Corporate Financier’s Notes by Aivars Jurcans
Done! And Done
Mitsubishi UFJ Financial Group agreed to sell its US consumer banking business to US Bancorp for USD 8 billion (USD 5.5 billion in cash and USD 2.5 billion in stock). US Bancorp expects to achieve about USD 900 million in pre-tax cost synergies after the deal.
JPMorgan Chase agreed to acquire Frank, a college financial-planning platform which serves more than 5 million students at more than 6,000 education institutions. Financial terms of the deal were not disclosed.
Barings BDC agreed to buy Sierra Income Corp, a business development company lender, in a deal valued at USD 623.7 million (USD 100 million in cash and USD 523.7 million in shares).
Fideuram, Intesa Sanpaolo’s asset management arm, agreed to buy Compagnie de Banque Privee S.A. Quilvest. The transaction would create a combined entity with EUR 9 billion of assets under management in Luxembourg.
Deals On The Table
State Street Global Advisors, an asset management arm of State Street and a pioneer in index investing, is said to be in talks with Invesco about a possible merger. A combined entity would have USD 5.4 trillion in assets under management and will hold 1/5th of the US ETF market.
Sberbank, a Russian lender, is said to be considering selling its 25% stake in VisionLabs, a biometrics company, to Sistema. Sberbank acquired its stake from VisionLabs founders and the Sistema VC fund 4 years ago.
Piraeus Bank, a Greek lender, is said to be in talks with Bain Capital, a multi-asset alternative investment firm, to sell a portfolio of leasing contracts as part of its efforts to clear non-performing loans from its balance sheet. The portfolio has a gross book value of about EUR 500 million.
AnaCap Financial Partners, a private equity and credit firm, is said to be spinning off Equipped AI, its analytics unit, into a separate business. Formed as a unit within AnaCap in 2017, Equipped AI provides data analysis for debt, equity and real estate investments and expects to generate EUR 4 million in revenue in 2021.
Tiedemann Group, an investment company, and Alvarium Investments, its peer, are said to be “on the verge of a deal” to merge and go public through a special purpose acquisition company. The combined firm, Alvarium Tiedemann Holdings, will be valued at about USD 1.4 billion and is expected to have about USD 54 billion in assets under management and advisement.
Genesis Digital Assets, a bitcoin mining company, has raised USD 431 million in its latest funding round. Active since 2013, the company has mined more than USD 1 billion in bitcoin and is expected to reach a data centre capacity of 1.4GW by the end of 2023 (compared with more than 170 MW as of September 2021).
Globally USD 103 billion in venture capital has been raised this year to date, according to property agency JLL. That compares to USD 96 billion raised in 2020 and USD 63 billion in 2019.
A Thought Worth Noting
“It’s the worst of the 1970s, when you had stagflation, and the worst of the great financial crisis, when debt levels were unsustainable. It’s a slow motion car wreck. This is not a prediction of what is going to happen to the market in the next 3 or 6 months, But over, say, the next 2 or 3 years, that’s what I see.”
Nouriel Roubini, economist
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