PE HUB Wire Highlights, 6.20.19


Photo of Luisa Beltran, PE HUB Senior Editor, courtesy of Buyouts Insider.

British Columbia pension shops PE portfolio; Hooters has a mystery buyer; Sycamore lowers Chico’s bid

Morning, Hubsters. I admit that Iran shooting down a U.S. drone has me worried.

In happier news, Henry McVeyKKR‘s head of global macro and asset allocation, has released his mid-year outlook for 2019. McVey and his team continue to see an attractive path forward for those that “stick to the plan” by investing behind macro themes.

While overall portfolio risks are higher these days, low-rates, de-levered financial institutions and accommodative central banks should help prevent a 2007-type downturn, he said. But McVey makes no mention of drones or countries who shoot ours down. McVey recommends that investors should embrace complexity through a variety of investment disciplines, including energy, PE, real estate and infrastructure.

“With all the geopolitical ‘noise’ swirling around these days, there is a growing propensity in the investment community to react quickly to near-term news flows, or even head to the sidelines until there is greater visibility. Our view: stick to the plan,” McVey said.

Stephen SchwarzmanBlackstone Group’s CEO, has donated $188.6 million to Oxford University for a new institute that will study the ethical implications of AI and computing technologies. Schwarzman previously gifted $350 million to MIT to help prepare students to use AI and computers in ethical and responsible ways.

Hubsters, I’ve asked this a million times and have yet to get a clear answer. What exactly is AI? I even spoke to a software engineer, who says he’s been working in AI for years, and he couldn’t explain it. Can you tell me what it in a simple sentence? Why is it so attractive? Email me at lbeltran@buyoutsinsider.com

Mystery buyerHooters, the restaurant chain known for its chicken wings and other things, has found a buyer, I’m hearing. Now, Hubsters, we frequently hear rumors about deals and I initially resisted this one. But I’m hearing it’s true and Hooters is indeed getting sold. This means an exit for the consortium, including H.I.G. CapitalKarpReilly and Chanticleer Holdings, that acquired the restaurant chain in 2011. Read my story here

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