Sycamore Partners’ Walgreens Deal: A major story today is the finalized $10 billion take-private deal between Walgreens Boots Alliance and Sycamore Partners, a New York-based private equity firm specializing in retail investments. Shareholders will receive $11.45 per share in cash, with additional value from future monetization of debt and equity in VillageMD, bringing the total potential value to $23.7 billion. This marks the end of Walgreens’ nearly century-long presence on the stock market, having gone public in 1927. There’s speculation that Sycamore might sell off the Boots chain separately, though no confirmation has emerged yet.
Carlyle’s IPO Plans: Earlier this week, Carlyle Group announced intentions to accelerate IPOs for its portfolio companies in 2025, targeting up to $5 billion in exits. The firm’s co-heads of Americas private equity expressed optimism about a rebound in U.S. dealmaking despite a slow start to the year, partly due to tariff-related market concerns under the Trump administration. Carlyle remains bullish on leveraged buyouts and public market activity.
Global Infrastructure Partners (GIP) Expansion: GIP, owned by BlackRock, revealed plans to open a new office in Qatar to serve as a hub for its Middle East and North Africa operations. This move reflects a broader trend of private equity firms establishing a presence in the Gulf to invest locally, shifting from merely raising funds there for external markets.
Fundraising Trends: Posts on X indicate that private equity fundraising has faced challenges, with assets under management dropping last year for the first time in decades due to a $3 trillion backlog of unsold deals. However, specific successes include 400 Capital closing its fourth private credit fund at $1.39 billion, focusing on structured credit opportunities.
Middle East Sovereign Wealth Funds: There’s growing attention on the increasing influence of Middle Eastern sovereign wealth funds in private equity, alongside a recent wave of exits, as noted in a newsletter from DealStreetAsia.
