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jerryking : kkr   18

New York’s business elite decamps to millennial-friendly Hudson Yards
March 11, 2019 | | Financial Times | by Joshua Chaffin.

The $25bn Hudson Yards, the site of KKR’s new office and one of the most ambitious New York developments since Rockefeller Center, officially opens its doors this week after more than a decade in the works. It is big, boasting as much new office space as all of central Pittsburgh.

It is an engineering feat. Its towers are constructed on top of a platform that sits above a working rail yard. Its builders crafted 90-tonne columns to support the weight. They also devised a custom cooling system for the soil within the platform so that tree roots would not overheat.

As KKR can attest, Hudson Yards represents another extreme: it is the boldest expression of a new fashion in corporate real estate that buildings and “space” should be potent weapons in a fight to recruit and retain talented young workers.

The Related Companies and its partner, Oxford Properties, have made that a central element of a sales pitch that has persuaded KKR and other power brokers to quit Manhattan’s corporate strongholds in midtown and downtown and move west.

Joining Mr Kravis in his new home are Larry Fink, who is moving BlackRock, the world’s largest asset manager, to Hudson Yards; attorney David Boies and his law firm Boies Schiller Flexner, and hedge fund managers Daniel Loeb and Steven A Cohen, among others.
elitism  Hudson_Yards  KKR  Manhattan  millennials  New_York_City  Oxford_Properties  property_development  vitality 
march 2019 by jerryking
Toys ‘R’ Us Case Is Test of Private Equity in Age of Amazon
MARCH 15, 2018 | The New York Times | By MICHAEL CORKERY.

The reality is that Toys “R” Us, which announced on Thursday that it would shutter or sell all of its stores in the United States, never had much chance at a turnaround.

For over a decade, Toys “R” Us had been drowning in $5 billion of debt, which its private equity backers had saddled it with. With debt payments siphoning off cash every year, Toys “R” Us could not properly invest in its worn-out suburban stores or outdated website. Sales plummeted, as Amazon captured more children’s desires — and their parents’ wallets — for Star Wars Legos and Paw Patrol recycling trucks.

Toys “R” Us is the latest failure of financial engineering, albeit one that could portend a potentially more ominous outlook for private equity in the digital era.....Most buyouts tend to work the same way. A private equity firm takes over a troubled company with the goal of sprucing up the strategy, cutting costs and overhauling the business over three or five years. But they often load up a company with debt to pay for the deal, which can prove problematic if the profits do not perk up.

In the age of Amazon, that formula can be dangerous. Consumer demands are changing so quickly that heavily indebted companies have trouble reordering their business to adapt and compete with better-funded rivals...... the deterioration of Toys “R” Us from a potential turnaround strategy to the end of an iconic brand — in a matter of months — shows just how difficult it can be for private equity to compete in a rapidly evolving industry. In retailing, Amazon is reordering everything on the store shelf. And children’s changing interest in games and toys, which now encompasses high-end electronics, adds to the complexity.....Enter Amazon. In recent years, the company had started to aggressively expand its toy business, creating a comprehensive, online showroom with low prices at the click of a button. Pressed by Amazon, Walmart also pushed hard into toys, dropping its prices to capture more market share.

Walmart could absorb the price cuts on toys because it makes up the profit on other items. But for Toys “R” Us, a price war on toys and games, its only offerings, was devastating.
private_equity  bankruptcies  toys  digital_economy  Amazon  Wal-Mart  KKR  Bain_Capital  Toys_"R"_Us  financial_engineering  LBOs  buyouts  shifting_tastes  category_killers  price_wars 
march 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
Sysco to Buy US Foods for $3.5 Billion to Create Food-Distribution Giant - WSJ.com
By
Annie Gasparro,
Sarah E. Needleman
and
Ryan Dezember
connect
Updated Dec. 11, 2013
The two biggest U.S. food-distribution companies announced a merger that will create a giant with about $65 billion in annual revenue and enhanced clout over purchasing by institutions ranging from restaurants and hotels to hospitals and schools.

Sysco Corp. SYY 0.00% said it will buy rival US Foods for $3.5 billion, uniting two middlemen that are already central players in the service economy. Sysco alone has about 425,000 customers, and it and US Foods together collected about 27% of the revenue in the U.S. food-distribution market last year, according to research firm Technomic Inc....Founded in 1969, Sysco has grown to 48,100 employees world-wide, thanks in part to acquisitions of smaller regional players. But the US Foods deal is by far its largest to date.

Sysco considered buying US Foods almost seven years ago but didn't. Mr. DeLaney said the change of heart came because US Foods became a more efficient company.

He said US Foods has technology related to customer ordering and a mobile application that Sysco is interested in.
Sysco  food  foodservice  distribution_channels  mergers_&_acquisitions  M&A  Clayton_Dubilier_Rice  KKR  middlemen 
december 2013 by jerryking
Petraeus Back in Spotlight, via Wall St.
May 30, 2013, 7:23 am 16 Comments
Petraeus Back in Spotlight, via Wall St.
By MARK MAZZETTI
KKR  David_Petraeus  Wall_Street 
june 2013 by jerryking
Canada Pension Plan Unit to Join K.K.R. Merchant Banking Venture - NYTimes.com
January 17, 2013, 9:16 am Comment
Canada Pension Plan Unit to Join K.K.R. Merchant Banking Venture
By MICHAEL J. DE LA MERCED
CPPIB  private_equity  KKR 
january 2013 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
At The Food Chains, It's All Gulp And Swallow -
May 07, 1995 | Businessweek | By Eric Schine in Los Angeles, with Leah Nathans Spiro in New York
deal-making  supermarkets  KKR  roll_ups  grocery  LBOs 
july 2012 by jerryking
Private Equity Giants Use Size to Lean on Suppliers - NYTimes.com
July 11, 2012 | NYT |By KEVIN ROOSE.

Private equity firms like Blackstone are emerging as a powerful new force in the marketplace. The big investors, which collectively oversee thousands of companies, are using their size and scope to pressure suppliers, set their own prices and exert their influence in a range of industries, including health care, construction and consumer goods...with the financial crisis, the decline of stocks markets and the sputtering recovery, private equity has been adapting its ways. While profit remains central and layoffs can still be part of the private equity equation, buyout firms are now stuck holding on to companies longer than expected.

As a result, the firms cannot operate at arm’s length anymore and instead have had to roll up their sleeves and become full-fledged operators....Blackstone and others are taking the cues from the likes of General Electric. Decades ago, G.E. started buying in bulk for its various businesses units, including aerospace, energy, consumer and finance.

Despite the disparate industries spread across dozens of countries, G.E. decided to make buying decisions at the corporate level, as a way to save money and bolster profits. Today, most large multinational companies adhere to a similar strategy for their supply chain, buying computers, office supplies and all types of products at a discount.
Carlyle_Group  economic_clout  grouping  KKR  large_companies  multinationals  private_equity  procurement  purchase_decisions  purchasing  size  supply_chain_squeeze 
july 2012 by jerryking
The new masters of the universe - Bain & Company - Publications
July 27, 2005 | The Wall Street Journal | By Hugh MacArthur and Dan Haas.

Blueprint the path to value:
Hire hungry managers:
Measure what matters:
Make equity sweat:
private_equity  KKR  Bain  metrics  investment_thesis  measurements  value_creation  blueprints  what_really_matters 
november 2011 by jerryking
The Great Global Buyout Bubble
November 13, 2005 | New York Times | By ANDREW ROSS SORKIN
KKR  private_equity  Andrew_Sorkin  bubbles 
december 2010 by jerryking
KKR Evolves, Hiring Trading Team From Goldman - WSJ.com
OCTOBER 21, 2010 | Wall Street Journal | By GREGORY
ZUCKERMAN Evolution at KKR: Goldman's Genetics, The move KKR. to hire a
team of stock traders from Goldman Sachs is a sign of change sweeping
the private-equity industry. Prestigious buyout firms are plunging into
stock & bond trading, underwriting, & hedge funds, and away from
the LBOs that earned them fame and fortune. As recently as 2004, $14.4
B of KKR's $15.1 B of assets came from leveraged buyouts. Today, after
diving into debt trading, only $41B of its $54.4 B portfolio is from LBO
investments. And KKR, whose stock now trades publicly as KKR & Co.,
is actively examining a push into other businesses, according to people
close to the matter....Top executives at KKR and other firms argue that
in their research on buyout deals they uncover other investing
opportunities, such possible debt and stock purchases, that they can't
profit from without operating other kinds of investment vehicles.
diversification  private_equity  KKR  markets  buyouts  market_research  leverage  stocks  carve_outs 
october 2010 by jerryking
Bids for Novell Expected This Week - WSJ.com
MAY 20, 2010 | Wall Street Journal | By BEN WORTHEN And ANUPREETA DAS. KKR Silver Lake and Golden Gate Capital
private_equity  KKR  Ben_Worthen  Novell 
may 2010 by jerryking

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