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jerryking : blackstone   17

Labels in finance have become meaningless     | Financial Times
OCTOBER 18, 2019 | Financial TImes | by Tom Braithwaite.

In the hunt for returns, investment banks now offer credit cards and hedge funds sell books

Some of Goldman’s investment bankers fear the company’s diffuse range of activities dilute its core role. Once, Goldman Sachs touted itself as “a leading global investment banking and securities firm” advising on mergers and trading debt and equities, Goldman is now: a venture capitalist investing in the likes of Uber and WeWork; a retail bank offering accounts and short-term loans to ordinary consumers; a credit card issuer in partnership with Apple; and a software developer with a suite of applications. ....The finance industry is now full of companies uncomfortable in their own skins and trying to adopt more fluid identities. Blackstone, notionally a private equity firm, today makes more money from property. BlackRock, famous as one of the world’s biggest owners of public equities, is now getting into private equity buyouts. Elliott Management, an activist hedge fund, has ended up owning a football club, AC Milan, and two bookstore chains, Barnes & Noble and Waterstones. Barriers are breaking down and labels are fraying......It is this yield-starved world that sends financial companies roaming far and wide in a hunt for returns.....the IMF has pointed to renewed risks from pension funds’ headlong rush into alternative assets. The allocation to alternatives such as property and private equity has risen from just over 5 per cent in 2007 to more than 20 per cent today. The IMF warns of Woodford-like runs on a grand scale when investors rush to withdraw assets from such “open-ended funds”, yet another misnomer. “Such runs could force fund managers to engage in fire sales, further depressing asset prices, inflicting losses on other market participants, and, in the extreme case, increasing the risk for the financial system,” the economists warned. Always read the label, but never rely on it.
alternative_investments  Blackstone  BlackRock  Elliott_Management  finance  Goldman_Sachs  layer_mastery  selling_off  special_sauce 
october 2019 by jerryking
Stephen Schwarzman: ‘I like to do things that are beautiful’
September 20, 2019 | Financial Times | by Lionel Barber.

Schwarzman’s fortune (net worth about $18bn) has bought him power and influence. He’s graduated from being a mega dealmaker to philanthropist, back channel in US-China relations and “Trump whisperer”. I want to explore these multiple roles, but also pin down why the man who has built one of the most successful financial businesses on the planet has never quite received the credit he believes he deserves......Blackstone started as a boutique advisory firm, with the goal of making enough money to start its own private equity fund. Private equity has attracted controversy because of alleged asset-stripping: buying companies, loading them with debt (“leverage”) and selling them off at a handsome profit, with favourable tax treatment.

Schwarzman casts himself as a long-term investor, not a scavenger in sheep’s clothing. He recounts with gusto the megadeals and the risk-taking involved in picking the right time to buy and sell assets, ranging from US Steel’s railroad network to the Waldorf hotel.

His skill is market timing. Blackstone has expanded into real estate and hedge funds and other “alternative assets”, with $545bn under management today. Blackstone funds are also the largest owner of real estate in the world. The firm’s rise epitomises the “buy side” revolution that favours asset managers at the expense of traditional banks trading liquid securities.

Schwarzman has written a book, which is part memoir, part Blackstone management primer called What It Takes: Lessons in the Pursuit of Excellence. (A better title would be Whatever It Takes, I suggest.) ......Blackstone is a meritocracy, he says, where two iron rules apply: no internal politics and do not lose money. “I go from the premise that anybody of talent does not want necessarily to be a private in an army. The lowest they want is to be a lieutenant colonel and preferably they’d all like to be generals.”......We turn to Schwarzman’s generous philanthropy. In recent years, he has donated $100m to the New York Public Library, $150m to Yale, £150m to Oxford university, $350m to MIT. He’s also set up the Schwarzman scholars, a one-year masters programme on global affairs for top international students to study at Tsinghua University in Beijing.
alternative_investments  Blackstone  books  dealmakers  investors  market_timing  philanthropy  private_equity  Stephen_Schwarzman  U.S.-China_relations 
september 2019 by jerryking
London Stock Exchange lays $27bn bet that data are the future
July 28, 2019 | | Financial Times | by Arash Massoudi, Richard Henderson and Richard Blackden.

The London Stock Exchange Group more than 300 years old, is trying to get back on the front foot with a plan for its most ambitious acquisition, one that will shape the direction of the group for years to come. It is the most striking demonstration yet of the charge among exchange operators into the business of supplying the data that is at the heart of markets....The LSE on Friday confirmed a Financial Times report that it was in talks to buy data and trading venue group Refinitiv for $27bn including debt, from a consortium led by private equity group Blackstone. If an agreement is reached for a company best-known for its Eikon desktop terminals, it would transform the LSE into a provider of financial market infrastructure and data with the scale to take on US exchange industry heavyweights Intercontinental Exchange and CME Group as well as Michael Bloomberg’s financial information empire.

“This would be a bold move in the shift among exchanges away from the matching of buyers and sellers and into the business of selling information,” said Kevin McPartland, head of market structure research at consultancy Greenwich Associates. “Data are so valuable and so is having the network of traders and investors to access that data — that’s all at play here.”......The deal would also be a defining moment for the LSE’s chief executive, David Schwimmer, just a year after the relatively unknown former Goldman Sachs banker was parachuted in to steady the ship. Its scale will bring considerable risk in execution alongside the need to convince LSE shareholders that taking on Refinitiv’s $12bn of debt will prove worth it.

Industry analysts see the strategic logic of the deal for the LSE, best known for its UK stock exchange and derivatives clearing house LCH. While revenue from initial public offerings can be more volatile, spending by everyone from asset managers to hedge funds on financial data and the analytical tools to make use of it has been going in one direction. It hit a record $30.5bn last year
.......“What’s happened is exchanges have found it more difficult to find ways of generating revenue in their traditional businesses,” “You can deliver data so easily now, there is voracious appetite from anyone making investment decisions so they can get an edge.”.....As well as winning over LSE shareholders, any deal is likely to face a lengthy period of antitrust approvals.

“There is a wider market concern about exchanges and data vendors combining,” said Niki Beattie, founder of Market Structure Partners. “The global world of data distribution is presided over by a small number of players who have a lot of power.”
asset_management  Blackstone  Bloomberg  bourses  data  financial_data  hedge_funds  inflection_points  IntercontinentalExchange  investors  LSE  mergers_&_acquisitions  M&A  Refinitiv  stockmarkets  Thomson_Reuters  tools  trading_platforms  turning_points  defining_moments 
july 2019 by jerryking
Thomson Reuters unit to be renamed Refinitiv after Blackstone deal - The Globe and Mail
LONDON
REUTERS
PUBLISHED 2 DAYS AGO

Thomson Reuters Corp’s Financial and Risk unit, in which U.S. private equity firm Blackstone Group is buying a majority stake, will be renamed Refinitiv once the deal closes, the company said in a statement on Friday.

Blackstone is making its biggest bet since the financial crisis with the $20-billion deal, which pits co-founder Stephen Schwarzman against fellow billionaire and former New York Mayor Michael Bloomberg in the financial information industry.

The Thomson Reuters unit provides information and related services to financial services professionals. David Craig, current head of Financial and Risk, will be CEO of Refinitiv, Thomson Reuters said in the statement.

The deal is expected to close in 2018,
Bloomberg  financial_data  Thomson_Reuters  Blackstone  Refinitiv 
july 2018 by jerryking
Titans of finance have moved on from the banks
14 Feb. 2014| Financial Times | Gillian Tett.

If the mighty J Pierpont Morgan were reincarnated in New York today, who might he be? Jamie Dimon, the man who is now chief executive of JPMorgan, the ...
Jamie_Dimon  private_equity  Blackstone  regulation  KKR  alternative_investments  moguls  Gillian_Tett 
may 2014 by jerryking
Private equity groups acknowledge the threat hedge fund are making into buyouts
Jun 6, 2005 | Financial Times pg. 10 | PAUL J DAVIES.

The extent to which hedge funds are competing directly for the kind of buy-out deals beloved of private equity firms is less certain. In 2004, hedge funds were successful in about 23 large US deals worth roughly Dollars 30bn (Pounds 16.6bn). This compares with Dollars 300bn in buy-out deals announced by private equity groups the same year.
while the hiring of private equity deal specialists by hedge funds has been on the rise, most still lack the know-how for the value creation that private equity has always aimed at. "Later on, PE firms are more likely to start launching hedge funds than the other way around because the PE firms have the deep teams, the investment specialists and deal expertise," says Mr [John Coyle]. "Hedge funds don't have these kind of resources."
Having a hedge fund arm would give PE firms ways to exploit the expensive due diligence they perform. PE firms examine many deals, but often end up outbid, or deciding that an opportunity is not a pure PE deal. At that point, all their work goes for nought, Mr Coyle says. "So, they see having a hedge fund that can invest in or finance the target in different ways as a way to leverage off all the due diligence they have performed."
private_equity  hedge_funds  Cerberus  Blackstone  KKR  Carlyle_Group  buyouts 
september 2012 by jerryking
Blackstone Purchases Hotelier
November 10, 2005 | Financial Times | by Amy Yee

November 23, 2005 | Financial Times | by Peter Smith
private_equity  Blackstone  hotels  hospitality 
august 2012 by jerryking
For Deals, Wall Street Goes East - NYTimes.com
September 28, 2011, 6:48 pm Mergers & Acquisitions | DealBook Column
For Deals, Wall Street Goes East
By ANDREW ROSS SORKIN

“The interest among Western institutional investors to getting exposure to China, Brazil and India is clear. It’s a big mind shift,” said Sarah Alexander, president of the Emerging Markets Private Equity Association. And she added, they’ve been looking farther afield. “You’ve got Indonesia on the map, Colombia, Peru.”
Andrew_Sorkin  Carlyle_Group  Wall_Street  private_equity  institutional_investors  emerging_markets  globalization  David_Rubenstein  dealmakers  Blackstone  frontier_markets 
september 2011 by jerryking
U.S. business leaders finally getting that international feeling
Dec. 10, 2010 | G&M | CHRYSTIA FREELAND...After a century
when succeeding in the U.S. was the surest route to commercial success,
the country’s best businessmen and women have realized that the way to
win is to go global....in the U.S. just 10 % of Fortune 500 chiefs were
foreigners. Now that the American century is over, however, U.S. biz
leaders are catching on fast. A sign of the times was the recent
decision by Stephen Schwarzman, CEO of Blackstone, to move to Paris for
3 to 6 mths. next year...Like Blackstone, GE is moving its chiefs to
where the action is: Last month John Rice, a GE vice-chairman, was
reassigned to Hong Kong, where he will oversee non-U.S. sales, mktg.
& operations....the shift of U.S. capital and American capitalists
outside the country will further polarize an already bitter national
debate. By 2012, Americans won’t just be arguing about tax breaks for
millionaires, they’ll be targeting the millionaires who spend six months
a year in Paris or Hong Kong.
globalization  Chrystia_Freeland  Blackstone  Fortune_500  parochialism  GE  Stephen_Schwarzman  CEOs  leadership  cosmopolitan 
december 2010 by jerryking
Restless Success
June 24, 2009 | Wall Street Journal | by Peter Lattman
book_reviews  private_equity  Blackstone 
january 2010 by jerryking
Blackstone probably just the tip of China's private equity iceberg
01/06/07 | From Friday's Globe and Mail| ERIC REGULY

China, the oil-rich Arab countries and Russia will use private equity
investments and partnerships to buy everything from oil sands and tech
companies in Canada to manufacturing and financial services in Europe.
Maybe those investments are being made right now, or have been made. We
don’t know. Private equity does not have loose lips. Secrecy is their
currency.
private_equity  Eric_Reguly  China  opacity  Blackstone  secrecy  discretion 
march 2009 by jerryking

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