Tag: Private Equity

We Like The Prospective Link Group Acquisition for SS&C<span class="badge-status" style="background:red">Premium</span> 

We Like The Prospective Link Group Acquisition for SS&CPremium 

The deal for Australia's Link Group (tkr: LNK) is a competitive one, insofar as Link Group has disclosed. The competing prospective acquirers include SS&C Technologies (tkr: SSNC), and a pair of private equity firms - Sydney-based Pacific Equity Partners (Link's former owner) and Carlyle Group (tkr: CG) whom are bidding together. Our best guess is … Continue reading We Like The Prospective Link Group Acquisition for SS&CPremium 

Is There Another Leg To Drop In The SolarWinds Cyberbreach?

Is There Another Leg To Drop In The SolarWinds Cyberbreach?

Cyberbreaches do not receive enough attention. The last time we railed against a company related to a Cyberbreach was the Equifax (tkr: EFX), hack of 2017. That breach was disclosed in September 2017 despite the fact that the company had knowledge of the hack for months. EFX executives sold stock ahead of the disclosure. SolarWinds … Continue reading Is There Another Leg To Drop In The SolarWinds Cyberbreach?

The Mortgage Processing Market Is A Riddle Best Solved by FinTech Companies

The Mortgage Processing Market Is A Riddle Best Solved by FinTech Companies

Intercontinental Exchange (ticker: ICE) recently announced that it agreed to acquire Ellie Mae from Thoma Bravo for approximately $11 billion. It makes sense that a large FinTech company is working to drive automation across the mortgage processing landscape. Ellie Mae will nicely augment Intercontinental's 2018 acquisition of MERSCORP. MERSCORP operates the MERS System, a national … Continue reading The Mortgage Processing Market Is A Riddle Best Solved by FinTech Companies

Debt-Loading Is Killing Innovation

Debt-Loading Is Killing Innovation

Ever "carb-load"? I used to. "Carb-loading" is the process of consuming large quantities of carbohydrates which are stored as glycogen and subsequently burned while competing in an athletic event. Doing so made me feel sluggish. Do you know who else feels sluggish? Software companies that Private Equity owners have loaded with debt. It's difficult to … Continue reading Debt-Loading Is Killing Innovation

The SPAC Bubble Is Further Evidence of A Market Bubble

The SPAC Bubble Is Further Evidence of A Market Bubble

Easy credit, lofty equity valuations and a weak economy are all pointing to investors getting burned. The 2020 SPAC frenzy is further evidence of market excess. Billy Beane the baseball GM is a partner in a SPAC that will pursue SportsTech acquisitions. Former hedge fund managers, former VC's, even former operators who were not known … Continue reading The SPAC Bubble Is Further Evidence of A Market Bubble

Private Equity Stands To Benefit From A Biden Presidency

Private Equity Stands To Benefit From A Biden Presidency

Last week we wrote that higher tax rates and advanced automation (AI/machine learning) are coming. Private Equity - especially long duration funds - will be a big winner should Biden win the Presidency as investors will work to shield assets from higher capital gains taxes. The outline below was prepared by TaxFoundation.org. Click the image … Continue reading Private Equity Stands To Benefit From A Biden Presidency

Higher Corporate Income Tax Rates and Advanced Automation Are Coming

Higher Corporate Income Tax Rates and Advanced Automation Are Coming

Regardless of who wins November's general election we expect higher corporate income tax rates in 2021 or more likely 2022. Today's 21% U.S. corporate tax rate will likely climb back to 35% or higher should Trump win re-election or to 40-45% should Biden win the Presidency. We expect companies to control expenses as a result … Continue reading Higher Corporate Income Tax Rates and Advanced Automation Are Coming

SPAC City

SPAC City

SPACs are popular at the moment accounting for approximately 38% of IPO activity through May. Pershing Square filed for the largest SPAC on record earlier this week with its $3 billion Pershing Square Tontine Holdings filing. SPAC filings of Pershing Square's size suggest more competition for private equity firms may be forthcoming. https://youtu.be/1U2PxBGetqw https://soundcloud.com/ceorater

TEK2day PropTech Outlook & Landscape<span class="badge-status" style="background:red">Premium</span> 

TEK2day PropTech Outlook & LandscapePremium 

The TEK2day PropTech Outlook provides our perspective on where we believe the PropTech industry is headed over the next few years. Major themes include: I.) further industry consolidation and II.) AI-driven revenue opportunities and operating efficiency gains. The TEK2day PropTech Landscape (link at the bottom of this article) includes company names, descriptions, CEOs, 2019 revenue … Continue reading TEK2day PropTech Outlook & LandscapePremium 

The Next Recession Will Prove Different for U.S. Equity Markets

The Next Recession Will Prove Different for U.S. Equity Markets

A recession is defined as an economic period where GDP declines for two consecutive quarters. We believe the next recessionary period will be different as a result of artificially low interest rates. The United States' proclivity to print money and maintain artificially low interest rates makes it difficult for institutional investors to find yield. Gone … Continue reading The Next Recession Will Prove Different for U.S. Equity Markets