All articles tagged with #private equity
Philz Coffee is facing backlash after its CEO announced removal of Pride flags and other decor across stores to create a more inclusive experience, prompting a Change.org petition and online criticism that the move could alienate LGBTQ+ staff and customers; the policy comes amid broader fights over Pride symbolism, and Philz—now owned by Freeman Spogli since 2023—has a history of prior controversies.
The Labor Department proposed expanding 401(k) investment options to include alternative assets such as cryptocurrencies and private equity, broadening access for about 118 million workers but critics warn of higher risk to retirement savings; the rule would be open to public comment before any implementation.
Blackstone has closed a record $6.3 billion life sciences investment fund, the largest ever for a private fund in the sector, underscoring strong investor demand for biotech opportunities.
The U.S. Department of Labor unveiled a proposed rule giving 401(k) plan fiduciaries maximum discretion and flexibility to offer private equity and other so-called alternative investments (like crypto and commodities) as designated options. The rule emphasizes a neutral, prudent-evaluation process and makes clear managers can select any investment without the previous “picking winners and losers.” While it could make it easier for employers to add alternatives, they are not required to do so and must still assess performance, fees, liquidity, and other factors. Industry and political reactions are mixed (Trump supports it; Warren opposes), and even if finalized, changes may take years to affect plan menus.
The Pentagon is creating a 30-person 'Economic Defense Unit' drawn from Wall Street to invest about $200 billion over three years in defense deals to counter China, with recruiting targets including Goldman Sachs, Morgan Stanley, JPMorgan, and Bank of America for a two- to three-year secondment that offers access to top-level government officials and the chance to mobilize substantial private capital for national-security investments.
Private equity firm KKR is weighing the sale of a data-centre cooling company in a multibillion-dollar deal, underscoring ongoing activity in data-centre infrastructure M&A.
AES plans to be sold to a consortium led by Global Infrastructure Partners and EQT Infrastructure VI, taking the utility company private. Shareholders will receive $15 per share (equity value around $10.7B; enterprise value about $33.4B). AES Indiana and AES Ohio would remain regulated, locally operated utilities, and the company says customer rates won’t be affected. The deal is expected to close in late 2026 or early 2027. Some Indiana lawmakers have voiced concerns about private ownership of essential services.
Sen. Elizabeth Warren and a coalition of Democrats introduced the American Homeownership Act to curb corporate landlords from buying up homes by revoking tax breaks and tightening enforcement, precluding federally backed mortgages for large institutional buyers, and defining ownership of more than 30% of a housing market as presumptively illegal in an effort to boost affordable housing. Warren argues Wall Street-driven ownership raises rents and undermines the middle class, while Trump has endorsed similar policies; Republicans remain skeptical. Brookings data show institutional investors own a small share of rentals nationwide but sizable shares in several big metros, highlighting a potential bipartisan policy debate over housing affordability.
PayPal stock jumped after Bloomberg reported unsolicited takeover interest, with analysts saying the company may be undervalued at about seven times next year’s earnings and could attract private‑equity or strategic buyers; there’s even chatter about spinning out Venmo, and potential bidders could include large tech or financial players (e.g., for Venmo) as the fintech landscape shifts.
Bain's 2026 Global Private Equity Report shows 2025 was a rebound year driven by megadeals and an M&A-fueled surge in exits, pushing deal value to $904B and exit value to $717B—the second-best on record—while liquidity remains uneven as distributions lag and dry powder sits near $1.3 trillion. The industry is maturing into a hyper-competitive regime where scale, repeatable value creation, and sophisticated investor relations matter more than ever. LPs remain patient but constrained by undrawn commitments, pressuring GPs to deliver top-quartile returns and a clear, differentiated strategy. Continuation vehicles are growing as a liquidity tool but still account for less than 10% of exit value, and a broad rebound will depend on faster exits and improved DPI across vintages. In 2026, easing rates, a robust deal pipeline, and strength in public markets should support more activity, though high multiples and a higher bar for value creation persist.
Breitling’s private-equity owners have slashed its valuation to as little as half its 2023 level, as weak demand, a costly store rollout, and US tariffs weigh on performance. CVC and Partners Group are reviewing strategy and considering cost cuts, with the potential for an IPO in the 2027–2029 window.
Walgreens is laying off 469 Illinois employees across Deerfield, the Old Post Office in downtown Chicago, and Danville as part of a corporate reorganization after its acquisition by private-equity firm Sycamore Partners; affected workers will receive 60 days’ notice and retain full pay and benefits during that period, with Texas reporting 159 layoffs as well. The company says the changes aim to simplify the organization and speed decision-making to improve store and patient services amid the private-equity transition.
Wall Street closed lower as private-equity stocks fell after Blue Owl Capital froze redemptions and sold assets, with Apple and Walmart also weighing on the indices. Deere rose after lifting its forecast and Omnicom beat revenue estimates, but EPAM sank on a cautious outlook, while Carvana and others slid; investors awaited Fed signals and inflation data amid ongoing AI-related market turbulence.
Wisconsin residents, led by DeForest organizers, blocked a Blackstone-backed QTS data center annexation, illustrating a growing nationwide grassroots playbook against private-equity–backed data-center expansion and its potential to raise energy costs and strain water resources, while urging stronger regulations on data centers and privatized utilities.
Private equity’s debt-fueled buying spree has left many portfolio companies as “zombies” that struggle to cover interest, a trend that could worsen as refinancing costs rise, potentially slowing deal activity and prompting restructurings across PE portfolios.