(The Wall Street Journal) North Inlet’s previous newsletter discussed Bain & Company’s findings that retaining non-core segments can be as risky and detrimental to shareholder value as poor acquisitions; therefore, companies should consider divesting underperforming non-core assets. However, a contrasting study conducted by Wills Towers Watson in partnership with Cass Business School found companies are better off purchasing divested assets than selling them.
(Bloomberg) Alternative asset managers are starting funds devoted to meeting environmental, social and governance targets as they seek to gather a steady stream of fees and diversify offerings for investors. TPG, KRR, Blackstone, Carlyle, and most recently, Apollo are pushing into the area of these impact funds. TPG’s $2 billion raise fund is the largest impact investing pool.
(Institutional Investor) The private equity industry has a record amount of cash on hand to invest. But private equity firms are being cautious in putting that money to work as 2019 has seen a decline in deal value and volume. PE firms are also trying to be creative about how they invest, including doing more growth capital deals and complex carve-outs.
(The Wall Street Journal) Food Companies, including produce sellers, are working to keep up with shoppers’ demand for variety as Americans have become more adventurous eaters over the past decade. For example, Grapery developed Cotton Candy grapes, which tastes like its namesake and is a North Inlet favorite.