Blackstone's real-estate dealmakers; the investment banker of the future
Welcome to Wall Street Insider, where we take you behind the scenes of the finance team's biggest scoops and deep dives from the past week.
If you aren't yet a subscriber to Wall Street Insider, you can sign up here.
For certain corners of Wall Street, dealmaking is happening faster than ever. While M&A activity has plunged, bankers primed to help companies navigate the financial fallout, especially restructuring and debt-raising specialists, have been crushed with demand.
Alex Morrell talked to top bankers — know for putting in long hours curating a white-glove experience for clients — who are finding they can still provide service from afar. It turns out, when you take away the time spent at airports and restaurants, and when Zoom calls can be arranged in minutes, things can move at lightning speed.
Read the full story here:
'Stunning efficiency': How remote dealmaking could mean a permanent lifestyle change for some bankers.
Meanwhile, it's been a tale of two approaches to layoffs in recent days. On Tuesday, Airbnb CEO and cofounder Brian Chesky emailed staff about the cuts that were impacting 1,900 people, highlighting where the company will focus in the future and what exit packages employees should expect.
Over at WeWork, things have been rolling out more gradually. Meghan Morris and Dakin Campbell wrote about a leaked WeWork document that revealed a huge reorg under way for people who manage its buildings. Here's how the new structure works — and the complex process for staff to save their jobs. Alex Nicoll and Meghan also reported that Flatiron School has slashed at least 100 jobs, building on their scoop last week that WeWork made cuts in several key departments, with IT alone losing about 200 jobs.
Keep reading for a preview of changes in store for Bloomberg terminals, a rundown of Blackstone's giant commercial real estate business, and a look at how PIMCO has stocked up with $5.5 billion for private-credit strategies since the beginning of the year.
Have a safe and healthy weekend,
Meredith
Inside Blackstone's massive CRE business
Blackstone is the largest commercial real-estate investor in the world, with $160 billion in investor capital. Alex Nicoll chatted with Blackstone real estate's three heads of acquisition, and its head of debt origination, to learn more about their business.
They spoke about some of their most interesting deals, and why Blackstone's global scale and thematic investing style is a huge advantage.
Read the full story here:
Meet the 4 dealmakers driving Blackstone's $325 billion commercial real estate portfolio. They walked us through how they're thinking about opportunities in the downturn.
A Facebook office deal is a key test
The coronavirus crisis has thrown into question whether tenants will ever occupy office space the same way again as companies and workforces around the world grow accustomed to remote work.
Facebook has been in negotiations for months to lease over 700,000 square feet at the Farley Building on Manhattan's West Side. The rapid expansion of tech in recent years has propelled the city's office market, and Dan Geiger spoke with real-estate execs who laid ouy why Facebook's deal is a key barometer.
Read the full story here:
A blockbuster Facebook office deal is a make-or-break moment for the future of commercial real estate. 3 leasing experts lay out the stakes.
Coming soon to a terminal near you
As remote work becomes a long-term reality, a technology staple of Wall Street is in store for a makeover. Mark Flatman, global head of core terminal at Bloomberg, told Dan DeFrancesco that the financial technology giant is considering ways to revamp its ubiquitous terminal.
One particular area of focus for Flatman and his team has been screen space, as many customers aren't working with the typical four-screen display. Another area that has gotten increased attention is mobile, where usage has jumped.
Read the full story here:
Bloomberg is eyeing big changes to its iconic terminals to make work-from-home easier. The exec leading its strategy laid out how he's rethinking screen space and mobile features.
A new pile of cash for private credit
Industry observers expect a surge in interest in specialized credit shops that have proven to be winners in distressed situations. And Bradley Saacks revealed how PIMCO has tapped into that demand, with sources saying that the fixed-income giant has raised $5.5 billion in private-credit strategies since the beginning of the year.
PIMCO's nearly $4 billion Tactical Opportunities fund lost roughly 15% in March, but was able to avoid forced selling, sources tell Business Insider, and even added to positions in the month. That fund alone has raised $250 million — and is just one of several private-credit funds that PIMCO has raised money for.
Read the full story here:
PIMCO has raised $5.5 billion for private-credit funds despite a hellacious March — and is telling investors it's the best opportunity in a decade
A tax break for big companies with heavy debt
But some tax experts are concerned that the tax break is too indiscriminate: In addition to helping troubled companies, they say, boosting tax deductions on interest payments is going to give a lift to companies that aren't being hurt by the pandemic, or whose problems have nothing to do with the coronavirus.
Read the full story here:
A $13 billion tax break tucked into the coronavirus stimulus plan will save some big companies tens of millions — even if they aren't ailing. Here's how it works and who could benefit.
On the move
Dakin Campbell reported that Goldman Sachs has hired the distressed-situations and bankruptcy expert Kurt Hoffman as a managing director in a business that handles one-off loans for clients. The move comes just as industries battered by the economic shutdown are in need of emergency financing.
Investing and hedge funds
- SoftBank's brutal treatment of WeWork founder Adam Neumann shows that it has given up any hope for Silicon Valley and it's leaving a scorched landscape in its wake
- April hedge fund performance numbers are in — here's how big names like Third Point and Renaissance turned things around after a rough March
- WeWork pain is still hitting mom and pops' mutual funds as managers like Fidelity slash valuations further
- 'Quantamental' investing is suddenly a buzzword in the hedge fund world, and we talked to the CEO of a fintech that just nabbed $8 million to help power the approach
- Steve Cohen's former right-hand man is launching his own fund. Here's everything we know about Tom Conheeney's EmeraldRidge Advisors.
- A data 'super contango' makes oil the new data, not the other way around. Here's why.
Careers
- Deloitte is delaying many of its full-time hires and switched summer internships to a 2-week online intro course. Here's everything we know.
- Jobs for thousands of young consultants are being upended. From delaying start dates to cutting internships, here's what 8 top firms are doing.
- Investment manager TIAA is offering 75% of its US employees buyouts and some could get their full salaries for nearly 2 years
Real estate
- The CEO of real estate heavy-hitter Eastdil explains the types of deals that are must-do right now — and warns that a 'de-retailing' trend is set to accelerate
- Inside the drama over control of the iconic Chrysler Building: A real-estate tycoon and a prestigious college are renegotiating a critical $150 million deal
Fintech and e-commerce
- E-commerce giant Shopify just launched a way for retailers to transform stores into fulfillment centers by quickly adding curbside pickups
- Visa's fintech chief explains how a new program to bring startups on board in just a few weeks will help it tap a $185 trillion opportunity
- Startup QuadPay is dramatically expanding its reach by partnering with payments giant Stripe to offer shoppers the ability to buy now, pay later at any store
- Digital bank N26 just raised $100 million. Now, it's rolling out features like contactless payments as users seek a safer way to pay.
- Tencent just snapped up a $250 million stake in Afterpay. Now the 2 are gearing up to bring buy-now-pay-later options to China's massive e-commerce market.