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What do folks here make of the First Eagle acquisition ?
I own one First Eagle Fund. This pains me no end. It's one thing after another at First Eagle. At this moment, FEBAX might be included in my year end tax planning sells.
By LISA BEILFUSS WSJ Updated Oct. 8, 2015 8:36 a.m. ET 0 COMMENTS Blackstone Group L.P. will acquire BioMed Realty Trust in an $4.84 billion cash deal, adding more office buildings and laboratory-capable facilities to its real estate portfolio.
The $23.75 per share price tag represents a 10% premium over Wednesday’s closing price. Blackstone valued the deal at $8 billion, which may include debt. A representative wasn’t immediately available for comment.
Shares in Biomed Realty gained 8.6% in premarket trading. Blackstone shares were inactive.
More on @Scott mentioned stocks here:(Blackstone,Starwood Capital, Brookfield Asset Management )(This ain't "Mainstreet "finance! ) 3Q15 CAPITAL MARKETS REPORT FOR THE INTELLIGENT INVESTOR Overview ► International capital has accounted for nearly 16.0% of all United States sales activity, year to date, up from 10.0% from 2011-2014. ► Capital investment from China to the United States has exceeded $5 billion in 2015, yet United States investment to China has been cut to $1.5 billion, year to date. ► Of the ten foreign countries that have invested the most capital in the United States in the past 12 months, all have purchased assets in Manhattan.
Canada and Singapore have invested in each of the 11 largest United States markets over the past 12 months. ► Per square foot averages of institutional quality office buildings in major markets have exceeded the prior peak in 2008. New York City sale prices are currently 14.6% above the 2Q08 previous high, averaging $973 per square foot. Asking rents in Manhattan remain 6.9% below the market peak in 2008, and 14.3% below the Midtown 2008 peak. ► Investors are seeking higher yields in secondary markets and nontraditional property types as gateway cities have become over saturated. ► Current commercial and multihousing yields remain significantly higher than the 10 year treasury. ► C M B S debt has experienced the most growth in 2015, expanding from 12.6% to 19.9% of all outstanding debt. Concurrently, banks have cut their outstanding debt by 25.8% since 2014 http://www.ngkf.com/Uploads/FileManager/3Q15-Capital-Markets-Report.pdf
Maybe the (now former) owners thought this was as good a time as any to "ring the register" --- maybe selling out is their last, and ultimate market call....?
Did they buy the whole enchilada? I thought they only bought a 20% stake in First Eagle. That would be similar to Oaktree's ~20% stake in DoubleLine (which has been quite lucrative for them).
Did they buy the whole enchilada? I thought they only bought a 20% stake in First Eagle. That would be similar to Oaktree's ~20% stake in DoubleLine (which has been quite lucrative for them).
@rjb112 Yes sir, that'll do it for controlling interest; whether 80, 65, or 50.1%. Thanks.
@Shostakovich I dunno. We've certainly seen this before and, soon or later, it seems to not work out so well for MF shareholders, about ...what...half the time? "Blackstone and Corsair Capital’s investment also ensures that First Eagle will continue to operate independently. It will maintain its investment-centric culture." "John Arnhold, Chairman and CIO of First Eagle, said the founding family is pleased with the investment because it provides long-term stability to the firm and its clients." The usual questions arise: how so? and, was that somewhat in doubt before and nothing was said?
@scott So, does that make you, in a sense, Shostakovich's overlord?
First Eagle has been very good at closing funds when assets grow too quickly. I would suggest that will be the most important thing to watch. It was disastrous for MFLDX when Mainstay bought them. If the stake is 20% or so, that is certainly less problematic, but I would still watch for asset bloat. It may be less of an issue, since the new owners are not mutual fund companies.
The SEC has been shining a light on a dark corner of mutual fund expenses--sub-transfer-agency fees. Recently, the SEC sanctioned one firm, First Eagle, for unlawfully accounting for what, in fact, were sales and marketing expenses as sub-transfer-agency fees. If reports are to be believed, the SEC has had other firms in its sights...
Anyone who has been through an SEC examination understands they will find some aspect of the business that is not right. In the last two years, examiners have been quite aggressive. The ability of the SEC and similar organizations to access data even before the exam begins is much greater than it was a few years ago. I am not giving a pass to First Eagle on this. But I am saying it is entirely possible this one instance was an oversight, since no compliance department wants to be responsible for the publicity that the news generates. The fact that First Eagle cooperated fully and made corrections immediately is certainly positive, unlike some firms who obfuscate and try to make less of the problem than it is. In the grand scheme of things, this is relatively small potatoes compared to some of the egregious fee-and-expense gouging that happens in the financial world. It is important to note, however, that the SEC is looking very closely into all aspects of fees and expenses and how they are reported. My guess is that they used this instance as a broad shot to all other firms to check into their own fee structures. And that is a good thing.
Comments
By LISA BEILFUSS WSJ
Updated Oct. 8, 2015 8:36 a.m. ET
0 COMMENTS
Blackstone Group L.P. will acquire BioMed Realty Trust in an $4.84 billion cash deal, adding more office buildings and laboratory-capable facilities to its real estate portfolio.
The $23.75 per share price tag represents a 10% premium over Wednesday’s closing price. Blackstone valued the deal at $8 billion, which may include debt. A representative wasn’t immediately available for comment.
Shares in Biomed Realty gained 8.6% in premarket trading. Blackstone shares were inactive.
Blackstone, the world’s largest private-equity firm, has been raising cash to make deals in the space, last quarter closing a $15.8 billion distressed and opportunistic real-estate funds
http://www.wsj.com/articles/blackstone-to-buy-biomed-realty-trust-for-4-84-billion-1444300840
More on @Scott mentioned stocks here:(Blackstone,Starwood Capital, Brookfield Asset
Management )(This ain't "Mainstreet "finance! )
3Q15
CAPITAL MARKETS REPORT
FOR THE INTELLIGENT INVESTOR
Overview
►
International capital
has accounted
for nearly
16.0%
of all United States sales activity, year to date, up from 10.0% from 2011-2014.
►
Capital investment from China to the United States has exceeded $5 billion in 2015, yet United States investment to China has been cut to $1.5 billion, year to date.
►
Of the ten foreign countries that have invested the most capital in the United States in the past 12 months, all have
purchased assets in Manhattan.
Canada and Singapore have invested in each of the 11 largest United States markets over the past 12 months.
►
Per square foot averages of institutional quality office buildings in major markets have exceeded the prior peak in 2008.
New York City sale prices are currently 14.6%
above the 2Q08 previous high, averaging $973 per square foot.
Asking rents in Manhattan remain 6.9% below the market peak in 2008, and 14.3% below the Midtown 2008 peak.
►
Investors
are seeking higher yields in secondary markets and nontraditional property types as gateway cities have become over saturated.
►
Current commercial and multihousing yields remain significantly higher than the 10
year treasury.
►
C M B S debt has experienced the most growth in 2015, expanding from 12.6% to 19.9% of all outstanding debt.
Concurrently, banks have cut their outstanding debt by 25.8% since 2014
http://www.ngkf.com/Uploads/FileManager/3Q15-Capital-Markets-Report.pdf
Blackstone, Corsair Capital Acquire Majority Stake in First Eagle
Posted By: Marie Cabural Posted date: July 21, 2015
@Shostakovich I dunno. We've certainly seen this before and, soon or later, it seems to not work out so well for MF shareholders, about ...what...half the time? "Blackstone and Corsair Capital’s investment also ensures that First Eagle will continue to operate independently. It will maintain its investment-centric culture." "John Arnhold, Chairman and CIO of First Eagle, said the founding family is pleased with the investment because it provides long-term stability to the firm and its clients." The usual questions arise: how so? and, was that somewhat in doubt before and nothing was said?
@scott So, does that make you, in a sense, Shostakovich's overlord?
http://news.morningstar.com/articlenet/article.aspx?id=717290 And check out comments to above on the M* site.