Latest news with #privateEquity
Yahoo
14 hours ago
- Business
- Yahoo
Elizabeth Warren Challenges Plan To Bring Private Equity Into 401(k)s, Citing Transparency And Fee Concerns
Sen. Elizabeth Warren (D-Mass.) has raised concerns about a major retirement plan provider's intent to offer private equity and credit investments within 401(k) accounts. What Happened: In a letter obtained by Axios, Warren, the top Democrat on the Senate Banking Committee, addressed Empower's CEO, probing the company's rationale for introducing private equity into defined contribution plans. She asked how the firm determined this move aligns with the best interests of its clients, requested details on investment allocations, and inquired about any legal advice the firm received. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share. Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can invest with $1,000 at just $0.30/share. Empower has not yet rolled out the program but has noted plans to include investor safeguards such as fee reductions and liquidity measures. Why It Matters: Supporters of the shift argue it could offer everyday investors access to high-return opportunities traditionally reserved for wealthy individuals and institutions. The concept gained traction under the Trump administration as a way to democratize investment options. However, critics like Warren argue it could jeopardize retirement savings due to private equity's complex fee structures, limited transparency, and uneven performance record. She also highlighted emerging risks in the private credit market. In March, reports emerged stating that President Donald Trump is considering a new executive order that would push U.S. agencies to let private equity firms tap into the country's huge 401(k) savings pool, which is worth almost $9 trillion. Private equity firms have long pushed for regulatory changes that would enable this. Read Next: Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential. Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's how you can earn passive income with just $100. Photo: OogImages/Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Elizabeth Warren Challenges Plan To Bring Private Equity Into 401(k)s, Citing Transparency And Fee Concerns originally appeared on
CNA
a day ago
- Business
- CNA
Haveli Investments to buy AI database firm Couchbase for about $1.5 billion
Haveli Investments will acquire Couchbase for about $1.5 billion, the companies said on Friday, as the private equity firm looks to capitalize on the artificial intelligence-focused database company's platform. Couchbase's shares, which have gained 21 per cent this year, were up 29 per cent in early trading following the news. The company's cloud-based database powers AI-related applications that need a flexible data model and easy scalability. Couchbase is part of a group of modern database companies — including MongoDB , Cockroach Labs, Snowflake and Databricks — challenging legacy players such as Oracle . New database technologies make it easier and faster to store, manage and use a large amount of unstructured data that modern AI systems require. Haveli Investments, founded by former Vista Equity Partners president Brian Sheth, will pay Couchbase shareholders $24.50 per share, which represents a premium of about 29 per cent to the stock's last close price. The private equity firm has a 9.6 per cent stake in Couchbase, according to data compiled by LSEG. It may engage with Couchbase's management or board to explore strategic options, including a potential merger, according to a March filing with the U.S. SEC. The agreement includes a go-shop period that ends on Monday, during which Couchbase can consider alternate offers.
Bloomberg
a day ago
- Business
- Bloomberg
Mark Walter Is Creating a Sports Empire With $10 Billion Lakers
For just under $10 billion, private equity firm 3G Capital recently bought Skechers — an ascendant global footwear brand with $9 billion in annual sales and 20,000 employees spread across 5,300 stores. For the same sum, you could now buy the Los Angeles Lakers — a basketball team that generates an estimated $500 million a year, employs 1,000 people, and sells little more than TV rights, tickets, and dreams — plus a century of star-studded mystique.
Yahoo
a day ago
- Business
- Yahoo
FLSmidth signs agreement to divest its Cement business to become a pure-play supplier of technology and services to the mining industry
COMPANY ANNOUNCEMENT NO. 10-2025 FLSmidth & Co. A/S20 June 2025 Copenhagen, Denmark Today, FLSmidth announces that it has entered into an agreement to divest its Cement business to an affiliate of Pacific Avenue Capital Partners, a global private equity firm focused on carve-outs and other complex transactions, for a total initial consideration of EUR 75 million, corresponding to approximately DKK 550 million (Enterprise Value), plus a conditional deferred cash consideration of up to EUR 75 million, corresponding to approximately DKK 550 million. In early 2023, FLSmidth embarked on a strategic journey with the announcement of new pure-play strategies for its Mining and Cement businesses (ref. Company Announcement no. 2-2023). Since then, FLSmidth has simplified and rightsized both businesses to further strengthen their respective market positions, with a strategic focus on the core technologies and services required in the mining and cement industries. This has resulted in a significantly improved and more stable commercial and financial performance for both businesses. On 29 January 2024 (ref. Company Announcement no. 1-2024), FLSmidth announced its intention to explore the available divestment options for its Cement business, with the objectives of enabling the Cement business to maximise its full potential as well as to further strengthen our Mining business' market-leading position as a full flowsheet technology and service provider to the global mining industry. Chair of the Board of Directors of FLSmidth, Mads Nipper, comments: 'I am incredibly proud of what our Cement business has achieved in its more than 140-year long history with FLSmidth. We firmly believe that this divestment represents a pivotal step in unlocking the full potential for both our Mining and Cement businesses. Our Cement business is now well positioned for future success, with the flexibility to pursue its strategic ambitions and create exciting new opportunities for its employees to innovate and grow.' CEO of FLSmidth, Mikko Keto, comments: 'The divestment allows us to sharpen our focus on our core Mining business, positioning FLSmidth as a pure-play leader in the mining industry. With a clear and focused Mining strategy, we are confident that we are well positioned to drive long-term value for our customers, shareholders and other stakeholders and enhance our competitive position.' Jason Leach, Partner and Investment Committee Member at Pacific Avenue Capital Partners, comments: 'We are excited to acquire FLSmidth Cement, a global leader providing mission critical equipment and aftermarket solutions in the cement sector. The business has a rich history and strong brands including Fuller, Pfister, and Ventomatic. We believe that cement will continue to play a crucial role in global economic development, and that FLSmidth Cement's product innovation will play an important role in the decarbonisation of the industry'. Chris Sznewajs, Founder and Managing Partner, at Pacific Avenue Capital Partners, comments: 'We are honoured to be the trusted partner for FLSmidth on this highly complex transaction. We strive to be the buyer of choice for corporate sellers, with the ability to seamlessly complete cross-border transactions. The Cement division is an excellent fit within our portfolio given our focus on acquiring market leading companies. We are impressed with the Company's ability to deliver innovative, mission-critical solutions to its longstanding customers, and look forward to providing the necessary resources to support continued growth and value creation in partnership with management.' The transaction includes all related employees, assets, intellectual property and technology. Certain legacy contracts and the Air Pollution Control (APC) asset will be retained by FLSmidth with immaterial impact on the continuing Mining business. The transaction is expected to close during the second half 2025, subject to customary closing conditions, including regulatory approval from the relevant implications and outlookThe net cash proceeds from the divestment are subject to final adjustments, debt-like items and transaction costs. It is expected that after these adjustments the result is a limited net cash gain from the transaction. Further, the transaction includes a deferred cash consideration of up to EUR 75 million, or approximately DKK 550 million, which is conditional upon the achievement of certain undisclosed objectives. As a consequence of the transaction, FLSmidth Cement will be classified as held-for-sale and discontinued operations in the Q2 2025 Interim Financial Report. As a result of the transaction, a fair value adjustment of asset and liabilities will result in an impairment charge of approximately DKK 700 million with no cash impact, which will be accounted for in the profit/(loss) from discontinued operations in the Q2 2025 Interim Financial Report. FLSmidth's financial guidance for the full year 2025 does not include discontinued operations and will thus be adjusted to only reflect the financial outlook for the Mining business. The financial guidance for the full year 2025 for the Mining business is unchanged (ref. Company Announcement no. 8-2025). FLSmidth thus expects revenue for the full year 2025 of DKK ~15.0 billion and an Adjusted EBITA margin in the range of 14.0% to 14.5%. The Adjusted EBITA margin excludes transformation and separation costs of around DKK 200m for the full year 2025. In addition, and as a consequence of the transaction, the long-term financial target for FLSmidth Cement of an EBITA margin of ~8% for the full year 2026 is withdrawn. The long-term financial target for the Mining business of an EBITA margin of 13-15% for the full year 2026 remains unchanged (ref. Company Announcement no. 2-2023). Further impact of the transactions will be communicated in connection with the release of FLSmidth's Q2 2025 Interim Financial Report on 20 August 2025. Until closing of the transactions, FLSmidth Cement will continue to execute on its GREEN'26 strategy. Further, during the period to closing of the transactions and for a limited time thereafter, FLSmidth will continue to provide support and services to FLSmidth call On 20 June 2025 at 13.30 CEST, Mr. Mikko Keto (CEO) and Mr. Roland M. Andersen (CFO) will host a conference call to comment on this announcement. The presentation will be followed by a short Q&A session. The presentation will be held in English. The presentation can be followed live or as a replay here. If you wish to ask questions or just listen to the presentation via telephone, please register here. After registration, you will receive phone numbers, pin codes and a calendar invite. Please note that you will receive two codes (a pass code and a PIN code), both of which are needed when dialling into the webcast. The presentation slides will be made available shortly after the conference call has ended at Investors RelationsAndreas Holkjær, +45 24 85 03 84, andh@ Denholt, +45 21 69 66 57, jli@ MediaJannick Denholt, +45 21 69 66 57, jli@ FLSmidth FLSmidth is a full flowsheet technology and service supplier to the global mining industry. We enable our customers to improve performance, lower operating costs and reduce environmental impact. MissionZero is our sustainability ambition towards zero emissions in mining by 2030. We work within fully validated Science-Based Targets, have a clear commitment to improving the sustainability performance of the global mining industry and aim to become carbon neutral in our own operations by 2030. Pacific Avenue Capital Partners Pacific Avenue Capital Partners is a Los Angeles-headquartered private equity firm focused on corporate divestitures and other complex situations in the middle market. Pacific Avenue has extensive M&A and operations experience, allowing the firm to navigate complex transactions and unlock value through operational improvement, capital investment, and accelerated growth. Pacific Avenue takes a collaborative approach in partnering with strong management teams to drive lasting and strategic change while assisting businesses in reaching their full potential. Pacific Avenue has more than USD 2.1 billion Assets Under Management (AUM) as of 31 March 2025. For more information, please visit Attachment FLSmidth Company Announcement no. 10-2025Error 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
Yahoo
2 days 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
