Rishi Sunak’s bid to increase investment into UK infrastructure and tech companies by shifting workers’ pension pots into higher-fee private equity funds risks benefiting financiers rather than savers or the wider economy, investors have warned. The chancellor is seeking to relax rules that stop workers auto-enrolled into workplace pensions from having their savings funnelled into … Read more
January 2020 seems like a long time ago: Billie Eilish swept the Grammy Awards, Tesla’s market cap made it America’s most valuable car company, and Visa announced plans to purchase Plaid for $5.3 billion. A year later, the credit card giant balked at the deal after it attracted regulatory scrutiny, but Ryan Lawler reports that … Read more
The mistaken idea that power is something that leaders possess by force of personality or positional authority opens them up to pitfalls, such as hubris, arrogance, and omnipotence. A preventative solution can be found in power dependence theory, according to organizational behavior professors Julie Battilana and Tiziana Casciaro. They advise pegging power to resources, not people, and exercising it using four strategies: attraction, consolidation, withdrawal, and expansion.
Blackstone has agreed to sell The Cosmopolitan in Las Vegas for $5.7bn, completing a turnround at a resort that had been blighted by losses and labour disputes before Stephen Schwarzman’s private equity firm took ownership seven years ago. MGM Resorts International is paying $1.6bn to take over operations of the 3,000-room hotel overlooking the Las … Read more
Investor and entrepreneur Anshu Sharma — formerly a partner at Storm Ventures, now CEO of privacy-focused SkyFlow — asked on Twitter today about the connection between interest rates and technology valuations: Ignore the compliments; Sharma was merely trying to bait Jeff and me into engaging with his question. Which worked, as you can tell. Sharma … Read more
Accounting & Consulting services updates Sign up to myFT Daily Digest to be the first to know about Accounting & Consulting services news. Ankura Consulting has launched a UK restructuring practice, becoming the latest private equity-backed group looking to profit from advising companies in distress because of the pandemic. The US-based firm, which is backed … Read more
Startups are raising record sums around the world, thanks to several contributing factors. As The Exchange explored yesterday, historically low interest rates have helped venture capitalists raise more capital than ever, to pick an example. Low rates have helped startups in another manner: As yields fell for certain assets, investors chased returns by betting on … Read more
As ESG metrics spawn an increasing number of ethical considerations, leaders need better ways to manage ethical conundrums and conflicts. G. Richard Shell, chair of Wharton School’s Legal Studies and Business Ethics department, offers a useful approach with his CLIP framework, which considers four elements: consequences, loyalties, identity, and principles. But when all is said and done, leaders will still need to use their best judgment to balance and prioritize the elements.