How do you pronounce Shein?
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In this issue, we dive into:?
What's happening in.....
PE/VC?
An Uncanny Alliance?
Private lenders ?? public bond markets.
Private credit funds, backed by firms like Blackstone Inc. and Ares Management Corp., are raising money in the investment-grade corporate bond market, despite already having record cash levels. Business development companies (BDCs) have raised over $13.4 billion in the US investment-grade bond market this year, nearly double the $8 billion raised in 2023 and the highest since 2021. With around $500 billion at the ready to invest, these funds are facing limited opportunities due to a decline in leveraged buyouts. Investors' high demand for investment-grade bonds, despite risks, has allowed BDCs to secure cheaper financing in the unsecured corporate bond market, compared to secured funding. This strategy enables them to invest at lower rates and maintain a competitive edge, even as private loan spreads remain near historical lows. “When you can get cheaper financing, you can also invest at cheaper rates,” said Logan Nicholson, a managing director at Blue Owl Capital. “With base rates where they are, returns are still attractive. This helps us remain competitive for the deals that are out there, as spreads come in.”
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Read more here.?
Capital Markets
With an IPO Looming, It's Time to Get Serious?
Once and for all, how do you pronounce Shein? Is it Sheen? Shine??
Surprise, it's neither. But before we reveal the long awaited pronunciation, let's dive into this soon-to-be blockbuster IPO. Following a rollercoaster will they / won't they soap opera with the New York Stock Exchange, it is widely anticipated that Shein will list on the London markets following pressure from US politicians regarding its sustainability and governance practices.?Shein has been preparing a confidential filing for an IPO in London, which indicates a move towards the London Stock Exchange, but is not yet definitive or binding. Both of the major political parties in Britain, the Conservatives and Labour, have courted Shein, so there aren't many clear political obstacles (yet) in a UK market that is eager for some optimism surrounding the struggling LSE. However, the plot thickens following Florida Senator Marco Rubio's note to U.K. Chancellor Jeremy Hunt, raising concerns about the fast fashion company, stating: “Shein previously sought to list in New York City but failed due to concerns about its unethical and irresponsible business practices. At the time, I warned U.S. securities regulators about Shein’s alleged exploitation of slave labor and trade loopholes. I now feel a duty of friendship to repeat these warnings and urge caution before the United Kingdom allows Shein to list in London." Will Shein's charm offensive be enough? And if you've made it this far, thank you. It's pronounced SHE-IN. I know, right. Crazy.
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Follow along here.?
Generative AI / Tech?
Bad Day to be a 'Mob Boss' in Big Tech
领英推荐
Lina Khan is about to make some offers that will likely be refused.?
FTC Chair Lina Khan stated at TechCrunch’s Strictly VC event that the agency is prioritizing action against major players in Big Tech who are "causing the most significant harm," rather than increasing the number of cases overall. Khan emphasized the importance of targeting key offenders to have a more substantial impact, likening this approach to going after a "mob boss" instead of the "henchmen." Khan emphasized that the types of cases the FTC selects can act as a deterrent, and the agency is already witnessing this effect. She noted that five to seven years ago, antitrust risk was not a major consideration in business deals, but now it is a central concern, the shift signals that companies are more likely to address legal issues early, saving public resources on the backend. Addressing startup founders and venture capitalists, Khan clarified that the law mainly prohibits exits or acquisitions that would strengthen a monopoly or enable a dominant firm to eliminate a competitive threat.
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Marketing
I Am Stuck on Band-Aid
The Most Trusted Brands of 2024.
This week, Morning Consult released their highly anticipated Most Trusted Brands of 2024 list. After conducting surveys in Q1 of 2024, averaging 10,070 U.S. adults per brand, the final rankings were based on net trust, calculated as the percentage of people who trust a brand minus those who distrust it. Band-Aid topped the list at #1 for the third straight year, followed by UPS, Google, Lysol, Dove, Amazon, Colgate, Kleenex, Home Depot and the U.S. Postal Service. What the report revealed, however, is a deeper, generational story behind these rankings, with some notable differences among age groups. As brands continue to face an uphill battle gaining trust from Gen Z, "standout brands" TikTok, Snapchat, Spotify and Discord have managed to win over the group, whose average net trust score for all brands was more than 10 points lower than other generations. For Gen Xers, packaged goods brands were classified as standouts, including Bush’s Beans, Palmolive, General Mills, Ore-Ida and Cottonelle, which all outperformed with Gen X compared with other generations. Standout brands for baby boomers included Procter & Gamble, Nabisco, Vlasic, Newman’s Own and Ore-Ida.
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Do you align with the top brands according to your generation? Read more here.?
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