Private Equity Bros Weekly

📊 Weekly Summary

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

The Fed held rates steady at 4.25%-4.5% but projected two cuts by year-end. Switzerland surprised markets with a full-point cut to 0%, while global IPO activity slumped to a nine-year low amid tariff pressures and volatility. Meanwhile, private credit surged, with global fundraising up 60% in Q1, driven by European demand.

Regulators raised red flags about hidden risks in the $12T commercial real estate sector. In global shifts, the PBOC predicted a new currency order could challenge the dollar’s dominance, although foreign holdings of US Treasuries remain near all-time highs. Demand is also rebounding for EM local-currency bonds.

Let’s break it down.

📈 Recent Finance News

Fed held rates at 4.25%-4.5% and expects two cuts by year-end: The US central bank signaled a dovish pivot with projected rate cuts in 2025 (CNBC)

Switzerland cut rates to 0%: The SNB surprised markets with a full-point rate cut, citing weak inflation and global economic uncertainty (RT)

Global IPO activity slumped to a nine-year low as tariffs, volatility weigh: Global IPO volume has declined about 9.3% year-on-year to $44.3 billion (Inv.)

Private credit makes up a third of US life insurance assets: Growth appetite is strongest in higher-spread asset-based finance and private placement (ACI)

Global private credit fundraising jumped 60% in Q1: This gain came from Europe, with North America moderating for the second quarter running (ACI)

Regulators warn of hidden vulnerabilities in $12T CRE market: FSB flags liquidity, leverage, and valuation risks in REITs and property funds (FSB)

PBOC governor expects new currency order to challenge dollar: China predicts a more competitive system will take root in the coming years (YF)

Foreign Treasury holdings remain near ATH despite tariff turmoil: Foreign holdings totaled $9.01T for the month, the second-highest figure on record (FP)

EM local debt could end decade-long drought: A weaker dollar and falling global rates boost demand for emerging market local-currency bonds (BNN)

US stocks like Boeing, GE, Ford, and Intel are being severely outperformed: Overseas counterparts demonstrate higher shareholder returns (YF)

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🔍 Newly Released Reports

• Compensation Practices in Family Offices (Morgan Stanley)

• Managing the J-Curve of Private Markets (Carmignac)

• Brazilian Equities: A Market in Transition (LSEG)

• A Global Guide to Succession Planning (IQEQ)

• Europe and Foreign Direct Investment (EY)

• Sovereign-Debt Macro Briefing (VP Bank)

• Deutsche Bank Full Market Outlook (DB)

• Global Economic & Market Update (RJ)

• Swedish M&A Market Update (EY)

• UK Attractiveness Survey (EY)

🤝 M&A Activity

Nippon Steel closes acquisition of US Steel after 18-month saga (JT)
Deal Value: $14.9B

Mark Walter buys majority stake in NBA's Los Angeles Lakers (Guardian)
Deal Value: $10B

KKR, GIC among final bidders for 40% stake in Spanish fiber JV (PC)
Potential Deal Value: $9.2B

Home Depot and Brad Jacobs’s QXO compete in hostile bid for GMS (CNBC)
Potential Deal Value: $5B

Ascension Health to acquire ambulatory surgery firm AMSURG (HE)
Deal Value: $3.9B

Keyera to buy Plains' Canadian natural gas liquids business (RT)
Deal Value: $3.77B

NatWest emerges as top bidder for UK bank TSB (Inv.)
Potential Deal Value: $3.5B

France increases stake in satellite firm Eutelsat via capital injection (RT)
Potential Deal Value: $1.5B

Lilly to acquire gene-editing biotech Verve Therapeutics (BPD)
Deal Value: $1B

Banco Santander, Barclays eye takeover of TSB from Sabadell (Finimize)
Deal Value: Undisclosed