BeBeez Trading Floor roundup with eToro support about the performances of private capital firms listed on global exchanges.
The new Fed chairman Kevin Warsh signalled a rate hike after the summer if inflation does not fall, whilst the head of the European Central Bank Christine Lagarde favours stability. These two contrasting narratives led to a clear distinction, albeit with some exceptions, between winners (mainly private equity firms of the old Continent) and losers (US private debt and BDC firms).
Stockholm-listed Wallenberg Family’s perpetual compounder Investor AB benefited from the share buyback programme launched at the beginning of June (press release). The firm carries on long-term investments in companies that generate a steadily growing and smooth cash flow.
Frankfurt-listed Mutares (+3%) attracted the investors money grace to the cash flows that the recent disposals generated (see here a previous post by BeBeez) and to the very convenient buy of Czech Synthomer As from the eponymous UK mother company (press release). The vendor sold the asset because it was too expensive in terms of capex. However, this deal heralds to a substantial capital gain upon disposal in the coming years.
NYSE-listed Hamilton Lane (+2.7%) has one trillion US Dollars of assets under management and increased the flow of commission from clients. Traders rewarded Bruxelles-listed Sofina (+1.9%), an investment holding of the Boël Family, that announced a new buyback programme for up to 100000 shares (press release).
The leading US private debt firms are once again under pressure because rising interest rates are putting strain on the companies they manage, which are already reeling from a prolonged period of relatively expensive debt increasing the likelihood of write-downs on their loan portfolios. Furthermore, rising interest rates are driving up the cost of funding for the BDCs themselves as they borrow their own resources. The new Fed chair’s hawkish stance does not bode well in this regard.
After having written down its portfolio by 34 million US Dollars in 1Q26, BlackRock appears vulnerable (press release).
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