In recent months, pizza chain Papa John’s Pizza (NASQAQ: PZZA) has been contemplating its future after a public fallout with well-known founder and former CEO John Schnatter. Last November, Mr. Schnatter came under fire for his criticism of the National Football League’s handling of anthem protests during an earnings call. Shares of the company dropped ten percent the following week. In December, Mr. Schnatter stepped down as CEO, but remained as chairman of the board.
XPONENTIAL FITNESS ACQUIRES PURE BARRE
With the rise of the health and fitness craze, private equity investors have begun to view boutique fitness studios - specialty fitness centers that offer a unique kind of workout - as potentially very rewarding investment opportunities. It is important to capitalize on the changing manners in which consumers are spending their money: less on physical, material goods and more on experiences, such as trendy workout classes.
PRIVATE EQUITY IN THE PUBLIC EYE
Perhaps one of the most attractive perks of private equity is the relative lack of regulation and oversight, in contrast to publicly traded securities. One of the biggest deterrents for many younger companies seeking to raise capital through the issuance of public equity is the heightened level of government regulation and increased administrative costs associated with being listed on an exchange.
VENTURE CAPITAL FINANCING: MORE CAPITAL, FEWER INVESTMENTS
As much of our daily life relies upon convenient transportation, it is no surprise just how hard it is to escape hearing about or personally interacting with Uber. Uber has become a household name as its services have achieved ubiquity across the world. It is perhaps even more difficult to avoid encountering Uber in the investing arena. With its various scandals, hasty expansion, and increasingly likely IPO prospects, Uber has thrust itself into the investing limelight.
CASE STUDY: BLACKSTONE’S BUYOUT OF EQUITY OFFICE PROPERTIES (EOP)
In February 2007, The Blackstone Group, led by Jonathan Gray, acquired Sam Zell's Equity Office Properties Trust (EOP) for $39 Billion (including debt). At this time, Equity Office Properties was the country’s largest manager of office buildings, with over 500 buildings and 100 million SF across many U.S. markets. Despite the timing of the buyout and the risk associated with the upcoming recession, Blackstone capitalized on the real estate bubble by unloading many of EOP’s properties over the course of the few months following the acquisition.