Japanese multinational investment company SoftBank Group has been considering the acquisition of Graphcore, a UK semiconductor startup that has faced challenges despite a previous valuation of $2.8bn, according to a report by Bloomberg. 

Bloomberg’s unnamed sources revealed that SoftBank’s discussions have been ongoing for several months and have recently progressed to more detailed negotiations, although the financial terms are yet to be finalised. The possibility of the talks falling through still exists, and a final agreement is not expected in the immediate future.

According to the report, the discussions come as Masayoshi Son, Chairman of SoftBank, reportedly plans to amass approximately $100bn to fund an AI chip venture, having paused its tech investments in 2022 and returning to dealmaking in late 2023 with a focus on AI and autonomy.

The discussions also coincide with a period of increased sales for SoftBank, largely attributed to its majority ownership of another UK-based chip designer, Arm Holdings. In February, Arm announced developments in its expansion beyond smartphones into additional artificial intelligence applications, leading to a roughly 40% increase in its share price.

Graphcore was founded in Bristol in 2016 and specialises in a different type of chip technology than Arm, designing large “intelligence processing units” intended to assist with AI software processing within data centres.

Despite securing investment from companies such as Samsung Electronics, Bosch and Sequoia Capital, Graphcore has struggled to gain momentum. The company’s revenue for 2022 was reported at just $2.7 m, a 46% decrease from the previous year, and pre-tax losses increased to $204.6m. Graphcore has closed operations in Norway, Japan and Korea and plans to reduce its workforce in other markets. The company has also indicated a need to secure additional capital to continue operations.

Shares in Peloton soared by as much as 18% on Tuesday after CNBC reported that several private equity firms are considering a buyout of the connected fitness company, which is looking to refinance its debt and return to growth after 13 consecutive quarters of losses.

CNBC’s report cited an unnamed source in confirming that the New York-based company has held talks with at least one firm as it considers going private, with a number of other private equity firms also reportedly viewing Peloton as a potential acquisition target, although it is unclear whether any other formal discussion have taken place.

Peloton has become a takeover target after seeing its market capitalisation plunge to about $1.3bn as of Monday, from a high of $49.3bn in January 2021.

Last week, Peloton’s CEO Barry McCarthy quit and the company announced around 400 job cuts as part of a plan to reduce costs after posting weak results in its latest earnings report.

According to CNBC’s source, there is no certainty a deal will happen and the business could remain a public company.

Brookfield Asset Management, a global alternative asset manager with over $900bn of assets under management, has agreed to invest $1.5bn to acquire a 51% stake in asset-based private credit specialist Castlelake’s fee-related earnings.

The investment includes capital to be invested in Castlelake’s investment strategies by Brookfield Reinsurance, and according to a statement, will allow the firm’s to expand Castlelake’s differentiated asset-based investment business, which includes aviation and specialty finance.

Castlelake will continue to operate its business independently, retaining its current governance and leadership structure, including Carruthers as Chief Executive Officer and Chief Investment Officer, and O’Neill as Executive Chair. It will retain majority ownership of its performance-related earnings. The transaction is expected to close in Q3 2024.

Castlelake was founded in 2005 by Rory O’Neill and Evan Carruthers and is one of the longest-tenured investment firms focused on asset-based investments. The firm manages approximately $22bn of assets for around 200 institutional investors.

Brookfield was advised by Evercore and Paul, Weiss, Rifkind, Wharton & Garrison. Castlelake was advised by Goldman Sachs & Co, Colchester Partners and Kirkland & Ellis.

London-based card reader maker SumUp has secured a €1.5bn private credit loan package from a group of lenders led by Goldman Sachs. Other participants include BlackRock, Apollo Global Management, Oaktree Capital Management and Vista Credit Partners.

According to a press statement, cash from the round – one of the largest European private credit deals of its kind in recent years – will be used to “refinance existing debt and seize global growth opportunities”.

A report from Reuters cites unnamed sources familiar with the mater in revealing that pricing of the loan is set to come in at 650 basis points over the benchmark rate, down from the 825 points listed in public filings, and it is expected to be issued at a discounted price of 99 cents on the euro.

SumUp’s new investors include AllianceBernstein, Arini, Deutsche Bank, Fortress Investment Group and SilverRock Financial Services, joining existing investors such as funds managed by BlackRock, Crestline Investors, Liquidity Capital, Oaktree Capital Management, Sentinel Dome and Temasek.

Boston-headquartered private equity firm Advent International has entered into discussions with the Government of Oman over a potential injection of fresh capital into state-owned OQ Chemicals in exchange for a majority stake in the company, according to a report by Bloomberg.

The report cites unnamed people familiar with the matter in revealing that Advent is considering investing up to $250m in a deal that would see it take control of the business, with current owner and state energy company OQ SAOC (OQ) retaining a minority holding.

OQ recently revealed that it would not be providing any further funds to OQ Chemicals, complicating the company’s attempts to refinance outstanding $507m and $435m term loans which are due this October.

According to Bloomberg’s sources, Advent is still discussing details of the deal including the amount and stake size, and there is no certainty at this stage that it will proceed, while OQ Chemicals has also been considering other options proposed by its creditors.

Advent-owned OQ Chemicals was formerly known as Oxea until 2013, when it sold the company to OQ for about €1.8bn.

Roark Capital, a US PE firm focused on leveraged buyout investments across franchise restaurant and food, health and wellness, and business services, has completed its acquisition of Subway in a deal valued at $9.6bn.

Subway, one of the world’s largest restaurant brands with almost 37,000 outlets in over 100 countries, is the latest addition to Roark’s portfolio of restaurant chains, which includes Arby’s and Buffalo Wild Wings, as well as Baskin-Robbins and Dunkin’, via the firm’s investment in Inspire Brands.

In a press statement John Chidsey, CEO of Subway, said: “The entire Subway system is excited that our sale to Roark is complete. As we look to our future, our growth journey is far from over. With a continued strategic focus on delivering better food and a better guest experience, our next chapter will be the most exciting yet.”