Corporate venture capital units invested in almost a quarter of global VC deals in the second quarter this year.
Brewdog, the independent Scottish brewery, has raised £100m from TSG Consumer Partners, the American private equity firm. In a message to shareholders on Saturday, the beer maker said TSG had acquired 22 per cent of the company. Brewdog said the transaction had given it a £1bn enterprise value.
British venture capitalists are worried Brexit could deprive them of European funds and are lobbying hard for the government to step in with compensatory tax-breaks. But what does this really say about the quality of VC investments?
Bitcoin asset holders have discovered there is logic in taking risk with middlemen if it means idle (and highly volatile) zero yielding assets can be transformed into yielding securities. As a consequence, Bitcoin has gone full-circle and become exactly what it sought out to destroy.
Corporate debt in China is a well-known problem and part of the solution is, apparently, a new round of debt-for-equity swaps. Of course, there will always be sceptics.
The tendency toward restriction that runs through the tone of the presentation seems to me to be quite problematic. It seems to me to support a wide variety of misguided policy impulses. –Larry Summers, Jackson Hole 2005 You might think Summers had changed his mind in the eleven years since he called Raghuram Rajan a “Luddite” for daring to suggest the financial system had gotten riskier since the 1970s thanks to competition and the rise of performance-based pay. After all, in a new paper, Summers and graduate student Natasha Sarin not only cited Rajan’s work approvingly, they concluded lenders are still too vulnerable to panics. You would, however, be wrong.
Uber, the ride hailing app, is the archetypal billion dollar unicorn. How it’s managed to convince investors it’s worth $62.5bn, however, is the real mystery, given its model is arguably neither innovative or viable.
HarbourVest makes final offer for SVG, Aberdeen given new capital requirement, Primark profits up. FT Opening Quote, with commentary by City Editor Jonathan Guthrie, is your early Square Mile briefing. You can sign up for the full newsletter here.
By Jonathan Guthrie: Lord Rothschild is pulling in his horns. The veteran investor has reduced the equities exposure of RIT Capital Partners, his family’s £2.5bn London-quoted vehicle, from 55 to 44 per cent. He has cut sterling-denominated positions to 25 per cent and raised outlay on gold and precious metals to 8 per cent.