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There's an investment tactic on Wall Street called merger arbitrage. On the surface, merger arbitrage seems like it would be easy, but iRobot (NASDAQ: IRBT) and Spirit Airlines (NYSE: SAVE) show it can be harder than it seems. There's no such thing as a free lunch The logic behind merger arbitrage is pretty simple.
According to Bloomberg , this is the firms lowest target since 1999, following five consecutive funds that each raised $4bn or more. Despite the reduced fund size, the firm remains confident in its ability to attract long-term limited partners, leveraging its strong track record and sector expertise. Can`t stop reading?
BEO Investments LLC, a Miami-based private equity firm, has launched three investment funds tailored to meet the needs of its accredited clients. These funds are going to address diverse investor preferences and capitalize on strategic opportunities in the real estate market. Specifically, the fund aims to achieve an IRR exceeding 20%.
While Blue Owl itself would not participate in the merger, it owns stakes in firms that could, including infrastructure investors like Stonepeak and I Squared Capital, as well as private equity groups like Vista Equity Partners, Silver Lake, and Platinum Equity.
Private equity firms are increasingly using continuation funds to extend ownership of portfolio companies. These funds, which saw rapid growth between 2019 and 2021, provide fresh capital to high-potential assets, ensuring continued value creation. Continuation funds are particularly valuable in slower dealmaking environments.
This merger is more than just a step forward its a transformation in how fund managers operate, said Juan Manrique, co-founder and CEO of Untap. Together, were giving our clients a competitive edge by removing complexity, improving efficiency, and setting a new benchmark for digital fund management. Can`t stop reading?
Since then, the insurer has expanded through acquisitions, including Skandia and Entis, growing its assets under management from 5bn to 67bn and its policyholder base from 600,000 to 3.4 The deal, pending regulatory and merger-control approvals, is expected to close in the second half of 2025. Can`t stop reading?
BC Partners closed its previous fund, BC Partners Fund XI, in 2022 with 6.9bn in commitments, achieving a net internal rate of return of 16%, according to Bloomberg data. The London-based private equity firm expects to launch fundraising in the second quarter of 2025 and targets a first close by year-end. Can`t stop reading?
The country’s growing pool of pension funds and increasing corporate restructuring activities are drawing the attention of alternative investment firms worldwide. The nation’s mergers and acquisitions market remained robust in 2024, recording $18.6bn in deal value, ranking third in the region.
With support from the European Bank for Reconstruction and Development (EBRD) as a minority shareholder, the investment is designed to drive both organic and acquisitive expansion. Learn more about mergers and acquisitions in the CEE area by joining the CEE Private Equity Conference in Warsaw. Can`t stop reading?
Its last funding round in early 2024 valued the company at $3bn. Neither Island nor Coatue have commented on the latest funding round. This investment highlights ongoing venture capital confidence in cybersecurity, even as artificial intelligence remains a dominant industry focus. Can`t stop reading?
Endless created Karnova Food Group through the acquisitions of Yorkshire Premier Meat in 2022 and Smithfield Murray in 2023. This sale marks Endless second exit from its 2021 Fund V, following the March 2024 sale of Findel Education to Manutan, a Paris-based specialist in educational supplies with 1bn in annual turnover.
The regulator, which launched the probe in December over competition concerns, confirmed on Wednesday that it will not escalate the merger to a further in-depth investigation. Read more here. If you think we missed any important news, please do not hesitate to contact us at news@pe-insights.com. Can`t stop reading?
The pipeline company recently reported strong first-quarter results, fueled mainly by recent acquisitions. Another acquisition, this time by affiliate Sunoco (NYSE: SUN) , will help power stronger-than-expected earnings growth for the master limited partnership (MLP) this year. That was enough cash to cover the company's 7.8%-yielding
This halt occurred after the discovery that some shares didn't convert correctly following the company's merger on Aug. 25, 2023, with FG Merger, a special purpose acquisition company ( SPAC ). The stock has risen more than 40x since the combination with FG Merger. 6, 2023, and the completion of the merger on Aug.
The REIT recently added $1 billion to its acquisition target, giving it the confidence to boost the low end of its growth rate. Due to challenging market conditions, the REIT wanted to keep investment spending to what it could fund without outside financing. billion merger with Spirit Realty earlier this year.
BlackRock made headlines in late 2024 through the firms acquisition of HPS Investment Partners , backed by their expectation that the private debt market will more than double to $4.5 2] While BlackRocks acquisition dominated the news cycle, other firms have already made it their prerogative to jump into the private credit pool.
The $800m investment will be used to enable LogicMonitor to accelerate platform expansion opportunities including new mergers and acquisitions as well as broadening its footprint into new global markets, ensuring data centres worldwide can meet local demands while benefiting from advanced observability management tools.
A consortium led by private investment firms Starwood Capital Group and Warburg Pincus is working to finalise a deal to take ESR Group private, valuing the Hong Kong-listed real estate fund manager at over $7bn, according to a report by Reuters. The company raised $1.6bn during its 2019 IPO in Hong Kong, pricing shares at HKD16.8
It has issued additional shares to fundacquisitions. billion all-stock merger with Spirit Realty. The REIT has also sold shares via its at-the-market program to fund accretive investments. billion in dividends next year, with the potential for a higher level depending on the size of its acquisition volume.
over the last 50 years, according to data from Ned Davis Research and Hartford Funds. Acquisitions are the main factor driving Realty Income's steadily rising dividend. The REIT estimates that every $1 billion of accretive acquisitions it makes will add 0.5% to its adjusted funds from operations (FFO) per share each year.
Foreign funds like Bain have significantly increased their acquisitions in Japan, pushing inbound mergers and acquisitions (M&A) in the country to the top of Asias leaderboard in 2024 the first time since 1999.
Prior to joining Campbell Lutyens, Chirag spent 13 years as an institutional investor leading fund investments and co-investments at top investments, including the Alaska Permanent Fund Corporation, DB Private Equity, and GE Asset Management. Campbell Lutyens has been advising GPs and LPs on secondary transactions since 2000.
billion of adjusted funds from operations ( FFO ), which covered its $1.3 compound annual rate since going public, driven by a combination of rent growth and accretive acquisitions. Acquisitions are the company's other growth driver. of adjusted FFO-per-share growth for every $1 billion of externally funded investments it makes.
That provides a nice cushion while enabling it to retain cash to help fund new income-generating investments. Realty Income estimates that it can internally fund enough new investments to grow its cash flow per share by 2% to 3% annually. per year for every $1 billion of accretive acquisitionsfunded with external capital.
The beauty of this model is that the manufacturers' ideas are self-funded and brought to UFP to check for feasibility and potential production using the company's patents and its (sometimes exclusive) access to certain materials. Image source: Getty Images. By gaining access to certain materials like this, UFP adds to its ever-widening moat.
In addition, the midstream company expects the merger will increase its free cash flow per share by an average of more than 20% from 2024 to 2027. It expects to capture at least $200 million in cost savings and other synergies following the merger, which is a big factor driving that increase.
Lucid (NASDAQ: LCID) went public by merging with a special purpose acquisition company (SPAC) nearly three years ago. But like many other SPAC-backed EV makers, it set some ambitious delivery and revenue targets in a pre-merger presentation -- then broadly missed its own expectations. What happened to Lucid over the past three years?
It allows the MLP to retain billions of dollars in cash flow to fund expansion projects, repurchase units, and maintain a strong balance sheet. Because of that, it can borrow money at lower rates and better terms to fund its operations and expansion. Acquisitions are another big driver of distribution growth for Enterprise.
The company says 85% of its funds from operations (FFO) are either protected from or indexed to inflation. The company uses its financial flexibility to invest in expansion projects and make acquisitions. It tends to acquire expandable platforms that it can grow by investing in capital projects and making bolt-on acquisitions.
Catalanos practice encompasses a broad range of transactions, including equity financing rounds, mergers and acquisitions, and complex commercial agreements. His expertise extends to licensing deals, NFT collaborations, technology sourcing, blockchain networks, manufacturing and supply arrangements, and marketing agreements.
Canoo was not a normal IPO Canoo came public via a merger with a special purpose acquisition company (SPAC) in late 2020. Basically, investors fund a SPAC via a more traditional initial public offering (IPO), seeding it with cash with the expectation that the SPAC will find an attractive private company to buy.
This acquisition marks a significant move in the Japanese pharmaceutical market and presents a potential opportunity for CVC to expand and re-list the company in the foreseeable future. Polaris Capital Group, a Tokyo-based private equity fund, had taken Sogo Medical private in a management buyout worth nearly $850m just last year.
A wave of mergers and acquisitions (M&A) activity has washed over the oil patch in the last year. Several midstream companies have made acquisitions, while the rumor mill suggests others are on the prowl. The master limited partnership (MLP) has made several acquisitions over the years. billion in July.
After acquiring just over 2,000 properties from the merger with Spirit Realty, Realty Income's property portfolio has grown to around 15,500 properties. Assuming the lower interest rates allow Realty Income to refinance debt or fund more projects and acquisitions, lower rates should help boost profits.
Archer Aviation (NYSE: ACHR) , a developer of electric vertical take-off and landing (eVTOL) aircraft, went public by merging with a special purpose acquisition company (SPAC) three years ago. Its pre-merger presentation claimed it would produce its first 10 eVTOL vehicles in 2024 and generate $42 million in revenue for the full year.
These deals significantly increased its scale while enhancing its ability to grow its adjusted funds from operations ( FFO ) per share, which have risen at a 6% compound annual rate over the last three years (above its historical average of 5%). of its annual base rent to 10.2% to 15.1%.
Meanwhile, a rising net profit margin -- and the subsequent free cash flow (FCF) the company generates from it -- funds Tennant's ability to remain a Dividend King. A Dividend King with ample funding for larger payout increases Tennant has been raising its dividend payments for 51 consecutive years now, allowing it to become a Dividend King.
Lucid (NASDAQ: LCID) went public through a merger with a special purpose acquisition company in July 2021. The company's stock is now down approximately 95% from its post-merger peak and has a market capitalization of roughly $6.9 But Lucid's share price has since fallen dramatically.
The MLP produces significant excess cash after funding its distribution and capital expenses, giving it room to raise the payout. On top of that, its already-substantial cash flows should rise in the future as the company completes expansion projects and makes value-enhancing acquisitions. billion all-equity deal. I also own Crestwood.
It has a conservative dividend payout ratio for a REIT at 75% of its adjusted funds from operations ( FFO ). It has historically grown its adjusted FFO by around 5% per share through a combination of rent growth, property acquisitions, and corporate mergers with other REITs.
Auria was formed through the merger of four recent acquisitions by Enlightenment Capital--Boecore, Ascension Engineering Group, Orbit Logic, and La Jolla Logic. The post Enlightenment Capital unveils new space platform Auria appeared first on PE Hub.
Ark Invest CEO Cathie Wood continues to trim holdings in Tesla (NASDAQ: TSLA) and Shopify (NYSE: SHOP) from the investment firm's various exchange-traded funds ( ETFs ). Strikingly, it seems that funds from the sales are being used to invest in an even more potentially explosive, high-risk growth stock.
At their core, they're capital providers to early-stage businesses looking for funding to get their operations off the ground. It specializes in venture debt, making high-yield loans to companies that have previously raised outside funding from venture capital or private equity. What are business development companies?
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