Private Equity Bros Weekly

📊 Weekly Summary

Here’s a summary of this week’s major developments in finance and economics:

US goods imports plunged 20% in April, the largest drop on record. While the tariffs may narrow the budget gap by $2.8T, a new tax bill is projected to add $2.4T to the deficit. Financial leaders, including Citadel’s president, are sounding alarms over the deficit, and global investors are pulling back from US markets.

Globally, central banks are moving to support growth: India surprised markets with a 50 bps rate cut and a reduction in the reserve ratio, and the ECB lowered rates to 2%. In Asia, JPMorgan sees strong momentum in private credit, while Accel warns that 20% of tech unicorns could fail as funding tightens.

Let’s break it down.

📈 Recent Finance News

Tariffs prompt record plunge in US imports: Goods imports into the US fell 20% in April, the biggest monthly drop on record amid a surge in tariffs (BBC)

India surprised with a 50 bps rate cut to 5.5%: The RBI also cut the reserve ratio, as low inflation let policymakers prioritize growth (RT)

ECB cut rates for an eighth time to 2%: The Bank has cut interest rates in an effort to boost flagging economic growth across the eurozone (Guardian)

New tax bill will add $2.4T to US deficit: The budget office is projecting 10.9 million more people will be uninsured in 2034 as a result of the megabill (abc)

US services activity contracted for first time in a year: Tariff uncertainty complicates business planning and affects financial guidance (RT)

Citadel Securities president says US deficit is a 'ticking time bomb': Several financial industry leaders have recently issued similar warnings (YF)

JPMorgan Chase sees growth in Asia Pacific private credit market: JPM focuses on strong mid-sized firms without investment-grade ratings (Inv.)

US tariffs may cut budget gap by $2.8T: Report warns that the tariff plan would shrink the economy, raise inflation, and reduce household purchasing power (AP)

Accel believes 20% of tech unicorns will fail: Tech start-up valuations surged in 2021 but collapsed as rates rose and venture funding fell (TEM)

Big investors shift away from US markets: Donald Trump's trade war and rapidly mounting government debt have shaken confidence in US assets (FP)

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🔍 Newly Released Reports

• V-Shaped Recoveries and Policy Uncertainty (Man Group)

• Strategic M&A Playbook for the New Business Era (AV)

• UK Real Estate Keeps Calm and Carries On (PEI)

• Infrastructure Strategic Outlook H2 2025 (IRCP)

• Vendor Commercial Due Diligence Guide (CIL)

• PE’s $21B+ Bet on Gaming (InvestGame)

• European Economic Outlook (KPMG)

• Midyear Macro Outlook (CTI)

• Ventures Startup Guide (UR)

🤝 M&A Activity

Chart Industries and Flowserve to merge in all-stock industrial deal (YF)
Deal Value: $19B

Kimberly-Clark sells 51% stake in tissue unit to Brazil’s Suzano (CNBC)
Deal Value: $1.7B

Carlyle invests in insurance brokerage Trucordia at $5.7B valuation (TR)
Deal Value: $1.3B

L'Oréal nears acquisition of UK skincare brand Medik8 (FT)
Potential Deal Value: $1.1B

Roark Capital acquires Dave’s Hot Chicken restaurant chain deal (FOX)
Deal Value: $1B

OCBC submits bid to fully acquire Great Eastern Holdings (RT)
Potential Deal Value: $700M

Blackstone buys UK’s Warehouse REIT at 34% premium (YF)
Deal Value: $635M

UK outsourcer Mitie to buy peer Marlowe (RT)
Deal Value: $496M

BayPine purchases majority stake in legal IT firm Harbor Global (BW)
Deal Value: Undisclosed