Private Equity Bros Weekly

📊 Weekly Summary

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

China considers suspending tariffs on select US goods. Meanwhile, capital is shifting globally — Franklin Templeton reports institutional investors are pulling back from US stocks, while Japan’s markets saw record foreign inflows. Private credit LPs are also reallocating toward Europe, reflecting caution around US exposure.

Norway’s $1.7T wealth fund posted its worst quarter in over a year, and Bridgewater warned of “exceptional risks” to US assets. US business activity slowed to its weakest since 2023. Notably, Warren Buffett now holds 5% of all T-bills in circulation. Meanwhile, London office demand is bouncing back for the first time since 2020.

Let’s break it down.

📈 Recent Finance News

China may exempt some US goods from tariffs: China could suspend its 125% tariff on some US imports incl. medical equipment, ethane and plane leasing (RT)

Norway's $1.7T SWF fell 0.6% for its biggest quarterly loss in 1.5 years: A decline largely caused by a drop in the value of technology companies (YF)

Franklin Templeton CEO sees institutional investors ditching US stocks: Some clients withdraw from the US due to tariff-driven market upheaval (YF)

Japan's stocks and bonds have attracted a record inflow of foreign funds: A strong signal of global capital reallocation away from the US (MooMoo)

Private credit LPs are shifting allocations from US to Europe: Some LPs are more cautious of US private equity in the near term (PEI)

Bridgewater co-CIOs warn of 'exceptional risks' to US assets: The HF expects a policy-induced slowdown and a rising probability of recession (Investing)

Just 19 households created $1T in wealth last year: Highlights growing wealth concentration with major socioeconomic and policy implications (DB)

US business activity grew at the slowest pace since 2023: A slowdown signal, increasing pressure on the Fed to support a weakening economy (S&P Global)

Warren Buffett now owns about 5% of all US Treasury bills: Warren controls nearly one in every twenty dollars floating around in the T-bill system (Barchart)

Firms are expanding back into London offices: It is the first time vacancies have fallen since the first quarter of 2020 when the rate was 4.6% (BT)

🔍 Newly Released Reports

• Credit Investing: Opportunities in Volatility (Hayfin)

• Value Investing in the Commodity Sector (WEF)

• Outlook for Direct Lending (Morgan Stanley)

• Private Company Outlook (Deloitte)

• Private Equity Pulse Q1-25 (KPMG)

• Alternative Fixed Income (Aegon)

• M&A Brazil Report 2024 (RGS)

🤝 M&A Activity

UniCredit’s hostile takeover bid for Banco BPM is rejected (Investing)
Potential Deal Value: $14.8B

Merck to buy SpringWorks Therapeutics to expand oncology pipeline (RT)
Potential Deal Value: $3.5B

PIMCO, KKR, Bain, and Centerbridge eye acquisition of UK lender NewDay (PEI)
Potential Deal Value: $2.3B

UPS acquires Canadian healthcare logistics firm Andlauer Healthcare (UPS)
Deal Value: $1.6B

Eastern to acquire HarborOne in latest US regional bank consolidation (BW)
Deal Value: $490M

Flex acquires a16z-backed Maza as fintech M&A heats up (YF)
Deal Value: $40M

Suzano, Royal Golden Eagle, APP bid for Kimberly-Clark’s tissue business (MI)
Deal Value: Undisclosed

Temasek’s PSA explores sale of 20% stake in CK Hutchison ports unit (Investing)
Deal Value: Undisclosed

Authentic Brands considers rival bid for Guess against WHP Global’s offer (YF)
Deal Value: Undisclosed

Jack in the Box seeks to sell Del Taco restaurant business (YF)
Deal Value: Undisclosed

GTCR sells stake in Ultimus to Stone Point Capital (PEW)
Deal Value: Undisclosed