Latest news with #KKR
Yahoo
14 hours ago
- Business
- Yahoo
Barbarians no more: Private equity is giant now, and a bit boring
When Blackstone went public this week in 2007, Tom Wolfe, author of was on hand at the New York Stock Exchange. He told CNBC the private equity firm's move to the public markets might spell 'the end of capitalism as we know it.' It didn't. But looking back, it marked the end of private equity as we knew it. Going public changed Blackstone and the rivals that followed it: KKR in 2010, then Apollo, Carlyle, and Ares. It served as notice of the end of the industry's wildcatter days and ushered in the current era of haves and have-nots, a widening gap that threatens to wash out thousands of players over the next decade. Blackstone and its ilk were not overnight successes as listed companies. Their stock prices languished as shareholders rightly assumed that they sat low on executives' list of priorities, and behind fund investors and employees. But over the past decade, these firms reoriented themselves around their stock price, likely because their executives now own a lot of it. They dissolved lucrative but strange partnership structures that had kept their shares out of the S&P 500 index — Blackstone was the first to be admitted, in 2023 — and began emphasizing the steady fees they clip from managing money, rather than the lumpy profits they get from managing it . They invented a financial metric from whole cloth, 'fee-related earnings,' and trained public stockholders to like it. Once they had, the incentives were to manage more and more money. Today's listed firms are asset-gathering machines. They are still, for the most part, good investors, but their value is increasingly in their size and scope, not their dealmaking savvy. Blackstone hit $1 trillion in client assets and has its sights on $2 trillion. KKR is targeting $1 trillion by 2030, in what looks like a conservative bogey. Corporate buyouts are a shrinking slice of their businesses, dwarfed by fast-growing lending, insurance, real estate, and infrastructure arms. 'Going public was the beginning of the idea that these firms are real businesses,' Joshua Ford Bonnie, who, as a second-year partner at Simpson Thacher & Bartlett, led the Blackstone IPO and others that followed. 'It wasn't just 'what are the economics from this fund?' but rather 'how am I growing this institution?' 'The underlying economic forces have been at their backs, too,' he said, noting the decline of stock-picking mutual funds and the post-2008 regulatory changes that hobbled banks. Bonnie still sees space in the public markets for smaller, niche managers, though a bit of business development hustle is probably at work there. But when you talk to industry executives these days, you don't hear much about deals. They talk about products (evergreen funds!), distribution (retail!), and the virtues of financial superstores. David Layton, the Partners Group CEO, captured this shift when he predicted that the roughly 11,000 existing private investment firms could shrink to 100 'next-generation platforms' over the next decade. TPG, the last of the original buyout giants to go public, did so in 2022 with a promise to branch out that it quickly met, buying credit manager Angelo Gordon. I doubt it could today. Even its $220 billion in assets and growing list of 'platforms' — there's that word again — make it undersized, a sign of just how dramatically the industry has changed. Case in point: HPS tried to go public with more than $100 billion in a single business line and couldn't, at least not at the valuation it wanted. It sold itself instead to BlackRock, the index fund giant that is building its own investing superstore in alternatives. 'Where are the customers' yachts?' asks the classic finance book, which notes that asset managers tend to make money for themselves whether or not they make money for their clients. The buyout buccaneers of the 1980s were their own clients, bootstrapping their corporate takeovers until their sky-high returns lured in outside money. That transformation is now complete. The barbarians at the gates are just asset managers now — big, and a bit boring. It wasn't, as Wolfe predicted, the end of capitalism, but the end of a certain flavor of it. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Telegraph
20 hours ago
- Business
- Telegraph
Environment Secretary steps up plans to nationalise Thames Water
The Environment Secretary has said the Government is stepping up plans to temporarily nationalise Thames Water after a US rescue bid collapsed. Steve Reed confirmed to Parliament on Thursday that ministers were ready to save the struggling utility giant if necessary. A rescue would be in the form of a taxpayer-backed special administration scheme. He said: 'The company remains financially stable, but we've stepped up our preparations and stand ready for all eventualities, as I've said before, including a special administration regime if that were to become necessary.' A government intervention appears increasingly likely after US private equity giant KKR abandoned a bid for the company. Thames's creditors have proposed an alternative £17bn rescue plan but it is contingent on regulators agreeing to waive historical fines. They have been pushing for ministers to intervene on the matter. Mr Reed signalled this would not happen, casting doubt over hopes of a private sector-led solution. He said: 'Thames Water must meet its statutory and regulatory obligations to their customers and to the environment. It is only right that the company is subject to the same consequences as any other water company.' Taking control of Thames would pile further strain on the Government's stretched finances. A previous report estimated that a state bailout would cost the taxpayer up to £4.1bn. Thames, which has 16m customers across London and the South East, has been pushed to the brink of collapse as it struggles under the weight of £16bn in debts. Creditors have said that a 'regulatory reset' is needed to ensure the company is financially viable. A source close to the lenders said they were urging regulators 'not to reach back into history' and instead focus on Thames Water's turnaround efforts moving forward. A senior figure involved in the talks told The Telegraph last week: 'I think what it takes is the Government and the regulator coming together – it needs the Environment Department, the Treasury, and even No 10 to say, 'What's the least worst outcome here?'' Thames Water was handed a record fine of £123m in May and the company could be on the hook for more than £1bn in pollution and environmental failing penalties in future, according to creditors. The £17bn support package proposed by creditors includes writing off several billion pounds of debt and an immediate £3bn cash injection. If their deal falls apart, special administration is the most likely outcome for Thames. A spokesman for the creditors said: 'This investor group is committed to working with the Government and regulators to agree a pragmatic plan that recognises what Thames Water can realistically deliver and they expect to be held accountable for an ambitious trajectory for the company's return to compliance. 'More than £10bn would be written off to get the company back to investment grade, expected to be the largest financial loss on an infrastructure asset in British history.'
Yahoo
20 hours ago
- Business
- Yahoo
Environment Secretary steps up plans to nationalise Thames Water
The Environment Secretary has said the Government is stepping up plans to temporarily nationalise Thames Water after a US rescue bid collapsed. Steve Reed confirmed to Parliament on Thursday that ministers were ready to save the struggling utility giant if necessary. A rescue would be in the form of a taxpayer-backed special administration scheme. He said: 'The company remains financially stable, but we've stepped up our preparations and stand ready for all eventualities, as I've said before, including a special administration regime if that were to become necessary.' A government intervention appears increasingly likely after US private equity giant KKR abandoned a bid for the company. Thames's creditors have proposed an alternative £17bn rescue plan but it is contingent on regulators agreeing to waive historical fines. They have been pushing for ministers to intervene on the matter. Mr Reed signalled this would not happen, casting doubt over hopes of a private sector-led solution. He said: 'Thames Water must meet its statutory and regulatory obligations to their customers and to the environment. It is only right that the company is subject to the same consequences as any other water company.' Taking control of Thames would pile further strain on the Government's stretched finances. A previous report estimated that a state bailout would cost the taxpayer up to £4.1bn. Thames, which has 16m customers across London and the South East, has been pushed to the brink of collapse as it struggles under the weight of £16bn in debts. Creditors have said that a 'regulatory reset' is needed to ensure the company is financially viable. A source close to the lenders said they were urging regulators 'not to reach back into history' and instead focus on Thames Water's turnaround efforts moving forward. A senior figure involved in the talks told The Telegraph last week: 'I think what it takes is the Government and the regulator coming together – it needs the Environment Department, the Treasury, and even No 10 to say, 'What's the least worst outcome here?'' Thames Water was handed a record fine of £123m in May and the company could be on the hook for more than £1bn in pollution and environmental failing penalties in future, according to creditors. The £17bn support package proposed by creditors includes writing off several billion pounds of debt and an immediate £3bn cash injection. If their deal falls apart, special administration is the most likely outcome for Thames. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Sun
2 days ago
- Automotive
- The Sun
Phased repairs for hazardous roads to prioritise critical sections
KUALA LUMPUR: The process of repairing hazardous roads across the country will be carried out in stages, with priority given to sections with critical damage, said Works Minister Datuk Seri Alexander Nanta Linggi. He said the Ministry of Works (KKR) has identified nearly RM4 billion worth of repairs needed to address all hazardous roads. However, due to financial constraints, the improvements will be implemented in phases. 'We already have complete data on the dangerous roads and the financial requirements. If we were to repair them all at once, we would need RM4 billion. Since we don't have that allocation, we have to do it in stages,' he told reporters after attending the Gawai Open House @ KKR 2025, held here today. He was responding to questions regarding efforts by the ministry to identify and repair damaged roads following the tragic accident along the Gerik–Jeli stretch of the East–West Highway (JRTB) on June 9, which claimed the lives of 15 Universiti Pendidikan Sultan Idris (UPSI) students. Nanta said improvements to the JRTB have already been planned this year, involving an allocation of RM55 million. The upgrades include the installation of 385 streetlights and road line markings to improve visibility and safety. He added that the ministry had already identified roads in the worst condition through its existing database, with repair works to be carried out based on urgency. 'We know which roads are severely damaged, and we will prioritise those. Roads that are damaged but not critically will be attended to later,' he said. To support the decision-making process, the ministry is also using the Pavement Condition Assessment (PCA) method to determine areas that need immediate attention. For the JRTB Gerik–Jeli route, the PCA was conducted from March 13 to May 13, using advanced technologies such as the Multi Laser Profiler (MLP) and Falling Weight Deflectometer (FWD) Commenting on suggestions to install guardrails at high-risk locations, Nanta said the ministry is open to public feedback, including views shared online. 'We take into account all views — from the public, netizens, and relevant stakeholders. We will evaluate every suggestion carefully,' he said. The Gawai Open House @ KKR 2025 held at Dewan Tan Sri Mahfoz Khalid, was attended by Prime Minister Datuk Seri Anwar Ibrahim, Deputy Prime Minister Datuk Seri Fadillah Yusof, Deputy Works Minister Datuk Seri Ahmad Maslan, Women, Family and Community Development Minister Datuk Seri Nancy Shukri, as well as senior ministry officials and staff.
Barnama
2 days ago
- Automotive
- Barnama
Phased Repairs For Hazardous Roads To Prioritise Critical Sections
KUALA LUMPUR, June 18 (Bernama) -- The process of repairing hazardous roads across the country will be carried out in stages, with priority given to sections with critical damage, said Works Minister Datuk Seri Alexander Nanta Linggi. He said the Ministry of Works (KKR) has identified nearly RM4 billion worth of repairs needed to address all hazardous roads. However, due to financial constraints, the improvements will be implemented in phases. 'We already have complete data on the dangerous roads and the financial requirements. If we were to repair them all at once, we would need RM4 billion. Since we don't have that allocation, we have to do it in stages,' he told reporters after attending the Gawai Open House @ KKR 2025, held here today. He was responding to questions regarding efforts by the ministry to identify and repair damaged roads following the tragic accident along the Gerik–Jeli stretch of the East–West Highway (JRTB) on June 9, which claimed the lives of 15 Universiti Pendidikan Sultan Idris (UPSI) students. Nanta said improvements to the JRTB have already been planned this year, involving an allocation of RM55 million. The upgrades include the installation of 385 streetlights and road line markings to improve visibility and safety. He added that the ministry had already identified roads in the worst condition through its existing database, with repair works to be carried out based on urgency. 'We know which roads are severely damaged, and we will prioritise those. Roads that are damaged but not critically will be attended to later,' he said. To support the decision-making process, the ministry is also using the Pavement Condition Assessment (PCA) method to determine areas that need immediate attention. For the JRTB Gerik–Jeli route, the PCA was conducted from March 13 to May 13, using advanced technologies such as the Multi Laser Profiler (MLP) and Falling Weight Deflectometer (FWD) Commenting on suggestions to install guardrails at high-risk locations, Nanta said the ministry is open to public feedback, including views shared online.
