Corporate Financier’s Notes
by Aivars Jurcans
Done! And Done
Rockefeller Capital Management, a wealth adviser, has agreed to acquire Financial Clarity, a Mountain View, California-based multi-family offices overseeing USD 2.3 billion in assets. It typically caters to families and individuals with at least USD 30 million in assets. The deal terms were not disclosed.
Leonardo Del Vecchio, an Italian billionaire, has acquired a stake of 6.94% in Mediobanca, an Italian investment house. Both, Del Vecchio and Mediobanca, are shareholders in Generali, an Italian insurer.
A partnership comprised of 17 senior managers has agreed to acquire 100% ownership in CarVal Investors, a fund management business, from Cargill, an agricultural commodities company. The terms of the deal were not disclosed.
Deals On the Table
Kuwait Finance House is said to have offered to buy Ahli United Bank, a Bahrain’s lender, in an all-share deal that’s valued at about USD 8.8 billion. The combined entity will potentially become the Gulf’s 6th biggest lender with USD 100 billion in assets.
KKR, a buyout firm, is said to be considering a sale of ELL GmbH, its Austrian and German locomotive leasing business. ELL could possibly fetch a valuation of more than EUR 1 billion including debt.
Follow the Money
French insurers and asset managers are said to have pledged EUR 5 billion in investment for tech firms, according to President Emmanuel Macron. His goal is to have at least 25 French unicorns by 2025.
Binance Holdings, a crypto-exchange, has made its first China investment by investing in Mars Finance, a Beijing-based crypto-data website. At this latest funding round Mars Finance was valued at about USD 200 million.
SoftBank Group has agreed to increase its stake in Banco Inter, a Brazilian online lender, to 14.94%. SoftBank which acquired 8.1% for about USD 186 million in July will acquire shares from members of the controlling families of Inter.
“Public Market Equivalent (PME)” – a measure that takes all the cash flows between the investors and a buyout fund (net of fees) and discounts them at the rate of return on the relevant benchmark (e.g., stock market). The sum of all the distributions (plus unrealised terminal value, if any) is then divided by the sum of the investments made, both in present value terms. A figure greater than 1.0 suggests outperformance, and vice versa.
Turkey’s banking regulator has told the banks to reclassify about USD 8.1 billion of loans as non-performing by the end of 2019. This would increase the ratio of non-performing loans from 4.6% to 6.3%.
A Thought Worth Noting
“Deposit tiering doesn’t help us even nearly enough. The ECB’s decisions make it impossible to generate a return of 10% or more. In this environment we’ll do well to get to 7%.”
Anonymous, top executive, major German lender
To receive your personal weekly copy of Banking M&A Digest please subscribe at http://eepurl.com/gepqdP.
Aivars Jurcans has more than 20 years of corporate finance and investment banking experience. His services are currently available through MURINUS ADVISERS.