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News That Got Us Thinking

by Preqin

  • 07 May 2019
  • PE
  • VC
  • HF
  • PD
  • RE
  • INF
  • NR

IPOs have been the talk of the town over the past week, alongside hedge fund co-investments and why the biggest European buyout of the year has stalled. Please note, some of these sites may require a subscription to view the article.

The biggest European buyout of 2019 has stalled

New funds targeting China’s Nasdaq-style tech board in hot demand
The seven recently launched mutual funds that are targeting the Shanghai Nasdaq-style technology board have all reached their fundraising targets on the first day of sales. Combined, the funds were looking to raise CNY 1bn ($148mn), but it is reported that subscriptions totalled 100x this amount and the funds have all stopped taking fresh capital due to oversubscriptions. There are now an additional 80 tech-focused funds waiting in the queue for regulatory approval.

Source: Reuters

 

Blackstone is in talks to buy a stake in BC Partners
Blackstone Strategic Capital Holdings is in early discussions with BC Partners about purchasing a minority investment in the asset management firm. A potential cash injection would allow BC Partners to develop its existing businesses and boost its existing offering. Blackstone’s Strategic Capital Group already owns stakes in firms including New Mountain Capital, Leonard Green & Partners, Rockpoint Group, Kohlbeg & Co. and PAG.

Source: Bloomberg

 

Uber IPO is oversubscribed by day two of roadshow
Uber Technologies Inc. has demand for all shares in its IPO days after it began marketing its sale. Uber kicked off its IPO roadshow on Monday with prospective investors before meeting potential buyers in New York, Boston and San Francisco as it seeks to raise as much as $9bn, making it the biggest listing of the year so far.

Source: Bloomberg

For more data and analysis on recent IPOs and other types of private equity exits, take a look at the recently released Preqin Quarterly Update: Private Equity & Venture Capital, Q1 2019.

 

WeWork owner The We Company joins IPO stampede
The We Company, the owners of WeWork, said on Monday that it had filed IPO documentation with US regulators. Recently valued at $47bn, WeWork said its amended IPO registration with the SEC will help decide if it is sure it wants to become a publicly traded company. WeWork has faced questions regarding the sustainability of its business model, which is based on short-term revenue agreements and long-term loan liabilities; in the first three months of 2018, WeWork posted a net loss of $1.2bn on revenue of $1.3bn.

Source: Reuters

  

Hedge fund co-investing quickens as investors chase bigger gains
According to a report released by Credit Suisse, AG hedge fund co-investments are becoming increasingly popular for investors seeking bigger gains and lower fees. Around 41% of investors plan to put money to work alongside hedge funds this year, and almost 30% of funds are planning to employ or increase the use of co-investments. Higher returns, alignment of interests and increased transparency are cited as the top drivers by investors for co-investment allocations.

Source: Bloomberg

Find out more about investors’ structural preferences in the 2019 Preqin Global Hedge Fund Report.

 

The biggest European buyout of 2019 has stalled
The proposed buyout of German advertising group Scout24 by Blackstone Group LP and Hellman & Friedman is on the rocks. The €5.7bn bid was outshone during Scout24’s market rally, and investors have pushed back on the deal. The €46 per share cash offer is a 27% premium to where the target was trading in December, before takeover talks emerged. Scout24 shares are up by 12% in 2019 – however, had Scout24 performed as well as its peers, then the deal would now offer almost no premium. Blackstone and Hellman & Friedman say they will not raise their offer in response to shareholder demands.

Source: Bloomberg

Take a look at the recently launched 2019 Preqin Global Private Equity & Venture Capital League Tables for the largest deals of 2018, along with the largest funds closed, biggest allocators, top performing funds and much more.

 

Hedge fund firms ramp up private investing
Firms historically known for managing hedge funds have been ramping up their investments in private companies as investors watch for the next unicorn to go public. At least nine of these firms have made 19 separate investments in private companies in April alone. The most active among this group has been Chase Coleman’s Tiger Global Management, which made at least 10 investments in April.

Source: Institutional Investor

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