In a series of notable job transitions and strategic corporate moves, Apollo has appointed Gary Cohn, the former director of the National Economic Council, to its board of directors. This transition comes as Jay Clayton steps down from his position to serve as the interim U.S. attorney for the Southern District of New York. Marc Rowan, Apollo's chief executive officer, will assume the role of chair of the board, marking a significant reshuffle in the leadership structure.

In another significant development, UK officials, alongside industry experts, have begun formulating an investment case aimed at attracting potential buyers for British Steel. This initiative follows the government's dramatic intervention to take control of the struggling steel company, highlighting a proactive approach to revitalize the industry and secure jobs.

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In todays newsletter, we will cover:

  • The substantial private equity windfall for Worldpay.
  • The ongoing antitrust challenges facing Big Tech companies.
  • Some interesting stock movements related to Trump family members.
  • A look at a midsized private equity firm that has achieved significant financial success.

Many of the worlds largest private equity firms have been grappling with a backlog of aging, unsold assets, collectively amounting to trillions of dollars. In contrast, some smaller and more agile firms are reaping financial rewards from bold investment strategies that are garnering envy from their larger counterparts.

One such success story is Chicago-based private equity firm GTCR, which recently finalized a deal to sell the payments behemoth Worldpay to competitor Global Payments for an impressive $24.2 billion. This transaction represents the largest private equity exit of the year, signaling a major triumph for GTCR, which had acquired a majority stake in Worldpay just two years ago.

GTCR made a significant move during a period when it was wrapping up a $11.5 billion flagship fundraising, acquiring the majority stake in Worldpay from fintech company FIS at a valuation of $18.5 billion. This strategic acquisition allowed GTCR to outbid larger competitors, such as Advent International, by orchestrating a rapid fundraising effort that included over $5 billion in equity and more than $8 billion in debt by a July 2023 deadline.

In just two short years, GTCR has managed to double its equity, positioning its most recent buyout funds as potential industry leaders in performance. However, the intricacies of this transaction are noteworthy. GTCR will receive 59 percent of the deal's value in cash, with the remaining portion paid in Global Payments stock.

Additionally, FIS, which previously held a 45 percent stake in Worldpay, will gain control of Global Payments issuer solutions business, a key player in credit processing valued at $13.5 billion. When all is said and done, GTCR is expected to own about 15 percent of Global Payments.

Worldpay has experienced its share of tumult in recent years. Founded in 1989, it was among the pioneers in the digital payments landscape, frequently changing ownership. Notable transitions include a brief period under the Royal Bank of Scotland following its crisis-era bailout. Eventually, Advent and Bain Capital acquired the unit from RBS in 2010 during a significant deal-making period.

However, Worldpay's fortunes took a sharp turn when it was acquired by fintech giant FIS in a controversial 2019 deal that valued the company at over $40 billion. Since then, FIS has been working to amend its Worldpay acquisition missteps by purchasing GPN's "crown jewel" issuer solutions unit, a decision that significantly boosted its stock by nearly 9 percent.

Now, Global Payments must navigate the complexities of not becoming another ill-fated buyer of Worldpay. GTCR's substantial investment in Global Payments has been met with mixed reactions; while some are optimistic, the companys shares fell by 17 percent on Thursday.

Meanwhile, the antitrust troubles for Big Tech companies are far from over. Just three months ago, during the inauguration celebration for Donald Trump, tech executives Mark Zuckerberg and Sundar Pichai were present as guests, following substantial donations to the inaugural fundeach company contributing $1 million as a strategic move to foster a relationship with the new administration.

Despite hopes for a fresh start with the Trump administration, Zuckerberg found himself once again in court this week, facing significant antitrust allegations from the Federal Trade Commission (FTC). The FTC contends that Facebook's acquisitions of Instagram and WhatsApp contributed to its monopoly power. This trial represents a continuation of scrutiny on Big Tech as the Trump administration seems willing to take up the mantle of regulatory enforcement against these major companies.

Further complicating matters, Google is embroiled in its own antitrust battle, with a federal judge recently ruling that the company unlawfully maintained a monopoly in digital advertising. The next phase of litigation regarding Googles monopoly on search is set to commence next week, and depending on the judges ruling, there is a possibility that Google could be compelled to break up its business operations.

In a curious twist, two lesser-known companies listed on the New York Stock Exchange saw their share prices surge in the weeks leading up to announcements about Donald Trump Jr. joining their advisory boards. Unusual Machines, a drone manufacturer, witnessed its shares almost triple following the news, while Dominari Holdings, a fintech firm based in Trump Tower, experienced a staggering 580 percent increase before announcing similar news about Trump Jr. and Eric Trump joining its advisory board. Regulatory experts have remarked that while the timing of these stock movements was clearly unusual, it does not necessarily imply insider trading, given the different rules governing board advisers.

In terms of personnel changes, Farhad Merali has joined Lloyds in New York as the new head of corporate and institutional coverage in North America. Previously, he co-headed U.S. corporate banking at CIBC Capital Markets. Silver Lake has also made key hires, appointing Karen King as chief operating officer and Justin Hamill as chief legal officer, with King transitioning from her previous role as chief legal officer. Milbank has welcomed Liz Downing as a partner in its financial restructuring group, having previously been employed at Skadden Arps.

In other noteworthy news, Blackstone's president has warned that the U.S. risks entering a recession without new trade deals, while the head of the House China panel has urged JPMorgan and Bank of America to halt their work on a CATL listing. Additionally, BP faced its largest AGM protest vote in five years, and Netflix remains optimistic about growth despite consumer tariff fears.

As various sectors navigate challenges and opportunities, the landscape of business and finance continues to evolve. Stay tuned for further updates in our next newsletter.