Private equity’s return advantage over public stocks has diminished in recent years, but finding reliable data is difficult https://t.co/czJ5FW93p5 ...

Core Insights - The recent stock rally of Dine Brands is driven by speculation regarding potential private equity interest rather than operational improvements [5][23] - The real catalyst for Dine Brands' future lies in addressing long-standing issues and aligning with franchisees who are essential to the business [3][10] - There is a significant disconnect between management and franchisees, leading to operational stagnation and declining performance [9][10] Company Performance - Applebee's is experiencing declining traffic, while IHOP's growth has stalled due to rising operational costs and limited new store openings [6][9] - Dine Brands has accumulated a heavy debt load, which restricts financial flexibility and increases refinancing risks amid elevated interest rates [6][11] Franchisee Relations - Franchisees are the backbone of Dine Brands, yet they feel neglected by management, which has focused more on optics and compensation than on performance [8][9] - The current management has failed to restore traffic and align with franchisees, resulting in a 70% decline in stock price since 2021 [9][15] Strategic Recommendations - A leadership change is necessary to reconnect the brand with franchisees and customers, with a proposed nominee who has relevant experience [15][19] - Operational improvements at the unit level are essential, including the implementation of tools that enhance competitiveness and profitability for franchisees [16][19] - A disciplined approach to capital allocation is required to refinance debt and support franchise operations, moving away from short-term financial engineering [17][19] Future Outlook - The choice between private equity control and activist-led restructuring will significantly impact the future of Dine Brands, with the latter offering a path to sustainable growth [20][21] - Activist pressure is seen as the only viable method to restore accountability and align interests among shareholders, franchisees, and management [23][24]

private equity in general is totally owed. I think the history of this is important. There was a long-standing belief that the best way to generate the best risk adjusted return was to have what's called a 60/40 allocation.60% to bonds and 40% to equities. Over many years, especially when we artificially suppressed rates at zero, a lot of people started to move their allocations away from 60/40 and they started to make more and more investments further out on the risk curve. The biggest beneficiaries of tha ...

Okay, Sham Nish from the New York Times. Go ahead. >> How did the White House decide that it is appropriate for Jared Kushner to be working on matters that involve Qatar, the UAE, Saudi Arabia, three countries that combined have given him more than $2.5% billion for his investment firm.>> Now, I don't normally show Caroline Levit's responses to these briefing questions important so I can answer more questions, but this is a response you should really see. So, we're going to play this one. I think it's um fr ...

Investment Strategy - Private equity investment is being presented as a challenging but potentially rewarding strategy [1]

Core Viewpoint - The current economic environment presents challenges for the Federal Reserve, particularly in relation to mortgage rates and housing market activity, which are critical for economic recovery and growth [1][2][5]. Mortgage Market - Mortgage applications have decreased by 21%, indicating a decline in refinancing and new purchases, which are essential for stimulating the housing market [2]. - The average mortgage rate is around 3% to 3.5% for existing homeowners, suggesting that significant reductions in rates are necessary to encourage movement in the housing market [4]. - A mortgage rate in the low five percent range is seen as a threshold that could positively impact housing activity [4]. Valuations and Market Risks - There are concerns about high valuations in certain market segments, particularly when PE ratios approach 22, which historically signals caution among investors [6][7]. - High valuations may lead to lower forward returns, emphasizing the importance of buying at lower valuations for better long-term performance [8][9]. - The sustainability of high valuations is questioned, particularly in isolated market pockets where forward earnings are significantly elevated [9]. Private Equity and Credit - The performance of private equity firms like Apollo and Blackstone has been strong, but there are concerns regarding the quality of assets being acquired [10][11]. - Blue, a private equity firm, is highlighted for its significant exposure to payment-in-kind loans, which could pose risks if economic conditions worsen [13]. - Despite the risks, Blue is considered an attractive investment opportunity if the economy does not enter a recession, given its high yield and potential for recovery [13][14]. Stock Picks and Investment Strategy - Companies like Pepsi and Merck are identified as undervalued relative to their historical PE ratios, presenting contrarian investment opportunities [15][16]. - Merck's strong performance and potential for innovation through M&A are noted, alongside its solid dividend yield and cash reserves [16][17].

Australian investment manager IFM Investors will wind down its domestic private equity unit in coming years, citing a lack of scale to make it commercially viable and a focus on other global priorities https://t.co/1xI8s26NK6 ...

Investment Trends - European pension funds, endowments and other large pools of long-term money are re-exploring private equity investments in China [1] - This renewed interest comes after years of shunning the world's second-largest economy [1]

Kensington suspended investor withdrawals from its flagship private equity fund for at least 90 days, citing strained liquidity conditions and sluggish deal activity https://t.co/VOulkwvijM ...

Let's talk a little private equity here. We can do that with Jason Wright. He's a managing partner and head of investments at Ariel Project level. Jason, I know at Ariel you focus on a couple of areas, infrastructure and sports.We'll get to both of those infrastructure. Talk to us about where you're seeing opportunities here is in U.S. centric. Is it global.Are there certain industries that you guys find attractive where you spending your time these days. First, thank you for having me. We're excited about ...