New PE firm Niobrara launches with focus on tech ecosystem

Niobrara Capital Partners, a New York-based middle market private equity firm focused on tech and tech-enabled services companies operating in North America, has launched.

The firm has an initial team of approximately fifteen professionals and will seek to invest in companies benefitting from mega trends in the evolving technology landscape that Niobrara believes will drive significant economic transformation across all industries and disrupt existing business models, creating opportunities for first and second derivative participants to capture new growth.

Niobrara is led by managing partner Chip Schorr, who has completed over 30 platform investments and 100 acquisitions in software, fintech, IT services, semiconductors and cloud services, according to a press statement.

Schorr is joined by Todd Bradley, a former operating partner at One Equity Partners with experience leading companies including Tibco and Hewlett-Packard, as well as former US Secretary of State and engineer Mike Pompeo.

Niobrara recently announced its first transaction, a $175m control equity investment in Polar Semiconductor.

GameStop raises more than $2 billion by selling 75 million shares, capitalizing on meme frenzy

Merchandise lines the shelves of a GameStop store on May 28, 2024 in Miami, Florida.  Michael Nagle | Bloomberg | Getty Images

GameStop raised more than $2 billion in a recent stock sale as the video game company took advantage of a revived meme rally sparked by the return of trader Roaring Kitty.

The retailer announced Tuesday evening that it completed an at-the-market equity offering, selling the maximum number of 75 million shares to raise proceeds of $2.14 billion. GameStop said it intends to use the money for general corporate purposes, which may include acquisitions and investments.

The stock fell slightly in morning trading Wednesday. The shares continued their roller-coaster ride this week, up 8% so far.

Loading chart…

Wedbush GameStop analyst Michael Pachter estimated that the sale had an average share price of $28.50, implying that it coincided with the big sell-off during meme stock leader Roaring Kitty’s Youtube livestream last Friday.

GameStop shares dropped 40% on Friday after the company released its earnings report days ahead of schedule, disclosing that sales declined 29% in the first quarter.

Roaring Kitty, aka Keith Gill, hosted his first livestream in a few years that day, which seemed to exacerbate the sell off. Gill reiterated his previous investing thesis and offered little new reasoning behind his large stake. He revealed that he did not have any institutional backers and the GameStop positions he had shared in screenshots were his only bets.

Pachter has an underperform rating on GameStop and a 12-month price target of $11, which is more than 60% lower than Tuesday’s close of $30.49.

Don’t miss these exclusives from CNBC PRO

CNBC

H2 invests in The Coach Travel Group

H2 Equity Partners has made an investment in The Coach Travel Group, which comprises seven UK regional coach operators: Alpine Travel, Barnes Coaches, Coatham Coaches, JH Coaches, Johnsons Coaches, Swans Travel and The Ready Group.

As part of the investment, these operators will merge to form a national group providing unscheduled coach services across the UK, including private hire, contracts for schools and corporations, as well as holidays and tours.

According to a press statement, following completion, H2 will work with CTG to “leverage the combined strengths of the seven operators and drive investment in its people, fleet and technology to deliver a best-in-class service to its customers”.

CTG will be led by Tom Stables as CEO.

H2 was advised by Eversheds Sutherland and Grant Thornton.

Inflation slows in May, with consumer prices up 3.3% from a year ago

The consumer price index held flat in May though it increased 3.3% from a year ago. Both numbers were 0.1 percentage point below market expectations. Excluding volatile food and energy prices, core CPI increased 0.2% on the month and 3.4% from a year ago, compared with respective estimates of 0.3% and 3.5%. Price increases were held in check by a 2% drop in the energy index and just a 0.1% increase in food.

The consumer price index showed no increase in May as inflation slightly loosened its stubborn grip on the U.S. economy, the Labor Department reported Wednesday.

The CPI, a broad inflation gauge that measures a basket of goods and services costs across the U.S. economy, held flat on the month though it increased 3.3% from a year ago, according to the department’s Bureau of Labor Statistics.

Economists surveyed by Dow Jones had been looking for a 0.1% monthly gain and a 3.4% annual rate.

Excluding volatile food and energy prices, core CPI increased 0.2% on the month and 3.4% from a year ago, compared with respective estimates of 0.3% and 3.5%.

Following the report, stock market futures pushed higher while Treasury yields slid.

Though the top-line inflation numbers were lower for both the all-items and core measures, shelter inflation increased 0.4% on the month and was up 5.4% from a year ago. Housing-related numbers have been a sticking point in the Federal Reserve’s inflation battle and make up a heavy share of the CPI weighting.

Price increases were held in check, though, by a 2% drop in the energy index and just a 0.1% increase in food. Within the energy component, gas prices tumbled 3.6%. Another nettlesome inflation component, motor vehicle insurance, saw a 0.1% monthly decline though was still up more than 20% on an annual basis.

“Finally, some positive surprises as both headline and core inflation beat forecasts,” said Robert Frick, corporate economist with Navy Federal Credit Union. “There was relief at the pump, but unfortunately home and apartment costs continue to rise and remain the main cause of inflation. Until those shelter costs begin their long-awaited fall, we won’t see major drops in CPI.”

The release comes at an important juncture for the economy as the Federal Reserve weighs its next moves on monetary policy, which will

CNBC

Partners Group closes fifth direct PE programme above $15bn target

Partners Group has surpassed its target of $15bn in client commitments for its fifth direct private equity programme, which comprises commitments to the Partners Group Direct Equity V fund, as well as bespoke client solutions and open-ended funds that allocate to the same strategy.

Partners Group focuses on technology, health & life, goods & products, and services, and “partners with management teams to build a value creation plan around clearly defined strategic pillars”, according to a press statement.

At the time of closing, the programme was committed to companies including Swiss watchmaker Breitling; SureWerx, a North American supplier of personal protective equipment, safety gear, and tool solutions; and ROSEN Group, a global provider of inspection services for energy infrastructure assets.

Investors in the programme comprise new and existing clients including public and corporate pension plans, sovereign wealth funds, insurance companies, endowment funds, foundations and individual investors in the private wealth category. Partners Group’s partners and other employees, together with affiliates of the firm, also committed to the programme, bringing the total amount committed to-date by this group to the firm’s suite of investment programmes to more than $4.8bn.

Blue Wolf Capital appoints senior advisor

Blue Wolf Capital Partners, a middle market private equity firm specialising in the industrial and healthcare sectors, has appointed Steve Sleigh as a senior advisor, following the retirement of Mike Musuraca.

According to a press statement, in his new role, Sleigh will advise the firm on new investments, provide strategic and operational counsel to Blue Wolf’s portfolio companies on labour issues and help expand Blue Wolf’s partnerships with labour unions and institutional investors.

Since 2015, Sleigh, through his firm Sleigh Strategy, has provided advice to clients on initiatives that align businesses, labour and investors.

From 2011 to 2015, Sleigh served as Fund Director for the International Association of Machinists and Aerospace Workers’ multi-employer pension, savings and health plans. Prior to this, he was a principal with the Yucaipa Companies with responsibilities including fundraising, deal sourcing and diligence and portfolio company governance.

Sleigh also served as Director of Strategic Resources at IAM; Director of Research at the International Brotherhood of Teamsters; and Deputy Director at the Center for Labor Management Policy Studies in the City University of New York.

Stocks making the biggest premarket moves: Oracle, Paramount, Birkenstock, Rentokil Initial and more

ECB flags euro risks from Russia as global forex reserves dip

Standard DigitalWeekend Print + Standard Digital

wasnow $85 per month

Billed Quarterly at $199. Complete digital access plus the FT newspaper delivered Monday-Saturday.

What’s included

Global news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print editionWeekday Print EditionFT WeekendFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisGlobal news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts10 monthly gift articles to shareGlobal news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print editionEverything in PrintWeekday Print EditionFT WeekendFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisPlusEverything in Premium DigitalEverything in Standard DigitalGlobal news & analysisExpert opinionSpecial featuresFirstFT newsletterVideos & PodcastsFT App on Android & iOSFT Edit app10 gift articles per monthExclusive FT analysisPremium newslettersFT Digital Edition10 additional gift articles per monthMake and share highlightsFT WorkspaceMarkets data widgetSubscription ManagerWorkflow integrationsOccasional readers go freeVolume discountFT Weekend Print deliveryPlusEverything in Standard DigitalFT Weekend Print deliveryPlusEverything in Premium Digital

Mapped: The Income Needed to Live Comfortably in Every U.S. State

Published

5 hours ago

on

June 12, 2024 Graphics/Design:

See this visualization first on the Voronoi app.

The Income Needed to Live Comfortably in Every U.S. State

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.

Individuals in the top 11 most expensive states in the U.S. need an annual income exceeding $100,000 to live comfortably.

This map shows how much income single adults need to live comfortably in each U.S. state. SmartAsset calculated the income needed using the cost of necessities sourced from the MIT Living Wage Calculator, last updated on Feb. 14, 2024.

In this case, “comfortable” was defined as the annual income required to cover a 50/30/20 budget, allocating 50% of earnings to necessities such as housing and utility costs, 30% to discretionary spending, and 20% to savings or investments.

Massachusetts Ranks First

Massachusetts is the most expensive state to live comfortably in. A single adult needs to make at least $116,022 annually or $55.78 per hour.

RankStateSalary needed for a single working adult 1Massachusetts$116,022 2Hawaii$113,693 3California$113,651 4New York$111,738 5Washington$106,496 6Colorado$103,293 7New Jersey$103,002 8Maryland$102,918 9Oregon$101,088 10Rhode Island$100,838 11Connecticut$100,381 12Virginia$99,965 13New Hampshire$98,093 14Arizona$97,344 15Georgia$96,886 16Alaska$96,762 17Vermont$95,763 18Illinois$95,098 19Delaware$94,141 20Utah$93,683 21Nevada$93,434 22Florida$93,309 23Maine$91,686 24Pennsylvania$91,312 25North Carolina$89,690 26Minnesota$89,232 27Idaho$88,733 28South Carolina$88,317 29Wyoming$87,651 30Texas$87,027 31Tennessee$86,403 32Indiana$85,030 33Montana$84,739 34Kansas$84,656 35Michigan$84,365 36Wisconsin$84,115 37Missouri$84,032 38Alabama$83,824 39Nebraska$83,699 40New Mexico$83,616 41Iowa$83,366 42Mississippi$82,742 43Louisiana$82,451 44South Dakota$81,453 45Ohio$80,704 45Kentucky$80,704 47North Dakota$80,538 48Oklahoma$80,413 49Arkansas$79,456 50West Virginia$78,790

West Virginia is the least expensive for a single adult, who only needs to make an estimated $37.88 per hour, or $78,790 annually.

To live comfortably on your own in the top five states, a person

UK Economy Fails to Grow in April

UK GDP was flat in April, according to data from the Office for National Statistics, showing a 0% month-on-month change. Along with this yesterday’s unemployment numbers and May inflation, GDP is a key data point taken into account by the Bank of England, which meets next week.

The data shows that the UK economy, having recently exited recession, is still struggling to grow, a concern for both major parties as the UK heads to the polls. The UK economy is just 0.6% higher than at April 2023, and the IMF is predicting 0.7% growth in GDP for the whole year, before rising to 1.5% in 2025.

Michael Field, European market strategist at Morningstar, says that April was a poor month for the UK, especially for the manufacturing, industrial production, and construction sectors. Poor weather was also a factor.

But the data could prompt the Bank to act on interest rates, he adds:

“Weak economic readings such as these are never a cause for cheer. However, with the Bank of England poised to decide on when to cut interest rates, data points like todays might actually prove to be a positive catalyst, removing any concern the Bank might have of a potentially heating economy, and paving the way for a sooner than expected rate cut.”

Looking Ahead to Next Week’s Rate Decision

Neil Birrell, chief investment officer at Premier Miton Investors and lead manager of the Premier Miton Diversified Fund range, also suggests that there is some argument for a rate cut to boost the ailing UK economy: “No one set of numbers will drive the Bank of England’s interest rate decision, but they will now be looking to inject some stimulus as soon as they feel it is safe to do so.”

Yesterday’s unemployment and wage data showed wages in the service sector still buoyant, a concern for the Bank of England. One June 19 the ONS also releases May inflation data, a day ahead of the Bank’s latest rate-setting decision. In April, UK inflation fell to 2.3%, close to the 2% target, but the Bank has warned that inflation could rise again before falling back.

The European Central Bank cut interest rates last week for the first time in five years, but its inflation outlook changed market expectations of the sequence of rate cuts this year. And the Federal Reserve is due to make an interest rate decision tonight, but