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PGIM has appointed Jacques Chappuis from Morgan Stanley as the new CEO, succeeding David Hunt after his 13-year tenure. Chappuis will lead the asset management unit of Prudential Financial Inc., managing $1.4 trillion across public and private markets. The move reflects a broader trend in the industry where traditional insurers are focusing on asset management to enhance competitiveness, particularly in alternative investments. Chappuis brings extensive experience from Morgan Stanley and other financial institutions to his new role. [Extracted from the article]

HPS Investment Partners LLC is leading a group of lenders in providing approximately £800 million of private credit to Ocorian Ltd., an investment management business backed by Inflexion Plc. Other participants in the deal include Apollo Global Management Inc., Carlyle Group Inc., and Goldman Sachs Asset Management. The debt will be used to refinance an existing loan from Ares Management Corp. Inflexion initially invested in Ocorian in 2016, and the company has since made 11 acquisitions to expand its business, with earnings of around £100 million. [Extracted from the article]

Elliott Investment Management has increased its economic exposure in Southwest Airlines Co. to 11.3% after reaching a truce with the carrier. The activist investor now holds a 9.95% stake in common shares and 1.4% through derivatives and swaps. Despite believing that Southwest's stock is undervalued, Elliott has decided not to call for a special shareholder meeting at this time. The firm recently reached an agreement with Southwest, resulting in five of its nominees being added to the airline's board. Southwest's stock has seen a 14% increase since Elliott's position was disclosed in June. [Extracted from the article]

Elliott Investment Management has increased its economic exposure to 11.3% in Southwest Airlines Co. after reaching a truce with the carrier. The activist investor believes Southwest's stock is undervalued and has adjusted its holdings accordingly. Elliott recently agreed to add five of its nominees to Southwest's board, avoiding a potential proxy battle. Southwest's shares have risen approximately 14% since Elliott's position was disclosed in June. [Extracted from the article]

GDS Holdings Ltd. has secured $1 billion from new US investors for its data center operations outside of China, led by Coatue Management. The investment is in GDS's international affiliate, DigitalLand Holdings Ltd., with GDS holding a 37.6% stake in the company. DigitalLand, also known as GDS International, has significant data center capacity in service and under development in various locations. GDS is also planning to raise $2.3 billion in loans for operations in Malaysia and may consider an IPO for the international unit next year. [Extracted from the article]

Terrence Matthews, former head of European credit at Centiva Capital, has launched his own firm, Athlone Investment Management, in London with an initial capital of $200 million. The firm will focus on European fundamental relative value and macro-credit investments and will start with a team of three investment professionals. Matthews, who specializes in fixed-income markets, has previously worked for firms like Millennium and Arrowgrass Capital Partners. Several experienced traders are leaving multistrategy investment firms to start their own hedge funds, with some receiving backing from seeders and large pod shops. [Extracted from the article]

A group of plaintiffs, including Pacific Investment Management Co and Anchorage Capital Group LLC, are seeking €1.13 billion in compensation from Banco Santander SA, PriceWaterhouseCoopers LLP, and others over the collapse of a Spanish bank. The claimants, which also include Algebris Investments and Mediobanca Banca di Credito Finanziario SpA, are demanding compensation for losses incurred by bondholders of Banco Popular when the lender was sent into resolution in 2017 and taken over by Santander. Spain's National Court recently concluded an investigation into the collapse of Popular, proposing that some of the bank's executives and its then-auditor PwC stand trial. Santander, which acquired Popular in 2017, faces potential economic claims but not criminal charges in this case. [Extracted from the article]

BC Partners has agreed to sell its majority stake in Canada's GardaWorld back to its management team, valuing the security services firm at about C$13.5 billion. The London-based private equity firm is divesting most of its stake to GardaWorld's founder and chairman, Stephan Cretier, and other top executives, who will collectively hold about 70% of the business. Private credit firm HPS Investment Partners will hold the remaining interest, with the transaction expected to close by Feb. 28. Under BC Partners' ownership, GardaWorld has expanded its services and seen its operating profit double in the past five years. [Extracted from the article]

DigitalBridge Group Inc. is considering selling Brazil's Scala Data Centers, potentially valued at over $2 billion. Scala, based in Sao Paulo and led by CEO Marcos Peigo, recently secured $500 million in financing for expansion in Latin America. Institutional investors are increasingly investing in data center businesses, making it a rapidly growing sector within real assets. [Extracted from the article]

In response to activist pressure from Elliott Investment Management, Southwest Airlines Co. CEO Bob Jordan acknowledged the possibility of a proxy fight and the need for change within the company. Elliott sought to remove Jordan and former CEO Gary Kelly, citing their resistance to revenue-boosting changes like assigned seating and premium options. After negotiations, Southwest added six new board members, five of whom were Elliott's candidates, to avoid the proxy fight. The airline's stock fell following the announcement, reflecting investor uncertainty about the company's future direction. [Extracted from the article]

Korea Zinc Co. saw a 30% increase in its shares as investors awaited the results of a stock buyback initiated by Chairman Choi Yun-beom to defend the world's largest zinc smelter from a $12.5 billion takeover offer. The stock price exceeded the buyback offer, indicating that some investors are anticipating a higher proposal as the battle for control continues. Choi, with support from Bain Capital, aims to repurchase up to 20% of the stock to counter a bid from Young Poong Corp., the company's largest shareholder, backed by MBK Partners. Korea Zinc shares have more than doubled since the takeover offer was launched in mid-September, prompting concerns about the sustainability of the current stock price. [Extracted from the article]

Elliott Investment Management and Southwest Airlines Co. are reportedly close to reaching a settlement to avoid a proxy fight over control of the airline's board. The settlement may involve Elliott receiving several board seats but not a majority. While details are not public, the potential agreement could be announced soon. Southwest CEO Bob Jordan's status and the impact on the board remain uncertain. Elliott had nominated eight directors and called for a special shareholder meeting, marking its first US proxy fight since 2017. Southwest and Elliott had initiated settlement talks, as reported by Bloomberg News. [Extracted from the article]

Lycra Co., a textile company known for producing form-fitting elastic material used in yoga and cycling clothing, is seeking a private deal to refinance its debt. The company is looking to raise about $350 million to address upcoming term loans and notes maturing in the next few months. Lycra is working with financial advisors to navigate its debt obligations, which include riskier bonds due in the near future. The company is currently owned by a group of lenders-turned-shareholders following a debt restructuring in 2022. [Extracted from the article]

Southwest Airlines and activist investor Elliott Investment Management are in discussions to potentially settle their differences without a proxy fight for control of the airline's board. Elliott has criticized Southwest's leadership and strategy, calling for changes. Southwest has announced policy tweaks, such as selling assigned seats and introducing a premium fare option, to revitalize operations. The talks are ongoing, and Southwest's shares have risen about 7% this year. [Extracted from the article]

Southwest Airlines and activist investor Elliott Investment Management are in talks to potentially settle their differences without a proxy fight for control of the airline's board. Elliott has criticized Southwest's leadership and performance, leading to proposed changes in strategy and leadership. Southwest has announced major policy changes, such as selling assigned seats and introducing a premium fare option, in response to Elliott's pressure. The discussions are ongoing, and Southwest has taken steps to address shareholder concerns, including a stock buyback plan and appointing new board members. [Extracted from the article]

Elliott Investment Management and Southwest Airlines Co. are in discussions to potentially settle their differences and avoid a proxy fight for control of the airline's board. Elliott has proposed a framework that would grant it representation on Southwest's board without full control. The talks are ongoing, but not finalized, and could potentially lead to a resolution. Elliott had nominated eight directors to the Southwest board and called for a special shareholder meeting, citing the need for strategy and leadership changes at the airline. [Extracted from the article]

Elliott Investment Management and Southwest Airlines Co. are in discussions to potentially settle a dispute without a proxy fight for control of the airline's board. Elliott has proposed a framework to have representation on Southwest's board but not control. Southwest has made efforts to reach a resolution with Elliott, offering to appoint some of the activist's nominees. Elliott, with a $2 billion stake in Southwest, has called for strategy and leadership changes at the airline, leading to policy changes such as a stock buyback plan and new fare options. Southwest will retain its two free checked bags policy despite these changes. [Extracted from the article]

Automatic Data Processing Inc. (ADP) has acquired WorkForce Software, a software provider that was backed by Elliott Investment Management and Insight Partners. The financial terms of the deal were not disclosed. ADP is a human-resources software provider that handles paychecks for one out of every six workers in the US. WorkForce Software helps companies manage unique payroll needs. ADP's CEO, Maria Black, stated that employers need dynamic workforce management solutions to maintain compliance and flexibility while engaging their employees. [Extracted from the article]

Several asset management firms, including Sixth Street, Bridgepoint Group, First Eagle Investment Management, and Tikehau Capital, are reportedly interested in acquiring Kline Hill Partners, a firm specializing in secondaries bets. The potential deal could value Kline Hill at around $500 million. Kline Hill manages over $4.2 billion in assets and is seeking a partner to enhance its platform and capabilities as a liquidity provider for private equity assets. This interest in Kline Hill comes amidst a trend of consolidation in the alternative asset management industry. [Extracted from the article]

Sixth Street, Bridgepoint Group Plc, and First Eagle Investment Management are among the potential buyers interested in acquiring Kline Hill Partners, a firm specializing in secondaries bets. The deal, which is still being negotiated, could value Kline Hill at around $500 million. Kline Hill manages over $4.2 billion in assets and is seeking a partner to enhance its platform and capabilities as a liquidity provider for private equity assets. This interest in Kline Hill reflects a trend of consolidation in the alternative asset management industry, driven by firms' desire to expand their offerings. [Extracted from the article]

Several asset management firms, including Sixth Street, Bridgepoint Group, First Eagle Investment Management, and Tikehau Capital, are reportedly interested in acquiring Kline Hill Partners, a firm specializing in secondaries bets. The potential deal could value Kline Hill at around $500 million. Kline Hill manages over $4.2 billion in assets and is seeking a partner to enhance its platform and capabilities as a liquidity provider for private equity assets. This interest in Kline Hill comes amidst a trend of consolidation in the alternative asset management industry. [Extracted from the article]

Sixth Street, Bridgepoint Group Plc, and First Eagle Investment Management are among the potential buyers interested in acquiring Kline Hill Partners, a firm specializing in secondaries bets. The deal, which is still being negotiated, could value Kline Hill at around $500 million. Kline Hill manages over $4.2 billion in assets and is seeking a partner to enhance its platform and capabilities as a liquidity provider for private equity assets. This interest in Kline Hill reflects a trend of consolidation in the alternative asset management industry, driven by firms' desire to expand their offerings. [Extracted from the article]

Elliott Investment Management has lost its appeal in the UK over the London Metal Exchange's decision to suspend the nickel market in 2022. The LME's ability to cancel trades and suspend the market was upheld by the court, which stated that the exchange had the legal obligation to do so in the event of extreme price movement. The LME's decision to suspend the market and cancel trades drew criticism, as it effectively served as a bailout for holders of short positions, including Tsingshan Holding Group Co. The court case revealed that the LME was unaware of the factors driving the surge in nickel prices during the crisis. [Extracted from the article]

Lycra Co., a textile company that produces elastic material for yoga and cycling clothing, is currently in discussions with its creditors to extend its debt maturities of over $1 billion. The company has approximately $700 million in dollar bonds, €300 million in euro notes, and a term loan of over $150 million due next year. Lycra is seeking financial advice from bankers at Houlihan Lokey Inc. to address these upcoming debt deadlines. Lycra has faced financial pressure in recent years, including a default by its former parent company and a subsequent restructuring and takeover by a group of lenders. Last year, Lycra issued new bonds to repay existing ones and carried out a drop-down strategy to enhance the attractiveness of the new debt. The company's dollar notes are currently quoted at around 57 cents on the dollar, while the euro notes are at around 82 cents on the euro. [Extracted from the article]

Lycra Co., a textile company that produces elastic material for yoga and cycling clothing, is currently in discussions with its creditors to extend its debt maturities of over $1 billion. The company has approximately $700 million in dollar bonds, €300 million in euro notes, and a term loan of over $150 million due next year. Lycra is seeking financial advice from bankers at Houlihan Lokey Inc. to address these upcoming debt deadlines. Lycra has faced financial pressure in recent years, including a default by its former parent company and a subsequent restructuring and takeover by a group of lenders. Last year, Lycra issued new bonds to repay existing ones and carried out a drop-down strategy to enhance the attractiveness of the new debt. The company's dollar notes are currently quoted at around 57 cents on the dollar, while the euro notes are at around 82 cents on the euro. [Extracted from the article]

Inflows at Allianz SE's bond firm, Pacific Investment Management Co. (Pimco), are continuing at a rapid pace as investors show interest in active management. Pimco had nearly $50 billion in net inflows as of mid-year, and this trend has continued strongly in July and August. Allianz CEO Oliver Baete attributes this growth to investor uncertainty about the market and a resurgence of active asset management. Allianz is set to report third-quarter results on November 13, and Baete does not anticipate any major changes to the company's acquisition policy. [Extracted from the article]

Goldman Sachs executed over £1 billion of trades in Thames Water's bonds in September, acting as a market maker between original investors and opportunistic players looking to buy the debt at a discount. Hedge funds and distressed funds are actively bidding for the debt of the UK's largest water provider, with around £3 billion of bonds changing hands last month. Thames Water is currently in talks with creditors as it struggles to raise equity, and recent downgrades by S&P Global and Moody's Ratings have raised concerns about its financial stability. Buyers are favoring the more illiquid and lower cash price bonds, and S&P predicts a debt restructuring and potential default within the next year. Thames Water is negotiating with a group of creditors, including BlackRock and Elliott Investment Management, to address its liquidity shortfall and unsustainable debt pile. [Extracted from the article]

According to Allianz SE's CEO Oliver Baete, Pacific Investment Management Co. (Pimco) is experiencing strong inflows as investors show interest in active bond management. Baete stated that Pimco's inflows have continued strongly in July and August, and he expects this trend to continue. Pimco, which manages nearly $1.9 trillion in assets, has seen increased inflows from outside clients, amounting to €13.4 billion in the second quarter. Pimco's CEO Emmanuel Roman attributes this growth to investors seeking fixed income opportunities amidst anticipated interest rate cuts. [Extracted from the article]

Johnson Controls International Plc is beginning the process of selling its ADT alarms business, which is estimated to be worth around $2 billion. The company is working with Citigroup Inc. to gauge interest from potential buyers, including buyout firms such as Advent International, Bain Capital, CVC Capital Partners Plc, and Triton. However, it is still in the early stages, and Johnson Controls may choose to keep the assets instead. ADT, which has been in operation since 1874, manufactures security and monitoring systems for households. Johnson Controls has been restructuring its portfolio to focus on commercial building systems. [Extracted from the article]

Goldman Sachs has conducted over £1 billion ($1.3 billion) worth of trades in Thames Water's bonds in September. Hedge funds and distressed funds are actively bidding for the debt of the UK's largest water provider, which has led to around £3 billion of bonds being traded this month. The company is currently in talks with creditors as it struggles to raise equity, and credit rating agencies have downgraded its debt. S&P Global Inc. and Moody's Ratings see a debt restructuring and potential default as likely in the next 12 months. [Extracted from the article]

Johnson Controls International Plc is beginning the process of selling its ADT alarms business, which is estimated to be worth around $2 billion. The company is working with Citigroup Inc. to gauge interest from potential buyers, including buyout firms such as Advent International, Bain Capital, CVC Capital Partners Plc, and Triton. However, it is still in the early stages, and Johnson Controls may choose to keep the assets instead. ADT, which has been in operation since 1874, manufactures security and monitoring systems for households. Johnson Controls has been restructuring its portfolio to focus on commercial building systems. [Extracted from the article]

Goldman Sachs has conducted over £1 billion ($1.3 billion) worth of trades in Thames Water's bonds in September. Hedge funds and distressed funds are actively bidding for the debt of the UK's largest water provider, with around £3 billion of bonds changing hands this month. The trading activity comes as Thames Water engages in talks with creditors and faces challenges in raising equity. Credit rating agencies have downgraded the company's debt, and S&P Global Inc. predicts a debt restructuring and potential default within the next year. Thames Water is negotiating with a group of creditors, including BlackRock Inc. and Elliott Investment Management, to address its liquidity shortfall and unsustainable debt. [Extracted from the article]

Goldman Sachs has conducted over £1 billion ($1.3 billion) in trades of Thames Water's bonds in September. Hedge funds and distressed funds are actively bidding for the debt of the UK's largest water provider, which has led to around £3 billion of bonds being traded this month. The company is currently in talks with creditors as it struggles to raise equity, and recent downgrades by S&P Global Inc. and Moody's Ratings have raised concerns about its financial stability. Buyers are showing a preference for the more illiquid and lower cash price bonds, and Goldman Sachs has also been trading Thames's bank debt. S&P predicts a debt restructuring and potential default within the next 12 months. Thames has been negotiating with a group of creditors, including BlackRock Inc. and Elliott Investment Management, to address the need for new funds and the company's unsustainable debt pile. [Extracted from the article]

India's top-performing fund, JM Financial Asset Management Ltd., believes that hospital stocks in India will benefit from the expected growth in healthcare spending. The country is projected to see a rapid increase in the number of people reaching retirement age in the next two decades, leading to increased healthcare spending. The government's approval of an expanded free health-insurance plan for citizens aged 70 and above may prompt regional governments to introduce similar measures, further boosting the sector. The JM Flexicap Fund has returned over 40% this year and has been the best performer in its category over a three-year time frame. [Extracted from the article]

Goldman Sachs has conducted approximately £3 billion ($4 billion) worth of trades in Thames Water's bonds in September. Hedge funds and distressed funds are actively bidding for the debt of the UK's largest water provider, which has recently faced financial difficulties. S&P Global Inc. and Moody's Ratings have downgraded Thames Water's debt, and a debt restructuring and default are seen as likely in the next 12 months. Thames Water is currently in talks with creditors to address its liquidity shortfall and unsustainable debt. [Extracted from the article]

(Bloomberg) -- An Elliott Investment Management affiliate won an auction for Citgo Petroleum Corp.'s parent company with a $7.28 billion bid, allowing it to acquire an oil refiner that was once Venezuela's largest foreign asset.The affiliate, Amber Energy Inc., submitted the best bid for Citgo's US parent, PDV Holding, according to Robert Pincus, the court-appointed special master who oversaw the process. The sale is intended to satisfy Venezuela creditors holding more than $20 billion in claims.©2024 Bloomberg L.P.By Jef FeeleyReported by Author [Extracted from the article]

Keir Starmer, the UK prime minister, met with US business executives in New York to attract investment and boost the country's economy. Starmer emphasized the importance of discussing what works and what doesn't work in order to shape their economic strategy. The negative messaging about the state of the economy has led to a decline in consumer confidence and businesses delaying investments. Starmer aims to address these concerns and promote growth through measures such as borrowing to invest. The government has also established two new bodies, GB Energy and the National Wealth Fund, to encourage private investment. [Extracted from the article]

Capricorn Fund Managers Ltd. is launching a regulatory hosting platform in Dubai to assist hedge funds and investment companies in quickly establishing operations in the city's financial hub. The London-based firm will allow investment managers to conduct regulated activities under its license at the Dubai International Financial Centre. This hosting solution aims to streamline the licensing and operational processes for managers looking to enter the Dubai market. Dubai has become an attractive destination for hedge funds due to incentives, a favorable timezone, and a low tax regime, leading to significant growth in the industry in recent years. [Extracted from the article]

Automatic Data Processing Inc. (ADP), a human-resources software provider, is in talks to acquire WorkForce Software for approximately $1.2 billion. ADP may announce the deal in the coming weeks, according to sources. ADP, founded in 1949, handles paychecks for one out of every six workers in the US and has been expanding its human-capital management services. WorkForce Software specializes in managing unique payroll needs for companies. The deal is subject to potential delays or changes. [Extracted from the article]

Keir Starmer, the British prime minister, is meeting with US business executives in an effort to attract investment to boost the UK economy. Starmer has been highlighting the challenges left by the previous Conservative administration and the need to fill a fiscal hole. However, the negative messaging has affected consumer confidence and businesses are concerned about a lack of policy detail. Starmer aims to address these concerns and promote economic growth through foreign investment. [Extracted from the article]

Australia's annual hedge fund event celebrated the industry's strong performance, with Australian hedge funds outperforming their global and Asia-Pacific counterparts. Despite the challenging environment for money managers, Australian hedge funds achieved gains of 7.6% year-to-date, compared to the global average of 6.5%. The event, which combined various industry functions, attracted a larger number of attendees this year, reflecting a growing interest in diversification strategies. [Extracted from the article]

The private credit market is facing a challenging period, according to Jae Yoon, the chief investment officer of New York Life Investment Management. Yoon warns that the market is at risk of a "reckoning moment" similar to the one experienced in 2008, due to factors such as inflation and recession. He highlights concerns such as outsized interest rate cuts by the Federal Reserve, excessive competition leading to reduced margins, and a loosening of restrictions on borrowers. Yoon emphasizes the need for careful risk management and diversification in the private credit market. [Extracted from the article]

Thames Water creditors are planning to inject over £1 billion into the utility before the end of the year to stabilize its finances, according to sources cited by The Times. Hedge funds and institutions holding around £10 billion of Thames Water debt believe that the company needs a cash infusion to pave the way for a full restructuring, which may take until June 2025. The funds are likely to be in the form of loans or bonds with "super senior status," giving lenders priority in repayment if the company fails. This funding would fill the £1.25 billion gap left by the company's owners and could lead to a restructuring that involves raising funds from new investors and potentially converting debt into equity. Thames Water has not commented on the matter. [Extracted from the article]

The City of London suggests that the UK could attract an additional £7.7 billion in investment by 2030 if it improves its ability to attract foreign sovereign wealth. To achieve this, the government should establish a long-term financial and professional services strategy and create a dedicated agency to implement it. The City of London Corporation's research shows that investors who open a UK office more than double their investments in the country compared to the previous five years. Sovereign investors with UK bases have committed £119.5 billion over the past decade. [Extracted from the article]

Stonepeak, a $71.2 billion alternative investment firm, is opening an office in Abu Dhabi, the capital of the United Arab Emirates. The firm has received approvals to arrange and advise on investments in the UAE and plans to set up in Abu Dhabi Global Market, the city's financial hub. Abu Dhabi, known for its oil reserves and wealthy families, has attracted hedge funds, venture capital firms, and billionaires. Stonepeak specializes in infrastructure and real estate and currently employs over 250 people in the US, UK, and Asia. [Extracted from the article]

Elliott Investment Management, an activist shareholder, still wants to replace Southwest Airlines CEO Bob Jordan, according to a union official. Elliott, which acquired a 10% stake in the carrier, also wants Southwest Chairman Gary Kelly to exit sooner than planned. The union memo states that Elliott envisions a Southwest turnaround without Jordan as CEO and potentially replacing other top executives as well. Southwest recently announced changes to its board and made operational changes such as assigned seating and a new premium section onboard aircraft. [Extracted from the article]

Citigroup Inc. is selling its global fiduciary and trust administration services business, Citi Trust, to JTC Plc for $80 million. The move is part of Citigroup's strategy to focus more on wealth planning and investment management. JTC, based in Jersey, will acquire a unit that serves over 2,000 ultra-wealthy clients and manages more than $70 billion in assets. This deal will also expand JTC's presence in the US, where it has recently acquired other American trust companies. [Extracted from the article]

Western Asset Management Co. (Wamco) is losing its role as a subadviser to the Russell Strategic Bond Fund after experiencing investor redemptions and a federal investigation into one of its star traders. The fund is winding down its allocation to Wamco and expects to terminate its role by the end of the year. Wamco has also been removed as the subadviser for six mutual funds by SEI Investments Management Group. The Russell Strategic Bond Fund has struggled in recent years, with declining assets and poor performance. Wamco's overall assets have also been affected by significant outflows. [Extracted from the article]

Altice France, a telecommunications company owned by billionaire Patrick Drahi, is facing pressure from secured creditors, including BlackRock, Elliott Investment Management, and Pacific Investment Management, to reduce its €24.4 billion debt. The company had proposed a plan in July asking secured creditors to take a 20% reduction in their holdings to decrease leverage. However, there are differing opinions among the creditors on how potential losses should be shared. Altice is relying on asset sales and a dividend recap to potentially use in negotiations with creditors. [Extracted from the article]

Altice France, a telecommunications company owned by billionaire Patrick Drahi, is facing pressure from secured creditors, including BlackRock, Elliott Investment Management, and Pacific Investment Management, to reduce its €24.4 billion debt. The company had proposed a plan in July asking secured creditors to take a 20% reduction in their holdings to decrease leverage. However, there are differing opinions among the creditors on how potential losses should be shared. Altice is relying on asset sales and a dividend recap to potentially use in negotiations with creditors. [Extracted from the article]