29 Burst results for "KKR"
"kkr" Discussed on Bloomberg Radio New York
"We day afternoons at two eastern. These are retailers that have been on everybody's radar. Those Apple numbers continuing to come in. On Bloomberg radio, the Bloomberg business app and Bloomberg radio dot com. The White House is again accusing Republicans of aiming to impose a nationwide abortion ban, press secretary karine Jean Pierre. This extreme national ban is wildly out of step with American people. She said the Biden administration is committed to doing everything possible to protect women's reproductive healthcare rights. The U.S. Supreme Court recently overturned roe V wade and left abortion up to individual states. The United Nations is giving an update on potential war crimes committed in Ukraine as the war with Russia continues. The independent international commission of inquiry into Ukraine reported incidents of rape torture and unlawful containment finding that some Russian Federation soldiers committed the crimes. Moderna is requesting the FDA clear its new COVID boosters for kids and teens, the pharmaceutical company filed two authorization requests for the FDA. One is for kids as young as 6 and another 14 up to 17. I'm Brian schuch. From Bloomberg world headquarters in New York, I'm Doug prisoner, U.S. stocks joined European equities in a sell off today. It was triggered when the British government delivered the most sweeping tax cuts since 1972. Now markets are concerned these cuts will in turn fuel inflation at a time when the Bank of England is already struggling to rein in prices. Now the speculation is the BOE will have no choice but to raise rates by a hundred basis points next month. Remember earlier this week, the fed forecast to move up in its key policy rate to 4.4% by the end of the year. That implies another 125 basis points in fed tightening. Tony Rodriguez is head of fixed income strategy at nuveen. We do think this is going to slow the economy down. We're seeing that obviously already in the housing market. We've seen it in certain industries, you know, FedEx warnings, et cetera. So we do think that as further tightening happens over the balance of this year, we're going to start to see that slow down and Rodriguez says evidence of slowing will produce further inversion of the yield curve. Well, it may flatten further in the week ahead since we're expecting to hear from 13 unique fed speakers during 22 separate events. Today, the yield on the two year treasury jumped 7 basis points to 4.19%, the ten year was last quoted at a yield of 3.68%, aggressive Central Bank tightening, whether it's the BOE or the fed has raised the risk of economic contraction and now KKR is seeing a mild recession next year and Goldman Sachs has slashed targets for stocks, warning of a dramatic upward shift in the outlook for rates and resulting pressure on stock valuations. Today we had the Dow industrial average down 1.6%, the S&P 500 fell 1.7% the NASDAQ composite was down 1.8%. Global news 24 hours a day on air and on Bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. This is Bloomberg. Broadcasting live from the Bloomberg interactive broker studio in New York, Bloomberg, England three O to Washington, D.C., Bloomberg 99 one to Boston, Bloomberg, one O 6 one to San Francisco, Bloomberg 9 60 to the country. Syria's XM channel one 19, and around the globe, the Bloomberg business act in Bloomberg radio dot com. This is Bloomberg best. I'm Dennis Pellegrini, an events in Ukraine developing Fast & Furious. Russia calling up the first reservist to bolster forces former U.S. ambassador to Ukraine William Taylor, those says Putin's reserve call up is just another sign the tide is turning against him. He's running out of soldiers. He thinks by instituting this draft or this call up, he may be able to replace these soldiers that is losing day after day on the battlefield. And Taylor and Washington and all of Europe keeping a close eye on what's happening in Ukraine and Russia right now is Moscow moves to ramp up defense spending and Ukrainian foreign minister dimitro tells Bloomberg's Ann Marie harder and what he thinks Ukraine needs most right now. Let's listen in. Weapons because we are at the war and when you are fighting a war against such an enemy, you need more weapons. Sometimes I'm being asked whether there is enough of weapons that we have received. And I always say that I will be able to say it was enough, only after Ukraine wins. Until then, we will be asking for more. And from the United States is already asking Congress for another $12 billion or so. European allies have sent weapons for how long are you going to be needing to ask for the increase of these supplies, the weapons and the ammunition? Our recent successes in the east of Ukraine. I mean, our counter offensive is an evidence that a combination of Ukrainian stamina in western weapons and most of them come from the United States is the recipe to defeat Russia on the ground. So it's a clear message to everyone that it works, that it makes sense to help Ukraine with weapons because we can defeat president Putin and his army in our territory. So of course the sustainability of supplies is an issue and that's exactly what we are working on with our partners. Not only Washington but also all across the globe. You had this unexpected counter offensive in the vast territories around car keys. What's next? It was unexpected for some, but it was as thoroughly planned and well thought military operation. The next phase will be to continue liberating our territories. We will continue our counter offensive in the east of the country. I would like to recall that since 24th of February, the only region that Russia controls in full is this low guns region of Ukraine. Now, we have a clear goal of depriving Russia of this control, which will send a clear message that since 24th of February or Russia we truly achieve no strategic gains in Ukraine. I want to bring up the fact that what we're seeing in Europe right now, heading into very tough winter. In Germany in August, power prices, electricity forward power prices peaked in August, €1050 per megawatt an hour. That is normally 40, €45. Are you confident Europe is going to remain this resolve? Well, the prices that you have just mentioned is the direct result of presence putting energy blackmail of Europe and the entire world. And while he blackmails the west with high prices, he literally blackmails Ukrainians with blackouts, Russian missiles hit a number of critical infrastructure elements of how electricity grid. Causing blackouts in two big regions of Ukraine, including the hurricane region that was liberated by our army. Russian missile hit near Ukrainian nuclear power plant. And that nuclear power plant also contributes to our electricity grid. So we're facing kind of different levels of problems with our European partners. But we work closely with them in order to sustain this pressure coming from Russia. And I see that European leadership is committed not to allow put into succeed. And we are working with them. Well, you have Victor Orban flirting with Russia. You have to potentially about to usher in a far right government in Italy. Mario Draghi, a Russia hawk, he very much so backed Ukraine. He will not be there anymore. You have the rhetoric from the likes of
"kkr" Discussed on The Readout Loud
"When you're a low paid worker like some of these technicians are their paraprofessionals, they have high school degrees. I mean, you could go maybe work at Amazon and get a higher salary, and actually in recent weeks, there's been a lot of clinic closures at some of these big chains. And then they said, you know, they said it was mostly because of their struggling with provider shortages and insurance reimbursement. So you followed up this piece with another story kind of looking specifically at some of these private equity firms that are really active in the ABA field. And there's a lot of names that were in that piece that kind of have come up and gotten criticism in other aspects of the healthcare field. Like KKR, for example, you know, there's been criticism of how they operate this segment of group homes for people with intellectual and developmental disabilities called bright spring. They've gotten criticized by several senators. Do you get the sense that these firms are feeling the pressure to address this criticism and kind of change their act? Interestingly, KKR is also behind one of the biggest ABA chains called blue sprig. So I did think that that bright spring investigation was very interesting. I don't know about that. I don't get the sense that they're under a lot of pressure. This is not a super regulated area. So I don't think there's a ton of oversight to be honest with you. And private equity firms never talked to reporters. So I wasn't surprised by this, but no one granted me an interview and would talk in depth about their practices. They just kind of sent written statements. So yeah, I guess I would say I don't think there's much pressure. What kind of to that point? I mean, your story came out this week, obviously it's been out for a few days. What is the reaction been among? Just any of the interested parties upon reading it, whether that be parents or anyone in any kind of affinity group who might apply some of that pressure, whether congressionally or just in some other facet of society. Yeah, I've gotten a lot of responses from parents actually, which have been pretty heartbreaking. I mean, you've had parents reach out to me and say, you know, I'm really struggling with this issue right now. I've got all these bills piled up from ABA. And I'm not sure if it's the right thing for my kid. They're having these meltdowns. They hate going. And I've also heard from people who work in the ABA field who say, thank you for drawing attention to this. You know, we really need to work on our industry and work on the quality in our industry. I heard from a regulator in one state who had kind of a question about other government agencies looking into this and how I can provide information on that. But the reaction has been really interesting and strong from the autism community. I would say people with autism have said, you know, their reaction to the article is, this doesn't surprise me, AVA is abused. So that is that's a strong contingent of people. And I expected that reaction to this article. So Tara was really great reporting and anyone who's interested in reading it can find it at stat news dot com. Tara, thanks for joining us. Thanks for having me.
Who Will This 'New and Improved' IRS Target?
"In the meantime, back to this IRS thing. I mean, I'm just kind of offended. I sound like I'm like, you know, one of the woke ones right now, 'cause I'm offended, everything. But I'm offended when they think that the answer is to somehow just go after every Tom dick and Harry and Jane and Susan and Sally. And this is who will be affected. It will be your middle class. As much as they're going to try and tell you, oh, it's the 1%, no, no, no. Just in terms of, if you have that many IRS agents, who are they going to go after, and they can't, as I keep saying, they can't go after. The people that they should go after were just the billionaires, they get away with the great deal on the tax front because we've got lawmakers that are so concerned about making sure they have enough money for their next campaign. I told you yesterday about all the money. I mean, Kirsten sinema is one example. She's got donations individual donations from the private equity industry totaling over 500,000 for her last campaign. I mean, that is a lot of money, right? And I'm just looking at the numbers 54,900 from executives over at KKR, 35,000 at Carlisle, 27,300 over at Apollo. The private equity industry is a very big lobbying organization. In fact, they probably spend more money than any other industry right now. They're on K street and one of the reasons they're doing this is to give themselves the beneficial treatment when it comes to taxes. Do you know the Chuck Schumer? Collected 1.28 million from the private equity industry, including Blackstone and KKR, so you really think that he's that interested in raising taxes on this particular group of people. Go back and listen to Monday's podcast. If you want to explain or they're on why this is income and why it should be treated as income and why this is just highway robbery, frankly, of the American people and of our government, but these people in Washington I'll tell you the whole system is so darn corrupt. When you see what just went down. And when you see that they're going to effectively inflate, again, the U.S. economy artificially by spending all this money while simultaneously adding another 80 billion to go after everyday folks from the IRS all all while saying we're going to give a pass to those private equity investors. I mean, give me a break. It's not investment. It's income and they need to be taxed as such. Anyway, it's really pretty disgusting. But the whole thing is just disgusting. I mean, the idea that they want to pass this off, the name itself as somehow an inflation reduction act. Guys, you're just spending more money. All right, before I get to that, I do have one more thing I want to mention to you. You know, it's summer and we're all looking for movies and I don't know about you, but it's kind of hard sometimes. Kind of hard to find a good movie that you can enjoy watching that is representative of your values. I think that our values have gotten kind of lost and pop culture these days. And it's one of the reasons why I think it's important for all of us to think about what we're watching and who we're supporting when we watch it, right? Are you really into Disney right now with all their bogus? Or do you want to try and seek out some alternative sources of entertainment? This is where this movie in particular comes in. When I was a kid, I used to watch Cameron on that, what was that show? Oh, you know what? I got to look it up right now as I'm talking to you. This is how you know I'm recording in real time. He had that sitcom, when I was a kid, what was it? So anyone who can answer that in the questions below, extra super duper points, go to you. I'm going to come back to that in a second because it's going to drive me crazy. I remember that sitcom really, really well. Anyway, he's got a new movie out a new movie that he's backing. He's a very big Christian. He's an growing pains. Growing pains. That was the sitcom. I remember that now. Anyway, he's got a new movie that is just out. It's pretty neat. It's got a good message, and I think it's worth taking a look at as you're looking for things to watch and be entertained by. So this is called life Mark. And in this movie life Mark, it tells the story of David who has this very comfortable world that gets totally turned upside down when his birth mother, unexpectedly reaches out to him, and she's looking to meet him. He's 18 years old at that point. She only had the chance to hold him once, and she went looking for him and he finds this out. So it's really, it's an interesting storyline and probably one that happens a lot. He gets encouragement from his adopted parents, and so he embarks on this life altering journey, which really is a process of discovery and it leads to a pretty staggering truth from his past, inspired by a true story life mark is a powerful reminder that one decision, one choice can impact so much more than one life. It's a pro family pro love pro forgiveness pro reconciliation and pro new beginnings kind of movie.
Kyrsten Sinema Is BIG Beneficiary of Private Equity Lobbying Machine
"Let's dig in to what kyrsten sinema just actually did. Or maybe I should back up for a second and tell you how much money she gets from the private equity industry. Oh, turns out, individuals within the private equity industry. Accounted for more than $500,000 worth of donations made up 10% of her individual donors club. In the last cycle, and now it looks like this whole drama over her not signing anything, not going along with it. Oh, it was just over how much money they're allowed to really get paid and how much the IRS is going to go after them. So we get the IRS saying they're going to put $80 billion towards the hiring of tens and tens of thousands of new IRS agents to go after everyday Americans. Kyrsten sinema ensured that the private equity industry would continue to be able to pay less as a percentage basis of taxes for their income tax than school teachers, firefighters, or any of the administrative personnel that happens to work for them. I mean, yeah. That's what's happening in Washington, D.C.. You should be disgusted. I'm disgusted. Let me tell you a little more about Kirsten cinema and how much money she's getting individual donations, as I said, totaling more than $500,000 for a half a $1 million in campaign donations all from private equity individuals, including $54,900 from executives at KKR, 35,000 from Carlisle, 27,300 from Apollo 24,500 from crow holdings 23,300 from riverside.
"kkr" Discussed on Bloomberg Radio New York
"Everything is set and done is every X number of days is the required read of the morning for an I truly mean this global Wall Street have a palmar in miles Weiss delivered today with a must read on the idiocy of hedge funds trying to not be hedge funds hammock congratulations A hedge fund mister Robertson once told me is where your long and then at the same time you go short to reduce volatility and to have a more persistent and consistent return as you hedge your belief That's not what is in this story Yeah I mean we've been seeing over the past few years funds going increasingly long on a number of tech stocks Making a lot of money over a lot of years on some of the big tech stocks and the public side And then on to interrupt but aren't they trying to be a leveraged KKR or a leverage Carlisle That's what this is about Some of you some leverage some have ramped up with private investments in some of these companies And as we see funding round sort of topping each other each round and IPO is soaring a lot of hedge funds were jumping big and to private investments and into public tech companies And I worked for a really long time up until recently and it's both of those sides and now struggling and you're seeing a number of hedge funds posting some disappointing numbers Yeah darn right there Yes To say the least I've been out of this hedge fund game since 2006 I felt like the game was done As an asset class personally that's my personal opinion But when I think about private investments I kind of think of venture capital funds private equity funds Tom mentioned KKR I don't think of hedge funds which have daily movements and securities daily inflows and outflows from investors How did they square that with kind of what historically I think most hedge fund investors would say if I want private equity exposure I'll go put it into a private equity fund Yeah Yeah No I mean that's a very good point A lot of part of the issue with private equity funds and then hedge funds doing private stuff is the liquidity mismatch And that's what a lot of people are sort of concerned about and thinking about these days Some funds that have been pushing into these privates have said okay well from the get go you should know as an investor that if you invest in our private companies we're going to side pocket that right away If you ever want to get out of it you can only get out of it up into when we exit that position however we choose to exit And that is supposed to be a prudent way of keeping that money separate but the big concern is that a lot of these funds have now have so much in privates The value of some of these things has been falling Alongside stocks falling and then we're seeing Tiger global down 52% Okay That's a whole story of its own I mean you talk to everybody about this including Bobby axelrod When you look when you look at the hedge fund business what I see not to be snarky is we can't make our nut 2% plus 20 or whatever By doing a traditional name the 5 flavors of hedge funds So we got to go out and do something else to try to keep the cart moving Is that how this started Well I think hedge funds were really evolving to your point you know pushing into new areas whatever you know some of the traditional stuff either You know a lot of big funds got very big with multi strategy and new complex forms of trading right You see a lot of the multi shots doing being market neutral and using different technologies Did they succeed at that before they went to Pilots Instacart in the rest of them Yeah Well you know it's kind of fun by fun specific I think a lot of them were looking at private equity firms and saying wow some of these guys have really great potential How do we get a piece of it Tom mentioned Instacart It's featured in your story Pandemic darling Instacart slash it's estimated valuation by almost 40% to $24 billion in March If I'm a fun hold I'm like who did Who slashed it I didn't slash it I don't see a ticker on my screen that went down 40% That's some of the issues I think I would guess a lot of hedge fund investors are like oh boy I didn't think that coming To finish this up with your wonderful journalism we'll get this out on Twitter just a great story Hammer Our investors responding with litigation events No I don't think so I think investors are asking questions They're trying to get a sense of how exposed they are across their portfolios If they're investors in a bunch of different hedge funds how exposed are there to are they to private equity as a whole how exposure they to some of the public companies that are struggling what's at risk how diversified are there in terms of are they in terms of their hedge funds So right now there's a huge unknown in this Yeah I think going into June 30 I think going into June 30 and as we look ahead people are really wondering what they're going to see across the board in terms of markdowns and performance and what it means as she goes through a reckoning at this point The read of the week for the day I should say for global Wall Street hemo primary miles Weiss D one bio billions For a hot hedge fund bet now melting down Yeah I mean you got public equity and credit markets down double digits And now you're going to get a mark.
"kkr" Discussed on Bloomberg Radio New York
"New taste stop right Employees stock ownership It's similar Between that But it's a similar idea And K care got I think at ten times return on their CHI investment which is incredible for buyouts And so this is not just good for the workers It's also good for the private equity firms in terms of the payoff But I think there really is also sort of a greater good push behind this They are thinking about how do we address some of these issues of income inequality and equity can make a real difference in terms of generating wealth Tim is survey first of all the panel he hosted was incredible and so much of the conversations that we dealt with at milken was about private capital and how they can really move the needle on ESG but I do you mentioned Ingersol ran like I do wonder what is the luxury we work in a privately held company And I have also worked in a publicly held company You see the differences of the luxury of being private and being able to push good initiatives Is it so easily though to do in the public markets where we're saying well where did you make your earnings Did you do this I don't think it's impossible And we did see Harley-Davidson which is another publicly traded company come out and say you know we're going to do this And they distributed equity to I think 4500 employees using KKR's inspiration what happened at ingersoll rant So it can be done I do think look it's not as easy as just walking in and handing a bunch of stock out to employees And I think KKR would be the first to tell you that it requires a lot of paperwork It requires a rethinking of how you train your employees because you want them to think through okay if I make this productivity improvement what does that do Does that how does that help the company's stock go up at the end of the day So it's a different thought process They also do a lot of personal finance education to help them think through what you do with this equity When it does eventually pay out So I'm laughing because if you could see on YouTube and you can't even get the next question We are fighting But Tim is like watching that Tim is like watching a tennis match It's really kind of funny because he's going to meet in the middle here Me and Brooke But Brooke I do Is this pre-pandemic that they were doing this Because okay because I'm thinking it's such a tight labor force Companies are taking extraordinary measures to keep their workers happy right now Which is I think what is so striking to me is because this is not the first time KKR has done this They have been doing this for a while and they've proven their success and I am continually struck by the question of why are more companies not doing this And especially because of the pandemic and you talk about all these labor shortages and manufacturing in particular has long had a labor shortage problem that predated the pandemic they have an aging workforce It's not generally considered the most attractive place to end up as for sort of an up and coming young individual They should be thinking out of the box and I'm repeatedly struck by companies that don't go down this path which is why I thought this idea of the $1 million annual budget or whatever it might be is of course percentage of your EBITDA each year to give to workers And it's sort of an easy first step if you're not willing to go all in on equity which you should be But if you're not then this is an easy way to sort of think through about how to make workers feel more invested make them feel like owners and their company Brook only 30 seconds left but I do wonder about the appetite for publicly traded companies to do something like this You mentioned Harley-Davidson That's one But do you think we'll start to see similar moves from other publicly held companies because they don't have the same leeway to do this I think it takes time I think the more examples you have like CHI where the payouts and employees got from this equity ownership were substantial The average was a $175,000 Some people got up to $800,000 pre-tax I mean these are life-changing amounts of money And also the company made significant operational improvements They sold it for a very high valuation So the more examples you have like that I think the easier it gets to say if you're a public company CEO or board hey maybe this is something we should look at Brooke Sutherland leveraging your columns deals industrial's columnist at Bloomberg opinion here.
"kkr" Discussed on Bloomberg Radio New York
"Makes Apollo interesting different from Blackstone different from Carlisle different KKR pure firms if you like Is that the overwhelming percentage of its assets is in fixed income And not just fixed income you think fixed income you think bonds you think loans publicly traded loans No what they do is what we call private credit In fact they have what they call a yield business that has $360 billion of private credit And as a result of that they have a slightly different perspective on the world They don't get stressed out by days like the one we've seen transpire today in the stock market where the Dow is down 5 25 and then it's up 50 They can sleep through that stuff quite easily because they for the most part don't manage daily liquidity vehicles Right And his view is that the correction is not over The you know he sees what everybody sees right He's concerned about inflation is concerned about rates If you were in a again a daily liquidity vehicle or an individual bond or an individual loan You'd be more concerned about these things Because you have to take that daily hit if the market is weakening If you're in these vehicles the funds for example I don't have to vehicles sounds like it's a car It's a fun right Or a product Where you can't cash out immediately it's actually much easier to sleep at night both the managers and for the clients Because you can write out these storms This is a storm of volatility that we're living through in the market And it's one of the reasons why the mood here at milken is in darker because most of the people here come out of the Mike milken drexel Burnham Lambert legacy and they are managers of private equity private credit Those are the people who can for the time being We see it with the guests that we talk to in private equity It's just a very different feel They're not stressed They aren't stressed As much Eric one of the most fascinating parts about the conversation that you had earlier with Mark Rowan was what he said happens over the next 5 years when it comes to retail investors And the idea that he thinks that within the next 5 years or 5 years from now we will see retail investor portfolios 50% made up of alternative investments because and a lot of this will be fixed income replacement These vehicles that I've been talking about because their belief well first of all they're designing products that will appeal to the retail investor Right now the retail investor only has access to products that resemble institutional products And the retail investors needs are different from the institutional investor's needs So first it's about product development but secondly it's about the retail investor particularly at a time like that's waking up to the reality that there's no point paying for public market liquidity if you don't need public market liquidity This is the same realization that institutional investors like pension funds and endowments came to over the past 30 years led by the now late David swensen from Yale who pioneered the endowment model If you don't need the money now why put it into a vehicle that gives you access to liquidity Now it doesn't make sense you're paying for something you don't need It is the evolution of a theme It's not like a switch flipped And all of a sudden we went from a world of public markets to a world of private markets As I say this has been slowly building It starts with the most sophisticated participants the Yale endowments for example the Harvard endowments smart sovereign wealth funds.
"kkr" Discussed on Bloomberg Radio New York
"Different from Blackstone different from Carlisle different from KKR pure firms if you like Yeah Is that the overwhelming percentage of its assets is in fixed income And not just fixed income you think fixed income you think bonds you think loans publicly traded loans No what they do is what we call private credit In fact they have what they call a yield business that has $360 billion of private credit And as a result of that they have a slightly different perspective on the world They don't get stressed out by days like the one we've seen transpire today in the stock market where the Dow is down 5 25 and then it's up 50 They can sleep through that stuff quite easily because they for the most part don't manage daily liquidity vehicles Right And his view is that the correction is not over The you know he sees what everybody sees right He's concerned about inflation is concerned about rates If you were in a again a daily liquidity vehicle or an individual bond or an individual loan You'd be more concerned about these things Because you have to take that daily hit if the market is weakening If you're in these vehicles the funds for example I don't have the vehicle sounds like it's a car It's a punt right Or a product Where you can't cash out immediately It's actually much easier to sleep at night Both the managers and for the clients Because you can ride out these storms This is a storm of volatility that we're living through in the market And it's one of the reasons why the mood here at milken is in darker because most of the people here come out of the Mike milken drexel Burnham Lambert legacy and they are managers of private equity private credit Those are the people who can for the time being We see it with the guests that we talk to in private equity It's just a very different feel They're not stressed They aren't stressed As much Eric one of the most fascinating parts about the conversation that you had earlier with Mark Rowan was what he said happens over the next 5 years when it comes to retail investors And the idea that he thinks that within the next 5 years or 5 years from now we will see retail investor portfolios 50% made up of alternative investments because and a lot of this will be fixed income replacement These vehicles that I've been talking about because their belief well first of all they're designing products that will appeal to the retail investor Right now the retail investor only has access to products that resemble institutional products And the retail investors needs are different from the institutional investor's needs So first it's about product development but secondly it's about the retail investor particularly at a time like this waking up to the reality that there's no point paying for public market liquidity if you don't need public market liquidity This is the same realization that institutional investors like pension funds and endowments came to over the past 30 years led by the now late David swensen from Yale who pioneered the endowment model If you don't need the money now why put it into a vehicle that gives you access to liquidity Now it doesn't make sense you're paying for something you don't need It is the evolution of a theme It's not like a switch flipped And all of a sudden we went from a world of public markets to a world of private markets As I say this has been slowly building It starts with the most sophisticated participants the Yale endowments for example the Harvard endowments Smart sovereign wealth funds like Norwegian sovereign wealth fund the singaporeans for example they figured this stuff out a long.
"kkr" Discussed on Bloomberg Radio New York
"Were actually selling some stuff we have in Finland right now So it's definitely a cloud It's sort of a big storm cloud on on the investing horizon And whatever you're investing in you know you wake up in the morning and they've done something crazy You're nervous So nervousness leads to the equity markets decline probably we've slowed down our pace of investing We invested $16 billion in property globally last year That's just equity So probably that was 30 or $40 billion total And we've still cherry picking but it's just more cautious And consciousness is what's going to cause the economy to flow across the board There's no doubt that the little slow Okay you said your cherry picking What are the opportunities that you're finding right now One of the beauties of the public markets is they screw things up They go to excess companies way over and net asset value And deep discounts to asset value So we try to find the things where we think they're wrong And we've taken private a company in Japan that owned a bunch of office buildings that we thought the markets had wrong We've done the same thing on two transactions in the UK In the U.S. let's take privates right now although because the cost of financing is suddenly gotten quite expensive not just the specter of rates A lot of real estate players like us Blackstone KKR Aries oak tree We floated debt We bought properties with floating debt And we protect ourselves the banks required us to buy caps that we wouldn't have too much exposure to higher interest rates It's a little expensive right now And obviously interest rates have moved up but also spreads have moved out So the credit markets are telling you that things are not normal I always think the bond guys are smarter than the equity guys The way you guys have a lot of balls They have very emotional But the credit guys just look at credit And we look at the world situation in.
"kkr" Discussed on Bloomberg Radio New York
"Maybe feel references and he would just spend so much time into these presentations and more of the kind of keep the trains running on time mentoring younger folks at the firm and just putting out fires as I'm sure there were many It's interesting the private equity universe You know it so well but I do think about kind of the iconic elder statesman whether it's Henry kravis right KKR or Steve Schwartzman a Blackstone I mean there are different Elk if you will right From bondo Yes absolutely I mean he was a lawyer He liked deals that were naturally just a little more complicated One of their first huge wins was this restructuring of continental airlines that I think nobody else would touch But it ended up being such a success for them Some of the executives rented a private island in the Caribbean to celebrate I guess he knew what he was doing Well you know I think part of this part of a big part of this story is sort of understanding where TPG goes from here As you write it was relatively late to the IPO market you know coming after KKR coming after the Blackstone of course But what's it going to do under winks Well John winkle read is this sort of former high flyer at Goldman Sachs He isn't an investor the way that bondo was but he's really calculated He doesn't have the same kind of a long-term marriage with PPG so he'll be able to clearly see what needs to be fixed And right now you know among challenges are kind of rebuilding the credit space which was which has been wildly lucrative for a lot of these private equity firms Just lending and all kinds of things going on in the debt world So that will be a huge task and also just building AUM and being a grown-up public company I stuck on winkle rod wrinkle read excuse me being what is it kind of an expert in horse cutting Horse cutting right It's not something you hear about every day Just the other day Heather Tim and I were talking about it No just kidding Go ahead You kind of separate the calf from the rest of the herd And it is so crazy if you think about who he is and where he has come from He isn't you know the same old school investor that bondo is but he definitely has his own intricacies and hunts with the bow and arrow another thing you don't hear every day So another wild leader but slightly different kind Tim's thinking about his next vacation is going to work on that Yeah definitely The hunting part He's watching Yellowstone It might be coming back Are we going through an era though It does feel like And write this in the story that bonderman Schwartzman Leon black Kenny kravis you know they're kind of being all forced to make way for a new generation Just get about 30 35 seconds It's true There does seem to be this kind of what we call the private equity desk grip Like these founders have been their whole lives in the firms are really infused with their DNA and it's difficult for them to let go And investors wonder if they'll have the same magic with a new generation but you really don't know until you see it play out I do think it's funny we just talked earlier about Vanguard Jack bogle Vanguard being kind of reworked But similarly these guys created the industry at least what it looks like today Yeah pretty phenomenal Heather we saw this story and we're like we got to do it We got to do it So thanks so much for finding some time for us Heather pearlberg she's private equity reporter at Bloomberg news Check her out on Twitter at Heather pearl Berg coming to us from Washington D.C. Also check out this story available on the Bloomberg terminal and at Bloomberg dot com Well that's continue here in New York City Get a check the latest.
"kkr" Discussed on Bloomberg Radio New York
"It is 9 30 a.m. in Hong Kong and here in Singapore I'm Juliette Sully And I'm Brian Curtis looking at markets in the Asia Pacific modestly higher no two dramatic action here but we do see the hanging index opening up about a quarter of 1% Markets with Doug prisoner in a few moments Juliet Well president Baden has announced the first wave of sanctions against Russia It is a response to Moscow's recent actions involving Ukraine Here is President Biden speaking earlier at The White House We're implementing full blocking sanctions on two large Russian financial institutions And their military bank But it says he is imposing comprehensive sanctions targeting Russia's sale of sovereign debt abroad He said it cuts off Russia's government from western financing Biden also said the U.S. would impose sanctions on the country's elite so he says share the corrupt gains of the Kremlin policies Sanctions were also imposed by U.S. allies The European Union and the UK have outlined initial limited sanctions packages and Germany announced it would halt certification of Russia's Nord stream two pipeline And as a fallout of those sanctions Wall Street banks are approaching French lander association to see if it can help them manage financial transactions involving Russia as according to soc gen CEO Frederick udaya The bank operates in Russia through its rosbank unit making it among the biggest European banks in the nation Bloomberg Sally bakewell tells us the U.S. lender is exposure to Russia is pretty small in general I think city is the biggest one and it has about 5.5 billion of loans tied to companies in the country Others really have emphasized the minimal size of their exposure So it's another reason perhaps why they probably won't look at alternatives to any sanction regime that's in place and just abide by the spirit and the letter of the sanctions law Udea didn't name the banks that reached out nor did he indicate what services the bank would be willing or able to offer Well KKR has agreed to buy a majority stake in the bottling company refresco we're told the deal is valued at $8 billion The sellers appear partners in British Columbia investment management both companies said they'll maintain a significant minority holding in refresco The deal is a rare example of KKR's investing in a consumer company Sources told us Swiss investment firm Jacobs holding had been the FrontRunner for the deal before it got beaten by KKR Volkswagen is preparing an IPO of the luxury carmaker Porsche Sources tell us the company could offer about 25% of non voting shares to the market and the Porsche and peach families would buy a minority blocking stake Portia is valued as much as 95 billion by Bloomberg intelligence We're told the listing aims to help boost Volkswagen's valuation and to fund its push into electric vehicles All right let's get over to check on the markets and now Doug krisna big moves in New Zealand bonds and currencies today Yeah definitely We've got a stronger kiwi right now to the tune of about 67 70 against the greenback This is after the rbn Z did as the market pretty much expected An interest rate increase by a quarter .25 basis points We are now up to 1% And perhaps a little bit of a hawkish forecast because the RB NZ is now saying the cash rate will rise to at least two and a half percent by early 2023 So what is that about a 150 basis points over the next 12 months or so and at the same time the RB and Z has agreed to begin a gradual reduction of its holdings in sovereign debt So a little bit of positivity in the equity market too with the in ZX 50 up about three tenths of 1% We've got no trading in Japan and Japan today It's a market holiday there Right now in Hong Kong positivity in the hang seng and a recovery in some of the consumer discretionary names I'm looking at shares in May 2 on picking up a little bit more than 1.3% right now I was talking earlier about a call from Citigroup saying the approval process for some new games in China could resume after the two Sessions meeting in early March city is saying though this depends on whether more content and regulations are finalized Meantime on the Chinese mainland we have the Shanghai composite up about three tenths of 1% The cost be higher by a similar amount and in Sydney the ASX 200 is ahead by about two tenths of 1% Because of the market holiday in Japan we have no trading in U.S. sovereign debt very curious day in New York trading of treasuries very little movement in terms of the ten year we were last quoted at one 93 in yield terms 1.93% very little changed on the day but a big move up in yield on the two year treasury where one 54 so we jumped about a little more than 6 maybe close to 7 basis points in New York trading Oil stable now WTI is at 91 95 So we're up about a tenth of 1% The dollar showing a little bit of weakness and we have a little bit of weakness too in the yen now at a one 15 handle one 15 spot zero one We'll take another look at markets jewels in about 15 minutes Thanks very much Doug 35 minutes past the hour time for global news.
"kkr" Discussed on Bloomberg Radio New York
"John Legend joined the growing list of superstars cashing in on the market for music rights Legend is selling a catalog to an alliance of KKR and company and BMG The performer sold both the copyrights as well as the rights to receive royalties from music he wrote from late 2004 through early last year Let's check the markets in the Asian Pacific banking index is trading up about 1% The nikkei though down about a third of 1% and in China the CSI 300 has advanced about four tenths of 1% The dollar is slightly weaker dalian one 1588 and the yield on the ten year treasury now 1.71% Global news 24 hours a day live and at Bloomberg quick take Brought to you by 2700 journalists and analysts in a 120 countries around the world In Los Angeles I'm Brian Curtis reporting This is Bloomberg This is Bloomberg law with June grosso from Bloomberg radio The conviction of the lane Maxwell for engaging in a ten year sex trafficking scheme with Jeffrey Epstein was hailed as avert that offered long delayed justice for their victims Now that verdict could be overturned because of the comments of a juror an interview since the verdict a juror said he was a victim of sexual abuse as a child and that his story helped sway other members of the panel who questioned the credibility of some of Maxwell's accusers Joining me is former federal prosecutor Jessica Roth a professor at cardozo law school Jessica explain why these revelations are leading the defense to ask for a new trial Well a defendant is entitled to a trial by a jury that is fair and impartial That is a constitutional guarantee A defendant is not entitled to a perfect trial but at a minimum to a trial by a jury that will decide the case based on the evidence presented in court and not influenced by any bias And so the problem that has been raised by these recent revelations by two jurors is the concern that they may have Harvard a bias against Maxwell based on their own prior experiences as victims of sexual abuse And so what the court is going to be trying to determine is whether essentially these jurors should not have been seated because of those prior experiences Clearly the questionnaire that the jurors had to fill out asks have you or a friend or a family member ever been the victim of sexual harassment sexual abuse or sexual assault So does it seem clear that something is wrong either he made a mistake on his questionnaire or he omitted information to get on the jury Well there are a couple of things we still don't know So we don't know how he answered that question on his questionnaire because it's under steal So the lawyers may know but the general public doesn't know yet how in fact he answered that question It's possible that he answered the question accurately and did disclose that he had prior experience of abuse and that the lawyers either didn't catch it or failed to follow up on it either deliberately or inadvertently unlikely that they would have deliberately failed to follow up on it But it is possible that they missed his answer So the first order of business I imagine for the parties right now is going to be finding his questionnaire and seeing how in fact he answered it And it seems unlikely that he answered it in the way that disclosed the abuse because if he had it is likely that the attorneys would have asked follow-up questions about it and according to the reporting the transcript of the vor gear does not reveal any follow-up questioning of this particular juror on that issue So that's suggest that he did not disclose it on his questionnaire or that he did disclose it but the lawyers didn't catch it But the first order of business is going to be determining how he answered that question on the questionnaire And that's important for the next step of the inquiry because the court is going to inquire into his possible motives for not disclosing it assuming for present purposes if he did not disclose it If the court were to determine the key did not disclose it deliberately in order to get on the jury then that would be more indicative of bias than if he as he has suggested perhaps inadvertently failed to disclose it because he was rushing through the questionnaire And there are cases where courts have talked about the significance of a jurors motivations for failing to disclose information that seems relevant to determining bias because if it seems that the juror was determined or trying to get onto the jury that is often indicative in the court's view of harboring some bias and wanting to get onto the jury in order to render a verdict against the defendant Memories and how they relate to sexual abuse victims was a contentious point at the trial each side even called mammary experts to testify and this juror said that his personal experience helped convince other jurors about the victim's memories How will the judge get to the bottom of what happened in deliberations That's one of the more interesting aspects of this new turn in the case which is that although the jurors has suggested in their accounts to the media that they brought their experiences into the jury room with them and used them to persuade other jurors who may have been initially skeptical of the victims witnesses credibility The judge is not going to consider testimony or other evidence about the jury deliberations in making her decision about whether or not to grant a new trial That's because there's a federal rule of evidence that expressly prohibits a judge from considering testimony or an affidavit from a juror about conductor statements that occurred during the jury's deliberation That's a rule of long standing precedent and it's designed to protect the privacy of jury deliberations The concern is that if jurors are not assured of the privacy of their deliberations that they will be less candid Courts have been willing to accept the fact that this rule may result in occasional injustice but they have said that they do not think that the jury system could survive efforts to perfect it in this regard Coming up we'll continue this conversation and talk about what judge Nathan will do next This is Bloomberg The names that drove Susan it's so great to finally be able to get together again Oh it's short is And I really appreciate you picking up the bill I'm happy.
"kkr" Discussed on Bloomberg Radio New York
"Be their Vietnam Body bags in any country have an adverse effect at one point particularly when the objective may be irrelevant And so I think people would be very careful about what they can do I think it would be very painful for the Chinese to do it So they're very smart people Hopefully that will not become an issue Well that was Jamie Dimon China has a history of taking action against companies and individuals that appear to challenge its policies So an interesting story this morning Meanwhile in Central Bank moves I mentioned that the kiwi fell and as New Zealand hiked its benchmark interest rate and it signaled that it will need to tighten policy faster than previously expected in order to contain inflation The RBM Z boring costs by 25 basis points to three quarters of one percentage points and they predicted which was predicted by most economists Now the Central Bank's latest forecast show that it expects to lift the cash rate to 2% by the end of 2022 a year sooner than projected just three months ago And it deals news Bloomberg understands that KKR is considering whether to boost its offer for telecom Italia that's off to top investor Vivendi said that the 10.8 billion a bid was too low We also told that KKR is among suitors weighing off for the dataset a company global switch black stone and equinix are also looking at a bid for the business which is exploring a sale that could value it at 8 billion pounds or more So that and deals news Let's get over.
"kkr" Discussed on Bloomberg Radio New York
"From Bloomberg's European headquarters in the City of London and lure right with this Bloomberg radio business flat Right now in Europe the footsie 100 up two tenths of a percent the ducks just north of the green the cac 40 up three tenths of a percent Spain's ibex of 6 tenths of 8% and Italy 25 down two tenths of 8% The stock 600 broadly in the green the biggest gaining sector telecom is the biggest Lagarde travel and leisure news that KKR the U.S. private equity firm putting in an offer for telecom Italia over the weekend telecom Italia rallying right now in markets that deal valued at $12 billion sticking with telecoms Erickson has made an offer for a company in the United States but the market reacting negatively Ericsson down 4% right now in the bottom space U.S. ten year paper yielding 1.565% still on hold who will the new fed chair be You're a dollar at a one spot 12 handle weakness in the Euro coming through following anti lockdown protests over the weekend also the ECB no intention of raising interest rates just yet notwithstanding inflation and yuan strength against the dollar It's a 6 year high against peers Beijing figuring out what to do in order to curb that appreciation USD CNY and a 6 spot 38 handle Commodities Brent crude dipping below $80 a barrel although now up 5 tenths of a percent Japan the latest country coming to the table debating what to do with those strategic oil reserves That's the Bloomberg radio business lashes Liang guerins with the.
"kkr" Discussed on Bloomberg Radio New York
"After this KKR bed for telecom Italia plenty more heads stay with us this is Bloomberg We hope you're enjoying this podcast sponsored by U.S. bank U.S. bank has had endless stories of taking side gigs to the next level Their recipe to success is simple providing the support and partnership you need just like the family member would bringing you that peace of mind that is much needed but also sprinkling you with confidence to strive for greatness because the sky's the limit and they'll make sure you get there U.S. bank will get there together back to the episode If knowledge is power the Bloomberg terminal is your power up connecting you to real-time financial data market moving news powerful analytics and an influential network of financial decision makers around the world Share ideas negotiate trades and gain the insight you need to make more informed decisions See how the terminal can take your workflow to the next level at Bloomberg dot com slash professional When was the moment you discovered that you were meant for the business world Have you been getting a lot of inquiries from employers And then you started looking for the best sources of information Technology is challenging the regulators Doctors use kind of a virtual reality look I feel like the world is courting Elon Musk Which is how you got here How are other bankers restricted now Bloomberg radio the Bloomberg business app and Bloomberg radio dot com Bloomberg the.
"kkr" Discussed on Bloomberg Radio New York
"In the evening on Sunday on the eastern seaboard of the United States I'm Rashad salami And I'm Brian Curtis We see trading underway in Sydney where the anzac 200 is down about four tenths of a percent We're about 30 minutes out before we get some key markets opening up Tokyo and Seoul And then two hours before the Hong Kong and Shanghai markets start to trade A lot of red numbers on the screens It seems like it's a pretty risk off market here on this Monday morning We'll get to the markets in a few moments but for now some of the top stories were shot Yeah I got a democratic senator John tester saying uncertainty over who will run the fed has limited action to rein in U.S. inflation on NBC's meet the press Tessa urged President Biden to renominate fed chair Jerome Powell for another term I think we've got issues revolve around inflation that he can't do much about as long as he's not confirmed It needs to be appointed We need to confirm him I think he would be confirmed by a large margin of the president appointed him And then he can get to work as chairman of the fed and do a good job as he was done in the past That's Montana senator John tester heard here on Bloomberg Been making more reporting the President Biden has interviewed both fed chair Jay Powell and fed governor lael brainard for the job a decision is expected before Thanksgiving Still a pretty strong environment out there for M and a activity Private equity giant KKR is offering to buy telecom Italia for $12.2 billion The story from Bloomberg susannah Palmer KKR wants to tempt investors including Vivendi with a healthy 46% premium to Friday's clothes for telecom Italia This after telecom Italia lost about half its market value in the past 5 years KKR calls its bid a friendly one and requires approval from telecom Italia's directors and support from company management Susanna Palmer Bloomberg daybreak Asia Japan and the United States may make a joint announcement on the release of oil reserves as soon as this week without according to the yummy Yuri newspaper President Biden has a sort of building international support for using the stockpiles of consuming countries to bring down high oil prices Now prime minister fumio kishida has told reporters that the government was reviewing what steps it could take to tackle the issue in coordination with other nations Japan's oil stockpiling act currently does not allow for the sale of reserves due to high prices However both the government and the private sector currently hold more reserves than the minimum required under the law the newspaper saying that the government is considering releasing part of these excess reserves which it believes can be sold without breaching illegal restrictions 33 minutes past the hour let's check the markets at this juncture as we're getting ready to open up some markets in the Asia Pacific We have this line a moment ago monster beverage said to be exploring a deal with Constellation Brands the big liquor distributor and let's take a look at equities right now equity futures are lower pretty much across the board although S&P E minis are firm up about a tenth of 1% right around 4700 so slightly above the cash close on Friday It was a little bit of a weekday for cash equities on Friday and it's fed through intu as markets this morning hanging index futures down 97 points about four tenths of 1% China futures are down about a tenth of a percent Australian cash equities has mentioned down about half a percent in the first hour of trading or so on this Monday morning And looking around the rest of the region what's happening with currencies So the dollars is pretty steady here Dollar again one 1410 We did have that line that the Chinese government is getting a little bit nervous about the yuan's gains A currency watchdog telling banks to limit speculative FX trading And that's after the currency rose to a 6 year high Now it has trekked tracked more or less sideways against the U.S. dollar over the past month and at the moment the CNH is trading at 6 39 29 but since the dollar has been strong against other key currencies it makes the yuan strong against all those as it tracks sideways against the greenback Hence that nervousness there And we also heard the adviser to the PBOC Leo schin saying that China's economy could be coming into a period of quasi stagflation He sees relatively slow growth and excessively high producer price inflation Hank Singh's future as you mentioned are down the hanxing index year to date is down 8 and a half percent compared with the S&P 500 that is up 25% Rashad over to you All right well the time now what kind of 25 it has been It is 25 minutes to the top of the hour.
"kkr" Discussed on Bloomberg Radio New York
"CBS News shows less than half of those surveyed approved of Biden's handling of major issues such as race relations immigration and the economy nearly two thirds rated the economy is fairly bad or very bad The head of the nation's oldest civil rights group says the Kyle rittenhouse verdict is hard to reconcile We have far too many individuals sitting in jail for crimes They did commit or overcharge for crimes that were committed Speaking on CBS's face the nation in the BAC CEO Derek Johnson called the verdict a warning shot that vigilante justice is allowed in the U.S. Travelers at one of the nation's busiest airports were scrambling for safety Saturday afternoon when a passenger's gun went off at a security checkpoint authorities at Hartsfield–Jackson international airport in Atlanta are calling it an accident the incident sent passengers into a panic People just came flying through and just were like run 42 year old Kenny wells pulled the gun out of his luggage when it went off Well ran and police have a warrant for his arrest That's the latest I'm Dini kodiak And I'm Susanna Palmer in the Bloomberg newsroom Former Credit Suisse group AG bankers have told criminal investigators that the bank is still helping U.S. clients to hide accounts from the IRS This even after the firm paid $2.6 billion in penalties back in 2014 and promised to stop doing that according to a November 18th filing in a civil lawsuit those former bankers have come forward with credible information the Credit Suisse continued and in some cases is continuing to help Americans conceal assets The bank said in a statement that following the 2014 settlement Credit Suisse has cooperated fully with U.S. authorities and continues to do so U.S. private equity giant KKR and company offered to buy telecom Italia for $12.2 billion seeking to tempt investors including Vivendi with a healthy 46% premium to Friday's clothes for telecom Italia This after telecom Italia lost about half its market value in the past 5 years KKR says its bid is friendly The Federal Reserve is in focus in the week ahead Bloomberg's Karen Moscow reports Investors will be waiting to hear from president Joe Biden and his pick to head the Federal Reserve That decision is expected before Thanksgiving will also get the minutes of the fed's latest meeting on Wednesday along with new home sales A second look at third quarter GDP the.
"kkr" Discussed on Bloomberg Radio New York
"Agenda will not worsen inflation appearing on Fox News Sunday Brian D said Biden sweeping social spending bill will actually lower costs the roughly $2 trillion measure has cleared the house and faces an uncertain future in the tightly divided Senate Vice president Harris says the Kyle rittenhouse verdict shows quote we have more work to do rittenhouse was set free after a jury in Wisconsin found him not guilty of all charges in his double homicide trial on Friday Harris said she spent much of her career working to make the criminal justice system more equitable and that the rittenhouse verdict speaks for itself The 18 year old maintained that he killed two men in self defense during last year's protests in Kenosha Nearly 200 lawsuits have been filed after the deadly crowd surge at the astral world music festival The family attorney of 27 year old donnish bag filed a lawsuit Friday saying quote the last time Donna's fiance heard his voice was him screaming her name out in terror while he was trying to save her life The crowd surge left ten people dead That's the latest I'm Dini kodiak And I'm Susanna Palmer in the Bloomberg newsroom Japan and the U.S. may make a joint announcement on the release of oil reserves as soon as this week in a bid to rein in price increases That according to the yomiuri newspaper while Japan's oil stockpiling act it doesn't allow for the sale of reserves due to high prices both the Japanese government and the private sector currently hold more reserves than the minimum required under law and the report says Japan says some of the excess may be able to be sold and released We're hearing the U.S. private equity giant KKR and company has made a proposal to buy all of telecom Italia That's a move aimed at revamping the troubled Italian phone company that seen its market value fall more than 8% to $8.4 billion this year Mayor elect Eric Adams whose signature campaign issue was public safety is expected to announce his police commissioner in the coming days Adams told reporters last week that some top positions would be announced shortly after Thanksgiving You know all that talk about an Apple car Well now there's talk that if it materializes it could give the iPhone maker a massive boost more from Bloomberg's Denise Pellegrini A Morgan Stanley analyst says the move could double apple's revenue and double the company's value Dow Jones reports Katie Huberty says that's at the prospect of a billion loyal customers giving a good look at what could end up being a self-driving Apple vehicle to these Pellegrini Bloomberg radio Richard Branson's virgin voyages is for adults only we get more about that from Bloomberg's Greg Jarrett Branson says virgin's going where no other cruise company has gone before with that he's challenging the industry's sleepy reputation on scarlet lady the first of three ships setting sail by the end of 2022 Broadway reviews are swapped for tattoo parlors and pelvic thrusting dance classes Greg Jarrett Bloomberg radio Global news 24 hours a day on air and on Bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries I am Susanna Palmer This is Bloomberg I'm Barry rids you're listening to masters and business on Bloomberg radio My extra special guest this week is Edwin Conway he is the global head of black rocks alternative investors group which manages over $300 billion in client assets BlackRock's alternatives group covers such various sectors as real estate infrastructure hedge funds private equity and credit So let's talk a little bit about this recent restructuring You were first named global head of black rock alternative investors in April 2019 the entire alternatives business was restructured tell us a little bit about how that restructuring is going Continues to go really well Barry When you look at the flow of assets from our clients I think hopefully that speaks to the performance we've been generating I joined the firm as you know old BS 11 years ago and been very close to the alternative franchise was a critical thing for me in running the institutional platform To me when you watch this migration of assets towards alternatives it was obviously very evident for decades now that this is a critical leg of the stool as our clients are thinking about their portfolios We're continuing to innovate We're continuing to invest on thankfully we're continuing to deliver strong performance We're growing at about high double digits on an annual basis But we're trying to be purposeful to around where that growth is coming from I think the reality is when you look at the competitive universe I think the last number I saw it was about 38,000 alternative asset managers out there today Obviously coming from hedge funds all the way to private credit and private equity So competition is real and I do think the outcomes for our clients are starting to really grow unfortunately in some cases obviously very good In some cases actually not right So our focus is really much on how can we deliver performance How can we be a partner and I think we've been rewarded with the trust in the faith our clients have in us because they're seeing something different I think from us The scale of the business that you mentioned earlier really gives us tentacles into the market that I believe allows us to access what I think is the new alpha which is in many respects given the heft of competition sourcing and originating new investments is certainly harder but for us sitting in or having our alternatives team sitting at 50 offices around the world really investing in the markets because that's the market they grew up with and have relationships within I think this network value that we have is something that's quite special And I think in a world that's becoming increasingly competitive we're going to continue to use and harness that network value to pursue opportunities and.
"kkr" Discussed on Bloomberg Radio New York
"Bloomberg quick take He's a Bloomberg business lash U.S. stocks at more all time highs while European stocks have closed at a record This has corporate earnings helped boost sentiment amid lingering concerns about inflation and growth The S&P and Dow Jones Industrial Average are up as today's round of earnings kick-off with united partial service and General Electric gaining after strong results Facebook dropped as a pledged to buy back more shares and increased spending on digital offerings was offset by a revenue miss Big tech peers Twitter alphabet and Microsoft are reporting after the market closed today Tony Krasinski at pimco tells Bloomberg that investors need to understand the past is not as much of a guide to the future as it used to be Secular outlook we talk about speak to transformations For example becoming more digital more inclusive more green those are the three major transformations we see All of those things could we're not saying they will result in faster growth KKR is the investor looking to buy real estate assets worth more than a €1 billion from Adler group according to people familiar with the matter who asked not to be identified Let's check the markets now the S&P 500 is up two tenths of a percent of ten The Dow's little change down one in the NASDAQ's up two tenths of a percent of 26 the ten year is up two 30 seconds with the yield of 1.62% West Texas intermediate crude oil is up over 1% at 84 64 a barrel while comics gold is down 8 tenths of a percent of 1792 80 an ounce the dollar yen One 1418 the Euro dollar 1591 in the British pound 1.37 66 Silver right now is down over 2% at 24 O 6 per ounce Facebook is down four and a half percent That's a Bloomberg business flash balance of power continues now On Bloomberg radio good morning.
Box Agrees to Take $500 Million Investment From KKR
"500 million KKR's leading a $500 Million investment in box. In a deal that will see KK our tech executive. Bethany Mayor take Box CEO Aaron Levees place on the board of the Cloud software company. Levy will continue his boxes chief executive officer after the deal but will step down as chairman. The private equity firm said it will receive preferred convertible stock in box as a result of the transaction. That's a big one. Doing some deal. It's a big one. It is a big one. Absolutely. Erin
The new TikTok-Oracle company named ‘TikTok Global’ plans to go public in a year
"We are expecting an announcement in the next day or so on the approval of a new entity that I'm total be called tick top global getting some new details from a source close to the situation about why this proposal is expected to be approved and makes this new tick tock global majority owned in the US by source explaining that today by dance is forty percent owned by us, investors couldn't KKR SEQUOIA General Land and. And it's fifty one percent owned by Chinese nationals. Now, a new tiktok global would mirror those ownership stakes. So bike dance selling anything more than about ten percent to Oracle would make the company majority US owned now is expected to by about twenty percent of this new company tiktok global. Now, the sale of an additional stake to Walmart would further increase US ownership over that fifty percent mark multiple sources telling me that tiktok global plans to file for an IPO on one of the US stock exchanges in about a year that would again further dilute Chinese ownership and sources. Tell me that Walmart would get a seat on the. Board the board would be subject to US government approvals. I'm told by a source close to the situation and the CEO and C. Suite would be American. Now, this comes as the companies, of course, looking for a permanent CEO replace Kevin Mayor The New York Times reporting that among those that Tiktok has talked to Kevin System instagram's founder and former CEO? We are awaiting word from the president on this the deadline he said on the deal is this coming Sunday for the fact that over fifty percent of the corporate ownership would be us-based seems very much key Melissa to approval of this deal.
Walgreens gain fueled by reported interest from private-equity firm KKR
"Walgreens boots alliance stock pops five percent the drugstore chain has been approached by the private equity firm KKR about a deal to take Walgreens
Walgreens heading for biggest private equity buyout ever, says report
"Shares in Walgreens boots alliance rally to five percent the drug store chain has been approached by the private equity firm KKR about a deal to take Walgreens private even so Bloomberg intelligence analyst Jonathan Palmer says the problem for Walgreens won't go away now that a K. E. R. is involved at the end of the day the structural had wings that are Walgreens is facing just don't go away overnight just because they take themselves private so reimbursement in the pharmacy industry is under pressure both here and abroad because you know Walgreens also has their boots assets
KKR agrees buyout deal with German media giant
"The influential German media group, Axel Springer is seeking to go private with the help of US investor K are the greet paves that freeing itself from short-term market scrutiny will play the past for ambitious expansion plans Katie Martin discusses the move with our ash CG and vice versa. So tell us a bit about the history of Axel Springer. Where does the company fit into the German media scene will re company was founded right after the war by access Clinger, the hugely powerful archetype, German media tycoon. The power of the company really has long rested on ownership of bills, the German, tabloid paper, which is the biggest selling newspaper in Europe and hugely influential still in Berlin circles. What has made spring, quite special was always had a very strong political stance is very conservative paper. It's as editorial principles that or the journalists have to sign up to those included before unification that papers had to work towards helping Germany reunify, very strong supporter of transatlantic alliance with the US, very strong supporter of Israel. So it's a sort of very powerful commercially successful. But. Also, the very value driven publisher. And so over the years, obviously, it has changed its make up quite drastically. Many of the regional papers were sold off and it's tried to reinvent itself. And it's quite successfully as digitally focused company. So obviously billed as the biggest title, but what would be the other name publications the rest of us over here in London might know about the other well-known old media opportunity, they have is developed, which is sort of conservative broadsheet daily, but a very sort of spectacle paper, whereas Il can be quite wild until very recently running topless photos on the front page every day, of course shipping, a famous people surprised by the financial times in two thousand fifteen but narrowly, failed them was beaten out by Nikai, but company has really tried to reinvent itself. As a digital company over the last decade in particular, and that has meant heavy investment in two areas. One is in the online ads business, both for property and for jobs. Where spring owns some of the biggest sites in Europe in the U K in France and Germany in particular. And that segment of the business now makes up by far the bulk of their earnings. So she decided very early on to exit some of their old media businesses and shift money into new media. I'm so on the one hand that is this online ads business. And on the other hand that's investments in properties, such as business insider, the US news sites which they bought in twenty fifteen and setting up a joint venture to launch political Europe, in Brussels, most change, what are the main shareholders wants take the company private? And what are the terms of the deal will there's been sort of falling out of love between management and shareholders in particular over the past year management, especially CEO matere Turner feels that Springer needs to invest invest, invest in the titular to show up the companies. Wrong position in the online business. And what has happened is that over the past year in particular, it had to downgrade its guidance largely because of the need for more investment. And so that's not on the management board. And clearly also either spring out of founder's widow who owns more than forty percent of the company's. Still, they feel that the company is at a stage where it needs to invest, where needs trade sort of short term earnings for long term prospects and shareholders just don't seem to be willing to go along with that. And that really is sort of Reuss of the idea to take spring a private and to do that. Feeder, Springer's widow and Mr. depth no who himself owns two point eight percent of the company have teamed up with KKR and they are offering shareholders, sixty three euros a share which is a forty percent premium to the undisturbed share price. But it's still quite substantially below where the share was only last year. So is this a? Good deal for the minority shareholders, who are going to be both out. Well, it was an interesting statement that came out of extra Springer on the day that the author was sort of finally made public and confirmed on the very same day they issued a pretty hefty profit warning. And so, basically the message to shareholders walls, whatever you think of this price that we're offering you, if you don't take it, you info quite a bumpy ride, because the company will prioritize investment over short term profit and over reliably raising the dividend, and these kinds of things that shareholders, like so probably the message to shareholders at least it's been it's not gonna get any better for you. If this deal doesn't go through. So Arash why would you know, big, shiny US private equity group like take care? Be interested in paying a premium to help the company take yourself by that. Well, there's a couple of dynamics at play. I mean first of all, kick yards a very big European presence. So they're already on the continent throw in the fact that actual Springer and build. In particular, come with a lot of social capital in the sense that you're playing with one of the most powerful and influential media companies in Europe and getting your hands on one of these prize, commodities is often very attractive for people if you think about the company's structure with free to stringer owning over forty percent of the company's control and Matisse dope. Never at their two and a half percent. The idea of ever really having a say in a company like this is a rare commodity. So if you're kick are, there's a couple of tractive reasons there now actual Springer has been thinking about this for some time, Amatya still who's the engineer of this whole transaction has been interviewing private equity firms over the last few months, I discovered in my reporting and selected KKR for a number of reasons. And so they are now teamed up and while importantly, the structure basically sees the kick AARP has to satisfy getting twenty percent of the minority shareholders. So if you think that free to spring controls about forty two percent Matisse stove close to three percent. They need to get to about sixty five percents delist the company, and so that's why the offer comes with the terms that says care, I need I about twenty. Sent a minimum of twenty percent of the shares out once the private care will still be a minority partner, but they will have influence and so on so forth and in the European private equity environment. There are very few deals where you can put a check of a billion euros. I work in one go. So this is quite attractive for a number of reasons and obviously, the main reason why company like KKR goes into bed with anyone is to make a ton of money for its shareholders. So that's principally the goal here. So speaking of making a ton of money what all the plans for the company beyond the deal will you got to imagine there's a couple of things going on. There's probably some structural changes to the company and its alignment and jobs, which will probably be better executed private and out of the headlines wants. It's private. We don't get to see what's happening. It's a lot harder comes a lot less transparent. Some of the difficult decisions that public markets, create for management will no longer be there. So that means the restructure structure, fire people that will happen outside the glare of the public eye. Maybe some of the dirtier work inside the portfolio of assets that isn't as nicely managed. Can be shut off in ways that again, don't get the same attraction and equally. If you want to make big bets on certain other businesses, you then have firepower and the ability to go for it without public markets judging the transactions. So you have to imagine that there is a plan for kick AR to basically bring firepower to the table for them to pursue transactions to then ultimately see them in maybe five years time returned to market at a big profit for everybody. So companies have traditionally preferred to raise cash from shareholders on the public markets toward extended this going into reverse. This is a bit of a unique situation. And in fact, Qiqihar has experienced doing this in Germany, where there's typically large foundation or large shareholder as the cornerstone investment care help, take a market research company called Jeff K private in Germany, similar structure almost the same playbook. Twenty percent added onto the deal to delist and to it that way. It's a different form of LB OBE leveraged by because you're not buying out the whole thing as majority partner, you're buying it as a minority part. But all the advantages of elbow exists, as long as you can work through the management structure, which you won't have as much influence over. So I don't think this is a major trend in terms of public private markets. I think it's unique to companies where there's a cornerstone investor with forty two percent sitting there and the options are limited. So this is kind of a unique structure almost German specific and a lot of ways and care has done it before. It's very specific to kick AR. So what are the big challenges for the company now is it getting the daily of the line, or is it taking what could be quite painful decisions once, that's all done? They probably have a plan for what they're going to do once. It's all done the hard part is getting across the line. So if you're kick AR union to make sure that twenty percent of the investors sign up to this the could play hardball with you. There's history of people like Elliott and some really clever investors going in enforcing railroading companies to pay more money in deals. There's a added complication, which is that there are heirs of the Springer family who also have roughly ten percent of the company axel. Vents Springer spends finger and Ariane Melanie Springer who have about ten percent combined now. My reporting suggests that it's not all hunky Dory on the family side and it's not like everyone's on the same page. I'm not saying it's like HBO show succession, but, you know, families are complicated in the politics within that is always tricky as we've seen in, in other media family like the Murdoch's. So the question is will these to put their ten percent in, because that already gets K are halfway there, or do they take the view that this is going to be, so profitable once they take it private and fix it up that they should stick around and that automatically add some complication because then it shortens lists, the view is they're going to ride the journey still and want to get rich off what happens. So they'll have to convince the other shareholders, this is a good deal. And that's the primary challenge right now families, plus money always equals drama. Right. And great headlines and headlines, she great for us. But Tobias how is this going down in Germany? How's it being viewed, this surprisingly little political reaction to this? I mean as the rash mentioned. Spring is hugely politically influential, all the perhaps, less with the Mackel government than with all the previous ones. I think it's in very much presented here as a move to shore up the sort of long term future of the group. It's been presented and also launch the scene. I think as a move in favor of sort of a long term view, rather than short-term pressure from the capital markets. And as we know that kind of discourse tends to go down quite well with the German public. So they're certainly been very little criticism of this deal. And I think there's also sort of expectation or hope that extra could use this window can use this freedom of being a private company to bulk up and protect itself against, for example, new competition from the likes of Google, which is pushing very hard into the market for online small ads. So I think this is a deal that is really metro little criticism from any corner him. That was Katie mountain. Compass markets editor, soaking Arash Markazi corporate finance deals editor and Tobias the Berlin correspondent, thanks for listening. Don't
KKR offers 40% premium to buy out Axel Springer minorities
"We're watching Axel Springer surge thirteen percent. It's really, really impressive. So then uses that Qiqihar seeking to buy out minority shareholders have actual Springer in a deal. They would value, the German publisher as much as six point eight billion euros and moreover, the largest shareholder fetus, Springer, she's the widow of the founder and the seal mantias doctor who owned forty five percent of the company together, the are on board of this deal. So it is expected to go
Brookfield to buy most of Oaktree to build juggernaut to rival Blackstone
"Brookefield agreeing to buy a majority stake in Howard Marx's oak tree again to very well. No names Gillian tan senior reporter for Bloomberg. She has been all over this knows this space better than anyone. So Jillian as you guys have unpacked this deal. What really jumps out to you. I was lucky enough to speak to Howard marks. And Bruce flat this morning, the CEOs of fulfilled and oaktree one key point that jumped out was that the driver behind this transaction is an ability to serve clients. So if you think of L pays for those who want familiar sovereign wealth funds, pension funds endowments, they're looking to park money, billions of dollars massive checks with fuel manages. So if you step back and think what does that mean people looking to put five ten maybe fifteen twenty billion with fuel manages, folks. Like Brookefield sat back they realized they didn't have the capability until now to be able to meet some of the mandates. Bruce, flat told us we have difficulty meeting the street terms of some of these mandates and very few firms in the world would be able to do that. And the combination should be quite powerful. If you think broadly, really only black started, or maybe even black rook, maybe those would be among the groups able to provide an all service one stop shop. This combination is really sort of changed the game. Yeah. I mean, it is amazing. I'm so glad you brought up those other names because up until this point you we've been in this mode where and you've written a lot about this Blackstone has essentially been putting a lot as fates between itself. And everyone else Brookefield has always been there for them as a real estate competitor. But now this really is you say changes the game. Yeah. Absolutely. So Brookfield recognized that it didn't have a distrust credit capability trade. That's been it's bread and butter for years. And interestingly enough, we go to hold from memory that how it sent to invest is saying that they would only ever do a deal with someone where they were able to maintain autonomy and that such a deal they thought to be quite hard to find he wrote that in two thousand and two seventeen years later, he's found a by that fits so tell us more about if you can't talking to them and sort of the vibe that you got from these two guys because again, these are two very powerful personalities. In a powerful personalities. I should Bruce latte. Not the most powerful personality. He's so understated in a lot of ways did you glean from that conversation? Yes. I gleaned one interesting thing that Brookville Mattia perch up Taiba, we're trying to get a little bit more information about how it actually came together. The other thing that they both reiterated is that there is very little overlap in their businesses. They don't expect to be competing on deals. They think it's purely complementary. I think that was one word that they reiterated again, and again, so I guess they're they're broad cell is that they don't expect to be cross selling too much between investors that they already have because they already have relationships with so many of the biggest investors, but it's more being able to provide a one stop shop solution to these groups. The other interesting thing rewrite today about these regional men and another Bruce Bruce cash is that all three of billionaires. And now they're all end up one central roof. So I'm curious how Thomas has Howard marks Romy. So interestingly super tournaments, they're running all the businesses. As is nothing's changing. No, branding, all the funds all the fund heads. Everyone. Just stays as is. It's just a case of a big client who comes in. And we say, well, we can offer you this real estate Brookfield and whatever else we can offer you distress debt. Right. And that's the whole idea. Exactly. So one example how it provided? He now co this morning. He said an LP will hire an investment manager and say, we're interested in these eleven strategies, he's X billion please put the money to work, and it helps to have a broad menu. So how'd previously didn't have big real estate big infrastructure? Right. So do they have to do? They have to add anything else is there. Another acquisition may be coming. The acid offering for these two. I think not I think they're all set. One other thing we we pushed out another story recently this afternoon that just shows that more deals may occur in the industry as sort of Brookfield at our trees now much smaller rivals KKR, Kyle upholster Aries. Maybe thing we need to do something bright because all those stocks moved up in the aftermath of this. It's so fascinating. This story is far from over and really, Jillian as you very rightly point out in his you point out in several stories mentioned on the terminal all among the most read is a game changer in the alternative asset business, really in the broader investment businesses. Well, Brookefield and oak tree getting together. Always get to catch up with you here where we're seeing steals happening where everybody else kind of wakes up all of a sudden, whether it's the financial industry or other industries, we're seeing a lot of
Goldman Sachs, Bank of America earnings beat expectations, shares jump
"Pulled a combined thirty eight billion dollars from. It's fun. Most active stock in early trading is first data. It's up about nineteen percent. The payment processor accepted a twenty two billion dollar takeover offer from fi surf the all stock purchase has the support of private equity firm KKR, which controls first data. You've got KKR shares up two and a half percent five serve on the other hand down about five and a half percent. United continental up. Six percent. The airline's earnings per share last quarter beat the average estimate by the most in seven years. United said expects adjusted profit to rise this year, though, a partial government shutdown they hurt first quarter sales. We heard the effect of the shutdown from delta yesterday as well. Ford Motors down one and a half percent. Preliminary results showed the makers earnings last year trailed s with Ford set profit in Beverly may rise this year as a shift toward trucks and sport utility vehicles and away from sedans nordstroms down seven and a half. Five percent. The department store owner said fiscal year earnings will probably beer being near the low end of its forecast range all their growth in the current quarter is in their off price stores. Barely seeing any same store sales growth in the
KKR-backed Calsonic to buy Fiat Chrysler's Magneti Marelli unit for $7.1 billion
"Fiat Chrysler has agreed to sell its high tech car parts unit. Magneti Marelli to take AR and companies Calsonic Kansei that according to people with knowledge of the talks and announcement is scheduled for as early as Monday said the people representatives for Fiat and KKR declined to comment. The transaction. Value could be as
Snap loses daily users, beats on revenue as Saudi prince takes stake
"Markets All right everybody you're listening to Bloomberg markets Carol Massar along with Jason Kelly letter earning news. A lot of tesla Tesla tesla tesla Marcia Marcia. Marcia we started Marcia Marcia, Marcia our, tesla tesla, tesla you went there Proud of you More about the broader market picture in. Just a moment let's get back to, your headlines Charlie Pellett keeping track of it all Charlie. To absolutely right and we just got another breaking news headline coming across the. Bloomberg right now Saudi Prince Alwaleed says he bought, a two point three percents, stake in. Snap snap reporting its first ever quarterly drop in daily Snapchat users signaling that a controversial redesigned to the social media, earlier this year still hindering growth revenue topped projections as demand increased for the company's mobile. Ads snap shares they are rallying right now by nine and. A, half percent again, repeating that headline the Saudi Prince Alwaleed says he bought, a two point three percent. Stake in snap the Walt Disney company released earnings after the bell shares are moving lower their, down two, point four, percent Disney runoff. Unreleased animated movies last quarter, stumbled at mar the entertainment giants, record-breaking summer box office performance and crimped. Its latest earnings got, a mentioned, tesla Elon Musk saying he is considering taking tesla A private and a radical step two would ease pressure on the money losing automaker tesla shares rallying. Today by ten point nine percent the Dow the s&p NASDAQ all pushing higher SNP up eight. Again there of three tenths of one percent the Dow of one hundred twenty. Six five tenths of one percent NASDAQ up twenty, four are by three tenths, of one. Percent gold up three tenths of one percent twelve ten the ounce I'm Charlie pelletan that is a Bloomberg business flash, thank you so much Mr. Charlie Pellett still wanna hear more later from you about visiting. The Brady bunch house but that is become the least of. Our, top stories today, Carol Massar as we look at everything that's happened over, the last few hours tesla. Is Charlie mentioned really leading the way in terms of grabbing the attention Elon Musk coming out, and saying, that he, would consider is. Considering taking the company private, private and one of the numbers, that we need to put out there. Is based on his, four hundred, and twenty dollars a share price Price tag for a take private that would value the company at eighty two. Billion dollars that's a big LBL it's, a big, old I'll. Be oh it. Would be almost not quite double. The size of the next biggest, which was back in two thousand seven taken private by KKR and teepee g, the financing the but the equity and the debt that would. Need to be lined up to do this sort of deal would be massive. And unprecedented right alone says he's got it he's got it lined up and. Is certainly experience although a final decision has not been just going to say no to his, employees said a final decision exactly has not been made so stay tuned everybody aren't you're listening to Bloomberg markets and this is.