as underperform Bernstein said shares of Tesla remain extremely overvalued. Needham reiterates Netflix as hold Needham said the streaming giant could see "negative revenue growth near-term" due to its new ad-based product. Bank of America downgrades Twilio to underperform from buy Bank of America double downgraded the communications tools company due to rising competition. Bank of America reiterates Peloton as buy Bank of America said it's standing by shares of Peloton heading into earnings on Thursday. Bank of America reiterates Carvana as buy Bank of America said in a note on Wednesday that it's standing by shares of Carvana.

☆ Apollo holds crypto for clients as it expands in digital assets
▼ + stars: | 2022-10-31 | by ( Hannah Lang | ) www.reuters.com time to read: +2 min

Oct 31 (Reuters) - Apollo Global Management Inc (APO.N) has begun holding cryptocurrency on behalf of its clients through a partnership with digital asset platform Anchorage Digital, in a major push by one of the world’s largest asset managers to bring crypto to institutional investors. "It's the validation of this incessant drumbeat that [crypto] is here to stay," said Diogo Mónica, president of Anchorage Digital, a crypto firm that holds a national trust bank charter from the Office of the Comptroller of the Currency. Apollo, which declined to disclose what types of crypto assets it holds, said its relationship with Anchorage dates back to the middle of last year, when the firm first began exploring how best to safeguard its clients' crypto assets. "As we explore creative ways to apply blockchain technology across Apollo’s business, we look forward to collaborating with Anchorage for the safekeeping of client assets," said Adam Eling, chief operating officer of Apollo's digital assets team. Mónica said Anchorage is also engaged with discussions about how to potentially further expand its relationship with Apollo in the future.

☆ Banks plan to sell Tenneco buyout debt next week -sources
▼ + stars: | 2022-10-28 | by ( Matt Tracy | Shankar Ramakrishnan | ) www.reuters.com time to read: +2 min

Banks led by Citigroup Inc (C.N) and Bank of America Corp (BAC.N) aim to begin marketing a portion of the Tenneco debt package's secured portion as early as next week, said one of the sources. The package consists of a $2.4 billion leveraged loan, a $2 billion secured bond, and a $1 billion unsecured bond. This activity is rekindling hope among banks that they may not have to suffer big loses to shed junk-rated debt from their balance sheet. If the Tenneco syndication goes well, banks are sitting on plenty of junk-rated debt they may seek to offload. This includes $11 billion in debt backing the takeover of media analytics company Nielsen and $13 billion of debt for Elon Musk’s acquisition of Twitter.

☆ Credit Suisse nears sale of securitized-products group to Apollo, Pimco - source
▼ + stars: | 2022-10-27 | by ( ) www.reuters.com time to read: +2 min

Oct 26 (Reuters) - Credit Suisse (CSGN.S) is nearing a deal to sell its securitized-products group to investors Apollo Global Management (APO.N) and Pacific Investment Management Co, a person familiar with the matter told Reuters on Wednesday. The Wall Street Journal, which first reported about the development, said Credit Suisse will give details of the sale and other measures for a planned strategy change on Thursday. The consortium including Pimco, a big bond manager, and Apollo, a large alternative asset manager, beat out a group comprised of Centerbridge Partners and Martello Re Ltd., a life and reinsurance company, the WSJ report added. Credit Suisse and Pimco declined to comment, while Apollo, Centerbridge and Martello did not immediately respond to Reuters' requests for comment. Last week, Reuters reported that money managers Janus Henderson Group (JHG.N) and investment firms including Blue Owl Capital Inc (OWL.N) are weighing potential offers for the Swiss bank's U.S. asset management unit.

☆ IBM salaries revealed: Engineers can earn nearly $200K. See how much analysts, managers, and others at the tech giant make.
▼ + stars: | 2022-10-27 | by ( Caroline Haskins | ) www.businessinsider.com time to read: +15 min

IBM is among the oldest and largest computer companies in the world and has more than 350,000 employees. These offers must be equal to what US employees earn making them a great guide to employee salaries at the company. When Insider analyzed IBM salary data in 2021, the highest offer was to an engineering program director, earning $335,000. A technical team lead, for instance, earned $57,500 in Monroe, LA, and as much as $114,500 in Parsippany, NJ. Insider has also compiled a database of salaries across other big tech companies like Google, Apple, Tesla, Amazon, and more.

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☆ Credit Suisse begins perilous ride to right place
▼ + stars: | 2022-10-27 | by ( Liam Proud | ) www.reuters.com time to read: +4 min

LONDON, Oct 27 (Reuters Breakingviews) - After years of botched strategies, Credit Suisse (CSGN.S) has finally hit the nail on the head. He’s also in exclusive talks with Apollo Global Management (APO.N) and PIMCO about selling the securitisation business, which bundles and slices mortgages for credit investors. It could fall even further if Credit Suisse eventually hives off the carved-out dealmaking business it is rebranding as CS First Boston, under former Citigroup (C.N) rainmaker Michael Klein. Those moves solve the central problem that has plagued Credit Suisse for years, and which former CEOs Thomas Gottstein and Tidjane Thiam failed to answer. The deposit outflow saw Credit Suisse breach liquidity requirements set by regulators of its legal subsidiaries.

☆ Credit Suisse nears sale of securitized-products group to Apollo, Pimco -WSJ
▼ + stars: | 2022-10-26 | by ( ) www.reuters.com time to read: +1 min

Oct 26 (Reuters) - Credit Suisse (CSGN.S) is nearing a deal to sell its securitized-products group to investors Apollo Global Management (APO.N) and Pacific Investment Management Co, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. The consortium including Pimco, a big bond manager, and Apollo, a large alternative asset manager, beat out a group comprised of Centerbridge Partners and Martello Re Ltd., a life and reinsurance company, the Journal reported. Apollo, Pimco, Centerbridge and Martello did not immediately respond to Reuters' requests for comment. Reuters reported last week that money managers Janus Henderson Group (JHG.N) and investment firms including Blue Owl Capital Inc (OWL.N) are weighing potential offers for the Swiss bank's U.S. asset management unit. Reporting by Mehnaz Yasmin in Bengaluru; Editing by Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

Oct 17 (Reuters) - Bank of America Corp (BAC.N) on Monday reported a smaller-than-expected 9% drop in quarterly profit, as its interest income was bolstered by rising interest rates that offset a slump in investment banking. BofA holds a large base of consumer deposits, compared with its main rivals, making it more sensitive to any changes in interest rates. "Consumers remain resilient," Bank of America Chief Executive Officer Brian Moynihan told analysts on a conference call. The bank, however, added $378 million to its loan-loss reserves as it braces for a weakening economy. Citigroup Inc (C.N) wrote down $110 million on leveraged loans in the third quarter, down from $126 million in the previous quarter.

Bank of America holds a large base of consumer deposits, compared with its main rivals, making it more sensitive to any changes in interest rates. Its net interest income jumped 24% in the third quarter. JPMorgan Chase & Co (JPM.N) Citigroup Inc (C.N), and Wells Fargo & Co (WFC.N) also saw their net interest income rise in the same period. read moreThe bank's leveraged loan losses were lower in the third quarter than in the second, Borthwick said. Peer Citi also wrote down $110 million on leveraged loans in the third quarter, down from $126 million in the previous quarter.

Oct 28 (Reuters) - Elon Musk on Thursday closed the $44 billion deal announced in April to take Twitter Inc (TWTR.N) private and took ownership of the influential social media platform by firing top executives immediately. read more Earlier this month, Musk brought the deal back on the table after previously trying to walk away from it. Musk pledged to provide $46.5 billion in equity and debt financing for the acquisition, which covered the $44 billion price tag and the closing costs. That had left Musk in need for an additional $22.4 billion of funds to cover the equity financing portion of the deal. Musk would have needed to raise an additional $2 billion to $3 billion to complete the financing for the deal.

☆ Apollo Global exploring takeover of Ryder System - Bloomberg
▼ + stars: | 2022-09-27 | by ( ) www.reuters.com time to read: +1 min

Sept 27 (Reuters) - Apollo Global Management (APO.N) is exploring a takeover of freight services provider Ryder System (R.N), Bloomberg News reported on Tuesday citing people with knowledge of the matter. Apollo and Ryder did not immediately respond to Reuters requests for comment. The potential bid comes months after Ryder rejected hedge fund HG Vora Capital Management's offer to acquire the company for $4.4 billion. Last month, Apollo led a group to take air-freight company Atlas Air Worldwide Holdings Inc (AAWW.O) private for nearly $3 billion. read moreRegister now for FREE unlimited access to Reuters.com RegisterReporting by Kannaki Deka in Bengaluru; Editing by Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

☆ Wall Street’s banking-as-a-service has a problem
▼ + stars: | 2022-09-23 | by ( Jonathan Guilford | ) www.reuters.com time to read: +3 min

A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S. December 28, 2016. The nature of the buyout business means there are asset flips, equity offerings, follow-ons, and recapitalizations that all generate recurring fees. Private equity clients are ideal for investment banks that otherwise have to schmooze large companies like Microsoft (MSFT.O) for years before receiving a one-off deal. Follow @JMAGuilford on TwitterCONTEXT NEWSPrivate equity firms accounted for 26% of M&A deals in the first six months of 2022, according to Refinitiv, a record-high share. During that time, investment banks earned $6.5 billion in fees worldwide from providing services to financial sponsors, Refinitiv data show.

☆ Banks close painful Citrix debt chapter with $700 mln loss -source
▼ + stars: | 2022-09-21 | by ( Abigail Summerville | Matt Tracy | ) www.reuters.com time to read: +3 min

Citrix Systems logo is seen on smartphone placed on U.S. While the syndication was completed successfully, it was done at a steep discount to the levels that the banks underwrote the debt. It was also buoyed by one of Citrix's acquirers, hedge fund Elliott Management, helping out by buying $1 billion in bonds, a second source said. They also sold a $4 billion three-year Citrix bond for 83.6 cents on the dollar, resulting in a higher than expected yield of 10%, the sources added. More debt syndication pain for the banks is on the way.

☆ Mukesh Ambani pulls off one shade of overseas M&A
▼ + stars: | 2022-09-19 | by ( Una Galani | ) www.reuters.com time to read: +3 min

MUMBAI, Sept 19 (Reuters Breakingviews) - Mukesh Ambani’s overseas shopping spree is so far more splash than cash. Ambani calls this the “newest growth engine” and “far more global in scope than anything Reliance has ever done before”. Earlier this month, Reliance bought a majority stake in SenseHawk, which develops software-based management tools for solar energy generation. The unknown, following the failed flutter at Boots, is where Ambani’s global ambitions stop. CONTEXT NEWSMukesh Ambani’s Reliance Industries on Sept. 5 announced an agreement to acquire a majority stake in California-based SenseHawk for $32 million.

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