Private Equity Bros Weekly

📊 Weekly Summary

Here’s a roundup of the week’s key financial and economic headlines:

The Fed signaled no imminent changes to its quantitative tightening (QT) process. US CPI rose 2.9% year-over-year in December, while UK inflation unexpectedly cooled to 2.5%. Meanwhile, the US posted a record $711B fiscal Q1 deficit, up 39% from last year, and 30-year mortgage rates surpassed 7%, heightening affordability concerns.

Foreign investors dismissed concerns over a Treasury "death spiral," maintaining confidence in US debt. Wall Street bankers anticipate a rebound in M&A activity in 2025. In China, new loans fell for the first time in 13 years. In the tech world, OpenAI appointed billionaire PE tycoon Adebayo Ogunlesi to its board.

Let’s break it down.

📈 Recent Finance News

Fed still sees no imminent need to stop QT process: Fed President reported smooth transition from end of 2024 into 2025 (YF)

US CPI rose 2.9% YoY: Inflation is a notch down from Nov 2024 and slightly better than December’s 3.3% outlook (CNBC)

UK inflation cooled to 2.5%: A surprising drop that could raise the chances of the BoE cutting interest rates early Feb (Guardian)

US posted a record $711B deficit in fiscal Q1: It is 39% higher than the $510B deficit in the same period a year earlier (NM)

US 30-year mortgage topped 7%: The highest since May 2024, increasing housing affordability concerns (CNN)

Foreign funds brush aside Treasuries 'death spiral' risk: Investors remain confident in US debt despite rising yields (YF)

Wall Street bankers see M&A outlook jumping in 2025: Buyouts including bank deals could gain momentum in second half of 2025 (RT)

Bank of America and Morgan Stanley cement a Wall Street revival: Prompting dealmakers’ optimism about upcoming Trump presidency (YF)

China’s new loans post first drop in 13 years: Shows weak financing demand in a deflation-stricken economy with a housing slump (BT)

OpenAI named PE tycoon Adebayo Ogunlesi to its board: Signals OpenAI’s interest in moving toward a for-profit structure (CNBC)

🔍 Newly Released Reports  

• Fundraising Report Full Year 2024 (Buyouts Insider)

• Creating Alpha in Private Credit (Antares Capital)

• Growth Equity Market Update (Rothschild & Co)

• NAV Financing Unlocked (Partners Group)

• Investment Outlook for 2025 (Arcapita)

• Biotech Company Valuation (VV)

• Venture Pulse Q4-2024 (KPMG)

🤝 M&A Activity

Chinese TikTok rival REDnote’s shareholders in talks to sell shares (YF)
Potential Deal Value: $20B

KKR considers joining Seven & I management buyout after Apollo (JT)
Potential Deal Value: $6.4B

O&G firm Civitas Resources explores sale of Denver Basin assets (RT)
Potential Deal Value: $4B

Honda interested in acquiring Renault's stake in Nissan (MSN)
Potential Deal Value: $3.6B

Blackstone explores sale of SESAC music rights portfolio (YF)
Potential Deal Value: $3B

CC Capital Partners raised offer for Insignia Financial (YF)
Potential Deal Value: $1.9B

Ardian acquires 60% stake in Kering’s Paris properties (Ardian)
Deal Value: $860M

Carlyle exploring sale of UK-based funds network Calastone (Investing)
Potential Deal Value: $730M

TransUnion to acquire 68% stake in TransUnion de Mexico (GN)
Deal Value: $560M