The Banking and Strategy Initiative

Chillin' out till it needs to be funded

The Deal Economy: The Avon CEO is a living poison pill, hedge funds return 5%

Hedge funds return their best in Q1

In what may redefine the Hedge funds industry and decide what kind of inflows the sector gets from 2013, the Hedge funds signed off on their best quarter in six years witha meagre industry wide gain of 4.94%, many of them celebrating their return to the green  after a decade in the wilderness and awaiting new hit from taxes and more regulation. Banks are seemingly much better off without inhouse hedge funds and in house SPVs too with leveraged products and Derivatives funds dstill making good returns in select sectors. Derivatives are definitely in, but most of the new candidates upfor investment since 2010 are going down  and staying underwater for more time to come this time without investors throwing themselves under the bus for the last decade’s most promising investment vehicle.

Carlyle reports return slog

In PE, Carlyle increadsed Carry funds by a astrong 9% with growth funds returning only 5% and PE funds 8% leaving growth to buyout funds that grew 9% againsta 8.1% run in the DJIA. Carlyle IPO hits later this year once their is enough Capital chasing investment funds

Avon’s Change in Control clause

Sheri McCoy, the new leading lady at the cosmetics major worth $10 bln in emerging markets alone, has a change in control / severance clause that gives her three times jher salaries and bonus in case the M&A deal does happen. That means she stands to gain more than $21.5 mln as and when Coty makes a winning bid. However, the bidding war has petered off withno other suitors and Coty not interested in raising the bid

DBS puts $350 mln into RBS China operations

DBS acquired RBS China in 2010 and is nopw funding $354 mln ior RMB 2.3 bln in 2012 to increase its foothold in China on the back of a successful change in hands at PT Danamon when it took over investor Temasek;;s large stake in the bank group that relies on retail loans from its subsidiary Anggara for profits even as Indonesian government tighten;’s control clauses for Foreign investors in the country. singapore and Indonesia are both important trade centers for China

Warren Buffet’s new charity auction

In a new expansion of his annual dinner auction, Buffet’s team announced a auction starting at $6000 for dinner at his childhood home in Nebraska. This diner will not be restricted to one and the legendary ;long term investor will send in a personal taped video with his memories of the house instead of making a personal appearance.

CVC Capital Partners logo

CVC Capital Partners logo (Photo credit: Wikipedia)

Asia’s Deal of the Week: A F1 IPO from Singapore

Owner CVC Capital Partners is trying hard to get a Singapore listing for F1 after investor interest from Singapore drives successful IPOs even as hongkong and Shenzhen try to calendarise a busy IPO calendar for bank IPOs and Private placements worth $ billions. Singapore would definitely lke to imporve its placing as an Economic Center in Asia again, a foray led by its international investments thru GIC and Temasek F1A  achairman Bernie Ecclestone owns only 11% in F1 and after IPO exit for CVC Capital Partners would mean $2 bln and a stake closer to 33% for CVC Capital. Large IPOs are seldom seen in Singapore though some Indian players like RCOmM  are also planning a listing on the bourse where last action was seen with Hutchison Port Holdings $5.5 bln IPO. The F1 IPO may also be shelved HK IPOs are on hold for 2-3 months and an earlier big bang in Singapore was canceled in 2011 for the Manchester United franchise.

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