FCP invests in EDGE Industrial Technologies

Middle-market private equity firm Falfurrias Capital Partners has invested in EDGE Industrial Technologies, a producer of industrial machine knives, blades, punches and related equipment.

EDGE’s brands include TGW International, Pearl Technologies and Leverwood Knife Works, encompassing packaging, food processing, converting, plastics and printing.

EDGE was formed in 2018 by Blue Wolf Capital Partners through a merger of TGW International, TGW Global and Pearl Technologies. In 2021, EDGE acquired Leverwood Knife Works and doubled the company’s previous production capacity, according to a press statement.

Sauer Brands CEO William Lovette, Pepsico’s former EVP of Engineering and Supply Chain Bill Ladd and FCP’s Chip Johnson and Ken Walker will join EDGE’s board alongside EDGE’s current CEO, Robert Woodbury. Blue Wolf will also maintain an investment in the company and board representation, with Aakash Patel continuing to serve.

FCP has appointed Josh Slagle, who previously led the nutrition and health division for SPX Flow, to serve as CEO.

Coller Capital to launch new SICAV fund for private wealth investors with $400m seed capital

Coller Capital, an independent investor dedicated exclusively to private market secondaries, has received regulatory approval to launch its first Luxembourg domiciled ‘SICAV’ fund, accessible to eligible private wealth investors outside of the US.

The fund will be seeded with over $400m of capital from investors globally.

The approval follows the recent news that Coller has opened a new office in Zurich led by Boris Maeder, Head of International Private Wealth Distribution, in expanding its private wealth secondaries solutions business.

According to a press release, Coller International Secondaries Private Equity Fund aims to deliver “a combination of absolute and risk-adjusted returns, diversification, and the opportunity for more liquidity than traditional private equity funds”. The fund is available to professional and qualified investors in certain jurisdictions, offering monthly subscriptions and quarterly redemptions.

HIG sells IT specialist DGS

HIG Capital, a global alternative investment firm with $62bn of capital under management, will sell its portfolio company and Italian information technology specialist DGS to the company’s co-founders and management team, in partnership with alternative asset manager ICG.

DGS was founded in 1997 and offers cybersecurity services (consulting, data protection, network protection and monitoring & control services), IT management consulting and digital transformation solutions (cloud, ERP, CRM, PLM/SCM, workflow digitalisation, collaboration/content management, artificial intelligence and data analytics). The group currently has over 1,900 employees and revenues of approximately €300m, according to a press statement.

Blackstone completes Tropical Smoothie Cafe acquisition

Blackstone has completed the acquisition of Tropical Smoothie Cafe, a franchisor of fast casual restaurants, from Levine Leichtman Capital Partners. The deal is the first for the most recent vintage of the firm’s flagship private equity vehicle.

Blackstone’s investment in Tropical Smoothie Cafe is the most recent example of a number of leading franchisors the firm has partnered with to help propel growth, including Hilton Hotels and SERVPRO.

As part of this transaction, Nigel Travis, former CEO of Dunkin’ Brands, will serve as Chairman of Tropical Smoothie Cafe’s board.

Terms of the transaction have not disclosed.

Barclays and Simpson Thacher & Bartlett advised Blackstone. Baird, North Point, BofA Securities and Kirkland & Ellis advised Tropical Smoothie Cafe.

Stocks making the biggest moves premarket: Eli Lilly, General Motors, Shopify

Ranked: U.S. Cities with the Highest Rent in 2024

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June 11, 2024 Graphics/Design:

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Ranked: U.S. Cities with the Highest Rent in 2024

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Rental prices have surged in several American cities in recent years. Factors such as inflation, a limited housing inventory, a changing workforce, and barriers to homeownership have all contributed to the increase in rent costs.

This graphic shows the top 10 American cities with the highest rental costs as of May 2024, according to the Zumper National Rent Index. Prices are for 1-bedroom units.

NYC Prices: $4,200 for One-Bedroom

New York tops the list with an average monthly cost of $4,200 for a one-bedroom apartment. Not only is it expensive, but due to high demand, living in the Big Apple can be competitive.

While half of all renters in the U.S. spend more than 30% of their income on rent, residents in New York can spend more than 40% of their income renting a place.

RankingCityPrice in 2024Price in 2023YOY change 1New York, NY$4,200$3,78011.1% 2Jersey City, NJ$3,330$3,1814.7% 3San Francisco, CA$2,950$3,001-1.7% 4Boston, MA$2,830$2,7004.8% 5Miami, FL$2,770$2,900-4.5% 6San Jose, CA$2,570$2,630-2.3% 7Arlington, VA$2,380$2,2993.5% 8San Diego, CA$2,370$2,401-1.3% 9Washington, DC$2,300$2,371-3.0% 9Los Angeles, CA$2,300$2,421-5.0%

Across the Hudson River, Jersey City ranks second, with one-bedroom suites priced at $3,330.

On the West Coast, San Francisco leads with $2,950 for a one-bedroom unit. Four of the 10 most expensive cities to rent are in California.

According to a study by Harvard University, the pandemic has intensified the housing affordability crisis in the United States. While high-end market supply may offer some relief to middle and higher-income renters, lower-income households will continue to struggle due to high construction costs and market dynamics.

What are the most valuable housing markets in the United States? We ranked housing markets in this chart to find out.

Baltimore key shipping channel fully reopens after Francis Scott Key Bridge collapse

The main shipping channel into the Baltimore port was fully restored for commercial transit, after the March 26 collapse of the Francis Scott Key Bridge. The bridge toppled after the cargo ship Dali crashed into the infrastructure. The restoration follows a clean-up process that removed about 50,000 tons of bridge wreckage from the Patapsco River, allowing for the gradual reopening of the channel in the weeks since. The vehicle carrier Tosca passes through an open section of the Federal channel as crane barges continue work on clearing the debris from the Francis Scott Key Bridge more than two months after the catastrophic collapse.  Jerry Jackson | Baltimore Sun | Getty Images

The main passageway into the Baltimore port was fully restored after the March 26 collapse of the Francis Scott Key Bridge, which left six people dead and obstructed maritime traffic into the harbor.

The bridge toppled in late March, after the cargo ship Dali crashed into the infrastructure, choking a major shipping artery into the U.S.’ busiest auto port.

The Port of Baltimore processed a record 1.1 million containers and $80.8 billion in foreign cargo value last year, according to state data. Six highway construction crew members who were carrying out overnight road works plunged to their deaths during the incident.

On Monday evening, the U.S. Army Corps of Engineers said that the Fort McHenry Federal Channel was reinstated to its original operational dimensions of 700 feet wide and 50 feet deep for commercial transit through the Port of Baltimore.

“We’ve cleared the Fort McHenry Federal Channel for safe transit. USACE will maintain this critical waterway as we have for the last 107 years,” said Col. Estee Pinchasin, Baltimore District commander, in a statement.

The restoration follows a clean-up process that started on March 30 and removed about 50,000 tons of bridge wreckage from the Patapsco River, allowing for the gradual reopening of the channel in the weeks since.

Salvage crews continue to work on removing debris from the Francis Scott Key Bridge collapse after it was struck by the container ship Dali, now docked at Seagirt Marine Terminal in Baltimore. (Jerry Jackson/Baltimore Sun/Tribune News Service via Getty Images) Jerry Jackson | Baltimore Sun | Getty Images

On May 20, authorities were able to refloat and remove

CNBC

Most US Equity Sectors Are Up This Year—With Two Exceptions

The US stock market’s strong year-to-date gain so far in 2024 has enjoyed wide support among equity sectors. The two glaring downside exceptions: consumer discretionary and real estate shares, based on a set of ETFs through Monday’s close (June 10).

On the upside, the communications services sector (XLC) is the clear leader. Indeed, this fund, which holds the likes of Meta, Alphabet and Netflix, has soared 16.8% so far this year. Not only is that a strong performance in absolute terms, it’s also beating the broad market (SPY), which is up 13.1%. In fact, XLC is the only sector that’s ahead of stocks overall in 2024.

The loser’s circle this year is limited to consumer discretionary shares (XLY), which is posting a fractional loss, and real estate stocks (XLRE), which are in the red by 4.1%.

XLRE holds commercial real estate investment trusts (REITs), which have struggled since the Federal Reserve started raising interest rates in early 2022. REITs are prized for their relatively high dividend payouts, but competition from risk-free Treasuries has been a tough(er) act to beat lately.

Contrarians argue that REITs are an intriguing value play. XLRE’s 3.51% trailing 12-month yield, according to Morningstar.com, is a factor. That’s nearly 80% of the current 10-year Treasury yield. Add in the potential for capital appreciation in REITs (if you’re so inclined), after a bruising couple of years, and the outlook looks relatively attractive, some analysts argue.

Maybe, but the technical profile for XLRE still leaves room for doubt. The ETF has rallied off its late-2023 low, but the price trend still looks weak. The outlook, from a technical perspective, would look brighter if XLRE can move above its recent peak of ~40. That breakout may be brewing in the near term, but at the moment optimism is limited to expecting a trading range.

On the bright side, XLRE has tested its downside support of roughly 32 and, so far, it’s held. That’s a sign that the worst may have passed for REITs. A rate cut by the Fed would help, but that’s still not on the immediate horizon, according to Fed funds futures.

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Investors ditch French stocks and bonds amid election nerves

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Investors sold French stocks and government debt for a second consecutive day on Tuesday, as markets reacted to political turbulence in the wake of President Emmanuel Macron’s decision to call a snap parliamentary election.

The Cac 40 stock market index fell 0.9 per cent to a four-month low following a 1.3 per cent decline on Monday.

Markets have been rocked by the prospect of a possible victory in the parliamentary vote for the far-right forces of Marine Le Pen, which trounced Macron’s centrists in EU elections on Sunday.

Tuesday’s moves came after the Europe 1 radio station reported that the president had discussed resigning if he suffered another heavy defeat in the two-round election to parliament, scheduled for June 30 and July 7.

A person close to Macron said the rumours were unfounded.

Macron pushed back a press conference planned for Tuesday until Wednesday.

As investors responded to an apparent increase in political risk, the yield on France’s benchmark 10-year bond, which moves inversely to price, rose 0.08 percentage points to 3.32 per cent by early afternoon.

In a setback for Macron’s hopes to form a united front with the forces of the centre-left and centre-right to take on Le Pen’s Rassemblement National, the country’s leftwing parties struck a pact of their own on Monday night.

This includes the Socialists, the Communists, the Greens and the far-left France Unbowed party, but not the president’s centrist alliance.

This is a developing story

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