17 Burst results for "Lincoln International"

"lincoln international" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

07:22 min | Last month

"lincoln international" Discussed on Bloomberg Radio New York

"22 even. That is your Bloomberg business flash Bloomberg markets continues now. Matt Miller and pulseman. Great Jerry good stuff. Thank you so much. We appreciate that. Consumer confidence data came out earlier this morning, 10 a.m., Wall Street time, blow expectations, downward trends. Let's break it down with Lin Franco director of economic indicators and surveys at the conference board. Lyn, what are some of the takeaways we should have for some of the consumer confidence data reported today? Well, I think it was a pretty interesting report we had to decline in consumer confidence for the second consecutive month. However, consumers are telling us that the present situation remains pretty steady. We didn't see the present situation index decline. It's really all concerned about the future, the short term outlook and in particular inflation. We see that inflation is really increasing concerns amongst consumers as far as economic growth goes as far as employment goes. So there seems to be an ever I think cloud that's hanging over consumers head that's really impacting their confidence in the future. Explain to me the difference between your consumer confidence, the conference board consumer confidence index and the data that hit an all time low a couple of weeks ago. What's the difference in those two indexes? Well, the variety of questions in the methodology overall differ. We ask questions about employment, which the Michigan index does have. I think they're being impacted a little bit more by inflation. And we are. But if you take a look at our expectation survey expectation to index, you can see that that's really suggesting a weaker growth. And it's the lowest reading that we've seen going back to march of 2013. All right, Lynn Franco, that's great stuff. Thanks so much for taking a few minutes and breaking down that data. Lin Franco director of economic indicators and surveys at the conference board and when we think about confidence, consumer confidence, confidence in the C suite confidence at the board level. That's also a big, big driver of corporate M and a. So let's segue over and talk a little M and a here outlook here is interest rates rise inflation remains rampant. What's the outlook for the deal market we bring in rob Brown managing director and global CEO of Lincoln international financial. So again, rob, when I think about trends in M and a, if I'm a CEO or board contemplating M and a, I have to have some confidence presumably in the business outlook and the economic outlook and the financing outlook. A lot of those are kind of uncertain right now. Is that translating into muted M and a trends? Well, I think the fear is that it's going to. I think if you look at M and a year to date, it's down a bit from last year, but last year was a bit of a crazy year. You had COVID catch up and then you had a lot of M and a activity in anticipation of a capital gains rate increase. So it's down, but in terms of values and M and a activity year to date, it's been relatively healthy. But what you're getting at and what you just talked about in your last segment, the inflation at levels that the C suite hasn't seen. In fact, most people sitting in C suites have never seen inflation like this because they weren't around then. And the corresponding increase in interest rates and the fed's trying to cool off the economy. So I think we are on the brink or we're in a period of uncertainty where you may have to see suite not having enough optimism in their own business to go out and make a big bet on M and a. The flip side of that, if you're looking to be global and you look at the strength of the dollar, going and buying things in Europe right now can look like a good deal. And going and buying in Europe right now can look like a good deal, but there's so much uncertainty over there. Doesn't that? Concern you? No, it does. And I think that's got to be the best that investors make. I mean, if you look at the overall M and a market, you have economic headwinds, right? You have inflation at an all time high. You have an uncertainty of what's going to happen with interest rates. We've seen this affect the consumer deals the most. I think consumer companies are the ones where you're seeing more widespread performance issues, both at the top line and on squeeze margins because there's more substitution in the consumer world. And inflation tends to hit the consumer world before it hits the business world. I think if you look at the public markets and you look at what's going on there, there's a bet that you're going to start seeing this more widespread in the B2B world. And we're starting to see a little bit in our industrial world. The flip side of it is if you look at areas such as healthcare, they're holding up very well technology is it's not holding up great in terms of values less because of business performance more because the public valuations are down so far. So I think there's going to be different effects in different sectors, but there's no doubt the economic headwinds have the risk of chilling to the M and a market and what happens typically is valuations come down, but sellers expectations don't come down until probably two or three quarters later and you could hit this air pocket where you see deal activity drop off. The other side of that though and we've talked about the C suite here, but there is so much money raised in private equity and so much capital sitting on these corporate balance sheets that wants to be put to work in M and a that to the extent people can get confidence in sectors that are going to hold up well or to the extent they think they're spying opportunities. That capital needs to be put to work and it's going to find a way to be put to work. And I was like two or three. It's been two or $3 trillion for years now. One thing I've been wondering about lately rob is I know a number of people looking to do deals that have been tripped up by rising rates. And I just think, especially after seeing Michael Burry's tweet yesterday that they're going to come back down and hearing that consensus sort of build, are people going to try and wait until, say, 2023, 2024, hoping that the fed brings has to bring things back down. Yeah, it could be that they're waiting for that. I think what we're seeing in our business is a bit of a push out of deals. Deals that we're supposed to close last month are now going to close next month or the following month. And I think that delay is more a function of gee, the business has been okay year to date, but I want to see another month performance. I don't want to be the one that's buying this in the way down. So I think the interest rate environment clearly can affect the cost of debt. But I think what's more affecting the M and a market right now is the potential uncertainty in business performance more than the cost of capital. Right. Hey rob, thank you so much for joining us. Always appreciate getting your perspective on the M and a business rob Brown managing director and global CEO of Lincoln international financial again. Yeah, it'd be tough to kind of put some work together, but we do have deals out there. They're just kind of, you know, some really interesting deals, Elon Musk. I guess still in pursuit of Twitter. I'm not sure. I don't know JetBlue spirit frontier. They both want that desperately. They Elon Musk thing. I mean, if you are going to buy a company at 54 20, how does the arbitrage not move the shares over 40? Exactly right. It just tells you that the market does not have much confidence in that deal. Let's head down

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"lincoln international" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

02:10 min | Last month

"lincoln international" Discussed on Bloomberg Radio New York

"Experts. Politicians almost always want lower interest rates. The fed's going to keep on fighting. It's the macroeconomic headwinds that are really worrying here. Value continues to break hearts. Now people think of cash as being dirty. No one wants to touch it. This is Bloomberg markets. With Paul Sweeney and Matt Miller. On Bloomberg radio. Coming up, we had some consumer confidence data out earlier this morning, and guess what? It wasn't that great, but we're going to break it down. Nonetheless, plus we're going to talk M and a with rob Brown. He's global CEO of Lincoln international. Rates are rising. What does that mean for M and a going forward but first it's going to reset Craig Jarrett Bloomberg news, but they blew my business flash. Half those consumer confidence numbers show a major lack of happy. Stocks have wiped out their gains as tech companies extend losses and data show consumer confidence tumbled to a 16 month low and earlier rally was driven by optimism with China cutting its quarantine period for travelers and giant Wall Street banks boosting their dividends. There's something else how about earnings. Matt maley and Miller tape tells Bloomberg the upcoming earnings season will not be as rosy as had been forecast. I mean, inflation, I mean, it's hurting their margins. That's the biggest thing. Yeah, we've started to see oil come down a little bit, though, of course it's bounced back. And some other commodities, but most of those only coming down because they've become incredibly overbought. Yes, some of it is that the economy started to slow a little bit. But I guess my point is a lot of these input costs are going to remain high, even if they come down a little bit. That hurts margins that are earnings and that's the main reason why you see that they're going to have to come in. S&P 500 is a little changed right now, Dow Jones Industrial Average is up three tenths of a percent of 83, and the NASDAQ's down 6 tenths of a percent down 72, the ten year, is down 7 30 seconds with the eel of 3.22%. But Texas intermediate crude is up 6 tenths of a percent at one ten 22 a barrel. Comics goals down to tens of percent at 1821 80 and ounce, the dollar yen one 36 23, the Euro, one O 5 15, the British found a dollar 22 even. That is your Bloomberg business flash Bloomberg markets continues now. Matt Miller and pulseman. Great Jerry

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"lincoln international" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

02:20 min | 7 months ago

"lincoln international" Discussed on Bloomberg Radio New York

"Jerry Thank you so much You know we were just talking Matt to rob Brown and CEO of Lincoln international financial He's bringing these people back to work today bringing them back that's easy a man after my own heart I think that's an interesting policy I wonder what the big New York investment banks are doing I mean we can talk about their return on equity We can talk about their trading profits My big thing is one of these folks coming back to work let's check in with shiny bassick She follows all things Wall Street for Bloomberg news Again they're coming back to work at Lincoln financial in Chicago How about here in New York It starting to happen February is really the time that everyone was looking to Let's use Goldman Sachs as an example because they were the most aggressive example last year They bought back their U.S. staff to the offices in summer then an executive told me earlier this month that it was pretty empty in the entire main headquarters building Now they're saying last week that they had about 20% of their employees back and they're entering a stage where they can bring more people back But again it's a bit of a slow walk and February is going to be the big test of bringing people back It's the best This is a general New York State news is a mass mandate from New York State going to expire February 10th I think that's what I read over the weekend I believe so it's extended to Schmidt But what then happens to the individual employers It's interesting Because there's still a split between what you're seeing the private sector do here and what's required People are being a little bit more stringent Most of the firms are still saying that you need to wear a mask in the office And on top of that even more aggressive Paul some are requiring you to get a booster shot as well Okay That's less To me that's less aggressive right I'm happy to get as many booster shots as you want to throw at me I am not happy to wear the mask I'm not happy about the mask I think the plastic things are silly because they're scientifically ineffectual but you see them around corporations around the place Yeah it's almost like virtue virtue signaling Well it's interesting The virtual signaling because some of this is to make employees feel safe to come into the office as opposed to what it's interesting I mean at the end of the day a lot of this is getting people to come back in their own terms It is And it's New York City so financial services along with some other industries is kind of I guess leads the way a little bit sets the tone for at least this city And people should be tougher than the rest of the country Do.

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"lincoln international" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

06:07 min | 7 months ago

"lincoln international" Discussed on Bloomberg Radio New York

"Greg Jarrett thank you very much for that Greg Jarrett with your Bloomberg business flash I want to bring in rob Brown right now He's a managing director in global CEO at Lincoln international financial and we're an interesting time right now rob where I think a lot of people are trying to make the decision Is this a market where I need to get defensive and preserve capital or is this big dip buying opportunity where I can find some undervalued on loved babies that have been thrown out with the bathwater Which way do you see it Well I think we're coming off this record M and a year and it's going to be hard to surpass or smash last year but I think if you look at most companies you look at their forecast for this year There is a sense of economic optimism about performance despite the volatility you see in the public markets And I think if you look here on top of that the amount of capital sitting on the balance sheet of corporates sitting in private equity that wants to be put to work to invest in acquisitions it's still going to be a good year this year Right now where we sit today there's definitely some clouds on the horizon I think the decade we've had of low operating costs low regulation and taxes and low interest rates and inflation There's some clouds on the horizon on that But I think if you look at capital availability and still economic optimism among the CEOs I think there's going to be a desire to put capital to work continue to grow through acquisitions So it's interesting rob I mean I'm just looking at the tech sector from an M and a perspective We started the year off with Microsoft nearly a $69 billion deal for Activision Blizzard and now we've got Citrix systems being bought out as well Are tech M and a I mean it just seems like I thought prices might have been so high that the buyers would have some caution but it doesn't seem to be that way No I agree with you I mean I think the intense demand you're seeing for technology and for digital and data driven assets that's going to continue And I think part of that is everyone talks about the tech world and tech M and a but what's really driving that is every other sector the economy continuing to go through these digital transformations and really feeling the need to use technology in better ways and more effectively to grow their own businesses or to be more efficient So I think if the secular trends in technology probably more so than any other sector of the economy I think you're going to continue to see a very very strong market there And we're seeing that in our business Sorry how does the rising rate environment affect M and a this year I mean if you look at it from a consumer point of view obviously higher rates make it more expensive to buy stuff On the other hand you want to when you see rates rising you want to go ahead and lock those in as quickly as possible Is it the same on a larger corporate or M and a scale Do people see rates rising and say we better buy this stuff now before they rise too much Maybe I think if you back up a minute the reason right rates are anticipated to rise is because we're dealing with inflation that we haven't seen in decades So I think the bigger risk potentially to M and a or company performances how do they deal with inflation And the view I think by most economists is this is going to peak some time this year and you're going to start seeing some of the wage inflation pressure come back So that's what's kind of embedded in And I think a lot of CEOs feel hey I can deal with that I can predict that I can still make my budget If they're wrong on that obviously the rates are in response to potentially overheating of the economy I actually think when people are looking at companies or thinking about M and a they're more thinking about hey how is inflation going to affect my performance And is now the time to go out and buy something or should I pull my horns in a little So rob how about for the small and midsize business here as it relates to inflation It's one thing for Procter & Gamble or McDonald's to say hey we can pass along a lot of our price increases but it might be another thing for small and mid sized businesses How do you think about that That's a great question I totally agree with you I also think you layer on top of that You look at the executives running these companies and I'll put myself in there No one's really had to deal with inflation like this since the late 70s or early 80s So there's not a lot There's not a playbook There's not an institutional knowledge base that you can say well how is this really going to affect our business and how do we respond to it But I agree with you I think if real wage inflation is here for a longer period of time you're going to start seeing that affect company performance because you're exactly right Even some of the big companies there are certain industries where it's very hard to pass on costs and I think smaller companies that aren't as diversified have fewer levers to pull to make up for that All right rob at Lincoln financial folks coming back to work How you guys thinking about that there Chicago Yeah Well it's a timely question because today was our first day back kind of take three Oh that's your first date back Our first day back for everybody was July 19th And it was great We had a lot of fans here We had everybody back in And then Delta hit we had to go back to voluntary And we came back in October again excitement to be back And then all The Crown hit and today is our first day really really wanting people to be back in the office I mean for some period of time and this may be forever we want people in the majority of the week if they're not traveling So that's three days a week So I think we're trying to have some additional flexibility as our people have proven they can be productive really from anywhere but also making sure people are in This is a mentorship business The social capital we serve our clients better when we're together more So we had our staff meeting today and there was.

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"lincoln international" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

01:43 min | 7 months ago

"lincoln international" Discussed on Bloomberg Radio New York

"To check in with in this half hour Tim Courtney chief investment officer at accentual wealth advisers get his thoughts on these markets plus rob Brown He's a managing director and global CEO of Lincoln international I want to talk to him about rising interest rates how much where are we going to see that the most across the globe But first let's go to great Jared I'm going to Bloomberg business last quick Wow we took off for a bit there We're a fair amount higher with the NASDAQ leading all the game Spotify shares jumped higher after Joe Rogan issued an apology over his controversial COVID podcast Breast cancer's black rock global tells Bloomberg some tech behemoths will continue to buck any downward trend When you have companies like Apple you can take any other name within that large cap universe You know they've come under pressure but maybe for the wrong reason because these are not companies where you're looking at discounting cash flow in ten years as we saw last week to generating tremendous cash flow in real time Right now apple's up 1.7% at a 173 22 per share The S&P is of a tens of percent of 35 that I was up a tenth of a percent of 27 and the NASDAQ up over 2% up 280 At the ten years down four 30 seconds the yield 1.78% was taxes intermediate crudes up four tenths of a percent at 87 18 a barrel would come at gold of 6 tenths of a percent 1796 90 an ounce The dollar yen one 1523 the Euros 1206 and the British founded dollar 34 ten I think it found a good deal for you guys on a 10,000 ft² storefront in Manhattan Manhattan's retail.

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"lincoln international" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

05:07 min | 10 months ago

"lincoln international" Discussed on Bloomberg Radio New York

"That affect So I think how inflation is ultimately going to affect business performance is going to drive how to investors think about it And to be clear we're not there yet rob right But this is the kind of the visibility issue that I was touching on before It's just it's a little bit foggy right now It is and interestingly I think what ultimately makes what helps me drive this inflation If you have a central government that pumped 20 plus $1 trillion in the global economy So there isn't a wash of capital Consumers have money in their pockets businesses have money in their pockets And so we're in an economy where in a lot of areas not a demanded it's a supply right And when demand exceeds supply you see inflation And so the flip side of that is I think a lot of the really strong performance of businesses coming out of the pandemic has been a result of a lot of money being pumped into the economy So there's been a benefit of it But as you know the people want that Goldilocks not to not to overheat and not too cold And there's some signs that we could be moving towards overheated Hey rob When I think about M and a I think it is a reflection of confidence Confidence on the board on the part of board of directors and on the CEOs of the world And so when I hear about these incredible M and a results from the big investment banks over the last 18 months I'm like how can they have confidence given what's going on in the world here Do you think this M and a boom has just been primarily driven by liquidity as you were talking about I think liquidity is a big big chunk of it But I also think you're right I mean M and a you have to have confidence You have to have confidence in your own business first before you're going to go out and pay and buy another business If you think of a corporate CEO so I agree with you but I think there's also as you look at where the stock market is and the expectations for growth and a lot of these big companies they're looking at their businesses and saying I can't meet those growth expectations organically I have to go buy So part of it's confidence Part of it is growth expectations and the need to supplement organic growth with acquisition growth to meet the expectation of public company investors All right rob Thank you so much for joining us Really appreciate getting your thoughts and perspective on the red hot M and a market boy putting up some major numbers across Wall Street Rob Brown global CEO for Lincoln international based in Chicago And Matt again it's just we've seen the investment banks You know when they reported a couple of weeks ago just putting up monster monster M and a numbers as well as corporate investment banking but the M and a stuff just kind of jumped out at you Yeah Well MA go is one of my favorite Functions on the terminal and not only can you see all of the deals that we've announced that we've seen appending so far this year almost $2 trillion 2.2 trillion have been completed this year We've seen about 217 billion terminated or 270 billion that have been withdrawn So there's a wealth of information there and if you look across the league tables I love to hit that tab as well You can see who's doing what Goldman Sachs obviously the biggest with 22% market share They've done $1.2 trillion worth of deals themselves And this is just year to date JPMorgan follows them Morgan Stanley B of a and I mean how much did you use to pay attention to this All the time and you know it was a young analyst and you're going to pitch deals It was all about league tables Hey you got to pick us for your deal because we're number one or we're top three and you could always slice and dice these numbers to make your firm look better and as a junior animals that was coming about data I know whoever was more creative hey you know we're the fastest growing or where the number one in market share or the biggest gain in market share year over year and play that game But yeah the league tables are funny But it's just amazing And the key thing here is they didn't pretty much all virtually We didn't even think he could do that but I guess you don't need to jump on planes and put 20 people into a conference room and do all that kind of stuff So I think a lot of people were happy about that though Yeah I think a lot of people especially look I know you're old school deal maker wants to be on planes and he especially wants the kids to be on planes right Because he wants them to suffer the way he did Right But he also might want to spend some time at home You know have a glass of rose out on the porch Throw the football with the kid once in a while And then you can do like Zoom is annoying but if you're still making money you know why get on the plane I go through life up in the air I think times I think this has changed I don't think it's going to go back but we'll see how this plays out All right let's go get a reset here on these markets Let's go to Greg Jarrett We'll get a Bloomberg business flash and we'll start from here Greg what do you have for us We keep bouncing off the top paw it's pretty interesting we get over 200 on the Dow up.

rob Lincoln international Rob Brown Goldman Sachs JPMorgan Matt Morgan Stanley Chicago Greg Jarrett football Greg
"lincoln international" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

08:16 min | 10 months ago

"lincoln international" Discussed on Bloomberg Radio New York

"Greg Jarrett there with your Bloomberg business flash Now when I get to the global CEO of Lincoln international to give us the his outlook for the landscape of M and a in markets right now rob Brown joins us to talk about this amazing amount of activity that we've seen Not just in the U.S. but globally And rob we haven't seen well there have been a number of giant deals that we've talked about that haven't really gone through It seems like there's so many smaller and medium sized deals that we're going to hit another record in 2021 What do you think I totally agree with that The engine really of the M and a market is what you would call the middle market or the private capital markets and driven in large part by private equity venture funds all the institutional capital that has been raised and put to work really over the last decade And I think this year in particular there's you had this backdrop for a few years where there's more capital raise that wants to be put to work in buying companies or sitting on the balance sheet of large corporates then there are high quality companies to buy So this capital imbalance has been around for a while and I think we'll continue for several years This year it's been intensified because there were several deals in several sectors many deals that were COVID affected last year that likely would have got done last year that are getting done this year And then in the U.S. the fear over increases in capital gains rates has pulled deals that maybe left to their normal gestation would have gotten done next year the following year being pulled into this year But by the way by the way you recently have been named global CEO and you know on the one hand congratulations on the other hand wow there's a lot to deal with right now I mean when you move into a new position like that I guess you got to take stock and look at what's going on and there's so many it seems like question marks There's so much foggy visibility because of the end of the pandemic Are we in a new world How do you see it Yeah it's a really good question I will say from a global standpoint you touched upon this in your opening remarks This really explosion in the M and a market is not just a U.S. phenomenon It's global As I think about do I think we're moving into a new paradigm I don't think so I think as we go into next year we're still going to be you'll see a bit of a pullback in the market because as I said there'll be less COVID recovery deals and you won't have I think you won't have who knows with what goes on in Washington but you won't have this tax driven pressure in the U.S. you will still have a market where there's more capital raise than there are companies to buy I think there are a few clouds on the horizon right now whether those clouds dissipate or become storms time will tell I think one of those clouds is inflation You have many people There's people that have been there 25 30 years in their career They've never really dealt with inflation So if we do see inflation in a way we haven't seen it before there may be a pause My sense is that it will be transitory and then they'll be here's how this is going to affect my business here So this is affecting the capital markets I think the other cloud on horizon is China right There is a slowing of growth in China It's a massive market It's having effects on supply chains here We're seeing that Is that going to dissipate or is that going to get worse So again I'm not overly concerned about those things right now but I think those are things that have to be monitored as you think about how much longer can this M and a boom continue That's kind of where I want to go rob It seems to me one of the risks in this M and a marketplace is too much capital chasing too few deals and I'm thinking particularly from the private equity side given all the dry powder they have there How do you think about some of the valuations that are being paid potentially the risk of overpaying for assets in the name of getting capital deployed Yes I think interestingly I think that sentiment has been around for profit in the last three or four years because there was this step function in valuations Driven I agree with you driven by capital availability But it's not just capital availability in the private equity side of it If you look at all the private debt funds that have been raised so the lenders willing to lend at high multiples gives comfort for the equity holders to put equity higher equity checks in it And so to me I think I think most deals are priced for perfection They're not priced for something going wrong or not hitting the forecast in almost every sector So there is risk when things are priced to perfection because it's very rarely that the future plays out perfect The question though is going to be how are the lenders going to react if things pull back And interestingly in COVID when COVID hit and this may or may not portend what's going to happen in the future there was a belief when businesses pulled back when the capital markets tightened up for a quarter that the lenders were going to get aggressive and they were going to start forcing things The lenders actually showed a high level of patients now that may be that they were so overwhelmed by the entire economy stopping on a dime So to me the question of what does that mean for the future it's going to be are the lenders going to work with private equity groups Are these private acres going to support companies that maybe need help if there is a recession and things pull back but the risk of things being priced to perfection It's there And the risk of a pullback you know obviously not total stoppage like we saw during the lockdowns initially But the risk of a pullback in China is real That markets are increasingly worried about it even though we don't really see it in equities I totally agree with you And there's just not as much transparency in that market but as you start hearing things peel back even on what's going on in China evergreen right And they could have their own mini housing bubble over there that will have reverberations around the globe And so there's two elements of that a lot There's been a lot of growth in that economy and that growth has helped businesses around the world that are serving that But there are also a major supplier here So China is something maybe at this page maybe the government steps in I don't know but I agree with you that and I said it earlier That is one of the clouds on the horizon out there Rob going forward what are some of the sectors that you envision being quite active from an M and a perspective I think the sectors that maybe have more secular growth and cyclical growth are going to continue to see high levels of activity And I think the two in our business that we see probably the most secular growth in our technology and healthcare And I think there are certain aspects of the business service economy that also support those areas that are also going to see a lot of growth But I think if I think of the two highest growth groups we're going to see this year It's technology and healthcare and certain sectors of services Yes I mean healthcare seems to be changing so rapidly just the idea that we developed a vaccine within a year and then had reverberations for other medicines that we now expect to be able to come out with The question is one of paying for it right And inflation is that I mean clearly that's a cloud for investors but is that does that tie in at all to the way you look at global M and a inflation I think it does I think it's a hard one to predict because as I said you have executives throughout the world And I look at myself I've been doing this for 30 years I've never really had to deal with how does inflation affect our clients How does this affect our business So I think if we see a spike in inflation that we haven't seen before I think what you're going to see is a pause and that pause is going to first be driven by business performance right Because if it's affecting inputs and people can't pass it on to customers or clients what does that mean for profitability or vice versa If they're seeing inflation in their prices and yet their inputs aren't and they're having what may be views on sustainable profits how does that affect So I think how inflation is ultimately going to affect business performance is going to drive how to investors think about it.

Greg Jarrett U.S. Lincoln international rob Brown China Washington Rob
"lincoln international" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

02:03 min | 10 months ago

"lincoln international" Discussed on Bloomberg Radio New York

"Coming up front get a look at the fixed income business maybe even focus a little bit of minuscule bonds We can do that with RJ Gallo who's the senior portfolio manager fixing company at Federated Hermes Plus rob Brown global chief executive officer of Lincoln international Talk about the M and a market Maybe some mid market M and a how hot is it and will continue to be hot But first let's go to John Tucker and Getty Bloomberg business class jump All right Paul thanks as stocks are edging higher morning trading at Wall Street today with healthcare companies leading the gains for a second day in a row Yet earnings from anthem and anthem right now the best performing stock in the S&P 500 up about 6.9% Technology and energy stocks they're lagging the broader market The bond yields relatively stable today Julia coronado at macro policy perspective says it certainly possible the company earnings could overcome overcome most of the short term challenges that she sees out there So we've been in a highly profitable highly productive economy despite all of these frictions and challenges does that continue to be the case do these problems get solved and we hum right into 2022 That's not an unlikely scenario A railroad operator CSX and of course a Palo Alto based Tesla report financial results after the market closed to several other big companies going to report results tomorrow they include American Airlines Southwest as well as Union Pacific Right now the S&P 500 fourteen points higher that's up three tenths of a percent That's paired some of the earlier gains at 45 34 the dungeons industrial average is up 136 points That's a rise of four tenths of a percent where 35,594 and the tech have a NASDAQ composite index ten points higher right now at 15,140 and we check the markets for you every 15 minutes during the training day right here on Bloomberg radio I'm John Tucker And that is your Bloomberg business flash Matt Paul John.

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"lincoln international" Discussed on P&L With Pimm Fox and Lisa Abramowicz

P&L With Pimm Fox and Lisa Abramowicz

04:31 min | 1 year ago

"lincoln international" Discussed on P&L With Pimm Fox and Lisa Abramowicz

"Worth individuals. Riskier loans obviously with more risk. You expect more reward. Olivia i'm on. Wrote the story with heather perleberg and olivia. What what are we talking about here. How risky and kind of returns. Yeah for sure you know. Thank you for having me on the thing with private credit And that's where these investments are in there within the a private credit market loan to middle market companies It's extremely opaque market. A lot of the loans are not subject to ratings by credit graders and before the ten donate there was a lot of concern about how the asset class would hold up in a downturn at the same time these the market is really liquid lenders typically hold these loans for the maturity of the loan and they don't really trade on the secondary market so you can't an investor can't pull their money out in a pinch like with a stock or a bond But that being said some of these annualized returns are surpassing eight percent. So that looks pretty attractive. When you're looking at what yields are globally right. now livia. how much. How far do you think these pe- firms are looking to go out on the risk curve. I mean when you're talking about somebody's leverage alone. You can get some leverage on a net that the the four five six times which can be really challenging if you if you go into an economic downturn like we experienced in two thousand twenty. How much risk do you think they're willing to take a very good point. There's actually a recent report that just came out that leverage levels within the private credit market have remained relatively stable through the pandemic. But you are still talking like you said around four to five times and when you're looking at the upper middle market Where the loans are surpassing one billion dollars. We've heard of deals that are getting done with eight kind of leverage so there is risk there right now. The default level in middle market companies has dropped to a three-year low. That's data from advisory firm lincoln international and So so the risk has abated right now but that's also been bolstered by all the fiscal and monetary policy. That's been flooded into the economy right now. So there's always going to be risk with these loans obviously the more debt that you tack on and the more leverage the riskier. They're gonna be and it. Would i mean it would strike me that you know if it was a more risk free scenario or better returns scenario institutions would be getting this if they're shopping around to individuals as sophisticated as they may be. That's gotta be a concern well so it's interesting. so actually. These are products that traditionally have only gone to institution so institutional investors have been the primary investor within private credit endowment fund pension funds. Now private equity is trying to do is. They're trying to pack this new pool of investors previously retail wasn't allowed into these fun partly because of the risk and now they're lowering the bar and offering it for high net worth individuals..

heather perleberg Olivia olivia livia lincoln international
"lincoln international" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

05:28 min | 1 year ago

"lincoln international" Discussed on Bloomberg Radio New York

"You so much. We appreciate that many parts of this economy are really, uh, expanding on the other side of this pandemic. As the US begins the long reopening process. One of those areas is mergers and acquisitions. We see that from the big investment banks, putting up some really blockbuster numbers over the last several quarters. We want to get the latest On the M and a market. We chat with Rob Brown, he's managing director and CEO of North America for Lincoln International, Rob. Thanks so much for joining us here again. We've seen some numbers out of some of the publicly traded investment banking companies talk to us. Give us your perspective of the M and a market as this. U. S economy really begins to reopen. Well, I think we have had and you've seen the numbers. As you mentioned. We've had a really, really active first half of the year in terms of number of merger and acquisitions transactions, But as importantly, Got a blockbuster values and it's our view based upon our activity at the second half is going to actually be more active than the first half. That's so interesting, too, because I was wondering how much this would become a feeble for the big banks. If you look at it. Goldman, JPMorgan Morgan Stanley. They each have the highest share in market share that they've had in a couple years. Goldman Morgan's JP Morgan more than 30%. And some of their other businesses, Rob are are going to struggle a little more than they had the last couple of months. Is M n a going to keep Wall Street popped up. Propped up Yeah, I think it's 100% is going to keep it propped up through the end of this year for sure and and likely in the next year, and there's a few reasons for that. I mean, if you look at just the conditions for a really Active in a market in terms of transactions and values. One We're still in a position where there's more capital sitting on the sidelines on the balance sheet of large corporate and sitting in private equity funds and other financial investors, there's more capital available than there are high quality companies to buy so that supply and demand imbalance. Is going to create high values and you layer on top of that a good number of deals that should have gotten done last year that were covid effective that are now springing back as the economy recovers, and then layer on top of that. Lot of businesses that left a normal gestation might sell in 2022 or 2023 beyond are being pulled into this year for fears over a material increase in capital gains rates coming out of the Biden administration. So you have You have a level of activity that is really just more than anyone year and putting on top of that, and again, I'm piling on her little If you look at where interest rates are, there's two effects of that One is death is essentially free for many of these folks. But more importantly, when interest rates are this low, the large institutional investors looking for return there just allocating more to alternative assets and one of the most attractive elements of alternative alternative assets. His private equity, so these firms can continue to raise more and more money and the more they raise, the more pressure. They have to spend it. Talk to us about valuations here, Rob. You know, I hear all this bullish talk. You know, all the drivers here for supporting Emina and I've seen in past cycles. Unfortunately, firsthand, In some cases, a lot of bad deals get done towards the end of a cycle. Give us a sense of kind of evaluations that you're seeing out there. We would say, um, really across every sector. They're the highest valuations we have ever seen. And you might say. In fact, I'll say it's very rare where we're selling the company that's not in the double digits of of of cash flow, multiples, multiples and And again, that's that's across the firm. And then there's some. We're seeing that are trading at 20, plus times, earnings or even d A, um so the and you You talked about it about the you know the potential with government subsidies ending and what that's going to mean for the consumer. But right now, all the businesses we're selling our way outperforming last year, and many of them are outperforming a budget, which was pretty aggressive budget coming in, so you have strong performance and a lot of it is. There's a lot of money pumped into this economy by the global central banks, and it's starting to take effect. Big cloud on the horizon, potentially, and we're not seeing it affect performance, And this is where you can see some of these businesses tighten up is inflation. Now that's something economist have been worried about and talking about for years, but there seems to be A little more concerned when you listen to the central panics, and the economists about it was all this money pumped into the economy is inflation going to become an issue here? Rob. Thanks so much for joining us really appreciate it. Getting your thoughts on the M and a business hot as ever Rob brownies and managing director and CEO of North America for Lincoln International, and We're going to see that starting next week with the companies that you covered so closely, Shonali will get a real good look at their, uh M and a business and pipeline record pipeline so far. Yeah, it's been interesting. And so again, uh, all the topics are there all the drivers that they're low interest rates. Lots of cash, maybe a little bit of a deal's postponed from last year. So all types of deals IPOs, mergers and acquisitions. Got to wonder what it means for job cuts. Got to be honest, Yeah, interesting, But maybe it's job creation for the investment banks. They need some folks to process all those deals. But again, it's really fascinating to pay attention to those big bank earnings that starts next week that Shonali will be covering right now. Let's sit.

Rob Brown 2022 2023 100% Rob Goldman last year next week Lincoln International JPMorgan Morgan Stanley second half next year JP Morgan Goldman Morgan 20 Emina two effects more than 30% one each
"lincoln international" Discussed on The Economist: Editor's Picks

The Economist: Editor's Picks

11:07 min | 1 year ago

"lincoln international" Discussed on The Economist: Editor's Picks

"In europe croatias rim atkins spain's hispanic sweetser building hyper-cars while britain's arrival is manufacturing electric vans american companies such as canoe fisker lordstown lucid and riven. Hope to start full-scale production soon. Foxconn taiwanese contract manufacturer. Better known for making apple's iphones may soon also be assembly. Electric cars forever's as for apple. It's next gadget could be an icon. For most of the insurgents a loss making some have yet to earn any revenue. But all see chance to grab a slice of an industry that has turned decisively in the direction of battery power. Everyone wants to be the next tesla which has successfully used batteries and clever software to take on the internal combustion. Engine in the process. Elon musk's for has become the world's most valuable kong company with more than the next three biggest carmakers combined tesla's six hundred billion dollars. Valuation serves as a torture. The front says but wimmer of ian coa consultancy now. Investors are looking for the next beacon neo listed in new york can twenty eighteen expert and lee followed suit last year. Oh are worth as much or more than any established. Carmakers arrival and several of the american firms have used merges with special purpose. Acquisition companies or specs as a shortcut to public markets and evaluations in the billions patrick von herz of lincoln international an investment bank calls it a global feeding frenzy. Xiaopeng expense boss said. He expects the market to swell to three hundred also firms before settling around ten out of the challenges. Avoid the fate of the forgotten. The basic blueprint for survival involves three elements. The upstarts must i find niche from which they can expand they then need to produce 'cause at scale finally they have to create a sales and distribution network. Most will fail at one or more of these steps. Ironically those are the best odds of emulating tested success. Maybe the ones that look least like it's start with picking your battlefield. That could be geographic philippe who schwa- of jeffries another investment bank. Reckons that the next tessler will come from china. Consumers hungry for new tech or the government came to support electrification of given china's insurgents. A head-start neo the largest of the lot made forty four thousand cars in twenty twenty if he's valued at sixty nine billion dollars the market capitalization of x. pong and lee respectively twenty eight billion dollars and twenty two billion dollars on also juicy rich access to capital helps fund expansion at home and abroad x. Peng has already started selling cars in norway. Home to europe's most enthusiastic. Ev buyers neo is about to join it even more important than geography is choosing the right market segments. Tesla's note the first to make evt's but it was the first to make big and pricey premium ones with a high cost of the battery could be absorbed. Many new firms are also aiming at premium. Suv's and saloons where profit margins are fattest but competition is hotting up from established. Carmakers such volkswagen's audi and porsche brands as well as mercedes in april geely. A chinese firm with global ambitions launched a premium electric mark called zeka the mass market. Meanwhile is likewise busy with gm and ford the ladies to announce a big electric push other segments may therefore be a better bet. Wani's light commercial vehicles demand for which has been boosted by the pandemic e. Commerce boom alastair hayfield of interact analysis. Consultancy sees new test for yet for delivery. Vans carmakers are merely pumping. Ev powertrains into existing products. And i'm happy. Compromise that affects performance let leaves opportunities for firms like a rival and ribian another potentially lucrative. Niche is the hyper car. Wealthy petrol heads seem winning two four count two million dollars also to add to their stables and pininfarina of italy. Also see these causes testbeds for ev technology to sell to other car firms china's silk. Ev considered its hong g. s. nine hybrid as a gateway to the mass market. Identifying the right segment may not be enough however. Brian goo president of x. Peng admits that the new firms must offer something different for years. The industry's technologically. stodgy incumbents. didn't realize it was a take race says peter role instant who runs lucid as cars become more like personal electronic devices being tech firms. I and carmakers second may confer an advantage folks cons boss. Young new has argued that the driving experience of the future will be software driven and software defined novel intellectual. Property is a good visiting card for investors says pedro pacheco of gartner a consultancy bought. It is not enough to stake big touchscreens onto a standard electric powertrain as many chinese tested. Copycats doing the over the air software updates proprietary charging networks and online direct sales pioneered by the american confirm and now seen as table stakes so the newcomers had trying to stamp their own technological mark on the industry. Lucid techies have extracted range of up to five hundred seventeen miles. That's eight hundred and thirty two kilometers from its batteries neo offers three minute battery. Swap service to reassure chinese buyers without access to home charging ex punk claims that its voice. Activation system is the best in the business fisker and canoe offer subscriptions that give motorists access to call us rather than ownership ultimately buyers will decide which of these are desirable features and which a gimmicks but not before the new models are produced and sold making a few thousand cars. A year is hard enough though losing money. Doing so is easy actually. Selling hundreds of thousands of the prophet is another matter entirely production. Hell nearly sent tesla under a lead on fashion. Software must be backed up with giant presses. Paint shops and assembly lines as such manufacturing v. Is in many ways not much different to making a petrol car. According to bernstein a broker and no less expensive a new purpose built car factory. That can churn out one hundred thousand also vehicles a year costs at least one billion dollars to get around this problem. Solve the challenges are instead repurposing existing factories as tesla did by calling a disused one in fremont california for a song. Ravine has moved into an old mitsubishi factory in illinois other newcomers are teaming up with the old guard with experience of maintaining long and complex supply chains by do has entered into a partnership geely and walk away with its domestic rivals bike chengguan and g. a. c. fisker in neo an asset light route by using contract manufacturers of the sort used by big carmakers to make small runs of cars or those with finicky features. Such as folding roofs. Arrivals approach may be the most innovative. Where tesla and others going giga. The british firm says micro commercial vehicles. Do not require the styling or customization of passenger cars sell. It is a skewing production lines for cell assembly. Of course it panels. This can be done in small industrial units. That cost just forty to fifty million dollars to buy and retool these can produce ten thousand vehicles a year. Costa markets adding scale with less risk. The final hurdle is flogging the vehicles to consumers the new ev makers mostly dispensing with traditional dealer networks in favor of tesla's model of online sales backed up with shops to show off their wares. That still leaves the challenge of creating a servicing network if anything goes wrong such networks which car buyers have come to expect can be as expensive and tricky to scale up as manufacturing is mr pacheco of gartner. That even tesla's is still a work of progress in america. The big three detroit carmakers have nearly ten thousand dealerships. That will serve his. 'cause tesla has around one hundred and thirty five. Many new firms won't get that far. Several have already suffered. Setbacks dyson a british firm better known for vacuum cleaners sank. Five hundred million pounds. Let's six hundred and forty million dollars into an effort. Only to conclude in two thousand nine hundred not would never make money the same year neo teetered on the brink of bankruptcy until the local government in its home. City of her fe bailed it out a bloodbath awaits. China's midi add small that evi firms as they run out of ideas and money fisker is a reborn version of a firm. That went bankrupt in two thousand thirteen as the complicated reality of commenting sets in the hype is wearing off. Among investors lords towns value has fallen by sixty five percent since peaking in february after it lowered forecast production for its pickup truck and said it needed fresh funds. Canoes shares are worth less than half what they were when it went public in december owing to growing doubts about its business plan in short notes cars aurora of g. consultancy. The new firms need to establish brands so far. He says only tesla has done so it can take years to gain a reputation for reliable products while capital burns like petrol. Put to a spark. A new entrant needs a trusted name. Deep pockets and proven ability to come up with clever tech one company that has all those in spades is apple. The maker has been working on. Ev for several years. The latest chatter is that it will have one in production by the middle of the decade. Some of its potential competitors will by then be well on the.

patrick von herz iphones new york america february volkswagen six hundred billion dollars Five hundred million pounds illinois twenty eight billion december Tesla apple norway sixty five percent Brian goo ten thousand vehicles china one hundred thousand hundreds of thousands
"lincoln international" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

06:19 min | 1 year ago

"lincoln international" Discussed on Bloomberg Radio New York

"Lincoln International. So well, we've had so many deals this year. I mean today. Obviously, there's a nearly $10 billion old stock deal in the shale fields but touches generally about the appetite for companies getting together this year. Well, the the appetite right now is incredibly strong way obviously went through a period earlier this year when the economy shut down and you saw it fall off and deals and What we've seen coming out of that is companies that have a good story to tell. Meaning. They either performed well during the economic slowdown, or they bounced back or their beauty sector that is going to Maybe be more favorable. Post Cove it. Those companies are out for sale, and what we're seeing is his investors, both strategic and financial are aggressively putting money into those businesses and in many cases We're seeing valuations of those businesses at the same or even better than pre covert level, So that's an interesting you know, part of the discussion for me. Why are Isis holding up? I mean, you know prices for almost everything you know, are not holding up the way they were pre Co vered on DH. And yet it seems that for cos there isn't that much of a discount a covert discount being built into these prices. What am I missing? So I think it's two things one. I think it's classic supply and demand so much capital was raised over the last five years, particularly in the private equity world. But but also corporations going into the downturn, you know, had stockpiles of cash. So you had capital that wanted to be put to work in acquiring companies that for a period of time During the past year, It was unable to be put to work. So you have the demand to put capital the work and then you have kind of a natural selection. The company they're coming to market right now are the best companies. As I said, they're the ones that show growth during the downturn. They're the ones that Aaron resilient sectors that were proven to be essential. So I think as a result of that You still have more money that wants to put the work in buying companies, and there are high quality companies to buy and that supply and demand has kept prices very elevated. What about people trying to negotiate stock for deals? I mean, we definitely saw that that set off back in March. Obviously, we've recovered a loss of ground. But at the same time is it more beneficial for companies trying to an old sock deal or a major portion of the deal in stock? I think that's very company specific. I think to the extent companies feel their stock is still a little undervalued. They tend to not want to use stock. I think to the extent companies feel like a my stock is fairly valued. They want to use it. So we are seeing it used, but we're not saying it's being used in a materially different way than it was pre coping. Election. So there is the very strong possibility that both the White House and Congress turn blue on November 3rd and that tax policy will change including the capital gains tax policy. Are you seeing people actually come to market with their business because they don't want to have to face paying what they might have to pay pay? Intacs if they wait until there is a potential Biden presidency to sell their business. Yes, We are definitely seeing that in interesting We as I said, it's become a very hot lemon a market and I think what's happening is the fear of cap gains rates going from 23% 37% or You know, the Trump administration would like the lower 15. That fear is actually pouring gasoline on what already is a hot market. So not only are we seeing, um in particular private sellers, uh but not only are we seeing company to come to market we are in the market with some things where the sellers are saying, Listen, I know initially I said, Hey, If this closes and Kyu won, that's fine. I'm not in a hurry. What we're hearing is, I'd really like to get this done this year. I don't want to take that risk, even though traditionally when Congress makes a tax increases, they make them effective next year when they make tax decreases. They have on occasion made those affected to the beginning of the year. But but legally in legislatively They can do whatever they want. And so we are seeing sellers feel like the theology of the blue wave are probably better than they felt they were a couple of months ago, and they just don't want to take the risk of having to pay. Doubled in taxes. If they sell their business. I have to ask you about snacks they blew off this year. I mean, there were a couple of big ones and then suddenly, almost everything related to dealmaking seem to be You know, back being raised its the new private equity or something at what happened to have this explosion of special purpose acquisition vehicles. Well, that's interesting because we are seeing packs have more interest in our fields that were selling than we ever had in the past. And I think part of it is, uh, backs were you were historically viewed as the capital of last resort. They were very diluted to sellers. And they may be weren't raised by the most reputable investors. That's changed. I think people are feeling like a fax or a way to access public markets without having to go through. You know the typical roadshow on AIPO, so they still could be more diluted than a sale. But I think part of it is, um again. It gets back to the ability to raise capital until a lot of facts were raised. Prick Ove it. That needed to put money to work there raised by sophisticated investors with good reputations, and, you know, I think, as the public markets have held up becoming public, it's still for the right company. It's a way to go public in a quicker and sometimes cheaper way. So we are seeing more specs than we've ever seen. They're not the right outcome for everybody. But we are seeing them participate more in the companies we have for sale. I's umbrella, but thank you for that day's always fascination to speak with Rob Brown, CEO of Lincoln International on the deal, Landscape on Scan a major deal today in the shale space Control being bought by Kanako for 9.7 billion. Let's Get to D C Now and news Update with Nathan Hager. Right, Bonnie. Thank you. Treasury Secretary Steven Mnuchin.

Congress Lincoln International Post Cove Isis Nathan Hager Aaron Biden Kyu Bonnie White House Steven Mnuchin Rob Brown CEO
"lincoln international" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

01:45 min | 1 year ago

"lincoln international" Discussed on Bloomberg Radio New York

"Bloomberg markets. The moment we're talking deals with Rob Brown of Lincoln International, and then a conversation on the election. Good sensors and Big tech with Neil Ferguson of the Hoover Institution first, Let's get a boomer business ash from Greg Garris. Stocks move from green to Red Bonnie and then from red back to green just a little while ago, investors are watching any progress toward government spending bill treasures have slipped along with dollars. SNP did EJ firewood talks between House Democrats and the White House slated for later today, savings are running out for unemployed workers and more fiscal policies needed to support the economy, according to former Fed chair Janet Yellin, who spoke with Bloomberg Unemployed workers for $600 a week in July. They used that to stay current on their bills to support their spending the stash someone for the way you've been able to get through this last Couple of months and pay their bills, But it's running out. We check the markets every 15 minutes. The essence is now up to 10% of seven. Dow's up to 10% of 45, the NASDAQ's up 2/10 of a percent of 22 10 years down 9 30 seconds with a 300.77% West Texas intermediate crude is now 6/10 of a percent of 41 11 of Barrel comics. Gold is up 3/10 of a percent of 1912 50 announced. A dollar yen one of 5 €41 dollar 17 91 in the British found a dollar 33. That's a Bloomberg business Flash. I'm glad Jerry This is Bloomberg markets with Paul Sweeney and Bunny Quinn on Bloomberg Radio. It is time now to talk deals. It has been quite a year in many, many different ways. Let's bring in Rob Brown, CEO of.

Bloomberg Rob Brown Bloomberg Radio Red Bonnie Hoover Institution Lincoln International Greg Garris Janet Yellin Neil Ferguson White House Fed CEO Jerry This Dow West Texas Paul Sweeney Bunny Quinn
"lincoln international" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

05:44 min | 2 years ago

"lincoln international" Discussed on Bloomberg Radio New York

"Larger companies and Maura fluent consumers are doing well versus some of the smaller companies unless affluent consumers are not doing so. Well. Our next guest can really shed some light light on that Ronald Con managing director Lincoln International, Ron. I know in your practice you really deal with small mid sized companies. I wonder if you can take a broad stroke and tell us how you think those companies were faring in this pandemic economy where there's been so much disruption. So so the companies that we deal with at Lincoln, primarily companies that have earnings between let's call it 10 Million on the downside and $100 million on the on the upside. And I think that what we're saying is, it depends upon the industry. So companies such as GM companies that air that software driven or health care companies that have been Immune to what's going on in the pandemic. They've actually fared quite well. On the other hand, you have companies, you know they were in the in the airline industry, the hotel industry The health care Only spa industry that have that have done quite poorly. I'm gonna have trouble during this pandemic. So industries that are out of favor The companies that are in those industries. How long four. Can they survive on things like loans? Low interest loans, help from yourself help from Paycheck protection programs and so on. That's a really good question. And I think a lot of it depends upon how long the pandemic goes on Most of the companies that we deal with a private equity own company, and we by and large private equity has Supported the Contact Cos that they have invested in they have put in more capital. Their lenders have been supportive as well. And so at this point they've been managing to keep those companies alive. But if this continues and these companies, they continued to shut down, I lose money. It's going to be difficult for them to continue to support them right now. And I want to follow up on that in terms of access to capital we've seen Just in a credit marketing the investment grade and even the high yield market for large issuers. The market is wide open, they can borrow at historically low rates. There's a lot of investor demand, but for smaller and mid sized companies Those capital markets are not always available to them, so they need to go to their local lender. Are the local lenders still there supporting them? Because we see a lot of You know banks, adding to the reserves. So I think I think private equity companies and again these these air tends to say $100 million. Even today, cos they tend to use the private credit market before 2008 these these companies probably didn't even exist or that we're just Few of them today. There's quite a bit of them and the credit private credit market is said to be close to a trillion dollars in outstanding capital Today, those those lenders are still available. They get their money from pension funds, endowments. Not that similar to what private equity gets their capital from and particularly for companies that are that are having stable, consistent. Learning today. They are definitely available and lending money to those companies. If we get a vaccine, do you know Cos roar back quickly or as pull us in a previous interview, have spending habits sort of change structurally now. You know, it's interesting. It's a personal bias, but I actually think that self administered testing might be even better than a vaccine. At least what I have read. Vaccines at best 70% effective, though, that different not that different than a flu shot. But if we all can get up in the morning and to a self administered test and find out within a very short time that we're where we don't have the virus, we actually can congregate and not have to wear a mask and I have to be apprehensive about Being with each other. So I'm hoping you get to a restaurant. You test you test yourself, and then you can go in and that That's me will be a lot better than the vaccine. So, Ronald, the companies that you talked to that have you seen companies go bankrupt At this point? Do you expect to see bankruptcy rate across your portfolio Start to spike. You know, Paul. It's a really interesting question, because we we track on the valuation side portfolio company 2100 different portfolio companies. We do the valuations of them every quarter. All these private that funds and we have. We have very surprised at how few cos not only have not had to go into bankruptcy but have not been taken over by lenders. They have been really patient. They have worked really hard with their private equity sponsors to make sure that these companies can can survive and so very few of them have been taken over. We've seen we've seen where they put equity and both the lender and the private equity group have have put in in Capital. We've seen them been willing to change covenant. So these companies have survived. But cute too. I think you know, at a 21 100. It was almost one hand you could count the number of companies that were taken over. Very quickly round round of time, But have any of these 2100 portfolio companies? They're getting rid of brick and mortar real estate. Quite a few, particularly the realist, realistic retailers, that's for sure..

Ronald Con Lincoln International Lincoln Maura managing director flu GM Ron Paul
"lincoln international" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

09:47 min | 2 years ago

"lincoln international" Discussed on Bloomberg Radio New York

"A barrel call my school is down less than a tenth of a percent on a dollar ten to fifteen seventeen ten an ounce and the euro one point one one nine seven against the dollar the yen and one oh nine point oh Siri pollen Lisa Karen thank you so much for that right now we would take a look at the outlook for the hedge fund industry which has been under fire for years the fifth consecutive year of client withdrawals that's were poise for and yet the assets continue to climb with the total asset still climbing above three trillion dollars night Bostick who covers all things financials for us here at Bloomberg news as well as Bloomberg television joining us now what's your sense of where we are in the hedge fund sort of I don't know weeding out cycle they were in the weeding out is the right way to put it I think because more than four thousand funds have been liquidated in five years according to bloomers Nishat Qamar that sounds like a lot however there is a really big find still raising a lot of money and so it's not like the industry's dead it's just consolidating among the bigger players the citadel's the millennium's and the new guys that are coming in here with a big get resumes that people are still giving money to despite the lack of a track record yet what I find interesting is that the long short equity business continues to attract money I guess and it's just really hasn't formal I would argue since two thousand six that's my own personal view what's going on it can I start can that person come off the trading desk of Goldman Sachs Morgan Stanley because and here she had a great run there and go and raise a billion dollars you know I know some of those guys and yes funny thing I that's what people are so raising money and he is if you looked at it at the middle of the year even late last year big institutional investors are pulling money out of hedge funds for all the reasons you're saying Paul so each of the well why they're so raising money is still a bit of a question mark to me the best answer I can give you is volatility is coming back and so it's becoming more of a stock pickers market not all the tides are rising necessarily like they were in the last five years or so and so there's a hope at least that some of the stock pickers will start to win out events driven strategies actually are the ones that are doing better than most in terms of capital raising and again that's because they're picking specific bats it's also there's been a bit of a transformation certainly in the distressed debt side of the hedge fund world where there's actually a change in the structure of some the funds to resemble private equity more if people don't want them to pull their money right basically and the the logic here on one hand you could be cynical and say well of course they want to pull their money because you know if you walk a man I you got a lot more flexibility and you get to earn the fees for longer the less cynical take is they want to invest in companies longer term and be more active with respect to how they interact with those companies that's a whole but see how it works out I think even non there's distressed at where we've seen a lot of carnage in last couple of years but you're right also a lot of capital raising and then on debt in general private credit is the hottest had fun strategy in total and so watching how many both private equity funds and hedge funds moving into that space it's going to be really interesting because you're right they do have a different sense of what duration looks like and it should be noted that there is a story to the to that effect basically talking about Arizona's forty one billion dollars state retirement system and how they're looking to dedicate one out of every six dollars it manages to direct lending their story out the blubber turned out today they just to basically with the same kind of theme the idea that this is the area people are gravitating to because it's offering higher yields at a time of such sparse returns interesting so tional another theme that came really interesting in twenty nineteen was a fact we saw some big time long time hedge fund folks return outside cash to their investors and same basic rams gonna kind of manage my own money is that an indication of just tough to make returns out there yes I want to point attention to lose bacon for example because Louis bacon was a longtime macro manager and people like Louis speaking used to make a lot of money off of some outsized bets but the thing is the nature of the macro industry these days is you're making a lot smaller consistory bats that are highly levered for example and so the way that macro managers raise money and put that to work is really different and investors are a lot less patient for these really bold bats that can lose you a lot of money I mean there's another way of looking at a more cynical way I made a ton of money done well why deal with pesky investors who I mean seriously right be able to go out make the bold but you want to make without having to be accountable to anyone and you're seeing places like blue crest yeah blood out of the water once they return to that kind of strategy of we're gonna just do us you have to be comfortable with the risk it's kind of like venture capital right you have to be prepared to lose some money sometimes and a lot of investors in hedge funds have not been as comfortable with that which is sort of leading to this conundrum where they're actually hedge funds but if they don't deliver the sink kinda returns is the equity market issue of how long of a time frame you look at how much you're paying it fees Bridgewater's pure alpha for example has been a poster child of that question mark so tional another theme for twenty nineteen looking at the company specific Goldman Sachs you know really changing the focus of investment banking or or modifying it will be to include maybe go down market a little bit to mid market as opposed to simply focus on those global fortune five hundred companies enters into startle a story in the on the Bloomberg today about than actually hiring some bankers from some smaller firms the focus on these big market deals so go over has been trying to do this for some time now I think what's remarkable is their team is now a hundred fifty people it's a large team across America focusing on this and they're hiring from JP Morgan which is already has a very big network of bankers doing this and Wells Fargo along with pieces you would normally **** Goldman hiring from Piper Jaffray Lincoln international places that focus on the middle market the middle market is big and a lot of private equity firms and family offices which are emerging as huge buyers are focusing on the smaller deals and then holding them for longer consolidating different industries and so I've got to say at least from my perspective yes it makes sense for them to this for a lot of reasons but those private equity in family office clients or maybe the the richest reason so interesting and of course is extremely common sacks is doing this is they try to basically find their new identity you post trading boom the right are not new but it is a tweak their identity in any case should I buy sick thank you so much shy about six covers all things financials for us at a Bloomberg news Bloomberg television Bloomberg radio Bloomberg beyond that's right where right now we are looking at markets I that are a bit higher as well no no they turned they turn thank you to everyone they turn negative so much I don't know your stock strip as dollar drops with treasuries well the dollar had been drafted dropping but markets rap I know what it will say will continue to monitor this that were off of our record highs here but modestly so we're still looking at the eleventh best performance for the S. and P. five hundred going back a through history since nineteen twenty eight read the records began exactly so you know I think this anything about it it's a one consistent theme here for me I'm putting trade aside is just the fed and the feds appears to be you know on the sidelines done for twenty twenty and that's I think what's been the big driver and to that effect I think that the big story of today really is the yield curve steepening you're saying the steepest levels in the gap between ten year in two year treasury yields going back to October of twenty eighteen as people reassess the longer term inflation outlook I'm Lisa Abramowitz with Paul Sweeney and this is Bloomberg surveillance NFL headlines right now with Michael bar Michael bole eastern have some breaking news here the end of the regular NFL season also means for some of the coaches it is the end of a run there's late word that Pat Shurmur has been fired by the New York Giants after two seasons this year the giants finished at four and twelve yesterday the Cleveland Browns fired Freddie kitchens as their head coach the man accused of barging into a rabbi's Muncie New York home and stabbing five people at a Hanukkah party has a long history of mental illness and hospitalizations that's according to a family statement issued by his attorney Grafton Thomas was arrested about an hour after the attack witness Joseph Gluck says he takes issue with reports that the suspect is mentally ill in my view would be somebody of the mentally ill should come in and give up on the dollar list all the current the only country is not the come out and and and and and and you know try to make a massacre that's a that's not a medical is that say absolutely heinous crime is not a mental illness all your photos Thomas is being held on five million dollars bail authorities are still investigating why a man walked into a Texas church and opened fire killing two parishioners during a Sunday service armory shooters then shot back killing the gunman according to police global news twenty four hours a day on air and own quick take by Bloomberg powered by more than twenty seven other journals nettles more than a hundred twenty countries Michael bar this is Bloomberg call Mike of our thank you so much after having a little bit of a green in the futures market cash market opens up nasdaq Dow S. and P. down just like this is going.

Lisa Karen
"lincoln international" Discussed on Influencer Networking Secrets Podcast

Influencer Networking Secrets Podcast

15:47 min | 3 years ago

"lincoln international" Discussed on Influencer Networking Secrets Podcast

"Welcome to influence or networking secrets Paul all Edwards in. I have a brand guest this week. I'm excited to welcome Lincoln Coloma to the show Lincoln International bestselling author of unleash the supernatural we met through the bestseller publishing mastermind and she is GonNa come on to talk talk about spiritual benevolence and diligent care for our body. We're GONNA WE'RE GONNA talk about influencing the body because she's got this incredible story <hes> that involves healing herself what was thought to be permanently disabled limb as well as bouts with cancer and also with other illnesses that cropped up in her body over the years so hopefully this.

Lincoln Coloma Lincoln International bestsell Edwards Paul
"lincoln international" Discussed on C-SPAN Radio

C-SPAN Radio

16:16 min | 3 years ago

"lincoln international" Discussed on C-SPAN Radio

"With your defense line spending down they found out that that money had already been extent. So they clearly not already doing the wrong thing. They don't know what they're doing. This could be very dangerous and for many reasons dangerous to the constitution. But also to our readiness, and I think Mr. Castro for his papers. Our next question comes from Anna Edgerton from Bloomberg your line is now open. Hi, thank you so much for this. Call two questions if I could one my understanding is that the Senate could amend this resolution. I know it has to take it up within a short timeframe. Is there a plan for a conference committee, and how will the democratic led house handled that it also does a democratic led house plan to also file a legal challenge to this emergency declaration? The first question is question to be directed to the Senate that the privileged nature of this. Much of this resolution, very carefully constructed by Mr. Castro, and I think and for his care in that makes it a resolution that goes to the Senate and the expedited manner. Do not anticipate. There would be any amendments to it on terms of what what else we do. Well, we have. We have five committees of jurisdiction of that might have reason to file one thing or another they'll be working in a very focused strategic way as to what we might do next in that regard. But I'm not announcing any of that today right now today, it's about this resolution. Thank you house. Speaker Nancy Pelosi teleconference earlier today with her Texas democratic congressman Joaquin Castro. Our next question comes from Lisa discharged from PBS. Your line is now open. Thank you. I've got a couple of questions about the money. One. Madam speaker the two billion dollars in the account that has already been spent out is that a reference to section two eighty four. And then the other question is about the section twenty eight oh, eight the military construction funding. Is it your understanding that the president must notify you not just the amount of money, but exactly which projects he targeting before? He can get that money. Depending on how the president of approaches because as you know, his shall we say fidelity to the regular order and the constitution of the United States has not been something we can depend on. But the regular order of things would be that the president would convey his request to the chairman of the committee. The chairman of the committee says yes, or no that has never been overruled. So this is depending on it protein takes we'll see but we've prepared for the worst. Because right now, the president is engaged in the worst, which is to undermine the constitution of the United States. I'm in the waiting for questions. I'm in Laredo right now. And. Of course of this. Visit I'll be joining a constant and others the whereas Lincoln international bridge will visit the border there and. I see. Again. He had again another. We've had many many congressional visits to the border and many of our members as congressman testers that represents the border. So we wanted to be as current as possible. What is happening there? And there's no evidence to support the president schools. Claim a crisis on the border and any visit. People should visit and they will see the wisdom legislation that was passed any bipartisan by cameras. Before congress left on this congressional recess. Period. Our next question comes from Jennifer Rubin from the Washington Post. Your line is now open. Thank you. Madam speaker and Representative Castro has anyone spoken to the acting Defense Secretary to determine what his views are on this. And what projects are going to be sacrificed. And Secondly matter speaker, if you could speak to why you think it's important for not just action through the courts, but for the congress itself to take this resolution, as you know, there are a bunch of lawsuits out there and the house also has the Braga if I would assume to file a lawsuit is that said when the president took this action, we will fight his action in the congress and in the courts and in the public, and because this is this is again, this is such a bad anything partisan political. This is about upholding the office take to protect and defend the constitution. I say it over and over. I can't say enough we would be delinquent in our duties if we did not, protect and defend the constitute. Even from the president of the United States at the there will be as I said in the in the congress and the courts now in the courts said may be congressional or maybe outside of that remains to be seen. But there will be a challenge to the constitutionality and legality of what the president is doing. And. Sorry. Go ahead. Say Jennifer, you have two great question on the defense department. And I believe my staff has been in, touch, but I have not the week that the president has as emergency declaration. They've just been working furiously to try to get support for the resolution. On my staff may have triggered with. It's my understanding that the defense department. This may be as a matter, of course, when there would be redirecting funds from the defense department to another purpose of that's the purpose must meet the standard of protecting and defending the American people purpose of defense. So there is a process that goes on the feet how the defense department is honoring that, and you may want to look into that right now. The phone because I think in action. Absolutely. C-span mighty Al WCS PFM Washington. I'm telling you to the reporter that that. He's very up on all of these. You're giving the instructions sorry. No. No. No. No, no. I was telling the reporter that I it is my understanding that this would be the regular order, and that perhaps we're hopeful that the defense department is honoring that how does this diversion of the funds? Support the purpose of the funds, which is defense provides to the defense of the American people. All right last question will be from Mitch car from KRLD radio in Dallas here line is now open. Thank you. Madam speaker, and Mr. Castro many Republicans most recently, Mr. Florez from Bryan Texas say that the president is well within his right to declare the national emergency and move the money around. It seems that the question of executive privilege needs to be answered as well not just on this particular resolution, but just looking back through history back to president Ford. For example, your thoughts on that. Well, the fact is is that is there an emergency. Is there a crisis as the president is scrummage the president has been frivolous and cavalier and trying to define what is happening at the border in a manner that would justify a the unusual action of this kind of an order. And so we're saying to the president if there was such an emergency. If there was such a crisis, the American people would be United in our support of it. The legislation would have reflected that but the religious flation by camel house and Senate bipartisan, Democrats and Republicans overwhelmingly voted for different course of action to address the situation to to provide for border security. We all understand our responsibility to secure our borders, contrary to what the president said, we all understand that responsibility. How? Incentive three hundred in the house of Representative three hundred votes in the house of representatives and overwhelming vote in the United States and said this is the path that we are going. So. The president has the right to do such a thing when there is an a true emergency. Yes, he does. And if there is such emergency wouldn't even have to do it. We'd be right there with them. This would be reserved when time would not would present congress from action at the end, the president would have to act in an expedited emergency man, this is not what is happening now president is being frivolous with the constitution. And those of us who take that old habit responsibility to protect it. And also the best to serve in congress have an institutional responsibility to strengthen not weaken the institution, which we serve. So that it is a co equal branch of government. I would just add to this two speakers, Tom is that the this is unprecedented because national emergencies have been declared most mostly for national security issues often involving involving the armed forces or natural disasters. And this is. This is an action that was specifically denied and appropriation to the president to fund the border wall that amounts to declaring national emergency to fulfill a campaign promise, the president has declared a national emergency to fulfill a campaign promise not because there is an actual emergency out the US Mexico border. And might say it, not even promise. The promise was that Mexico is gonna pay for it. So it was a clearing. The president of the United States is declaring a national emergency. To honor and applause line in a rally. This is not not only disrespecting conflict the legislative branch and just the constitution of the United because he is dishonoring the office in which he serves. Any other questions? With our events in taxes, and I can't thank congressman Castro for his tremendous leadership on this what forward to his taking this legislation to the floor early next week. So that we can in an expedited manner send it to the United States Senate this again, I can't say over and over this institutional. It has constitutional. It is not political. It is not partisan. It is patriotic. Thank you again. Mr castro. Speaker Nancy Pelosi and Texas democratic congressman Joaquin Castro in this conference. Call earlier today the announcement of the resolution to block the president's national emergency declaration for the funds to build the southern border wall before this call took place. We spoke about this issue on this morning's Washington journal deals. This new ski is on the line. Now, he's a senior writer with a rollcall Neal's. What what exactly is happening today? From House Democrats in this era. Explain for us. Sure, you don't necessarily always see when bills are being introduced, there's no sort of requirement certainly that that there's a public pronouncement overbuilding introduced, but we do expect that there was a joint resolution that was supposed to be dropped today by congressman Castro from from Texas. Basically on behalf of the congressional Hispanic caucus and House Democrats that would disapprove of President Trump's emergency declaration with respect to Bill border security and his effort to build the wall at the border with Mexico. It's a straightforward one page joint resolution uses the law that set up the national emergencies that the law that is the national emergencies act that would provide for some expedited consideration in both the house and the Senate and probably need simple majorities in both chambers. So there's now I believe going to be fifteen calendar days, assuming it was introduced today, they'll be fifteen calendar days house to report for the house committee to report that out, and then it'll be on the floor probably sometime later in either at the end of February beginning of March, so which committee would this be going to and what are you expecting over there? Well, so so the the the national emergencies act, it's probably going to be an Armed Services Committee matter because they're talking about using defense dollars for the national emergency. None of this is is is gonna go very. Well, everything will go to script to let's put it that way. We we don't expect to see too much of an issue in the house. There were already two hundred and sixteen original cosponsors as of yesterday afternoon Thursday afternoon, we expected this is gonna get overwhelming support among House Democrats not much support among House Republicans. But it will get more interesting. When it gets to the Senate where we've already heard senators like Susan Collins of Maine who up in an event in south Portland earlier in the week was basically saying she could be supportive of such a thing if it was clean didn't include a whole bunch of extra provisions in the draft texts that we saw circulating a Wednesday night. From speaker Pelosi is in fact, the kind of thing that I think Colin should be able to support and we'll point out the Neal's that this. Not just one of those sense of congress resolutions. This would actually have the force of law. Correct. Sure. Yes. Now, of course, there is the complication that it because it would have the full of law, and because of the relevant supreme court precedent on this from the eighties. This is a joint whereas Aleutian which has to go to President Trump took his either signature or veto. So sure we expect that President Trump will will veto this. If it does in fact, get the majority in the house and the Senate to is desk. So when we see the vote happening, particularly on the house for the number of we will be watching is probably not that usual, roughly two eighteen number of the majority of the house. We're really looking to see whether or not this thing gets anywhere near two thirds that would be needed to overcome a presidential veto. Put this in context as we wrap up with the debate over immigration. Also, just the general debate that we've been having in this country over presidential power executive power and authority..

president Representative Castro United States Senate United States President Trump congress congressman Nancy Pelosi Jennifer Rubin chairman Texas reporter Mexico executive Anna Edgerton Neal Bloomberg Washington acting Defense Secretary