Hints and tips:
...Private equity has rushed into infrastructure in recent months, raising funds to invest in the energy transition and digitalisation, while investors have flocked to the long-term, stable returns the asset...
...It also raised $2bn from separate vehicles that will co-invest alongside the fund, bringing the total amount of capital raised to $30bn....
...About 40 per cent of the vehicles by the end of 2023 will exit their so-called reinvestment period — a date that once hit restricts their ability to invest in new debt....
...Blackstone’s BXPE, which managed $1.3bn in January, follows those of KKR’s K-Prime and Apollo’s AAA, which also invest a portion of their funds in buyout strategies....
...Pete Stavros, co-head of private equity at KKR, for example, has in recent years thrown huge energy into an initiative called Ownership Works, which gives a stake in private equity-owned companies to employees...
...While conventional energy companies such as Shell are focused on changing how energy is supplied, KKR could also invest in areas including vehicle electrification, hydrogen consumption and battery systems...
...GTCR used the extra debt to reduce the amount of equity it had to invest by $250mn, pumping $5.2bn into the company as opposed to the $5.4bn it initially intended, according to people briefed on the deal...
...Many of the financial buyers that pledged to invest in music planned to put only a sliver of new capital in to buy song rights on their own account....
...Large GTCR investors will also invest directly in the Worldpay deal as co-investors....
...Schwartz said the cuts would allow the group to invest in areas where it sees future growth. “Every single expense is on the table,” chief financial officer John Redett told analysts....
...“ValueAct Capital has a record of collaboration and co-operation with the companies it invests in, and its co-CEO Mason Morfit has been very constructive in the conversations we’ve had over the past year...
...It also aimed to invest “to create the exciting games of tomorrow”, he added....
...To meet their own sustainability mandates, LPs are pushing the GPs they invest in to work towards everything from carbon reduction to employee diversity....
...The group normally invests most in the US, and would typically allocate 20-30 per cent to European real estate....
...I can’t turn around to the venture team and say invest $2bn. There’s not enough deal flow,” he said....
...These increasingly popular structures have proven controversial among investors because they can create conflicts such as adding additional fees for the pensions and endowments that invest in private equity...
...That’s especially true given proposed regulatory changes that will make it easier for insurers to invest in a wider range of assets to match their liabilities....
...RIT’s structure allowed it the flexibility and firepower to continue to invest wherever Rothschild saw opportunities....
...There have been signs of increasing activity in recent weeks, however, with GTCR agreeing to buy a stake in Worldpay in a deal valuing the payments company at up to $18.5bn....
...“All of a sudden we weren’t decentralised,” said Darren Cohen, co-head of growth equity. “We have a structure that can compete.”...
...The writer is founder of Elm Wealth, a former founding partner of Long-Term Capital Management and co-author of ‘The Missing Billionaires: A Guide to Better Financial Decisions’ Since Long-Term Capital...
...Blackstone, meanwhile, invests on behalf of insurers such as Corebridge through its insurance solutions division....
...Ubben co-founded ValueAct in 2000, mixing value investments in misunderstood midsized public companies with a focus on shareholder activism....
...Chicago-based private equity firm GTCR has promoted Jeff Wright to managing director and Cameron Rouzer to principal....
...“Ratings are a huge issue for CLOs,” Craig Packer, a co-president of Blue Owl Capital, said. “The public markets are not nearly as flexible as it is perceived....
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