The reopening of the U.S. economy from the epidemic is establishing a competition among Wall Street’s most powerful investment firms.
Private capital groups, including Blackstone, Apollo Global Management, and Carlyle Group, built a variety of portfolios before and during the epidemic, spending billions of dollars working on the first wave of transmission last spring.
With the US Federal Reserve injecting billions of dollars of new money into the financial system last year to lift almost all of their prices, their fortunes could now take an isolated path.
Some have invested in airlines, car rental companies, and travel agencies, hoping to reap more benefits from the recovery of new life, if new vaccines can be re-discovered by Americans after months of isolation if they can earn big bucks.
Others believe they have spotted long-term lifestyle changes inspired by the epidemic, the effects of which will be felt year after year in healthcare, retail and beyond.
Apollo used its 3 323 billion credit segment last year to ease billions of dollars in the travel industry, online travel agent threw a lifeline to Expedia, helped Mexico’s national airline Aromaxico find a way to bankruptcy, and helped car rental Hertz finance . Buy 229,000 new cars.
“[Travel and leisure assets] Scott Kleinman, vice-president of Apollo, said things were most stressed and as a result prices were most affected.
‘Covid has accelerated’
Apollo has structured some of its investments as instruments which are ahead of the shareholders but do not require repayment as per the strict schedule. It believes that it involves profit from recovery whenever it comes.
“There was no question about efficiency,” Kleinman said. “There was a question about when it was. We didn’t have to predict whether it would be in the summer of 2021 or 2023. Good. We bought good companies and helped them maintain themselves and then whenever economic recovery.” We can succeed when that happens. “
Other investors have maintained their cash by noticing the sharp long-term changes by Covid-19 that they believe will restore life year after year.
“Covid has really accelerated the healthcare trends we identified a few years ago,” said Stilfan Wise, head of healthcare investment at Carlyle’s health 2 billion healthcare investment company.
In particular, Carlyle is helping to finance the transition to telemedicine through organizations such as Wall Medical, which provides medical advice and other medical services to employees at more than 6,000 companies, and received investments in 2011 from Carlyle. The company is expanding its paths as physicians consult via video conference, mirroring the workplace adoption of virtual meeting services such as Zoom.
“The pre-existing trend with people’s inability to go to the doctors’ office during Covid’s height has accelerated, ”Wise says. “People have seen the benefits of that interaction.”
Vice Ortho also pointed to clinical diagnostics, which Carlyle left out of U.S. drugmakers Johnson & Johnson in 2014. The company tests antibodies to the coronavirus, and expects to benefit from the necessary tests even after the economy is restarted.
Its shares have risen nearly a quarter since the stock market opened in January. Carlyle holds a large portion.
‘Global Cabin Fever’
At Blackstone, Lockdown has tested the survival of some of its live entertainment assets, including the Bellagio Casino in Las Vegas, the Great Wolf Resorts Chain in Indoor Water Park, and Legoland owner Marilyn EntertainmentIt operates the Madame Tussauds Wax Museum and dozens of Sea Life Aquariums.
Now the firm’s president, John Gray, is waiting for an economic renaissance.
“I think in the middle of summer we are coming out of this epidemic [or] In an interview with an interviewer in March, he said that, initially, credit card debt repayments, huge increases in savings, and global cabin fever are going to save a lot of money. “In automobiles, at home, in durable products – and on trips like you’ve never seen before.”
Blackstone is putting money behind the transition accelerated by the epidemic, in which the value of physical assets has increased with the growing time of online consumers. For ecommerce logistics, “we bought a বিল 100 billion warehouse, which we call the last mile,” Gray said. “We love [media] Content, so. . . Bought studio space in the physical world. “
Beyond this bet, companies are more aware that more than half of Americans have received at least one dose of the vaccine, no longer needing to be the sole driving force behind the epidemic and corporate business.
In recent months, Apollo has announced a 3 3 billion funding package for AB Inviv’s U.S. canning plants, acquired a major supplier of automotive parts and bought a portfolio of online media assets that have been a concern among various corporate houses for over a decade.
“We’ve been looking at Yahoo year after year,” Clemens said, referring to the Verizon communications unit that his company agreed to buy earlier this month. “[We were] Sure there was a way to unlock the value of the business. I can roughly say that it has very little to do with Kovid. “