Pershing Square Will List Permanent Capital Vehicle This Year

FinAlternatives LogoBrokerDealer.com blog post courtesy of extract from FinAlternatives.com

 

 

Pershing Square Capital Management plans to move forward with a listed permanent capital vehicle later this year, the $15 billion hedge fund told investors.

The New York-based firm said it will raise an undisclosed amount in an initial public offering later this year. The money would serve to protect Pershing Square’s investments against redemptions.

“Because we are an active, control and influence-oriented investor, we have avoided being fully invested because of the risk of investor redemptions,” firm founder William Ackman wrote. “We will hopefully begin to address this issue with the initial public offering of Pershing Square Holdings Ltd., targeted for later this year, which will increase the amount of our capital that is permanent.” Continue reading

BrokerDealer Fantex Completes IPO for NFL Star EJ Manuel

Buffalo Bills Star E.J.Manuel

Buffalo Bills Star E.J.Manuel

Sports-centric brokerdealer Fantex announced it raised enough capital to close 523,700 shares of Buffalo Bills quarterback EJ Manuel and shares of his convertible tracking stock. The IPO required help from the company which stepped up to buy 250,000 shares, or 48 percent of its own shares of the total offered amount.

Trading under the Fantex ticker EJMLL, the stock began trading last week at Fantex.com. This is the second successful athlete IPO that Fantex has been able to close. CEO Buck French voiced his excitement on the success of the program and future plans to build E.J. Manuel’s NFL Brand.

Fantex, a sports marketing stock exchange, allows traders to capture a share of contracted athletes’ career earnings potential. On its exchange, Fantex offered 523,700 shares of stock at $10 per share on Manuel. In return, Fantex will pay Manuel almost $5 million up front to receive 10% of his future earnings tied to his “brand.” These future earnings include any NFL contracts, marketing endorsements, post-career broadcasting contracts, and any other checks he’ll cash through his NFL “brand.”

A full exploration of the firm’s operations, business model and potential risks to investors is the subject of a feature story in the print debut of The Alpha Pages

Fidelity Investments Partners With BrokerDealer Credit Suisse for IPO Deal Flow

Fidelity Investments and investment banker/brokerdealer Credit Suisse have formed a partnership that gives Fidelity’s retail brokerage clients access to participate in initial public offerings and follow-on equity offering underwritten by Credit Suisse. The partnership opens up IPO investing for customers of Fidelity’s registered investment advisor (RIA) network, its family office clients and its retail brokerage customers who qualify.

For Credit Suisse, the arrangement opens up its potential investor base to a wide arena of new customers. “It gives us the ability to distribute shares into the mass market that we didn’t have before,” David Hermer, Credit Suisse’s head of equity capital markets for the Americas, told New York Times DealBook.

About 232 companies have gone public so far this year, nearly 79 percent more compared with those in the period a year earlier, according to data from Renaissance Capital. By Mr. Hermer’s reckoning, the I.P.O. surge is still only in its early stages.

Credit Suisse completed 63 book-run IPOs in the first half of 2014, its most active half-year period on record. For that period, Credit Suisse ranks number two for IPOs in the U.S. and in the EMEA area–Europe, the Middle East and Africa. Looking ahead, Credit Suisse is working on several high-profile deals, including the much-anticipated IPO for Chinese internet company Alibaba.

And, the thinking goes, the more companies that Credit Suisse helps take public, the more that Fidelity customers benefit. The IPO participation is open to Fidelity investors with a minimum of $500,000 in retail assets.

Facebook, Inc. $FB Founder Mark Zuckerberg Now Worth $33 Billion as Shares Surge

Mark Zuckerberg is now richer than Google Inc. co-founders Sergey Brin and Larry Page, despite the company’s contentious IPO just 2 years ago with lead investment banker and brokerdealer Morgan Stanley.

According to Bloomberg, the Facebook Inc. chairman has added $2 billion (USD1.6 billion) to his fortune after the world’s largest social network closed at a record $74.98, and a rose further to $75.07 in after-hours trading.

The stock surge has pushed Zuckerberg’s net worth to $33.3 billion, taking him past Brin, 40, and Page, 41.

He has also surpassed Amazon CEO Jeff Bezos, 50, on the Bloomberg Billionaires Index.

The index ranks Zuckerberg at No. 16 now with the Google founders at 17th and 18th respectively. Bezos occupies the 20th spot.

“He’s just getting started,” David Kirkpatrick, author of “The Facebook Effect,” told Bloomberg in a telephone interview. “He’s going to become the richest person on the planet.”

Private Equity Firm Takes Coffee Break from Israel Company; IPO Provides Exit Strategy

FINALTERNATIVES  BrokerDealer.com blog post courtesy of below extract from hedge fund industry newsletter FINalternatives.com

After six long years that must feel more like 60 for TPG Capital, the private-equity giant is nearly free of an investment that has made it money, but at a price.

TPG and Strauss Group are near a deal to list Strauss Coffee, the Israeli company in which TPG took a 25% stake in 2008. The deal will allow TPG to exit an investment that has produced more headaches and disappointment than solid returns.

When TPG and Strauss consummated their partnership, both had grand expansion plans and hopes to build a global coffee giant. But TPG’s purchased closed just days before Lehman Brothers collapsed, and the deal-making environment dried up, giving Strauss Coffee few takeover targets. In addition, the company struggled in regions like Russia and Eastern Europe.

For the full story, please visit www.finalternatives.com