Private Equity Bros Weekly

📊 Weekly Summary

Catch up on the major financial and economic trends from the week:

US wholesale inflation remains moderate, with PPI rising 2.6% YoY, but political pressure on the Fed intensified as Trump publicly urged a 2-point rate cut. Amid this uncertainty, investors are rotating out of US assets, while private credit allocations are shifting toward Europe for greater stability.

Globally, gold has overtaken the euro as a reserve asset. India continues to attract strong interest with $6.4B in May IPOs and block deals. In the US, wealthy families are ramping up equity exposure, even as trend-following hedge funds suffer steep losses and Moody’s flags risks in private funds being sold to individuals.

Let’s break it down.

📈 Recent Finance News

US PPI index rose 2.6% YoY: US wholesale prices rose modestly last month from a year earlier, another sign that inflationary pressures remain mild (ABC)

Trump calls Fed chief Powell ‘numbskull’ as he urges interest rate cut: Trump claims that lowering rates by 2 points would save $600B per year (CNBC)

Investors are moving money from US stocks to EM and Europe assets: European funds attracted $21B in May, lifting year-to-date inflows to $82.5B (RT)

Gold overtook euro as global reserve asset: Central banks are increasing gold reserves as trust in traditional fiat currencies continues to weaken (CNBC)

Rich American families are buying US stocks to 'highest level in years': They aim to preserve generational wealth amid recession fears and trade tensions (YF)

Investor rush for India exposure revs up block deals and IPOs: $6.4B was raised through share sales in May, the highest monthly total since Dec 2024 (BS)

Trend hedge funds struggle as more nimble macro funds embrace whipsawing markets: Systematic HFs are down over 11% so far this year (YF)

Moody’s sounds alarm on private funds for individuals: Wall Street's bid to market private funds to individuals risks overheating markets and backfiring (MSN)

US investors pivot to European private credit for stability: Rising US macro risks are driving institutional capital into European PC for diversification (PB)

Fitch sees worsening outlook for North American firms: It cites margin pressures and weakening demand as key risks for corporate America (Fitch)

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🔍 Newly Released Reports

• Emerging Trends in Aerospace and Defense 2025 (KPMG)

• How US Entrepreneurs are Navigating the Economy (EY)

• The Impact of Smart Contracts on Venture Capital (IRE)

• The Power of Zero-Based Transformation in PMI (BCG)

• Private Equity Value Creation and Exit Guide (EDC)

• Private Investments Fair Value Survey (Deloitte)

• Emerging Trends in Real Estate (PwC)

• 2025 Venture Capital Guide (C&P)

• Japanese Cross-Border M&A (OB)

• Saudi Arabia Tech Report (KPMG)

• Capital Markets Outlook (Merrill)

• Scaling Startups Smarter (MP)

🤝 M&A Activity

Tencent explores acquisition of South Korea’s game developer Nexon (TN)
Potential Deal Value: $15B

TDF Infrastructure owners plan sale of French towers firm (IT)
Potential Deal Value: $11B

BPCE buys 75% stake in Portugal’s Novo Banco from Lone Star (PEW)
Deal Value: $7.4B

Thermo Fisher to sell diagnostics unit to private equity (RT)
Deal Value: $4B

Allison Transmission acquires Dana’s off-highway drivetrain unit (AD)
Deal Value: $2.7B

Bain, KKR, and Lone Star advance in bidding for Sapporo’s real estate arm (BBG)
Potential Deal Value: $2.8B

KKR and Stonepeak raise takeover bid for UK’s Assura (PEW)
Potential Deal Value: $2.3B

Apollo and Irth Capital offer to take Papa John’s private (PEI)
Potential Deal Value: $1.7B

BioNTech to acquire CureVac in all-stock biopharma deal (FB)
Deal Value: $1.2B

Arcis Golf expands with Atlanta acquisitions (BW)
Deal Value: Undisclosed