Sep 27, 2024

I recently learned that Masimo, a US-based medical technology company, underwent a leadership change as founder and CEO Joe Kiani resigned after being defeated in a shareholder vote. Private equity firms are shifting their focus from financial engineering to hands-on operational improvements in the companies they own, driven by a challenging deals market and longer holding periods. The SEC has announced charges against several firms for failing to maintain and preserve electronic communications, resulting in fines totaling over $88 million.

In other news, the Justice Department has sued Visa for monopolizing debit markets, and UniCredit has flagged Commerzbank interest to Germany ahead of a move, but says it will not seek a board seat. US mortgage rates have fallen again, triggering a big wave of refinancing, while a private-equity executive is pushing for workers’ stake in US companies. The FBI is also probing whether a Silicon Valley venture firm passed secrets to China, and a star FTX witness, Caroline Ellison, has been sentenced to two years in prison.

There’s also been a discussion about a minimal theory of “stakeholder capitalism” where CEOs are being compensated based on meeting environmental, social, and governance targets. The use of personal phones for work-related communication and the SEC enforcing fines for non-compliance with archiving business conversations has also been a topic of discussion. The news also mentions upcoming events such as the Middle East National Business and International Business Awards, Technology Excellence Awards, and the APAC lead in blockchain in insurance by 2031.

In the financial world, HSBC has launched a fund to help private equity firms borrow against their portfolios, and Monroe Capital is raising $1 billion to provide loans to auto supplies transitioning to EV tech, in partnership with the U.S. SBA. Additionally, Pangea Ventures of Canada raised C$115 million for its fourth fund to back sustainability-focused hard-tech startups, and Texas Municipal Retirement System has increased its private equity allocation to 20% from 13%.

Finally, in terms of personnel, Andy Artz has launched Dark Arts VC as a personal investment firm seeking to “commercialize scientific research for public benefit,” and Giles Bethule joined Ares Management as VP of corp comms. Terry Ing joined King Street Capital Management as a partner and head of U.S. research, and Madison Dearborn Partners named Vahe Dombalagian as managing partner. Allison Thacker is stepping down as chief investment officer for Rice University’s endowment after a 13-year run, and Alexander Verbitsky joined The Raine Group as a Europe-focused managing director.

Stay Well!