Private Equity Bros Weekly

📊 Weekly Summary

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

Fed Chair Jerome Powell met with President Trump for the first time since his return to office. Meanwhile, US corporate profits plunged 42% in Q1 amid renewed tariff uncertainty. With market volatility rising, companies are increasingly turning to private credit to secure funding beyond traditional banks.

Globally, financial pressure is mounting. Chinese banks face a $751B liquidity test, and Japan’s life insurers have slashed bullish yen hedges to a 14-year low. On Wall Street, concerns are growing over a proposed foreign investor tax in the US budget bill, while Saudi Arabia is ramping up IPO efforts to court foreign capital.

Let’s break it down.

📈 Recent Finance News

Fed Chair Powell met with Trump for first time since inauguration: The Fed stressed its commitment to “careful, objective, and non-political” policy (CNBC)

US Q1 corporate profits fell by most since 2020: Corporate profits fell 42% to $118.1 billion in the first quarter of 2025 (RT)

An appeals court temporarily reinstated US tariffs: The pause gives the administration time to seek a stay of the trade court’s ruling during appeal (CNBC)

Fed warned of 'difficult tradeoffs' if tariffs stoke inflation: The May 6–7 Fed meeting summary showed continued concern over fiscal and trade policy (CNBC)

Companies turn to private credit for loans during tariff turmoil: Tariff and market uncertainty pushed some firms to PC, bypassing traditional lenders (YF)

Saudi Arabia seeks new IPOs to attract foreign investors: Saudi Arabia seeks to diversify its economy and develop its financial sector (BBG)

Chinese banks face liquidity test on deposit exodus and maturities: Lenders must repay a record 4.2T yuan ($751B) in short-term debt next month (TE)

Wall Street fears foreign tax in budget bill may reduce allure of US assets: It could impose a tax of up to 20% on foreign investors' dividends and royalties (RT)

BOJ's bond portfolio losses rose 300% YoY to a record high: Signals the cost of yield curve control and puts pressure on future Japanese monetary policy (CPR)

Japanese life insurers cut bullish yen hedges to a 14-year low: Growing concern over currency risks and shifting capital allocations by major institutions (JT)

📌 Access proven financial models used by leading industry professionals:

Merger Model | Fund of Funds Model | LBO Model

🔍 Newly Released Reports

• McKinsey Global Private Markets Report 2025 (McKinsey)

• MENA Sovereign Wealth Funds Investing Strategies (EY)

• Food & Beverage M&A and Valuation Update (Investec)

• Creating Value through AI transformation (KPMG)

• US M&A and Restructuring Overview (Deloitte)

• Saudi Arabia Tech Report: FS Insights (KPMG)

• V for Volatility: Credit Market Overview (KKR)

• Canadian Private Equity Deal Study (Blakes)

• Tech M&A Market Insights Q1-25 (EY)

🤝 M&A Activity

Synopsys gets conditional green light from FTC to buy Ansys (CT)
Potential Deal Value: $34B

GATX and Brookfield to acquire Wells Fargo’s rail leasing portfolio (MD)
Deal Value: $4.4B

Thoma Bravo explores sale of document software firm Apryse (PEW)
Potential Deal Value: $3B

NTT Docomo to purchase SBI Sumishin Net Bank at 49% premium (BT)
Deal Value: $2.9B

Vista Equity to buy business software firm Acumatica from EQT (YF)
Deal Value: ~$2B

Golden Ocean to merge with CMB Tech in stock-for-stock shipping deal (BM)
Deal Value: $1.5B

Acrisure acquires Heartland Payroll Solutions from Global Payments (PD)
Deal Value: $1.1B

Elf Beauty to acquire Hailey Bieber’s Rhode beauty brand (BW)
Deal Value: $1B

Advent in talks to buy French broker Kereis from Bridgepoint (Advent)
Deal Value: Undisclosed

Warburg Pincus, KPS consider bid for pharma packager Gerresheimer (PEW)
Deal Value: Undisclosed