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- First Step to Final Offer 3/3/25
First Step to Final Offer 3/3/25
Brooks Gammill
March 04, 2025
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
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Class of 2026 Investment Banking Opportunities
Scotiabank Investment Banking Analyst, Equity Capital Markets (ECM) - New York, NY Link
Class of 2027 Investment Banking Opportunities
Agentis Capital Investment Banking Summer Analyst - Infrastructure M&A Advisory - Summer 2026 Link
Class of 2027 Other Finance Opportunities
Class of 2027 Consulting Opportunities
Schneider Downs & Co., Inc. 2026 Risk Advisory Summer Intern Link
To see c/o 2027 opportunities, click here: Class of 2027 Application Tracker
TECHNICAL QUESTION OF THE WEEK:
The 3-year IRR in an LBO is 35%, and the Exit Equity Proceeds are $1,000. What is the initial Investor Equity? |
MARKET NEWS
Carlyle Plans to Accelerate IPOs, Targets $5 Billion in Exits for 2025
Carlyle Group is ramping up its plans for initial public offerings (IPOs) and asset sales in 2025, targeting $4 billion to $5 billion in exits. The firm aims to increase the pace of public listings, capitalizing on improving market conditions and a favorable economic environment. Despite a slower start to the year for merger activity, Carlyle is optimistic about a resurgence in dealmaking later this year, with an emphasis on large leveraged buyouts (LBOs) and a bullish outlook on the market’s recovery. The company’s recent performance showed some setbacks, but its long-term growth prospects remain strong.
Source: Reuters
Blackstone Appoints McKinsey Veteran to Lead Portfolio Operations
Blackstone has appointed Rodney Zemmel, a former McKinsey & Co. executive, as its global head of portfolio operations. Zemmel, who led McKinsey’s digital practice, will oversee a team of operating executives and advisers for Blackstone’s portfolio companies, which generate $226 billion in annual revenue. His team works on various initiatives, such as executive recruitment, technology systems, and brand consultation, shifting the industry’s image away from hostile takeovers and toward a more corporate, value-driven approach. Zemmel, who succeeded Jennifer Morgan, brings extensive experience in digital transformation and AI, areas Blackstone aims to leverage for continued growth.
Source: Yahoo Finance
M&A DEAL OVERVIEW
Blackstone Sells Majority Stake in First Eagle to Genstar
Blackstone has agreed to sell its majority stake in First Eagle Investments to Genstar Capital, marking a significant change for the $4 billion investment made in 2015. The deal, expected to close in the second half of 2025, comes after reports of Blackstone’s intention to exit its position. While the financial terms remain undisclosed, First Eagle’s leadership and investment team will continue unchanged, maintaining continuity for the firm’s $226 billion portfolio. This transaction underscores Blackstone’s strategic shift in its portfolio management as it refines its investment approach.
Source: Citywire
ADDITIONAL RESOURCES
LAST WEEK TECHNICAL QUESTION OF THE WEEK ANSWER:
Correct Answer: A, Combined Equity Value changes with the method of financing, while Combined Enterprise Value remains the same — How do the Combined Equity Value and Enterprise Value change based on the deal financing?
Explanation: The Combined Equity Value changes depending on the method of financing used in a deal, such as whether it is financed through cash, stock, or debt. This is because the equity value reflects the ownership and is affected by the issuance or repurchase of shares or the assumption of debt. However, the Combined Enterprise Value (EV) remains unchanged regardless of the financing method, as it represents the total value of the business, including debt and equity, and is not directly impacted by the specific source of financing. The EV stays consistent because it reflects the operational value of the company, not the capital structure.