News That Got Us Thinking

by Preqin

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

The US-China trade war, Harvard University and Brexit are just a handful of examples of news topics that have grabbed Preqin's attention over the past week. Please note, some of these sites may require a subscription to view the article.

Stocks are plunging as investors try to anticipate the outcome of the US-China trade war
Trade talks between China and the US have stalled, causing stocks to slump across Asia, Europe and the US on Thursday. “China broke the deal,” Trump said at a rally on Wednesday night, reiterating that Chinese officials had reneged on provisions from a draft trade agreement. Technology stocks were among the biggest fallers as investors anticipated higher component costs and lower sales to Chinese consumers.

Source: Market Insider


Zayo agrees $14.3bn sale to private equity groups
Digital Colony Partners and EQT have agreed to pay $35 per share to take over Zayo Group, representing a 14% premium to Zayo’s closing share price on Tuesday. The $14.3bn deal would mark one of the largest leveraged buyouts for the owner of fibre optic cables that stretch across the US and Europe since the Global Financial Crisis. The deal comes at a time when private equity groups are hunting for assets so they can put some of their $1.2tn of dry powder to work.

Source: FT


For more private equity deals and exits data, take a look at the recently launched Preqin Quarterly Update: Private Equity & Venture Capital, Q1 2019.


Blackstone sets up impact-investing arm
Blackstone Group has formed an impact investing unit as a part of Blackstone Strategic Partners, making it the most recent private equity firm to launch in the space. The group will invest in private equity, real estate and infrastructure by working with external impact-investing managers. Tanya Barnes, a former managing director in the merchant-banking unit of Goldman Sachs Group, is leading the venture.

Source: Private Equity News


UK public pension pool allocates $60mn to private equity impact fund
Brunel Pension Partnership has made a commitment to Neuberger Berman Private Equity Impact Fund on behalf of four of its UK local government pension scheme (LGPS) clients. The £30bn LGPS pool said it had obtained attractive terms from Neuberger Berman for its clients. Neuberger aims to encourage other private equity managers to make integration of ESG considerations a formal part of their processes.

Source: IP&E


Harvard piles into hedge funds as new chief overhauls endowment
Harvard University’s N.P. “Narv” Narvekar has drastically increased the endowment’s hedge fund allocation to the point where it now accounts for a third of its $39bn in assets under management. The move signifies a strategic shift in the university’s investment arm since Narvekar was hired as the CEO; he has streamlined operations, eliminating a trading desk using hedge fund strategies, outsourcing a real estate team and writing off timberland and farm assets.

Source: Bloomberg

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Private equity deals drop as Brexit reduces UK appeal
Uncertainty surrounding Brexit caused a fall in private equity investments in UK companies last year as deals in the rest of Europe hit a record. Britain, Europe’s largest buyout market, has become a riskier bet for dealmakers who are unsure of how Brexit will play out. Their increasing wariness of currency volatility due to the drop in the pound has resulted in a 12% decline in investments in UK-based portfolio companies. Stripping out Britain from the European data, there was a 13% rise in investments in the rest of Europe as investors look for alternative destinations for their money.

Source: FT

More regional deals analysis can be found in the new Preqin Quarterly Update: Private Equity & Venture Capital, Q1 2019.

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