When discussing the UFC on ESPN, Analyst Max Kellerman said that “UFC has created the marketplace for MMA in this country [USA].” Within the United States, UFC has grown to be the monopolist in mixed martial arts entertainment; however, the company is in need of guidance in order to expand successfully. The organization produces over 40 live events annually, and provides the most Pay-Per-View content in the world.
PETER THIEL: SHAPING THE FUTURE OF VC
Often in business, being contrarian is the way to get ahead. Few do it better than Peter Thiel, which is why he is one of the most successful individuals Silicon Valley has ever produced. However, Thiel surprised many people this this October when he made perhaps the most contrarian move possible; he donated to Donald Trump’s presidential run. Now, just a month later, Thiel is part of Trump’s presidential transition team and he will be largely responsible for helping to shape the new administration’s policy towards Silicon Valley and the tech sector.
OUT OF THE PUBLIC EYE: PROSPERITY WITHIN PE
Private equity institutions have a surprising permanence. Whereas the funds they raise are often temporary, the individuals at the helm of private equity firms have largely stayed the same. David Rubenstein, William Conway, and Daniel D’Aniello, the triumvirate that stands atop The Carlyle Group, are all above the age of 65. Steve Schwarzman of Blackstone and Henry Kravis of KKR are in the same boat--both have steered their companies for the past 3 decades. This kind of enduring leadership is both unprecedented and unique to the private equity industry.
KOCH EQUITY’S FORAY INTO THE DIGITAL ERA
The burgeoning market for enterprise-level software has led to interest from major private equity firms seeking to capitalize on this growth. Of the many investment vehicles that could be used to tap into this accelerated value, one company, Infor, has been a target for firms such as the Blackstone Group (NYSE: BX) and Golden Gate Capital. However, on November 20th, 2016, Koch Equity Development made an unexpected move when they announced the buyout of an undisclosed stake in Infor for an estimated $2.5 billion dollars.
FOREIGN PLAYERS BANK ON MEXICO’S OFFSHORE OIL
On March 18, 1938, Mexican President Lázaro Cardenas expropriated the assets of nearly all of the foreign oil companies operating in Mexico. Later, he created Petróleos Mexicanos, or Pemex, a state-owned oil firm that held a monopoly over the Mexican oil industry and prevented all foreign oil companies from operating in Mexico. Now, nearly 80 years later, current President Enrique Peña Nieto is on the brink of one of Mexico’s most radical economic changes in the last five decades.
LEXMARK ACQUISITION SET IN INK
On April 19th 2016, Lexmark (LXK) announced that it will be acquired by a group of investors, including Apex Technology and PAG Asia Capital. Lexmark, based in Kentucky, is a leader in the printing service space, by developing, manufacturing, and supplying items such as printers and related supplies & services for both homes and offices across 150 countries. Lexmark International was founded in 1991, when IBM separated its printer side in a buyout involving Clayton, Dubilier & Rice.
TRUMP AND SILICON VALLEY
In the early hours of the morning on November 9th, the nation—and much of the world—held its breath as controversial businessman, TV star, and Republican nominee for President took the stage in New York to claim victory in the 2016 presidential election. The markets, which had been dropping rapidly as the results began to pivot away from the seemingly inevitable Clinton victory, regrouped, as stability was restored by way of a concession and a tempered victory speech by President-elect Trump. There was one industry, however, that seemed to be in shock, even fear, of the results.
SILICON VALLEY’S SEARCH FOR A GOLD MINE
Over the past several years, all eyes in Private Equity and Venture Capital have focused on the technology boom in Silicon Valley. Since the advent of mobile applications, Silicon Valley has been a hub for applications revolutionizing the way we live. From some of the most pervasive social media platforms (Instagram, Snapchat), to novel business models reshaping entire industries (Uber, Airbnb), Silicon Valley has become synonymous with disruption. Venture capital firms have played a vital role in this burst of innovation by providing massive capital infusions to support R&D efforts and help companies develop more advanced software infrastructure.
BLACKSTONE ACQUIRES TEAMHEALTH
On October 31st, TeamHealth agreed to be acquired by Blackstone for $43.5 per share. The offer represents a 33% premium since the board announced on October 3rd that it was exploring the possibility of selling the company to a private equity firm. On the day of the announcement, shares of TeamHealth jumped by 15%. Blackstone’s offer placed TeamHealth’s equity value at $3.2 billion.
BLUE APRON WHISKING UP INVESTMENT
As investors know, the food industry in America is an oversaturated market. Companies including grocery stores, fast casual restaurants, and online delivery services compete to win the dinner plate of Americans. With a plethora of dining options, cooking options, and delivery options, companies continuously try to innovate and offer more for less, which has made it incredibly difficult to profit in this industry. That is where innovation adds value. Over the years casual dining has been replaced by fast casual, “organic, healthy” foods have grown in popularity, and companies like Postmates, GrubHub, and app payment methods have made tech increasingly more prevalent in the food industry.