Category Archives: WEEKLY SPIN

Carl-EYE on Manchester United

Geographically it is only a short distance from Carlisle in the North of England to Manchester. But the road ahead could be a long one as one of the world’s leading PE houses – The Carlyle Group – enters the competitive fray to buy a stake in Manchester United.It is understood that the US powerhouse has submitted an offer for a minority investment. Elliott Management and Ares Management are also thought to be interested, as well as Sixth Street. The UK’s richest man, Sir Jim Ratcliffe, owner of INEOS chemicals group, is hoping to take outright ownership of the club, as is the chairman of Qatar Islamic Bank, Sheikh Jassim. The Red Devils, as they are known, are one of the richest clubs, with a purchase price in excess of $5 billion. Now that The Carlyle Group has expressed a minority interest, the excitement is starting to build. Who will be the ultimate winner? Watch this space.

inspired by The Telegraph

Alive and Kicking

Private equity committed USD90 billion to global healthcare deals in 2022 according to Bain & Company’s 12th annual report on M&A activity.This significant capital injection – the second highest on record – shows that despite rising rates and market volatility last year, the global healthcare space is very much alive and kicking; and a further reminder of its recession-proof attributes. Rising labour costs and tighter credit conditions will require investors to perform a careful diagnosis this year, and consider creative approaches to deal making. Still, the long-term M&A outlook is likely to remain in rude health, especially in biopharma and life sciences.

inspired by PR Newswire

Global cooling

Much is spoken about global warming but right now Climate Tech is facing an unwelcome spell of ‘global cooling’ as deal values decline.Although far from becoming an Ice Age, the level of funding for Climate Tech has reached a three-year low, with quarterly deal value down 50% from its high point in Q3 2021. According to Pitchbook, start-up firms attracted $5.7 billion in new capital in the first quarter of this year. VC managers will be praying to the rain gods that the current environment doesn’t turn in to a prolonged drought.

inspired by Pitchbook

Toshiba Mega Price

Toshiba’s board has given the green light to a $15 billion buyout that, if approved by shareholders, would make it Japan’s biggest ever take-private deal.And provide a timely turbo boost to the country’s private equity industry. At the front of the grid is Japan Industrial Partners, along with five other financial institutions and 17 domestic companies. The next turn of events will see Toshiba’s board convene a special committee to assess the deal. It is believed that several of the conglomerates largest shareholders were comfortable with the valuation formula used. As the chequered flag approaches, all eyes will be on the completion of this historic deal.

inspired by the Financial Times

Debt set go

Not everyone enjoys buying a round. It depends how much money you have on you and how big the round is!It seems that a lot of SVB’s start-up tech clients also had trepidation over the fears of down rounds, preferring instead to opt for debt over equity; and so delay inevitable lower valuations. This helps, to some extent, explain why private market valuations remained relatively strong last year, while public market tech stocks got eviscerated as investors grew concerned over long-term growth and profitability in a rising rate environment. The consequence of SVB’s implosion will be significant, with far less venture debt leading to an inevitable slew of lower valuation down rounds, tech failures and employee layoffs. Jay Powell’s hopes to combat high inflation could come true sooner than he thinks.

inspired by CB Insights