The latest "UBS Family Office Report" shows how the "smart money" remains invested even in times of crisis - and in doing so focuses on private equity (PE) in a targeted manner.

(Link to the article in the comments.)

Family offices use PE not only to increase returns, but also for diversification and as a long-term source of growth - especially in areas such as AI, health & energy.

Particularly exciting: 44% of allocations are allocated to alternative investments such as PE, and many FOs are actively switching within this asset class.

While they often resort to specialized vehicles and platforms, the question for us private investors is: How do we manage to access PE in a meaningful way?

Hence my question to the community here:

💡 How have you integrated private equity into your portfolio?

• Directly via listed investment companies (e.g. KKR, Partners Group, Blackstone)? Or via the PE ETF from iShares?
• Or via digital platforms such as LIQID, Moonfare & Co, which bundle PE vehicles and make them accessible?
• Or is PE not (yet) an issue for you?

Looking forward to your insights - maybe we can take a leaf or two out of the FOs' book... 😅

The US financial investor KKR is planning a billion-euro takeover of Biotage, which specializes in laboratory equipment and automation.

KKR is offering a price of 145 Swedish kronor per share via its subsidiary RWK BidCo AB - around 60% above the last closing price on April 17, 2025.

The total valuation is around 11.6 billion kronor (approx. 1.06 billion euros). Biotage generated sales of 2.06 billion kronor and earnings of 3.55 kronor per share in 2024 - this corresponds to a price/earnings ratio of just under 47.

The takeover is subject to KKR acquiring at least 90% of the shares and the approval of the relevant antitrust authorities.

In addition, the offer price could be reduced if a dividend of 1.65 kronor is approved at the Annual General Meeting on April 24.

$BIOT
$KKR (+3.65%)

https://de.marketscreener.com/kurs/aktie/BIOTAGE-AB-6491374/news/KKR-Fonds-bietet-Ubernahme-von-Biotage-zu-einem-Wert-von-11-6-Milliarden-SEK-an-49670859/

More on private equity:

https://getqu.in/XyptqD/

My goal is to beat the market, I'm still relatively young and want to see if I can do it, if not I'll put everything in an etf in 5 years.

Regarding my portfolio, I currently have a cash ratio of 23-25% depending on the fluctuations in the last month.

Purchases of existing stocks:

I plan to increase the financial stocks by 50%, $CG (+2.38%)
$KKR (+3.65%)
$APO (+3.58%)
$TPG (+2.36%) .

In addition, a little $DMP (+0%) by 25%.

Sales:

I made the mistake of wanting to $EVO (+0.29%) and $CPRX (+1.28%) trade, but then I was too greedy.

I am convinced of both positions in the long term but not in this size in the portfolio, which is why I will reduce both stocks by 33%.

Potential purchases:

$HALO (+0.23%)
$CUV (-3.23%) - Will invest a little extra, otherwise just the 33% from sale of $CPRX. Both around 50 - 50

$SL (-3.73%) - the same as $TISG (-2.05%)

$KSPI (+2.65%) - about as high as $MUM (+0.21%)

$FIH.U (+0%) - about as high as $MUM (+0.21%)

$2GB (-2.47%) - about as high as $MUM (+0.21%)

$M12 (+0.94%) - about as high as $MUM (+0.21%)

$CPR (-1.14%)
$DGE (-0.47%)
$RI (-0.89%) - I'll wait and see, but I can imagine that they will develop in a similar way to the tobacco shares. Since I don't want to decide, I'll just buy three for the sum of one. And divide the amount between these 3.

In general:

I'm generally a fan of putting together baskets like with alcohol or the yacht builders.

What would you change because you see a high risk? I am relatively poorly positioned in the tech sector, do you have any other titles that I could take a closer look at in this area?

Starbucks is looking for a partner to revitalize its China business. Chief Financial Officer Rachel Ruggeri will soon travel to China to talk to potential investors such as KKR $KKR (+3.65%) and the food supplier Meituan. This move is necessary as Starbucks is struggling with declining sales in its second largest market.

The talks are about selling part of the China business in order to gain fresh capital and new impetus. In addition to KKR, other investors, such as the Japanese PAG and FountainVest from Hong Kong, have also shown interest in acquiring a stake. Chinese companies, including the conglomerate China Resources Holdings, have also been brought into play.

The pressure on Starbucks is not only growing in China, but also in the USA. The new CEO Brian Niccol, who joined from Chipotle in the summer of 2024, has the task of putting the company on a growth path and increasing customer satisfaction. Negotiations on the stake to be sold are still ongoing. The next few weeks could be decisive for the future of Starbucks in China. 📈

$KKR (+3.65%)

The private equity giant KKR is known for big deals that are also expected to generate a lot of money for its clients. In Italy, KKR is now threatening to stumble over the problems of the Italian telecoms company FiberCop. Did KKR not pay attention during due diligence?

Last year, the US company KKR and a consortium led by it took over FiberCop, which had been spun off from the parent company Telecom Italia, for around 22 billion euros. FiberCop operates the fixed networks that were spun off from the Italian parent company. As the "Financial Times" reports, a gap of 449 million euros has suddenly opened up in FiberCop's balance sheet.

At an investor meeting on January 16, FiberCop's CFO reportedly stated that earnings (EBITDA) in 2025 would be EUR 449 million lower than forecast in KKR's original business plan. The cumulative deficit over five years is now estimated at two billion euros.

Dividends could be billions of euros lower

The deficit puts FiberCop in a precarious financial position: the company is now forced to cut dividends by billions of euros or take out additional public loans, which is likely to lead to a downgrade of its credit rating.

According to the report, the surprising figures were presented to investors as part of a business plan. Investors include the Abu Dahbi sovereign wealth fund (Adia) and KKR, as well as the Canadian pension fund CPP Investments, the Italian fund F2i and the Italian Ministry of Finance. CPP Investments and Adia, which each hold 17.5 percent of FiberCop, also pay KKR a management fee.

Investors are said to have been extremely upset by the shocking news. The FT quotes Adia's head of digital infrastructure, Mamoun Jamai, as saying, citing an attendee, "I can't believe that just a few months after underwriting a solid due diligence, the numbers are off by 20 percent." Other investors told the FT that the presentation was merely a "draft".

Did KKR not pay attention during due diligence?

FiberCop is now seeking to produce an updated budget for the current year 2025 by the end of the month, in line with the original shareholder-approved business plan, according to the report. However, a new, comprehensive business plan is not expected before this summer.

According to the FT, FiberCop attributes the deficit to a number of factors: the introduction of fiber optic cables in Italian households has been significantly delayed. Revenues from connection services have also fallen and, in addition, labor and IT costs have been higher than expected.

Last month, the CEO of FiberCop, Luigi Ferraris, resigned at a board meeting following a fierce dispute with KKR. To save face with investors, KKR has now put FiberCop on a very tight leash. An internal memo dated February 17, which is available to the FT, states that all "operational decisions" must first be approved in writing by one of the two executives supported by KKR. This includes a person who currently works for KKR in London and is due to move to FiberCop this month.

rei

https://www.manager-magazin.de/finanzen/private-equity-kkr-stolpert-ueber-probleme-bei-italienischem-telekom-unternehmen-a-859045ae-7a0b-447a-91bf-f21273b365b5

$KKR (+3.65%)
$APO (+3.58%)

Alternative asset managers KKR and Apollo Global Management beat estimates for fourth-quarter results early Tuesday and raised their dividends. However, revenues at both companies posted significant declines. Shares of KKR and APO are trading around buy points near their recent record highs.

KKR ( KKR ) reported a 33% increase in earnings to $1.32 per share, adjusted for a 26% decline in total revenue to $3.26 billion.

The results beat FactSet's expectations of earnings of $1.28 per share on revenue of $1.99 billion.

Management fees rose 26% to $906 million, while performance fee revenue increased 5% to $25 million.

KKR's assets under management increased 15% to $638 billion in the quarter. Total revenue for the asset management segment increased nearly 31% to $2.04 billion.

KKR also announced plans to increase investments in its private equity businesses by $1.1 billion, including USI Insurance Services, 1-800 Contacts and Heartland Dental. The company expects its Strategic Holdings division to generate operating profits of over $350 million by 2026, $700 million by 2028 and $1.1 billion by 2030.

KKR also plans to raise its quarterly dividend from 70 cents to 74 cents from the quarter ending in March.

Apollo Global Management

Apollo Global Management ( APO ) reported a 16% increase in earnings to an adjusted $2.22 per share, beating expectations of $1.89 per share.

Total revenue fell 52% to $5.28 billion, primarily due to a sharp decline in retirement benefits premiums. Retirement benefit premiums fell to 155 million dollars in the quarter from 3.59 billion dollars in the previous year.

Fee-related revenue increased 20% to $955 million, exceeding FactSet's forecast of $952.5 million.

Apollo Global Management also announced plans to increase its dividend by 10% to $2.04 per share starting in the first quarter of 2025.

https://www.investors.com/news/kkr-stock-earnings-apollo-global-mangement-q4-2024-asset-managers/

[What do you think of private equity? I've been looking at it for days and am considering building up a position. I'm waiting for a correction as the shares have been running a bit hot].

Private equity is an asset class in which capital is invested in unlisted companies in order to promote their growth or to restructure them. Typical investment areas of private equity firms are corporate takeovers, growth financing, restructuring, real estate, infrastructure and corporate succession.

In the past, high minimum investments of over €10,000 and limited transparency were major hurdles.

Today, private equity investments are easier as there are "low-cost ETFs (0.7 TER)" and platforms that enable access even for small investors.

In recent years, private equity has become a popular investment option as investors can benefit from the high returns and stability provided by strategic investments in private companies. In addition, participation in unlisted companies can provide further diversification. Three of the best known and largest companies in the private equity sector are KKR, Blackstone and Brookfield.

• KKR Kohlberg Kravis Roberts & Co.
  $KKR (+3.65%) is one of the oldest and largest private equity firms and has established itself as a leader in the global financial landscape. The firm is known for its broad-based investment strategy targeting a variety of sectors, including infrastructure, real estate and energy.

• Blackstone
  $BX (+2.61%) the largest private equity firm in the world, has also expanded its focus to these sectors, but is particularly known for its real estate and real estate funds.

• Brookfield Corporation $BN (+1.7%) is another major player known for its broadly diversified strategy, investing heavily in infrastructure and renewable energy alongside private equity. All three companies offer strong long-term growth opportunities, but Blackstone stands out due to its sheer size and market leadership.

Investing in shares or ETFs?

• One listed ETF that invests in private equity is the "Listed Private Equity ETF" $IPRV (+1.76%) This ETF offers broad exposure to listed private equity companies, making it a practical option for investors seeking access to the asset class without having to invest directly in private funds. Over the last 20 years, the average return on private equity funds has been around 12-15% per annum.
• The disadvantage is that although ETFs are cheaper than funds, they offer lower returns and are expensive compared to other ETFs.

Conclusion

Advantages:

• Potential for strong company improvements and increases in value.
• High potential returns due to growth potential.
• Access to exclusive investment opportunities.

Disadvantages:

• Higher risk due to corporate restructuring or market conditions.
• High minimum investment and costs with traditional private equity funds. ETF with 0.7 TER.

Interesting videos on the topic of private equity:

CEO Brookfield Corporation

https://youtu.be/vmt1Li1Rnes?si=CWbRjgbW2Op3_3Ig

KKR Head of Europe

https://youtu.be/3tOR4SKdP0E?si=ohmesMorNYBsGZH1

More on the topic at @JtoTheB

https://getqu.in/8kAzee/

KKR $KKR (+3.65%) recently completed the first step in its takeover of Japanese software developer Fuji Soft, acquiring 35% of the company's shares. The acquisition was made via a two-stage takeover bid in which KKR received the support of Fuji Soft's executives and major shareholders. The offer amounts to 8,800 yen per share, which corresponds to a premium of 110% to the average trading price of the past year.

KKR plans to acquire the remaining shares in the second phase and take Fuji Soft fully private. This move is part of a broader strategy to strengthen the company's position in the Japanese technology services market and capitalize on its real estate holdings by disposing of idle assets.

Today, KKR increased its offer by a further 7 percent to 9,451 yen, equivalent to approximately $60.86.

Source:

https://de.marketscreener.com/kurs/aktie/KKR-CO-INC-44486777/news/KKR-erhoht-Angebotspreis-fur-Ubernahme-von-Fuji-Soft-48377358/

The news is based on what I personally consider to be reputable sources. However, I do not guarantee their accuracy. No advice.

All of these shares reached new ALL-TIME HIGHS at some point today ⤵️

Nvidia $NVDA (+3.57%)

Amazon $AMZN (+0.44%)

Netflix $NFLX (-0.19%)

Walmart $WMT (-0.67%)

JPMorgan $JPM (+0.21%)

Goldman Sachs $GOS0

Palantir $PLTR (+5.44%)

Blackrock $BLK

American Express $AXP (+1.45%)

Arista $ANET

Apollo $APO PR A

Blackstone $BX (+2.61%)

Booking $BKNG (-1.69%)

Instacart $INSTA (+0%)

Caterpillar $CAT (+3.47%)

Capital One $COF (+1.3%)

Discover Financial $DFS

Electronic Arts $EA (+0.63%)

GE Vernova $GEV (+1.15%)

Hilton $HLT (+0.27%)

Howmet $HWM (+3.46%)

Interactive Brokers $IBKR (+4.97%)

$KKR (+3.65%)

Cheniere $LNG (+0.18%)

Morgan Stanley $MS (+1.49%)

Marriot $MAR (+1.13%)

Nasdaq $NDAQ (-2.19%)

News Corp $NWSA (+1.17%)

Oracle $ORCL (-0.9%)

Palo Alto $PANW (+1.27%)

ServiceNow $NOW (-0.14%)

Steel Dynamics $STLD (+2.31%)

Stryker $SYK (-0.33%)

Royal Caribbean $RCL (+0.05%)

Reddit $RDDT (+2.64%)

Trade Desk $TTD (-2%)

Visa $V (-1.03%)

Wells Fargo $WFC (+0.49%)

⚠️⚠️⚠️Breaking News⚠️⚠️⚠️

ATTENTION to all who have a deposit with Trade Republic, today more than 100 savings plans will be executed with me, the real offensive starts at 15.30 and can take up to 4 hours, as there may well be "massive" "failures" and "delays" during this time, I ask you to keep calm, take a deep breath and not to bombard Trade Republic customer support with inquiries. Thank you very much 😁

As far as the Ultimate Homer "ETF" is concerned, many new stocks were added in September 😁

In since September 2

🇺🇸Chipotle $CMG (+0.27%)

🇺🇸Costco $COST (-0.48%)

🇺🇸Domino's Pizza's $DPZ (-1.59%)

🇺🇸Texas Roadhouse $TXRH (-2.87%)

🇺🇸TransDigm $TDG (+0.32%)

Newly launched today

🇺🇸Booz Allen Hamilton Holding
$BAH (+0.77%)

🇺🇸Blackstone $BX (+2.61%)

🇺🇸KKR & Co
$KKR (+3.65%)

🇺🇸Vulcan Materials
$VMC (+2.02%)

🇺🇸CSX $CSX (+1.27%)

🇺🇸Carrier Global $CARR (+1.03%)

🇺🇸Hilton Worldwide $HLT (+0.27%)

🇺🇸Merck & Co $MRK (+0.51%)

🇺🇸Moodys $MCO (-4.93%)

🇺🇸Rollins $ROL (-0.18%)

🇺🇸Toll Brothers $TOL (+0.17%)

🇺🇸Watsco $WSO (+0.09%)

🇺🇸Cardinal Health $CAH (+0.89%)

🇺🇸Colgate Palmolive $CL (-0.59%)

🇺🇸Emerson Electric $EMR (+1.55%)

🇺🇸Nordson $NDSN (+1.87%)

🇬🇧BAE Systems
$BA. (+0.24%)

🇬🇧RELX
$REL (+1.76%)

🇬🇧Bunzl
$BNZL (-1.49%)