Private Equity Bros Weekly

📊 Weekly Summary

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

US CPI growth slowed to 2.8% YoY, while the US budget gap hit a record $1.1T. Meanwhile, the Bank of Canada cut rates to 3% and warned about the inflationary effects of US tariffs. European fund managers are loosening sustainable investment pledges in response to pressure to fund re-armament.

On the corporate front, the investment banking rebound is delayed, and bankruptcy filings are driving private equity firms to expand restructuring teams. Additionally, multi-strat hedge funds are facing the toughest market challenge since COVID. On a brighter note, Goldman’s CEO predicts a rebound in IPO activity.

Let’s break it down.

📈 Recent Finance News

US CPI growth slowed to 2.8% YoY: Relief for consumers and businesses concerned about the impact tariffs might have on inflation (CNBC)

US budget gap hit a record $1.1T fiscal YTD: Increased cost of Medicare and servicing government debt contribute to the widening (YF)

European fund managers axe 'sustainable' pledges to invest in defense: They face client and political pressure to loosen restrictions (RT)

BoC cut rates by 25 bps to 3% and warned on tariffs: Concerns that US tariffs could stoke persistently high inflation (CNBC)

IB rebound set to be delayed amid market volatility: Announcements and completions in Q1 are currently below expectations (RT)

Hedge funds slashed Asia bets by the most in four years: About 75% of the fall was in developed markets, led by Japan (YF)

Private Credit firms expand RX teams as bankruptcies surge: Lenders are paying up to $1.5M for mid and senior-level professionals (WSJ)

Foreign investors dumped Taiwan stocks at record pace: Driven by declining favor for Taiwan Semiconductor Manufacturing Co. (TEM)

Multi-strat hedge funds face biggest market challenge since Covid: The market selloff forces rapid unwinding of crowded trades (FP)

Goldman CEO expects IPOs to increase this year: Uncertainty delays some transactions but may ease with regulatory clarity (RT)

🔍 Newly Released Reports  

• Fresh Perspective on Emerging Markets (William Blair)

• Rethinking Growth Versus Value (Neuberger Berman)

• Impact Investing Fundamentals (Frontier Advisors)

• U.S. Private Equity Market Recap (Ropes & Gray)

• Equity Market Update & IPO Compass (KPMG)

• Investing in a New World (Bridgewater)

• Emerging Trends in Real Estate (PwC)

• Global Investment Research (LSEG)

🤝 M&A Activity

EQT and Zayo Group acquire Crown Castle’s small cells and fiber businesses (CC)
Deal Value: $8.5B

Drugmakers Mallinckrodt and Endo announce merger (CNBC)
Deal Value: $6.7B

Consortium including Allianz and Blackrock to acquire Viridium (PEI)
Potential Deal Value: $3.8B

Maker of Pokémon Go agrees to sell unit to Saudi Fund (NYT)
Deal Value: $3.5B

Advent considers sale of Ultra Precision Control Systems (PEI)
Potential Deal Value: $1B

Kaspi.kz in talks to acquire Turkish unit of Rabobank (AIM)
Deal Value: Undisclosed

TSMC pitched Intel foundry JV to Nvidia, AMD and Broadcom (RT)
Deal Value: Undisclosed

Petronas considers sale of 50% stake in Argentina shale oil venture (BNN)
Deal Value: Undisclosed

UBS sells 36% stake in Credit Suisse’s China venture (YF)
Deal Value: Undisclosed

TikTok nears Oracle deal in bid to allay US data concerns-sources (RT)
Deal Value: Undisclosed