Private Equity Bros Weekly

📊 Weekly Summary

Here’s a roundup of this week’s major finance and economics headlines:

The ECB cut rates by 25 bps to 2.5%, marking its sixth cut since June. In the US, the trade deficit hit a record in January, and Wall Street banks are warning of rising recession risks. Money market fund assets under management surpassed $7T as investors sought safety amid market volatility.

Trump delayed some tariffs on Mexico and Canada for one month, while retail investors pulled $1.2B from U.S. stocks at the fastest pace ever. Meanwhile, Norway’s $1.8T sovereign wealth fund is under pressure to increase aid to Ukraine, and dealmakers are growing skeptical of the anticipated M&A boom.

Let’s break it down.

📈 Recent Finance News

ECB cut rates by 25 bps to 2.5% in sixth cut since June: The bank also reduced its forecasts for economic growth in the eurozone (BBC)

US trade deficit hit a record in January on imports surge ahead of tariffs: Suggests that trade could be a drag on economic growth in Q1 (BS)

Money market funds AUM topped $7T: Strong inflows come as a response to the recent spike in financial markets volatility (YF)

Wall Street banks say markets are flashing rising recession risk: Growing concerns over economic weakness and tariff-related uncertainty (BT)

US layoffs soar to the highest since Covid: More than 1/3 of the total came from DOGE efforts to reduce the federal headcount (CNBC)

Trump delays some tariffs on Mexico and Canada for 1 month: It includes all products covered by the USMCA free trade treaty (CNN)

Retail investors pulled $1.2B from US stocks in quickest pace ever: Investors saw automaker exemption as gateway to more concessions (CNBC)

Dealmakers are losing faith in anticipated M&A boom: Investors struggle with market disruptions from trade wars and global tensions (FP)

Norway's $1.8T SWF under pressure to boost aid for Ukraine: Pressure grows with concerns over continued US support for war efforts (YF)

Canada expanded oversight on foreign investments: It can reject purchases and takeovers that could harm economic security (BBN)

🔍 Newly Released Reports  

• Private Equity and Venture Capital - 2024 in Review (S&K)

• How AI is re-platforming the economy (Goldman Sachs)

• 10 Keys to Negotiate VC Transactions (Cuatrecasas)

• Consumer & Retail M&A Outlook 2025 (KPMG)

• Direct Lending Outlook (Morgan Stanley)

• Search Funds Overview (DLA Piper)

• Value Creation through AI (KPMG)

• Investment Funds 2025 (C&P)

🤝 M&A Activity

Sycamore Partners to take Walgreens Boots Alliance private (WBA)
Deal Value: $23.7B

BlackRock to buy Panama Canal ports after pressure from Trump (FT)
Deal Value: $22.8B

Saudi Aramco considers acquisition of BP's Castrol business (YF)
Potential Deal Value: $10B

ON Semiconductor's unsolicited offer for Allegro MicroSystems (RT)
Potential Deal Value: $6.9B

Bain Capital to acquire York Holdings from Seven & i (PEI)
Deal Value: $5.5B

Trial Holdings to purchase Seiyu from KKR and Walmart (RT)
Deal Value: $2.6B

PE firms Bain Capital and CC Capital increase bids for Insignia Financial (PB)
Potential Deal Value: $2.1B

Danish Salling Group to acquire ICA Baltic's Rimi Baltic (ERR)
Deal Value: $1.4B

Blackstone nears deal for South City Mall in Kolkata, India (BT)
Potential Deal Value: $400M

Silver Lake and hedge funds clash over Endeavor Group buyout (YF)
Deal Value: Undisclosed