Private Equity Bros Weekly

📊 Weekly Summary

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

Japan’s inflation climbed to 3.6%, the highest since August 2023. Meanwhile, Trump demands interest rate cuts and urges OPEC to cut oil prices. Wall Street banks reported strong ECM revenue as IPO activity rebounded. In Europe, stock allocations hit their second-highest level this century.

China encourages insurers to invest at least 100 billion yuan of long-term funds into the stock market, while hedge fund leverage hit its highest level since 2010, supported by bets on a stronger dollar under the new presidency. In the UK, a 2040 bond sale shattered records with £119B in demand, and Canada’s inflation slowed to 1.8%.

Let’s break it down.

📈 Recent Finance News

Japan inflation rose to 3.6%: Highest inflation rate since August 2023, boosting the case for a rate hike from BoJ (CNBC)

Trump will 'demand that interest rates drop immediately': An initial strike at Fed officials, with whom he had a tense relationship (CNBC)

Wall Street banks rake in ECM revenue as IPO volume recovers: CEOs are bullish on deal flow, betting on Trump easing regulations (YF)

Trump urges OPEC countries to slash oil prices: The US President also doubled-down on his threat to use tariffs (BBC)

Europe stock allocation hit the second-highest level this century: Mainly driven by heavyweight technology and industrial sectors (RT)

China wants to encourage insurers to invest in the stock market: Insurers to invest at least 100B yuan of long-term funds in stocks (BT)

Hedge fund leverage at the highest since 2010 amid new POTUS: They are also betting on the continuing rise of the dollar (HW)

KKR combined its $157B infrastructure and real estate businesses: Driven by growing convergence between the two sectors (WM)

UK sale of 2040 bonds smashed records with £119B of demand: Record orders since borrowing costs spiked earlier this month (FP)

Canada inflation slowed to 1.8%: Driven by the government's GST holiday bringing prices down for restaurant food and drinks (CBC)

🔍 Newly Released Reports  

• Economic Outlook - Calm Before the Storm? (Deloitte)

• Navigating Uncertainty with Confidence (Capgemini)

• Anti-trust and Competition in M&A (Morgan Lewis)

• Economic and Investment Outlook (Geneva Cap)

• Financial Health Check for Businesses (Deloitte)

• What Makes a Successful Value Investor? (LGP)

• Private Equity Sponsor Sync Q1-25 (Weil)

• Generative AI’s role in M&A (Deloitte)

🤝 M&A Activity

Blackstone prepares sale or IPO of Hotel Investment Partners (PEI)
Potential Deal Value: $6.8B

CK Infrastructure Holdings weighing sale of Eversholt Rail (YF)
Potential Deal Value: $4.9B

Bain Capital in talks to acquire Mitsubishi Tanabe Pharma (CA)
Potential Deal Value: $3.2B

Access Holdings exploring a sale of Spotless Brands (RT)
Potential Deal Value: $3B

CardWorks agreed to acquire Ally Financial's credit card business (FB)
Deal Value: $2.3B

Bain Capital matched CC Capital's offer for Insignia Financial (YF)
Potential Deal Value: $1.9B

GP Günter Papenburg consortium raised bid for Salzgitter (GMK)
Potential Deal Value: $1.2B

Brookfield nearing acquisition of single-family homes portfolio (BNN)
Potential Deal Value: $950M

Saudi Arabia’s Elm Company acquires Thiqah Business Services (YF)
Deal Value: $907M

GIC in talks to acquire VX Logistics stake from China Vanke (BT)
Deal Value: Undisclosed