trending Market Intelligence /marketintelligence/en/news-insights/trending/7U18xL7RaE7DzDLsm4eX6w2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Investors should underweight parts of VC/growth in 2020: KKR report

Strong adoption of AI/ML monitoring tools is driven by tech leaders

Amazon e-commerce sales soar amid COVID-19

European Energy Insights - October 2020

Banking Essentials - October 2020

Investors should underweight parts of VC/growth in 2020: KKR report

Investors should underweight "many parts of later-stage venture capital and early-stage growth," and prepare for repeats of "the WeWork Cos. Inc. situation," according to KKR & Co. Inc.'s 2020 global macro trends report, Play Your Game.

The report, penned by head of global macro and asset allocation Henry McVey, said there are currently "too many companies with high fixed costs and less marginal revenue dollar per purchase" that are securing funding, but that a more skeptical investment community will expose these flaws in 2020, particularly as unprofitable companies seek out IPOs.

The firm is currently seeing better value in the public markets relative to many private markets, in China and the U.S. for example, and the firm believes some private market valuations have run "too far and too fast" to be supported through an IPO. But the report added that in the long term, recent disappointment in performance will turn into an opportunity, and it expects to shift its significant underweight in private growth back to equal or overweight.

The report recommended an overweight in international private equity strategies. While they won't consistently outperform the U.S. and Asia, the firm believes European private equity can outperform the region's public benchmark. European public markets are "compositionally flawed," overweight financials and underweight technology, which "creates an incredibly attractive arbitrage" for the asset class. Logistics, consumer experiences and payments are identified as key sectors for private equity investment.

In Asia too, private equity has the potential to outperform public equity indexes, according to the report. Indonesia, for example is experiencing significant GDP growth per capita, but has no public technology companies, while traditional financial services accounts for half of total market capitalization. Healthcare environmental services, and travel and leisure are also attractive target sectors.

The firm continues to champion the pursuit of corporate complexity, particularly corporate carve outs, a strategy that has enticed the considerable interest of private equity firms in recent years, and said that there will continue to be plenty of opportunities of this kind in Europe. It suggests considering mediocre companies "where the market is pricing in something akin to Armageddon when it comes to cash flow generation" as well as high-quality companies trading at a discount.

KKR has been linked to the ongoing thyssenkrupp AG elevators corporate carve out, and bought out Australia's Arnott's Biscuits Ltd. from Campbell Soup Co. in December 2019. It also sold its stake in copper foils and flexible copper clad laminates producer KCF Technologies, Inc. to SKC Co. Ltd. in June 2019. The firm carved the business out of South Korean diversified corporation LS Group.