Private Equity Bros Weekly

📊 Weekly Summary

A roundup of the major financial and economic headlines this week:

US GDP grew 2.3% in Q4, falling short of expectations, and in Europe, GDP was stable in the euro area and up 0.1% in the EU. The Fed held rates at 4.25%-4.5% after three cuts since September 2024. Meanwhile, India’s IPO boom continued to defy a broader stock market slump, suggesting sustained bullish momentum.

Nvidia short bets generated over $6B in profits during the DeepSeek panic, marking the stock’s largest-ever single-day move. HSBC announced a strategic pivot to Asia amid geopolitical tensions, while Japan’s yen posted its best January in seven years as the BoJ stuck to rate hikes. Finally, PE outperformed private credit in Q3, hinting at a potential market rebalancing.

Let’s break it down.

📈 Recent Finance News

US GDP grew 2.3% in Q4, less than expected: For the full year, GDP accelerated 2.8%, compared with 2.9% in 2023 (CNBC)

GDP stable in the euro area and up by 0.1% in the EU in Q4: +0.9% and +1.1% respectively compared with Q4 2023 (EC)

PE returns overtook private credit in Q3: Seen as a sign of a longer-term rebalancing between the two markets (YF)

Fed held rates at 4.25%-4.5%, sees no hurry to cut again: The decision followed three straight cuts since September 2024 (CNBC)

India's IPO boom is defying stock market slump: Suggests that IPOs have the potential to sustain their bullish momentum (YF)

Norway's wealth fund reports record $222B profit but warns tech boom won't last: It’s the second straight year of record profits (RT)

HSBC scales back in the West to focus on Asia: Comes as geopolitical tensions continue to impact global financial strategies (IB)

Nvidia short bets made over $6B in profits after DeepSeek panic: The biggest single-day move ever on the stock (Inv.)

Yen set for best January in seven years as rate paths diverge: BoJ likely to keep raising rates while global peers look to ease policy (YF)

US Bancorp president Gunjan Kedia will become its first female CEO: Her appointment will be effective from April (CMU)

🔍 Newly Released Reports  

• Alternative Investments 2025 Outlook (J.P. Morgan)

• M&A Guide for Buyer, Seller and Advisors (HAE)

• Liquid Credit Market Q4-24 (Partners Group)

• Venture Capital Report Italy (Growth Capital)

• Hedge Fund Industry Deep Dive (Aurum)

• Private Equity Survey 2025 (AlixPartners)

• Capital Market Outlook (Merrill Lynch)

• Oaktree Credit Quarterly (Oaktree)

🤝 M&A Activity

Fiber network owner Zayo pulls ahead in Crown Castle asset bid (MI)
Potential Deal Value: $8B

Sigma Healthcare merges with Chemist Warehouse (RT)
Deal Value: $5.5B

PE firm TJC explores sale or IPO of Silvus Technologies (YF)
Potential Deal Value: $5B

NGP Energy Capital considers sale of Camino Natural Resources (PEI)
Potential Deal Value: $2B

Snowflake in talks to acquire Redpanda (IBD)
Potential Deal Value: $1.5B

American Axle & Manufacturing buys Dowlais (AAM)
Deal Value: $1.4B

Allstate to sell Group Health business to Nationwide (BW)
Deal Value: $1.25B

Zimmer Biomet in definitive agreement to acquire Paragon 28 (PRN)
Deal Value: $1.1B

Warner Bros. Discovery receiving bids for Polish broadcaster TVN (YF)
Deal Value: Undisclosed

ITV in talks to merge with All3Media (RT)
Deal Value: Undisclosed