Category Archives: WEEKLY SPIN

To Do List(ing)

CVC Capital Partners are hoping it will be third time lucky as they prepare to float on the Amsterdam stock exchange. The IPO will see one of Europe’s largest private equity firms is setting its sights on a valuation of between EUR13 billion and EUR15 billion, which if successful, would help CVC raise EUR1.25 billion in equity. Geopolitical turmoil has twice disrupted the PE firm’s plans to float. Following the IPO, CVC will join the likes of EQT and Bridgepoint as listed European PE groups. As the infamous crypto meme likes to say, ‘To the moon!’

Inspired by the Financial Times

Sealed with a KISS

Pophouse has sealed its latest deal with a KISS. The Stockholm-based entertainment and music investment firm established by EQT founder Conni Jonsson 10 years ago with ABBA’s Bjorn Ulvaeus has bought the legendary US rock band’s catalog in a deal estimated to be over $300 million. The acquisition will see Pophouse use its proven playbook to bring fresh new experiences to KISS fans new and old. Part of this will include a digital show using KISS avatars on stage, as Pophouse has done to great acclaim as the founding investor in the ABBA Voyage live show in London. Gene Simmons and the rest of the band will no doubt be popping the champagne as global music artists continue to monetize their music rights. As the band famously sang, these are ‘Crazy, Crazy Nights’.

Inspired by Pophouse

Credit rates talent

Private credit firms, awash with capital, are splashing it around in order to secure the best talent. Compensation packages are becoming AAA-rated as credit managers look to expand their headcount to meet the growing demands of non-bank lending. It’s a nice problem to have but competition is bringing things to the boil with some instances of firms taking each other to court. By hiring young professionals, firms are looking to expand their origination and deal teams and put all of their fresh capital to work. Last year, private debt funds raised $190.9 billion according to Pitchbook although late reporting is expected to push this over $200 billion. With cash to burn, credit managers will be hoping that they allure the brightest minds and continue their expansion journey. Suddenly, private equity is no longer the de facto option for finance graduates.

Inspired by The Wall Street Journal

Ice cream headache

Global conglomerate Unilever is believed to be considering options to offload its ice cream business to private equity. Could this be a sweet acquisition opportunity or an ‘ice cream headache’? It’s early days but if Morgan Stanley and JP Morgan have gone out to market to whip up potential interest for the business division that includes Ben & Jerry’s, Wall’s and Magnum. The decision for the spin-off is part of the consumer goods empire’s turnaround plans, and would lead to 7,500 job cuts. Time will tell if the conglomerate decides to pull the lever. For now, it is an opportunity for PE firms to start investigating the merits of such an acquisition and embrace their inner ‘Magnum P.I.”.

Inspired by the Financial Times

My way is the Highway

Infrastructure fundraising hit a bump in the road last year, falling 50%. But a new report by Boston Consulting Group, Infrastructure Strategy 2024: Creating Value Through Operational Excellence, reveals that investor sentiment is proving resilient – much like the asset class itself. According to the report, LPs expect to boost their investments by more than $600 billion by 2027. This will be powered by an adjustment in transaction prices coupled with a need to return capital to long-standing investors, with plenty of dry powder waiting in the wings. However, as the report points out, there will be an emphasis on operational excellence with leading funds using well-constructed playbooks to drive value across the full investment cycle. The institutional dam might not be about to burst, necessarily, but anticipated capital inflows over the coming years show that infrastructure remains as solid as ever.

Inspired by PR Newswire