Corporate Financier’s Notes by Aivars Jurcans
Done! And Done
Candriam, a multi-asset manager, and New York Life Investments Alternatives, its affiliate, have agreed to take a 33% stake in Kartesia Management, a EUR 2.5 billion credit specialist. Kartesia provides private capital (mostly debt) of EUR 10 to EUR 50 million to SMEs in Europe.
Foley Trasimene Acquisition Corp II, a special purpose acquisition company, has agreed to merge with Paysafe, a payments platform, valuing it at around USD 9 billion.
Affirm Holdings, a San-Francisco-based provider of instalment loans to online shoppers, has agreed to acquire PayBright, a Canadian peer, for USD 264 million in cash and stock.
Societe Generale will merge its retail banking network with that of its subsidiary, Credit du Nord. The revamped retail network will have about 1,500 branches by the end of 2025, down from about 2,100 today.
Deals On The Table
Goldman Sachs is said to have initiated regulatory processes to acquire all of the outstanding shares in Goldman Sachs Gao Hua, its China JV, from Beijing Gao Hua Securities, a local partner. Goldman Sachs currently holds 51% in the venture.
Dyal Capital Partners and Owl Rock Capital Group are said to be “in talks” to merge with a blank-cheque company. The combined asset manager would potentially be valued at about USD 13 billion.
Metrics To Watch
Deutsche Bank says it is on track to generate a return on tangible equity of 8% by 2022 and to give back EUR 5 billion of capital to shareholders in the following years.
Social Finance, an online lending startup, is said to be holding discussions with blank-cheque acquisition companies to debut in the stock market. It was valued at USD 4.8 billion in a private fundraising round in 2019.
Monzo, a UK challenger bank, is said to have raised an addition GBP 60 million in funding. The latest fundraising is an extension of a top-up round in June 2020 that valued the company at GBP 1.2 billion, which was lower than its previous valuation.
Robinhood, a stock trading app, is said to have started preparations for an IPO in 2021 which could value it at more than USD 20 billion. The company was valued at USD 11.7 billion in its last private fundraising round in September 2020.
JPMorgan expects a rise in equity demand of about USD 600 billion in 2021, relative to this year. Meanwhile, supply will drop by USD 500 billion, returning to the very low levels of 2016 to 2108.
A Thought Worth Noting
“The European Central Bank don’t want to say it out loud but they are effectively in yield and spread control. They are basically out of ammunition and relying on good luck and good fiscal policy when it comes to reflating demand even if they can keep pumping up asset prices.”
Richard Barwell, head of macro research, BNP Paribas
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