Pension Funds Go Green, ExodusPoint faces an Exodus and Adam Neumann Seeks to Take Back WeWork in this Week's Edition...
Take a Lap Around the Industry
Baltimore Bridge Incident Leads to Multi-Billion Dollar Claims for London Insurers (Bloomberg)
Trump Media Sees $1.4B Valuation Surge Post-Nasdaq Launch (Bloomberg)
Robinhood's Shares Soar Following Launch of Its First-Ever Credit Card (MarketWatch)
BlackRock Faces Cease and Desist in Mississippi Due to ESG Initiatives, Risk of Hefty Fines (FoxBusiness)
Pension Funds Set to Pave the Way for Green Infrastructure Investment Boom
As the global economy braces for an ambitious energy transition, pension funds worldwide are setting their sights on infrastructure investments to bolster their portfolios and contribute to this colossal shift. A new report from IFM Investors reveals a striking opportunity for growth as private-sector pensions aim to more than double their current infrastructure stakes in a bid to meet their investment targets. With over $65 trillion needed in the next thirty years for sustainable economic restructuring, infrastructure is emerging as an essential asset class, expanding beyond traditional assets like airports to now include ports, energy transmission systems, and train stations. This strategic repositioning promises to not only advance the energy transition but to also offer investors a buffer against volatile market cycles. The Alberta Investment Management Corp. exemplifies this trend, intensifying its engagement with Asian infrastructure, thereby signaling a robust, sector-wide pivot towards these tangible assets.
"It is evolving globally as a standalone asset class...As interest in infrastructure increases across the globe, the time has come to consider it as equally vital to the performance of institutional investors’ portfolios as those more traditional asset classes."
Luba Nikulina, IMF
Private Funding Pulse Check
Securing $27M in Seed funding, Borderless AI, the global HR platform for teams with operations worldwide, has received backing from Paris-based Aglaé Ventures
Pritzker Group recently took part in a Series A funding round, investing $18M in Fuel Me, a company developing a cloud-based technology platform that allows on-road and off-road customers to purchase fuel
Arevo, a biotechnology research tackling challenges across Agriculture, Horticulture and Forestry, has successfully closed a $7.2M Venture funding round, with participation by the Olsson Family's Fort Knox Forvaring
A start-up company targeting the best usage of materials, watttron, has attracted a $13M Series B investment from Susanne Klatten's firm Skion
Rockefeller Capital Management has bolstered its wealth management services with the addition of Pollock Salah Wealth Partners to its Global Family Office in California
The team of six, including veteran financial experts Gary Pollock, Craig Pollock, and Anis Salah, brings a wealth of experience from their prior roles at JP Morgan Wealth Management
Gary Pollock, a seasoned professional with a history of leadership at Bay Isle Financial, enhances Rockefeller's deep advisory expertise
The acquisition is part of Rockefeller’s aggressive expansion strategy, exemplified by recent team additions across the U.S. and managing over $122B in client assets as of the end of 2023 (WBA)
Frac Spread Count: The Fresh Forecasting Tool for the Energy Sector's Performance
In the ever-evolving landscape of the energy sector, investors are constantly seeking reliable indicators that can offer foresight into future earnings. Enter Primary Vision's Frac spread count, a newly incorporated feature on Macrobond, which gauges the active hydraulic fracturing or "fracking" crews in the U.S. shale industry. This measure not only reflects current oil drilling activities but also acts as a forward-looking gauge of oil production volumes. A recent analysis leveraging historical data revealed a strong correlation between the Frac spread count and the energy sector's 12-month forward earnings per share, as reported by Macrobond/FactSet Equity Factor Aggregates. This relationship underscores the potential of the Frac spread count to serve as a valuable barometer for anticipating the financial health of the U.S. energy sector, making it an indispensable tool for investors and analysts alike.
"It’ll be interesting over the next six months to see who survives, who has the disciplined balance sheet...Consolidation could leave the sector with about 200 spreads."
Matt Johnson, Primary Vision Network
ExodusPoint Faces $1B Drawdown as Investors Seek Greener Pastures
In a striking sign of shifting investor sentiment, ExodusPoint Capital Management, led by industry stalwart Michael Gelband, faced a second consecutive year of client withdrawals totaling about $1B in 2023. This retreat of capital follows a challenging phase for the hedge fund, which has largely lagged behind its multi-strategy competitors, prompting the firm to seek fresh capital after a three-year hiatus. Despite a record-breaking launch in 2018, ExodusPoint's inability to keep pace with giants like Citadel and Millennium Management is becoming increasingly apparent. Investors, now comparing the modest returns of high-fee hedge funds with the allure of high-yielding Treasuries, are reassessing their stakes in multi-strategy funds, with ExodusPoint’s recent underperformance leading to intensified scrutiny. Amid these headwinds, ExodusPoint has made key strategic hires to strengthen its equities unit, signaling a potential pivot towards revitalizing its performance and investor confidence.
"Underperforming hedge funds with long lockups and high fees are looking less attractive compared with relatively high-returning Treasuries. Multistrats have faced additional scrutiny, too, with more clients saying they plan to yank cash from the strategy in 2024 than they did a year earlier."
Goldman Sachs Group Inc.
Adam Neumann Eyes WeWork Takeover With $500M Bid
In a dramatic turn of events, Adam Neumann, the controversial former CEO of WeWork, has offered to reclaim the now-bankrupt co-working giant with a bid exceeding $500M. Neumann, who parted ways with the company amid turmoil five years ago, is signaling a bold comeback, albeit the specifics of the acquisition's financing remain unclear. This move comes after Neumann intimated his intentions last month, hinting at a collaboration with Dan Loeb's Third Point hedge fund and other investors, although Third Point has since distanced itself from the bid. WeWork, once valued at a staggering $47B, is navigating through Chapter 11 with plans to emerge in the second quarter as a renewed and profitable entity. Amidst ongoing restructuring negotiations and a dire cash flow situation, Neumann’s bid raises the chance of a potential turnaround, challenging WeWork’s current trajectory and its management's strategies to weather the office real estate market's downturn.
"As we’ve said previously, WeWork is an extraordinary company and it’s no surprise we receive expressions of interest from third parties on a regular basis...Our board and our advisers review those approaches in the ordinary course, to ensure we always act in the best long-term interests of the company."
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