Private Equity Bros Weekly

📊 Weekly Summary

Here’s a quick rundown of this week’s notable financial developments.

Bankers report tepid investments due to election and geopolitical uncertainty, while Europe’s economy is poised to fall further behind the US, with the IMF urging increased public investment to close the gap.

On the corporate front, Wells Fargo risks $3 billion in office real estate loan losses, and U.S. banks are shifting to higher-yielding investments as rate cuts take effect.

Let’s break it down.

📈 Recent Finance News

US firms see steady economy but lower profit margins: Firms report steady conditions but expect lower profit margins due to rising costs (RT)

Regulators warn of valuation risks in private credit: Top regulators flagged PC valuation concerns, citing growing risks of instability (Mint)

Wells Fargo may lose up to $3 billion: CEO Charlie Scharf said that the US lender may lose $2 to $3 billion on its CRE loan portfolio (Investing)

Europe's economy poised to fall further behind US: IMF urges public investment in Europe to address widening growth gaps (Euronews)

US banks shift to higher-yielding investments: US banks may shift to higher-yielding investments as rate cuts take effect (YF)

PE management fees fell to record lows: Private equity fees hit their lowest level ever, reflecting industry shifts in profitability (PEW)

UK’s borrowing costs rise on global markets: The UK government’s borrowing costs have risen on news of changes in fiscal rules (Guardian)

Investors are piling into non-China EM funds: Investors flock to emerging market funds outside China, seeking growth opportunities (FT)

Goldman and Apple face $89M fine over credit card failures: GS faces hefty fines over compliance issues in credit card business (GT)

BoC cuts rates by 50 bps to 3.75%: The Bank of Canada cuts interest rates, seeking to stimulate economic growth (YF)

🔍 Newly Released Reports  

• World Economic Outlook (IMF)

• Middle Market M&A Outlook (Prairie)

• Macro Research Report (Piper Sandler)

• Financial Due Diligence Report (ICAEW)

• Private Equity & Venture Capital Outlook (EY)

• Ruminating on Asset Allocation (Oaktree Capital)

🤝 M&A Activity

Siemens in talks to acquire software maker Altair Engineering (YF)
Deal Value: $8.9B

Building materials firm Quikrete approaches Summit Materials (YF)
Potential Deal Value: $7.7B

PE firm Triton explores options for IFCO (BNN)
Potential Deal Value: $5.4B

Allianz considers merger or partial sale of Allianz Global Investors (YF)
Deal Value: $4.3B

TKO Group to acquire sports businesses from Endeavor Group (CNBC)
Deal Value: $3.3B

KKR to acquire 25% stake in Eni's biofuel unit Enilive (ESG)
Deal Value: $3.2B

HMC Capital acquires Global Switch Australia (RT)
Deal Value: $1.3B

Brookfield in talks to acquire Barclays’ UK payments business (SN)
Deal Value: Undisclosed

Shell to acquire US power plant operator RISEC (YF)
Deal Value: Undisclosed

GardaWorld nears acquisition of BC Partners' stake (BNN)
Deal Value: Undisclosed