Private Equity Bros Weekly

📊 Weekly Summary

Here’s a recap of this week’s top news in finance and economics:

The US economy contracted 0.3% YoY in Q1 2025, while China is now weighing possible trade talks with the US. Foreign funds are turning cautious on US corporate bonds, and bond mutual funds suffered their biggest outflows since 2022.

Despite market turmoil, Citadel’s funds delivered gains in April. Signals from 2Y yields suggest the Fed may need to cut rates, and Charles Schwab noted a broad pullback in risk appetite. Elsewhere, Norway’s wealth fund plans to cut trading costs with AI, while Shein explores US restructuring as tariff risks loom over its London IPO.

Let’s break it down.

📈 Recent Finance News

US economy shrank 0.3% YoY in Q1 2025: The GDP decline is largely driven by a surge in imports ahead of President Trump’s tariffs (CNBC)

China evaluates possible trade talks with the US: Signaling a softening in Beijing’s previously defiant stance amid heightened tensions (CNN)

Foreign funds are losing appetite for US corporate bonds: Points to caution from European and Asian money managers to invest in US credit markets (YF)

All of Citadel funds gained in April: Citadel's flagship fund Wellington was up 1.3% in April, despite a tumultuous month (RT)

Bessent says US 2Y yields are signaling Fed to cut: The central bank’s policy rate currently stands in the range of 4.25% to 4.50% (Investing)

Charles Schwab's CEO says he has seen a 'pullback in risk-taking': Still, 61% of investors reported feeling bearish during April (YF)

Nasdaq plan will bring zero-day option boom closer to single stocks: Weekly expirations could be expanded for a small group of qualified stocks (YF)

Bond mutual funds saw largest outflows since 2022 while ETFs gained: Bond mutual funds were hit hard in April, losing roughly $60 billion in AUM (ETF)

Norway's SWF plans to cut trading costs by 20% with AI: An internal target has been set to boost productivity by 10% over the next 12 months (ET)

Shein explores US restructuring as tariffs threaten to derail London IPO: This move comes in anticipation of prolonged tariffs on Chinese exports (RT)

🔍 Newly Released Reports

• Integrating Start-Ups Into Your Research Franchise (ILA)

• Climate-driven Growth Investments (McKinsey & Co.)

• Asset-based Finance: Investment Opportunities (CT)

• Outlook for Listed Real Estate (NYL Investments)

• Charting the Future of Sustainable AI (Economist)

• European Financial Services M&A Trends (EY)

• Hedge Fund Industry Deep Dive (Aurum)

• Oaktree Credit Quarterly (Oaktree)

• C-Suite Priorities Study (CIPD)

• Global AI Study 2025 (KPMG)

• Banking Sector Pulse (EY)

• The Vitality Code (BCG)

🤝 M&A Activity

BBVA's hostile bid for peer Sabadell gets regulatory approval in Spain (RT)
Potential Deal Value: $12.5B

Prio gets 60% stake in Brazil's Peregrino oil field from Equinor (Equinor)
Deal Value: $3.5B

Novartis buys Regulus Therapeutics to expand rare disease pipeline (CPI)
Deal Value: $1.7B

Brynwood Partners acquires pasta brand Chef Boyardee from Conagra (FD)
Deal Value: $600M

Ari Emanuel to acquire Frieze Art Group from Endeavor (TAN)
Deal Value: $200M

Great Hill Partners takes minority stake in $10B RIA Mission Wealth (PRN)
Deal Value: Undisclosed

Hexa Climate Solutions acquires Fortum's India renewables unit (PEW)
Deal Value: Undisclosed

TWG Global and Thomas Tull take 5% stake in Mubadala Capital (BW)
Deal Value: Undisclosed

TSG Consumer Partners in talks to acquire minority stake in Crumbl (PEI)
Deal Value: Undisclosed

L1 Capital in talks to acquire 75% of Platinum Asset Management (FN)
Deal Value: Undisclosed