|Bid||33.28 x 1300|
|Ask||33.29 x 900|
|Day's range||32.97 - 33.31|
|52-week range||17.33 - 33.31|
|Beta (5Y monthly)||1.74|
|PE ratio (TTM)||11.74|
|Earnings date||04 Feb 2020|
|Forward dividend & yield||1.36 (4.13%)|
|Ex-dividend date||06 Nov 2019|
|1y target est||32.93|
(Bloomberg) -- The hedge fund industry’s main trade association has hired a Carlyle Group Inc. partner to be its new president, as the investment firms look to bolster their lobbying presence ahead of what promises to be a turbulent political year.Bryan Corbett will join the Managed Funds Association on Jan. 21, the Washington-based group said on Wednesday. A Republican who worked at the White House and Treasury Department during the George W. Bush administration, Corbett handled legislative affairs at Carlyle for five years before being promoted to a job involving the private-equity firm’s investments.The MFA represents more than 100 hedge funds, including D.E. Shaw & Co., Renaissance Technologies, Elliott Management Corp. and Bridgewater Associates. Though the industry has traditionally tried to keep a low profile in Washington, it regularly lobbies on tax and financial regulation issues.Hedge funds -- like most large financial services companies -- are concerned that they could become fodder for political attacks during the 2020 presidential campaign. A number of Democratic contenders, most notably Senators Elizabeth Warren and Bernie Sanders, have taken strong anti-Wall Street stances, bashing both investment firms and the rich people who run them.“There is going to be a real need for strong advocacy over the next couple of years,” said Corbett, who will replace Richard Baker, the former Louisiana congressman.The job is one of the highest-paying among Washington trade groups. Baker, who announced his retirement last year, earned $2.2 million, according to the MFA’s 2018 public tax filing.Corbett said he plans to push the association to get more involved not only at the federal government level, but also in the states and internationally, where the U.K.’s exit from the European Union has fueled uncertainty in the markets. He also will be looking to grow the organization’s membership.Before joining Carlyle in 2008, Corbett, 47, was a special assistant to President Bush for economic policy and a senior adviser to the deputy Treasury secretary. He began his government career as a counsel on the Senate Banking Committee under then-Chairman Richard Shelby.In an interview, Carlyle Co-Executive Chairman David Rubenstein said that while he’s sorry to see Corbett leave, he understands why the MFA sought him out.“Bryan is the kind of person you want to have representing you,” Rubenstein said. “He understands finance, he understands economics, he understands Capitol Hill.”To contact the reporter on this story: Robert Schmidt in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Jesse Westbrook at email@example.com, Gregory MottFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
(Bloomberg) -- Endeavor Group Holdings Inc., the talent agency and media business led by Ari Emanuel, acquired On Location Experiences, a high-end events business for the wealthy, from existing investors.Financial terms of the deal weren’t disclosed, though people familiar with the matter said it’s valued at about $660 million.The NFL, an investor in the company, is expected to increase its stake in the business to 20%, said the people, who asked not to be identified because the matter is private. The new owners named veteran media executive Paul Caine as president of On Location.“By bringing together a leader like On Location with Endeavor’s access and reach, we can advance the way consumers and brands think about money-can’t-buy experiences,” Emanuel said in a statement.On Location offers luxury travel, accommodations, and experiences like on-field and postgame access at the Super Bowl and international sports events. It has a number of major rights in its portfolio, including deals with the NCAA, the Masters, Grand Slam tennis events and the Ryder Cup.“We are committed to offering NFL fans unique and first-class experiences at our events,” NFL Commissioner Roger Goodell said. “On Location shares this commitment and delivers value for its partners and delights fans at events around the world.”The sale delivers a windfall to owners that include RedBird Capital, Bruin Sports Capital and Carlyle Group. RedBird and Bruin acquired the business for about $70 million in April 2015, people with knowledge of the matter said in April, when Bloomberg News first reported on the deal talks.Music FestivalsThe company also partners with music festivals and has eyed international expansion to link with major events and rights holders like the Olympics, FIFA and Formula One racing.Endeavor, parent of the Hollywood talent agency WME, called off an initial public offering in September, with the owners saying at the time that they wouldn’t “undervalue our company” amid a souring of the IPO market.In November, Endeavor bought the Harry Walker Agency, a group that books speaking engagements for celebrities including U.S. presidents Barack Obama and Bill Clinton, Shaquille O’Neal and former U.S. House Speaker John Boehner.Endeavor has been adding to its entertainment assets, which include the Ultimate Fighting Championship, Miss Universe and Professional Bull Riders. Caine in an interview said UFC’s growth under Endeavor is a good model for what can be accomplished with On Location.Bruin and RedBird owned more than 30% of On Location, according to one of the people, while Carlyle has about 10%.John Collins, On Location’s chief executive the past four years, will be an adviser to the company and Endeavor.(Updates with comments from Ari Emanuel in fourth paragraph and Roger Goodell in sixth paragraph.)To contact the reporter on this story: Scott Soshnick in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Nick Turner at email@example.com, John J. Edwards III, Cécile DauratFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
(Bloomberg) -- Private equity firms are ready to pounce in 2020, armed with a record level of cash.Firms led by Blackstone Group Inc. and Carlyle Group LP have amassed almost $1.5 trillion in unspent capital, the highest year-end total on record, according to data compiled by Preqin. While last year saw roughly $450 billion worth of private equity deals, M&A activity this year could be on a scale not seen since the financial crisis.“We’re entering the year with people feeling much better about the economic and geopolitical outlook than was the case a year ago,” said Jason Thomas, global head of research at private equity giant Carlyle.Here’s a look at industry figures for 2019, and what they could mean for the next 12 months.Low interest rates, the rise of index-tracking funds and years of lackluster hedge fund performance have pushed investors to private equity in search of higher returns. Many firms -- once known as leverage buyout shops -- have opted to accumulate those assets as valuations soar and competition for deals grows.One reason why firms can keep so much cash on hand ready for the right moment is because their investment options are expanding, according to Kewsong Lee, co-chief executive officer at Carlyle. Asset classes such as private credit and regions including Japan are opening up to private capital flows, he said at a conference in December.“It’s not only private equity that keeps growing, but new asset classes are emerging within private equity,” Lee said.While deal activity was down slightly on 2018, last year’s figures were still strong as firms continued to eye larger targets.In what could be the biggest-ever leveraged buyout, KKR & Co. approached drugstore giant Walgreens Boots Alliance Inc. in November about taking the company private. One of the largest deals last year was the roughly $14 billion buyout of fiber network company Zayo Group Holdings Inc. by Stockholm-based private equity firm EQT AB and Digital Colony Partners.The cash on hand could mean even more dealmaking in 2020, said Dave Tayeh, head of private equity in North America at alternative asset manager Investcorp.“There are many tailwinds expected to drive healthy deal flow -- from increased certainty around Brexit to continued low rates and ongoing technology disruption across sectors,” Tayeh said by email. “But global trade tensions and high valuations will continue to have an impact on M&A.”While cash assets are at an all-time high, fundraising has ticked down since the 2017 peak. The amount of capital raised by 2019 vintage funds, or those that began investing last year, was about $465 billion, according to data compiled by Bloomberg.“We’ve been through a peak in fundraising,” said Graham Elton, chairman of Bain & Co.’s private equity business in Europe, the Middle East and Africa. “Those who will suffer are the ones at the wrong end of the performance spectrum.”The sector has, however, remained popular among institutional and family office investors willing to trade lockups of committed money for as long as 10 years for the potential to earn stock market beating returns.“From a fundraising perspective, we believe any prospective hesitation among experienced investors will be at least partially offset by the flow of new investors moving into the space -- high-net worth individuals and family offices in particular,” said Andres Saenz, who leads EY’s global private equity practice.Over the 25 years ended in March, private equity funds returned more than 13% a year on average, compared with about 9% a year for the S&P 500 over the same period.Firms may find it hard to replicate their past gains, however. The tide of new money has pushed up asset prices at the expense of returns -- a pattern that’s occurred across all areas of the market, said Jill Shaw, managing director at Cambridge Associates, which manages funds on behalf of wealthy families and pension, endowment and foundation clients.The massive stockpile of capital is a concern and may push down investment returns, Bloomberg Intelligence analyst Paul Gulberg wrote in a July note.Carlyle’s Thomas said that he sees opportunities in oil and gas, which he views as cheap after investors fled the sector over fears for the firms’ environmental credentials. Shaw at Cambridge Associates said there is opportunity in small- and mid-cap companies where “prices are a bit more rational.”\--With assistance from Jesper Hjalm, Jan-Henrik Förster and Morgan McKinnon-Snell.To contact the reporters on this story: Melissa Karsh in New York at firstname.lastname@example.org;Benjamin Robertson in London at email@example.comTo contact the editors responsible for this story: Shelley Robinson at firstname.lastname@example.org, ;Sam Mamudi at email@example.com, Chris BourkeFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
(Bloomberg Opinion) -- For every 100 people in India, there are only three credit cards. A comparable penetration figure for the U.S. is 320.Statistics like these suggest that India’s first initial public offering of a credit card issuer is either an opportunity with boundless prospects — or a victim of arrested development. Which is it?The upcoming sale of shares in SBI Cards and Payment Services Ltd. will give investors a chance to find out. Between them, the controlling shareholder, State Bank of India, and its 26% partner, Carlyle Group, plan to sell up to 130.5 million shares. Throw in a simultaneous offer of new shares, and it could be a 96 billion rupee ($1.3 billion) IPO, India’s biggest in the current financial year, according to local media reports. Business is booming at the country’s second-largest card issuer. After Carlyle arrived in 2017 to replace GE Capital in the two-decade-old venture, earnings were 7.4 rupees a share in the year through March 2018. The most recent six-monthly profit topped that figure. Younger millennials and Generation Z — those born after 2000 — are driving this growth. In India’s fiscal year ended in March 2016, barely 2% of credit card transactions were originated by people below 25 years of age. That number has jumped to 10%. Add the 26-30 age group, and the youth share of plastic is 35%, beating people over 40 by as much as eight percentage points. Yet only about 5% of Indians’ consumption per capita takes place through credit cards. After growing 12% annually over four years, average spending per card is stalling. While a slowdown is only to be expected given a sharp decline in economic momentum, the reason has more to do with the merchant than the spender.E-commerce, which is increasingly the most obvious use of a credit card, will account for barely 7% of India’s $1.2 trillion-a-year retail industry by 2021, according to Deloitte Consulting. Another 18% will go to malls, department stores and other forms of organized retail. But three-quarters of the market will remain with mom-and-pop stores. An average shop can hope to receive $775 in monthly business from cardholders. Card issuers would garner revenue of $11 of that, but the bank that acquired the merchant and fitted it up would receive just $1.50 a month. It’s simply not worth anyone’s while to expand the business into smaller towns dominated by small shops. Increasingly ubiquitous smartphones are far more suitable for payment authentication in a low-middle-income country than credit cards. Google Pay and Walmart’s PhonePe are leading people-to-people mobile payments in India, using the so-called unified payments interface, a system linking India’s banks. The same system will also drive people-to-merchant payments. Credit will just be an added layer. Banks will compete for whoever can bring them a lot of customers. India’s richest man, Mukesh Ambani, has 355 million customers for his 4G mobile network, Jio. Unsurprisingly, the oil-to-telecom tycoon wants to connect 30 million small retailers with common inventory-management, billing and tax platforms as well as low-cost payment terminals. He won’t be alone. Even in Indian e-commerce, Walmart Inc.’s Flipkart Online Services Pvt is promoting “cardless” credit, where the financing comes from banks and nonbank lenders. During the recent local holiday sale season, three out of four Amazon.com Inc. customers who availed themselves of credit to make purchases came from Tier 2 and 3 cities, where card penetration is low; every second buyer who borrowed to buy something did so for the first time.The parent State Bank’s opportunity in unsecured retail loans will be far larger than that of its IPO-bound cards unit. India’s largest commercial bank will make its low-cost deposits available to Ambani, Walmart and other digital commerce hopefuls who might be looking to sweeten their proposition to customers with a dollop of credit. That should still leave plenty of headroom for SBI Cards to grow. Its 18% market share means the company will remain a sought-after choice for co-branded partnerships, such as with Indian Railways and ride-hailing app Ola.Carlyle’s partial exit would value the U.S. buyout firm’s 26% stake at about seven times what it paid in 2017, according to Reuters. That’s a neat pile to make from plastic in such a short time, and in a country where it hasn’t really taken off. IPO investors will be content with a lot less.To contact the author of this story: Andy Mukherjee at firstname.lastname@example.orgTo contact the editor responsible for this story: Patrick McDowell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
American International Group, Inc. (AIG), The Carlyle Group (CG) and T&D Holdings (8795.T) announced today that a newly created Carlyle-managed fund, together with T&D, have partnered to acquire from AIG a 76.6 percent ownership interest in Fortitude Group Holdings, whose group companies operate as Fortitude Re, for approximately $1.8 billion. After closing, ownership interests in Fortitude Re will include Carlyle and its fund investors at 71.5 percent (including the 19.9 percent stake previously acquired by Carlyle in November 2018), T&D at 25 percent and AIG at 3.5 percent.
When Taylor Swift takes the stage at the American Music Awards on Nov. 24 to accept the Artist of the Decade award, her performance could be anything but career-spanning.
Carlyle said its after-tax distributable earnings - the cash available for paying dividends - totaled $146.1 million, down from $194.7 million a year earlier. Carlyle's third-quarter results are in line with its peers.
Investing.com - Goya Foods reportedly is in late-stage talks to sell a majority stake to The Carlyle Group (NASDAQ:CG) in a deal that would value the canned-foods giant at about $3.5 billion, The New York Post reported.
The Zacks Analyst Blog Highlights: Asbury Automotive, Agree Realty, Veoneer, Hawaiian Holdings and The Carlyle Group
Investment in mid-cap stocks is often recognized as a good portfolio diversification strategy combining attractive attributes of both small and large-cap stocks.