Blackstone’s Steve Schwarzman sees ‘much fewer things’ to buy because assets are so expensive

Steve Schwarzman, billionaire co-founder of private equity powerhouse Blackstone, told CNBC on Tuesday he sees fewer buying opportunities because markets and assets have become so expensive. Schwarzman said the moves were partly justified by expectations for further economic growth as interest rates remain low. General Atlantic CEO Bill Ford, appearing on CNBC shortly after Schwarzman, agreed that valuations are getting lofty. In 2019, General Atlantic invested $4.5 billion in 31 new companies.


Steve Schwarzman, billionaire co-founder of private equity powerhouse Blackstone, told CNBC on Tuesday he sees fewer buying opportunities because markets and assets have become so expensive.
Schwarzman said the moves were partly justified by expectations for further economic growth as interest rates remain low.
General Atlantic CEO Bill Ford, appearing on CNBC shortly after Schwarzman, agreed that valuations are getting lofty.
In 2019, General Atlantic invested $4.5 billion in 31 new companies.

Blackstone’s Steve Schwarzman sees ‘much fewer things’ to buy because assets are so expensive Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-21  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, private, sees, buy, markets, company, steve, assets, equity, things, fewer, expensive, atlantic, general, economic, blackstones, schwarzman, valuations


Blackstone's Steve Schwarzman sees 'much fewer things' to buy because assets are so expensive

Steve Schwarzman, billionaire co-founder of private equity powerhouse Blackstone, told CNBC on Tuesday he sees fewer buying opportunities because markets and assets have become so expensive.

“All markets have gone up pretty dramatically,” the Blackstone chairman and CEO said on “Squawk Box” from the World Economic Forum in Davos, Switzerland.

Schwarzman said the moves were partly justified by expectations for further economic growth as interest rates remain low. But that’s led to higher purchase prices of assets.

“Everything is up. You have to see something reasonably remarkable in terms of your ability to improve the operations of a company,” he said.

General Atlantic CEO Bill Ford, appearing on CNBC shortly after Schwarzman, agreed that valuations are getting lofty. “The only way you can justify these valuations is company quality and company growth.”

In 2019, General Atlantic invested $4.5 billion in 31 new companies. General Atlantic is a private equity firm with about $35 billion in assets under management.


Company: cnbc, Activity: cnbc, Date: 2020-01-21  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, private, sees, buy, markets, company, steve, assets, equity, things, fewer, expensive, atlantic, general, economic, blackstones, schwarzman, valuations


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OpEd: Hospital monopolies are making us poorer and sicker

For years, we’ve seen the evidence that hospital mergers generally contribute to rising health care costs in America. But now, a new study in the New England Journal of Medicine rubs salt in the wound by showing how hospital mergers aren’t improving health care quality and often make it worse. To summarize: hospital consolidation in America has been contributing to higher costs, and now we find out it’s also likely a major cause of overall health care quality going down. The result: 44 percent o


For years, we’ve seen the evidence that hospital mergers generally contribute to rising health care costs in America.
But now, a new study in the New England Journal of Medicine rubs salt in the wound by showing how hospital mergers aren’t improving health care quality and often make it worse.
To summarize: hospital consolidation in America has been contributing to higher costs, and now we find out it’s also likely a major cause of overall health care quality going down.
The result: 44 percent o
OpEd: Hospital monopolies are making us poorer and sicker Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-21  Authors: jake novak
Keywords: news, cnbc, companies, private, sicker, quality, practice, doctors, making, costs, small, hospitals, health, poorer, monopolies, oped, hospital, care


OpEd: Hospital monopolies are making us poorer and sicker

Sometimes, what looks like bad news comes along with a silver lining.

This is not one of those times.

For years, we’ve seen the evidence that hospital mergers generally contribute to rising health care costs in America. That’s despite hospitals arguing otherwise.

But now, a new study in the New England Journal of Medicine rubs salt in the wound by showing how hospital mergers aren’t improving health care quality and often make it worse.

To summarize: hospital consolidation in America has been contributing to higher costs, and now we find out it’s also likely a major cause of overall health care quality going down.

But other than that Mrs. Lincoln, how did you like the play?

None of this should be a surprise, at least not for anyone who understands basic economics. Heavy consolidation and monopoly-like powers in any industry almost always stifle the power of competition and innovation to reduce costs and improve the quality of goods and services.

In the case of hospitals, the economic impetus to merge and buy up other medical providers got a shot of steroids from the enactment of the Affordable Care Act. With Obamacare giving millions more Americans health insurance coverage, hospitals naturally sought out ways to charge those insurance plans and Medicare the higher rates hospitals are allowed to charge compared to private practice doctors.

The result: 44 percent of American doctors now work at a hospital or in a hospital system. It was just 25 percent in 2012.

The disappearance of private practice doctors is the most troubling development of all for many of us who know that private practice doctors are basically small businessmen and women. Small business is a key engine behind job expansion and innovation.


Company: cnbc, Activity: cnbc, Date: 2020-01-21  Authors: jake novak
Keywords: news, cnbc, companies, private, sicker, quality, practice, doctors, making, costs, small, hospitals, health, poorer, monopolies, oped, hospital, care


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A theory on who’s doing all the buying that’s pushing stocks higher and higher

The largest group of U.S. institutional investors are the state and municipal pension plans. An increase of a few percentage points in long-only equity allocation would certainly help drive stocks higher. Unfortunately, my theory about public plans was unilaterally incorrect; state pension directors are doing the exact opposite and continue to reduce their domestic equity exposure. Sovereign funds, another well-heeled cohort, have been increasing their private equity allocations, generally at th


The largest group of U.S. institutional investors are the state and municipal pension plans.
An increase of a few percentage points in long-only equity allocation would certainly help drive stocks higher.
Unfortunately, my theory about public plans was unilaterally incorrect; state pension directors are doing the exact opposite and continue to reduce their domestic equity exposure.
Sovereign funds, another well-heeled cohort, have been increasing their private equity allocations, generally at th
A theory on who’s doing all the buying that’s pushing stocks higher and higher Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-18  Authors: karen firestone
Keywords: news, cnbc, companies, pushing, theory, funds, buying, whos, allocation, doing, thats, record, stocks, equity, private, trillion, pension, plans, public, state, higher


A theory on who's doing all the buying that's pushing stocks higher and higher

The insistent refrain “new all-time record” has been played so often recently that it sounds like a broken record. For readers born after the age of vinyl, the term refers to when the needle gets stuck in a groove, repeating a phrase over and over until you either move the arm or throw the record at a wall in disgust. Given a series of new highs for the S&P 500, the Dow Jones Industrial Average and the Nasdaq, the obvious question is who is doing all this buying? My first assumption was that investors, whose portfolios lagged because of their lack of U.S. equity exposure through a triumphant 31.5% year for the S&P, might be jumping on board. The largest group of U.S. institutional investors are the state and municipal pension plans. To get a sense their scale, consider that the California and New York state funds contain close to $600 billion combined, with the nationwide system comprising over $4 trillion in assets. An increase of a few percentage points in long-only equity allocation would certainly help drive stocks higher. Unfortunately, my theory about public plans was unilaterally incorrect; state pension directors are doing the exact opposite and continue to reduce their domestic equity exposure. According to several contacts within government pension offices, the typical U.S. public plan has been reducing its allocation to long-only U.S. equity for several years, shifting primarily toward private equity. Calpers, for example, carries a 24% weight in domestic equity while the state of Massachusetts was in the teens as of the last reporting period.

Retail traders?

With institutions, including public plans, major endowments, and mutual funds net sellers of U.S. equity, what other groups could account for the steady advance? Retail clients, accounting for 20% or $7 trillion of the total U.S. market ownership, added to their stock portfolios in 2019. According to a Goldman Sachs study, households now have a comparable equity allocation to 2007, only surpassed by the dotcom bubble of 2000, implying that retail buying is an unlikely driver of the current move. Sovereign funds, another well-heeled cohort, have been increasing their private equity allocations, generally at the expense of equities. That leaves two other groups of buyers capable of pushing the averages higher: public corporations themselves and long-short hedge funds. The shrinking of the U.S. equity supply, including buyouts to private equity firms, acquisitions, and share repurchases, is acknowledged as a significant factor contributing to the rise in equity prices. This should continue in 2020, but at an anticipated rate in the $500 billion range, or around half of the 2019 total.

Hedge funds?


Company: cnbc, Activity: cnbc, Date: 2020-01-18  Authors: karen firestone
Keywords: news, cnbc, companies, pushing, theory, funds, buying, whos, allocation, doing, thats, record, stocks, equity, private, trillion, pension, plans, public, state, higher


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Space companies raised a record $5.8 billion in private investments last year

SpaceXPrivate funds are pouring money into space companies, with 2019 marking a record year of investment in extraterrestrial ventures. Space companies received $5.8 billion across 198 investment rounds last year, topping $5.1 billion of investment in 2017, according to a report Tuesday by New York investment firm Space Angels. The firm itself has stakes in nearly two dozen space companies and publishes comprehensive quarterly updates on private investment in the industry. Space Angels highlight


SpaceXPrivate funds are pouring money into space companies, with 2019 marking a record year of investment in extraterrestrial ventures.
Space companies received $5.8 billion across 198 investment rounds last year, topping $5.1 billion of investment in 2017, according to a report Tuesday by New York investment firm Space Angels.
The firm itself has stakes in nearly two dozen space companies and publishes comprehensive quarterly updates on private investment in the industry.
Space Angels highlight
Space companies raised a record $5.8 billion in private investments last year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-14  Authors: michael sheetz
Keywords: news, cnbc, companies, billion, key, investment, capital, public, anderson, private, investments, firm, funding, space, companies, record, raised


Space companies raised a record $5.8 billion in private investments last year

SpaceX

Private funds are pouring money into space companies, with 2019 marking a record year of investment in extraterrestrial ventures. Space companies received $5.8 billion across 198 investment rounds last year, topping $5.1 billion of investment in 2017, according to a report Tuesday by New York investment firm Space Angels. The firm itself has stakes in nearly two dozen space companies and publishes comprehensive quarterly updates on private investment in the industry. Space Angels highlighted the steadily increasing maturity of space companies in this past year, with 75% more later-stage deals from the previous year. Credit: Space Angels From the investor side, the report said three sources — corporate capital, venture capital and individual or angel capital — each contributed a third of the total investment in space companies in 2019. The firm noted funding rounds such as Relativity Space’s raise of $140 million, key to taking the company from start-up to its first launch. It’s a reflection of a decade-long shift in the industry, Space Angels CEO Chad Anderson told CNBC, with younger companies taking on more responsibility and driving innovation in a market long dominated by government contractors. “These companies are graduating and going from concept to scale,” Anderson said. “All the companies that are in space in the last 10 years are new. They’ve all entered a different point over that timeline and you need to see them graduate as, in venture capital investing, graduation rates are really important.” Space companies have received nearly $26 billion in investments since 2009, according to the firm.

The largest private companies — such as SpaceX, Blue Origin and OneWeb — made up the lion’s share of last year’s investments, receiving billions in new funds. But early-stage deals remained strong as well, making up 72% of the total investment rounds last year. Anderson explained that steady growth at both the top and bottom of the funding “funnel” is key for healthy growth in the space economy. “If [big deals were] all that was happening here, it would be worrying,” Anderson said. “But that’s why we monitor so closely what’s happening on the front end of the funnel as well.” Investment is also picking up outside the United States: Anderson’s firm said non-U.S. funding doubled in the past year. China continues to lead in that respect, making up 34% of the private funding doled out to space companies in the fourth quarter, the report said.

What’s in store for space investing in 2020

Investors are steadily becoming more interested in the space economy, especially as some of these private space companies edge closer to the public markets. “The meat of this has all happened in the last five years, as in 2015 things just started to really take off,” Anderson said. While there already are opportunities to invest in space, Anderson expects 2020 will see IPOs from several pure-play space companies created in the past decade. He warned that those that leap into the public sphere will have to keep in mind the lessons learned by several technology IPOs last year. “The key theme for IPOs in 2019 was that top-line growth is not going to do it. Public markets want to see that you’re profitable, not just that you can grow the top line,” Anderson said.

While he declined to identify which companies he thinks will go public, Anderson did identify two key themes that he thinks investors should watch: cybersecurity and the rise of megaconstellations from SpaceX, OneWeb and Amazon. The former theme is less frequently discussed in the space industry, which typically focuses on rockets and satellites. But Anderson believes the rapidly increasing number of countries with operations and assets in space will see heightened focus on cybersecurity and a ripple effect on the space industry.

The human spaceflight catalyst

Anderson, much like Morgan Stanley, sees human spaceflight as a catalyst for more investment. While it’s difficult to quantify a dollar impact from flying people, 2020 is likely to see four space companies do so: SpaceX, Boeing, Virgin Galactic and Blue Origin. “We’re expecting all four of them to make it space this year,” Anderson said. “A lot of the reason why we say that is because they were pushing to get there by the end of 2019 and got very close.” Virgin Galactic is “the leading indicator” for both the demand and impact of human spaceflight. “There’s so much interest and very few people have even gone yet,” Anderson said.


Company: cnbc, Activity: cnbc, Date: 2020-01-14  Authors: michael sheetz
Keywords: news, cnbc, companies, billion, key, investment, capital, public, anderson, private, investments, firm, funding, space, companies, record, raised


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Stay invested or get invested, strategist says

Stay invested or get invested, strategist saysKristen Bitterly, head of capital markets for the Americas at Citi Private Bank, joins “Squawk Box” to discuss the markets ahead of a new trading week.


Stay invested or get invested, strategist saysKristen Bitterly, head of capital markets for the Americas at Citi Private Bank, joins “Squawk Box” to discuss the markets ahead of a new trading week.
Stay invested or get invested, strategist says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-13
Keywords: news, cnbc, companies, sayskristen, strategist, markets, invested, private, week, squawk, trading, joins, stay


Stay invested or get invested, strategist says

Stay invested or get invested, strategist says

Kristen Bitterly, head of capital markets for the Americas at Citi Private Bank, joins “Squawk Box” to discuss the markets ahead of a new trading week.


Company: cnbc, Activity: cnbc, Date: 2020-01-13
Keywords: news, cnbc, companies, sayskristen, strategist, markets, invested, private, week, squawk, trading, joins, stay


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Prince Andrew’s private secretary reportedly reaches settlement with Buckingham Palace to end employment

Sarah, Duchess of York, Princess Beatrice, Prince Andrew, Duke of York and Amanda Thirsk at the Royal Ascot on June 22, 2018. in Ascot, England. Prince Andrew’s top aide has reportedly reached a legal settlement with Buckingham Palace to end her 15-year tenure with the Royal Household. Sky News reported Friday that Amanda Thirsk, the Duke of York’s private secretary, agreed the terms of her departure with the palace on Thursday. Thirsk reportedly pushed for Prince Andrew’s interview with the BBC


Sarah, Duchess of York, Princess Beatrice, Prince Andrew, Duke of York and Amanda Thirsk at the Royal Ascot on June 22, 2018. in Ascot, England.
Prince Andrew’s top aide has reportedly reached a legal settlement with Buckingham Palace to end her 15-year tenure with the Royal Household.
Sky News reported Friday that Amanda Thirsk, the Duke of York’s private secretary, agreed the terms of her departure with the palace on Thursday.
Thirsk reportedly pushed for Prince Andrew’s interview with the BBC
Prince Andrew’s private secretary reportedly reaches settlement with Buckingham Palace to end employment Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-10  Authors: chloe taylor
Keywords: news, cnbc, companies, reaches, palace, end, thirsk, secretary, reached, buckingham, duke, prince, comment, terms, royal, york, reportedly, employment, private, settlement


Prince Andrew's private secretary reportedly reaches settlement with Buckingham Palace to end employment

Sarah, Duchess of York, Princess Beatrice, Prince Andrew, Duke of York and Amanda Thirsk at the Royal Ascot on June 22, 2018. in Ascot, England.

Prince Andrew’s top aide has reportedly reached a legal settlement with Buckingham Palace to end her 15-year tenure with the Royal Household.

Sky News reported Friday that Amanda Thirsk, the Duke of York’s private secretary, agreed the terms of her departure with the palace on Thursday. The deal included a payment worth “tens of thousands of pounds,” according to Sky.

Thirsk is expected to continue as CEO of Pitch@Palace, the project designed to assist start-ups that founder Prince Andrew stepped down from in November.

The prince has been embroiled in controversy in recent months over his friendship with convicted pedophile Jeffrey Epstein, which has led to him officially withdrawing from public duties.

Thirsk reportedly pushed for Prince Andrew’s interview with the BBC’s Newsnight in November, which was widely regarded to have been disastrous for his reputation in terms of his relationship with Epstein.

Pitch@Palace did not respond to a request for comment while Buckingham Palace told CNBC it does not comment on individual members of staff.

A spokesperson for Thirsk could not be reached for comment.

Sky News’ full report can be read here.


Company: cnbc, Activity: cnbc, Date: 2020-01-10  Authors: chloe taylor
Keywords: news, cnbc, companies, reaches, palace, end, thirsk, secretary, reached, buckingham, duke, prince, comment, terms, royal, york, reportedly, employment, private, settlement


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UBS to cut up to 500 jobs in European private banking overhaul

UBS will cut up to 500 private banking jobs as part of a plan to split up its wealth management businesses in a bid to speed up decision-making and strengthen regional units. In a conference call Tuesday morning, Khan told journalists that the restructure would involve erasing three levels of management and up to 500 jobs, according to multiple media outlets. The memo sets out plans to improve speed to market and time spent with clients, through “streamlining” of processes. “To deliver on these


UBS will cut up to 500 private banking jobs as part of a plan to split up its wealth management businesses in a bid to speed up decision-making and strengthen regional units.
In a conference call Tuesday morning, Khan told journalists that the restructure would involve erasing three levels of management and up to 500 jobs, according to multiple media outlets.
The memo sets out plans to improve speed to market and time spent with clients, through “streamlining” of processes.
“To deliver on these
UBS to cut up to 500 jobs in European private banking overhaul Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-07  Authors: elliot smith
Keywords: news, cnbc, companies, management, banking, naratil, 500, khan, europe, wealth, jobs, speed, overhaul, spent, private, plans, ubs, strengthen, cut, european


UBS to cut up to 500 jobs in European private banking overhaul

UBS will cut up to 500 private banking jobs as part of a plan to split up its wealth management businesses in a bid to speed up decision-making and strengthen regional units.

An internal memo sent to employees on Tuesday by wealth management bosses Iqbal Khan and Tom Naratil set out plans to divide the Swiss lender’s private banking operations in Europe, the Middle East and Africa (EMEA) into three parts: Europe (EU), Central and Eastern Europe (CEE) and the Middle East and Africa (MEA).

In a conference call Tuesday morning, Khan told journalists that the restructure would involve erasing three levels of management and up to 500 jobs, according to multiple media outlets.

The memo sets out plans to improve speed to market and time spent with clients, through “streamlining” of processes.

“To deliver on these opportunities we are pleased to announce that we will accelerate decision-making and time to market by delayering, reducing organizational duplication, and increasing business unit (BU) autonomy, which comes with more accountability,” Khan and Naratil said in the memo.

“To realize our ambition of increasing time spent with clients, we will roll out new technology and strengthen incentives and accountability to improve efficiency across GWM (global wealth management).”


Company: cnbc, Activity: cnbc, Date: 2020-01-07  Authors: elliot smith
Keywords: news, cnbc, companies, management, banking, naratil, 500, khan, europe, wealth, jobs, speed, overhaul, spent, private, plans, ubs, strengthen, cut, european


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Geopolitical tensions are a ‘flare up’ for the market, says UBS’ Alli McCartney

Geopolitical tensions are a ‘flare up’ for the market, says UBS’ Alli McCartneyAlli McCartney of UBS Private Wealth Management and Diana Amoa of JP Morgan Asset Management, join “Squawk on the Street” to discuss how political tensions may be weighing on the market.


Geopolitical tensions are a ‘flare up’ for the market, says UBS’ Alli McCartneyAlli McCartney of UBS Private Wealth Management and Diana Amoa of JP Morgan Asset Management, join “Squawk on the Street” to discuss how political tensions may be weighing on the market.
Geopolitical tensions are a ‘flare up’ for the market, says UBS’ Alli McCartney Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-06
Keywords: news, cnbc, companies, squawk, flare, weighing, ubs, street, wealth, tensions, political, alli, management, private, mccartney, market, geopolitical


Geopolitical tensions are a 'flare up' for the market, says UBS' Alli McCartney

Geopolitical tensions are a ‘flare up’ for the market, says UBS’ Alli McCartney

Alli McCartney of UBS Private Wealth Management and Diana Amoa of JP Morgan Asset Management, join “Squawk on the Street” to discuss how political tensions may be weighing on the market.


Company: cnbc, Activity: cnbc, Date: 2020-01-06
Keywords: news, cnbc, companies, squawk, flare, weighing, ubs, street, wealth, tensions, political, alli, management, private, mccartney, market, geopolitical


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Private equity’s record $1.5 trillion cash pile comes with a new set of challenges

Search for yieldAnother reason investors are pouring into the private equity asset class is low global yields. But private equity is still “not a golden goose,” she said. It’s not just private equity sitting on cash. In recent months, the Omaha-based firm has passed on multiple opportunities to acquire companies as the firm’s cash hoard grew. They are not “gobbling up the market at the expense of other firms,” said Brenda Rainey, senior director of Bain & Co.’s global private equity practice.


Search for yieldAnother reason investors are pouring into the private equity asset class is low global yields.
But private equity is still “not a golden goose,” she said.
It’s not just private equity sitting on cash.
In recent months, the Omaha-based firm has passed on multiple opportunities to acquire companies as the firm’s cash hoard grew.
They are not “gobbling up the market at the expense of other firms,” said Brenda Rainey, senior director of Bain & Co.’s global private equity practice.
Private equity’s record $1.5 trillion cash pile comes with a new set of challenges Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-03  Authors: kate rooney
Keywords: news, cnbc, companies, trillion, funds, cash, billion, equity, returns, investors, comes, challenges, according, private, pile, equitys, set, record, firms


Private equity's record $1.5 trillion cash pile comes with a new set of challenges

Blackstone Group CEO and Co-Founder Steve Schwarzman speaks at a Reuters Newsmaker event in New York, November 6, 2019. Gary He | Reuters

Private-equity firms are holding on to a record pile of cash. Increased competition might make it harder to spend, however, in order to get the same double-digit returns that have made the group so popular. The industry — which includes venture capital — had a total $1.45 trillion in “dry powder,” or cash, to invest at the end of 2019, according to data from Preqin. That is the highest on record and more than double what it was five years ago. Inigo Fraser-Jenkins, head of the portfolio strategy team at Bernstein Research, said the steady cash stream into private equity has been driven by more investors expecting lower returns from public markets. The flood of money is driving up entry prices and could mean lower future returns, he said. “We think that the returns are going to disappoint,” Fraser-Jenkins told CNBC. “We also do not believe that over the cycle that it can de-correlate from public markets.” Hedge funds are another popular investment vehicle that institutional investors, such as endowments and pension funds, are turning to. But the hedge-fund industry’s returns are lagging by comparison. Over the past five years ending in June, hedge funds posted 5.5% returns, compared with 14.4% for private equity, according to the latest data available from Preqin.

Search for yield

Another reason investors are pouring into the private equity asset class is low global yields. As the 10-year Treasury yield sank below 2% this year, investors went looking for better investment alternatives, according to Nancy Davis, chief investment officer and founder of advisory firm Quadratic Capital. But private equity is still “not a golden goose,” she said.

“There aren’t too many investors with double-digit percentage gain — so, as has been the case for the last few years, many feel like they have no choice but to get long and try to catch up by chasing the private-equity performance,” Davis said. The result is “a nervous euphoria.” Davis noted that sentiment has gotten “ridiculously positive” and is contributing to a rise in valuations. The idea that private equity could continue to produce an internal rate of return, or IRR, of 20% to 25% is “laughable” with bond yields as low as they are, she said. It’s not just private equity sitting on cash. Revered investor Warren Buffett — a vocal critic of the industry — is sitting on a record $128 billion at Berkshire Hathaway. In recent months, the Omaha-based firm has passed on multiple opportunities to acquire companies as the firm’s cash hoard grew. In November, Buffett stepped away from a bidding war to buy technology distributor Tech Data, and he declined to purchase luxury jeweler Tiffany when it was looking for a buyer last year.

Competing with Blackstone

Mega-firms such as Blackstone, Apollo and KKR have been raising increasingly larger funds for institutional investors. In some cases, they invest in other private-equity funds. Blackstone’s most recent buyout fund this year topped $26 billion — making it the largest of its kind in U.S. history. This year, tech-focused Vista Equity Partners closed a $16 billion fund, while Thoma Bravo raised $12.6 billion for its latest fund. Despite these monster funds, thousands of other firms have been able to raise money without much consolidation, according to Bain. They are not “gobbling up the market at the expense of other firms,” said Brenda Rainey, senior director of Bain & Co.’s global private equity practice.


Company: cnbc, Activity: cnbc, Date: 2020-01-03  Authors: kate rooney
Keywords: news, cnbc, companies, trillion, funds, cash, billion, equity, returns, investors, comes, challenges, according, private, pile, equitys, set, record, firms


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China’s manufacturing activity expanded in December, a private survey shows

A private survey released on Thursday showed China’s manufacturing activity expanded in the month of December, but missed analysts’ expectations. The Markit/Caixin Purchasing Managers’ Index (PMI) for manufacturing came in at 51.5 in December — analysts polled by Reuters had expected the private manufacturing PMI to come in at 51.7 in the last month of the year. IHS Markit and Caixin said in a press release that domestic demand expanded in December, but the pace of expansion was slower than in O


A private survey released on Thursday showed China’s manufacturing activity expanded in the month of December, but missed analysts’ expectations.
The Markit/Caixin Purchasing Managers’ Index (PMI) for manufacturing came in at 51.5 in December — analysts polled by Reuters had expected the private manufacturing PMI to come in at 51.7 in the last month of the year.
IHS Markit and Caixin said in a press release that domestic demand expanded in December, but the pace of expansion was slower than in O
China’s manufacturing activity expanded in December, a private survey shows Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-02  Authors: huileng tan
Keywords: news, cnbc, companies, economy, activity, china, domestic, demand, survey, private, manufacturing, shows, trade, chinas, pmi, phase, expanded, deal


China's manufacturing activity expanded in December, a private survey shows

A private survey released on Thursday showed China’s manufacturing activity expanded in the month of December, but missed analysts’ expectations.

The Markit/Caixin Purchasing Managers’ Index (PMI) for manufacturing came in at 51.5 in December — analysts polled by Reuters had expected the private manufacturing PMI to come in at 51.7 in the last month of the year. The Caixin PMI was at 51.8 in November.

PMI readings above 50 indicate expansion, while those below that level signal contraction.

IHS Markit and Caixin said in a press release that domestic demand expanded in December, but the pace of expansion was slower than in October and November. There was also an improvement in business sentiment, they said.

On Tuesday, China released official manufacturing PMI for December that was slightly above expectations at 50.2, data from the country’s statistics bureau showed.

Investors are keeping a close watch on the health of China’s economy amid a long-drawn trade conflict between the U.S. and China which has weighed on sentiment.

The official PMI survey typically polls a large proportion of big businesses and state-owned enterprises. The Markit/Caixin survey features a bigger mix of small- and medium-sized firms.

On December 13, the U.S. and China announced they had reached a phase one trade deal including some tariff relief, increased agricultural purchases and structural change to intellectual property and technology issues. U.S. President Donald Trump has said he will be signing the phase one deal with China at the White House on Jan. 15.

“Subdued business confidence was a major factor behind the economic slowdown this year,” said Zhengsheng Zhong, director of macroeconomic analysis at Caixin subsidiary CEBM Group. “As the phase one trade deal between China and the U.S. has sent out positive signals, there is room for a recovery in business confidence, which should be able to help stabilize the economy.”

Although China’s manufacturing PMI ended 2019 in expansionary territory, compared to a contraction at the start of the year, it doesn’t mean that the worst is over for the world’s second largest economy, said Julian Evans-Pritchard, senior China economist at Capital Economics, a consultancy.

“While it does appear that export growth is bottoming out, downside risks to domestic demand, especially from the property sector, still cloud the outlook,” Evans-Pritchard wrote in a note on Thursday.

“Looking ahead, we think that exports will continue to benefit from recovering global demand and (at the margin) US tariffs rollbacks. But domestic demand will probably cool further,” he added.

The Chinese central bank will have to depend on monetary policy adjustments more than many had expected in the coming quarters, said Evans-Pritchard.

On Jan. 1, the People’s Bank of China announced it was cutting the amount of cash that all banks need to hold as reserves to support the economy.


Company: cnbc, Activity: cnbc, Date: 2020-01-02  Authors: huileng tan
Keywords: news, cnbc, companies, economy, activity, china, domestic, demand, survey, private, manufacturing, shows, trade, chinas, pmi, phase, expanded, deal


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