First Step to Final Offer 11/5/24

Your weekly round-up of an M&A deal walkthrough, insightful market news summaries, technical quiz questions, and various internships, events, and diversity programs. A key resource to best prepare yourself for finance recruiting. If someone sent you the newsletter subscribe below!

CAREER OPPORTUNITIES

RecruitU Partners Upcoming Event List

Guggenheim (Early Insight Program):

Wednesday, November 13 @ 5:30pm–7:30pm EST, Guggenheim Securities Investment Banking Diversity & Inclusion Panel Link 

Application Deadline: November 6th

Evercore:

Friday, November 15 @ 1:00–2:00pm EST, Evercore Restructuring Virtual Sophomore Open House Link

RecruitU Investment Banking Prep Series Overview

Every Monday and Wednesday, RecruitU Mentors from Evercore, Morgan Stanley, Guggenheim, and JPM will be presenting on their experiences in banking and answering questions. Please RSVP below:

November 6th @ 7pm EST, Lesson 8: Capital Structure, EV and EQV Link

November 11th EST @ 7pm EST, Lesson 9: Valuation Link

November 13th @ 7pm EST, Lesson 10: DCF Link

November 18th @ 7pm EST, Lesson 11: DCF Link

November 20th @ 7pm EST, Lesson 12: M&A Link

November 25th @ 7pm EST, Lesson 13: M&A Link

November 27th @ 7pm EST, Lesson 14: LBO Link

December 2nd @ 7pm EST, Lesson 15: LBO Link

December 4th @ 7pm EST, Lesson 16: LBO Link

December 9th @ 7pm EST, Lesson 17: Market Awareness Link

Class of 2027 Opportunities

  • TD (NEW) 2025 Invest in Success Program (New York) Link

  • Lincoln International (NEW) 2026 Summer Analyst Intern (M&A) Link

  • Lincoln International (NEW) 2026 Summer Analyst Intern (CAG) Link

  • Lincoln International (NEW) 2025 Sophomore Job Shadow Program Link

  • Lincoln International (NEW) 2026 Summer Analyst Intern (PFA) Link

  • The Raine Group LLC 2026 Summer Analyst (New York) Link

  • William Blair Investment Banking Summer Analyst, Private Capital Advisory, Summer 2026 Program Link

  • William Blair Investment Banking Summer Analyst, Financial Sponsors Group, Summer 2026 Link

  • William Blair Investment Banking Summer Analyst, Leveraged Finance, Summer 2026 Program Link

  • William Blair Investment Banking Summer Analyst, Equity Capital Markets, Summer 2026 Program Link

  • William Blair Investment Banking Summer Analyst, Life Sciences, Summer 2026 Program Link

  • Point 72 2025 Summer Internship - Private Investments Link

  • RBC Capital Markets 2026 Capital Markets, Global Markets Sales & Trading Summer Analyst Link

  • RBC Capital Markets 2026 Capital Markets, Global Investment Banking Summer Analyst Link

  • Insight Partners 2026 Summer Investment Analyst Overview Link

  • Goldman Sachs Possibilities Summits  Link

  • Deloitte Discovery Intern (Sophomore) Consulting (Government & Public Services) - Summer 2025 Link

Class of 2026 Opportunities

  • D.A. Davidson Companies (NEW) Investment Banking Summer Analyst, Technology Group - Summer, 2025 Link

  • D.A. Davidson Companies (NEW) Investment Banking Summer Analyst, Financial Sponsors Group - Summer, 2025 Link

  • D.A. Davidson Companies (NEW) Investment Banking Summer Analyst, Financial Institutions Group - Summer, 2025 Link

  • Jefferies 2025 Jefferies Finance Summer Analyst Program - New York, Data Analytics Link

  • StepStone Group 2025 Private Equity Summer Analyst  Link

  • BNY 2025 Summer Internship Programs Link

  • Deutsche Bank Internship Program Investment Bank: Commercial Real Estate - New York - 2025  Link

TECHNICAL QUESTION OF THE WEEK:

How do convertible bonds factor into the WACC calculation?

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MARKET NEWS

Hedge Funds on High Alert as U.S. Election Sparks Market Volatility

With the U.S. presidential election looming, hedge funds are adjusting their strategies to navigate anticipated market turbulence. As polls show a tight race between Kamala Harris and Donald Trump, the CBOE VIX indicates rising volatility, prompting significant outflows from U.S. equity funds—totaling $5.83 billion in the week leading up to October 30. This cautious sentiment is reflected in a weakening dollar and falling Treasury yields, as investors brace for potential shifts in market dynamics following the election and the Federal Reserve's policy decisions.

Source: Reuters

KKR Anticipates $250 Billion Annual Investment in Data Centers

Private equity firm KKR projects that global spending on data centers will reach $250 billion annually, driven by the surge in artificial intelligence (AI) and cloud computing. This growth is expected to significantly boost demand for data storage and processing capabilities. In line with this trend, KKR has invested approximately $800 million to acquire a 20% stake in Singapore Telecommunications' regional data center business, highlighting the firm's commitment to capitalizing on the expanding data center market.

BlackRock Seeks SEC Approval for ETF Share Classes

BlackRock has filed an application with the U.S. Securities and Exchange Commission (SEC) to create exchange-traded fund (ETF) classes for its mutual funds. This move positions BlackRock as the largest among over 30 asset managers pursuing similar approvals since Vanguard's patent on the ETF share class structure expired in May 2023. The SEC has yet to grant any of these requests

Source: Reuters

JPMorgan Chase Settles SEC Charges for $100 Million Over Misleading Disclosures

JPMorgan Chase has agreed to pay $100 million to settle U.S. Securities and Exchange Commission (SEC) charges alleging that its disclosures misled customers who invested in "conduit" products—investment vehicles that pooled customer funds into private equity or hedge funds. The SEC stated that the settlement includes a $10 million civil fine, with the remaining $90 million to be distributed to affected investors. JPMorgan did not admit or deny the SEC's findings but accepted a censure as part of the settlement.

Source: Reuters

M&A DEAL OVERVIEW

Shore Capital and Silver Lake Discuss $8.6 Billion Pet Care Acquisition

Private equity firms Shore Capital Partners and Silver Lake are in discussions to acquire a leading pet care company for approximately $8.6 billion. This potential deal underscores the growing interest in the pet care industry, driven by increasing pet ownership and spending on pet products and services. The acquisition would combine Shore Capital's expertise in healthcare investments with Silver Lake's substantial technology-focused portfolio, aiming to enhance the pet care company's digital and operational capabilities. The deal is subject to regulatory approvals and customary closing conditions.

Source: Reuters

Blackstone Nears $5 Billion Investment in Rogers Communications

Blackstone Inc., a private equity firm, is reportedly close to securing a minority stake in Rogers Communications' cellphone infrastructure business for approximately C$7 billion ($5.03 billion). This move aims to alleviate Rogers' debt burdens. The agreement involves Rogers selling a minority equity interest in its wireless backhaul transport infrastructure. Blackstone has yet to comment on the matter, and Rogers also declined to comment.

Source: Reuters

ADDITIONAL RESOURCES

LAST WEEK TECHNICAL QUESTION OF THE WEEK ANSWER:

Correct Answer: C, The yield on the government bonds denominated in the currency of the company’s cash flows — If a company operates in the EU, U.S., and U.K., what should you use for its Risk-Free Rate?

Explanation: The appropriate risk-free rate for a company operating in the EU, U.S., and U.K. should be based on the yield of government bonds denominated in the currency of its cash flows. This is because the risk-free rate represents the return expected from an investment with minimal risk, and using government bonds of the relevant currency reflects the economic conditions, inflation expectations, and monetary policies associated with that currency. By aligning the risk-free rate with the currency of cash flows, the company ensures a more accurate assessment of its cost of capital and investment returns.