So basically #FyreFestival finally made a real-life version of Club Paradise
Will Ferrell brings George W. Bush to Samantha Bees Not Correspondents Dinner
Austin, Texas police officer faked his death and fled to Mexico, officials say
WATCH LIVE: Donald Trump holds Pennsylvania rally to celebrate first 100 days
New docs reveal details of Manaforts pro-Russia lobbying
Millennials are most likely to fall for an IRS scam
Trump: I would not be happy if North Korea conducts nuclear test
Yesterday’s 25% #VIX drop, only 4th time since 1990 smallest rally w/such drop. YS
Commercial paper outstanding grows by $5.3 billion in a week to $980.2 billion
Yale Republicans taunt hunger-striking union workers with a barbecue
What was @realDonaldTrump tweeting about in his first #100Days?
Holocaust Museum Opens Research Center to Public
US troops patrolling border between Turkey and Syria
Immigrants who joined military in exchange for faster citizenship facing extensive delays
ESPN is a Reminder That on the Market, No One Is Too Big to Fail | @ThoBishop
This was defined as corrupt in 1824. To think how far America has built out corruption since then...
Black cabin perched on steep slope in the Sierra Nevada mountains:
People just keep turning up and New Zealand is getting worried
Russians, in peaceful protest, call for Putin to quit
Montana GOP candidate has financial links to Russian firms sanctioned by US: report
Otherwordly photos of marble caves in #Chile
Oklahoma MAGA-man has a plan to save Trump’s border wall
Sunset photo by Scott Kuhn. He said, It lasted about 30 seconds. Once again, right place at the right time.
Wasserman Schultz slams Trumps agenda as irrational and extreme
Why NASA is running out of spacesuits
Another Race Hoax? Non-Student Created ‘No Black People Allowed’ Sign at USC #tcot
Mt. Fuji casting its Shadow almost to the Horizon at Sunrise
Comment: #DonaldTrump’s first #100days show ratings come first, not #AmericaFirst
Googles updated Earth app will destroy your free time @DanielHowley
Dust As: A flash fiction tale where a nonhuman cyborg surveys the fundamentals of earth
Chewy Cinnamon Roll Blondies @beamingbanana #vegan
Samantha Bee roasts Trump, CNN, Fox News during Not Correspondents Dinner
Snow sweeping across central U.S. into Monday may cause travel delays, school cancellations:
Trump: My trips to my golf clubs cost almost nothing
Falcon 9 and NROL-76 vertical on Pad 39-A. Launch window opens tomorrow at 7:00 a.m. EDT, 11:00 UTC.
Massive number of Dems step up to run in 2018 elections
computer, take the shittiest takes of 2016 put them in a random word generator and vomit out a 2017 take
Demo accuses Hungarys Orban of ties to Moscow
McDonalds: Expect fewer workers behind the counter @SallyPancakes
Jeff Bezos shows us in this photo exactly how many shares Amazon has bought back since 2012:
Από την εκδήλωση του DiEM25 στο Βελλίδειο στη Θεσσαλονίκη #DiEM25_Ellada #NewDealForGreece
Hacker leaks new season of Orange is the New Black after demanding ransom
Bacteria that eats and breathes electricity? Yep:
Lake Louise, Canada
Almost 20% of Pres. Trumps first 100 days were spent at Mar-a-Lago
USDA to undo Michelle Obamas school meal nutrition standards
Trump’s 100 days on Twitter: What he said, by the numbers From @kingdomofevan
The 4 questions to ask any politician waffling on about immigration
The Unlikeliest Innovations in Community Planning
Pope urges mediation to end North Korea crisis, avert devastating war
New test-firing of ballistic missile by North Korea
Trump team did do a background check of Flynn, knew about ties to Turkey: report
Its not every day a stark naked person tells you what youve done for Israel
Got some pretty serious sunburn at the #climatemarch
#Xiongan New Area the latest spectacle of an ambitious Beijing #ThisWeekInAsia
The best burger in Shenzhen
Five decades before Trump, the EPA was run by Republicans—and it thrived
Hollywood, DC come together for First Amendment-themed VIP party
Wikipedia appears to have been blocked in Turkey
In first 100 days, a reversal of fortune for Trump favorites on Wall Street
The Tories lied to the Crathes Public Hall Trust? Theresa Mays visit booked as a childs party.
French amphibious carrier arrives in Japan amid growing North Korea tensions
Former Afghan warlord returns to his country calling for peace
Live coverage: Trumps rally competes with White House correspondents dinner
Anthony Bourdain says the Unicorn Frappuccino is the perfect nexus of awfulness’
EU leaders agree Brexit negotiating guidelines
Dem lawmakers blast Trumps climate change policies during Climate March
Watch the latest episode of “Peer-to-Peer” with David Petraeus
EU leaders approve tough terms for Brexit talks
Schumer: NYC should refuse to pay for Trump’s security
GOP candidate has financial ties to Russian companies sanctioned by the U.S. government
1945 liberation of Dachau Nazi camp remembered
Climate March draws massive crowds to DC
Drinking four cups of coffee Is probably safe, writes @jameshamblin.
Miss the action from todays #ClimateMarchDC? Check out our in-depth multimedia coverage:
In Photos: The people seeking friendship on Craigslist
Whats behind the turmoil in FYR Macedonia?
Leonardo DiCaprio leads climate march holding climate change is REAL sign
Duterte to Trump: Keep cool over North Korea
EU sets Britain tough divorce terms, slams budget veto
They marched by land (and by sea) today in Copenhagen! #climatemarch #klimamarch. Pic via @Markus_Power
Men more stressed out by meditation  #menshealth #mentalhealth
It is a great weekend to garden. 32 inspirational gardening quotes
On views of race and inequality, blacks and whites are worlds apart #PAA2017
State public pension funds are increasing their use of complex investments. New findings:
Study confirms some men use anti-gay and sexist jokes to shore up their masculinity
When can we stop pretending that Republicans care about the deficit?
A Company Thats Having a Positive Impact on Angolan Lives #Angola
Why distracted drivers matter for self-driving cars:
Maher on Obama speaking fee: Isn’t that what cost Clinton the election?
When it comes to the environment, Richard Nixon was no Donald Trump.
Ban Zuma from May Day Celebrations - South African Unions #SouthAfrica
‘Sanctuary City’ No More: Michigan City Council Reverses Decision #tcot
Russian police arrest dozens of anti-Putin protesters
Algeria: From a 1959 Turbine to a $3 Billion Power Services Deal #Algeria
#Scientist invents way to trigger artificial #photosynthesis to clean air
That time Steven Spielberg and Sega built the arcade of your dreams
Chinas cute young boys in showbiz: can their careers outlast their looks?
Traveling This Summer? Here Are 5 Quick Tips to Minimize Your Environmental Footprint #eco
A disturbing number of humpback whales are dying off the east coast
Pathologizing Arabs is a bipartisan project at the NYT
Michael Moore: Im not rooting for Trump
Liberal Democrat candidate @Cajardine expected to win Edinburgh West on 8 June #GE2017
Trephining.
What your vacation preferences say about your personality #citylabarchive
#Earthquake magnitude 4,9 - 115,9 km from #Masaya - #Nicaragua
New to FRED: 2,402 annual series from FHFA featuring county-level house price data
US troops patrolling border between Turkey and Syria
Apr 29, 1917 - Cooks for a British artillery battery at work in their trenches near Arras. #100yearsago
Opinion: European countries should work with the US to deter attacks on Syrian civilians
Young Turks host: Im glad the press chased Trump out of town for #WHCD
The mind in the machine: @DemisHassabis on artificial intelligence
April 1917 - If you cant enlist - invest. Buy a Liberty Bond. #100yearsago
Apr 29, 1917 - New York Times: US Treasury Secretary dubs wartime bond issue Liberty Loans #100yearsago
New docs reveal details of Manaforts pro-Russia lobbying
A trick that hides censored websites inside cat videos, @kavehwaddell reports:
EUs Juncker urges Britain to stop blocking EU spending
Starbucks in China fixed the most annoying thing about carrying hot coffee cups
There’s a 40% chance the language you speak is rooted in this ancient tongue:
Trumps America? Not for long. Democratic women are taking our country back.
Is “Community” a Verb or a Noun? Provocations From Baltimore and Washington
COFINA Senior group statement on Puerto Ricos offer to bondholders #muniland
Ode to a philistine: Howard Jacobsons Pussy
British PM Mays Conservatives see lead slip to 17 points: Opinium poll
Rasheed is a top 10 NYC sunny-weather institution.
How reliant is each state on foreign trade? via @howmuch_net
#Earthquake magnitude 4,3 - 211,0 km from #Salta - #Argentina
People’s Climate March draws 200,000 protesters as Trump flees to coal country
We sleep less as we age because our brains don’t think were tired
Tesla recruiting engineers in Mexico for California plant
The Amazon reef is home to amazing biodiversity, but it is already under threat:
South African Court Sets Aside Govts Huge Nuclear Deal #SouthAfrica
Sharpton confronts Omarosa at conference
London mayor Sadiq Khan withdraws support for Thomas Heatherwick-designed Garden Bridge:
The Observer front page, Sunday 30 April 2017: Threat to Brexit trade talks as EU demands rights for citizens
EPA removes climate change page from website hours ahead of #climatemarch
Candies Wrapped in the Bitterness of Chinese Forced Labor
Neil Ty, The Scientism Guy | @NewmanJ_R
#Earthquake magnitude 4,1 - 109,4 km from #Arequipa - #Peru
Bailout or bust? Alitalia divides a nation, paralyzes Rome
This Is Yuuuge! Musk Retweets Climate March Video
Granddaughter of coal breaker becomes local leader against climate change
Massive number of Dems step up to run in 2018 elections
Russias Lavrov says ready to cooperate with U.S. on Syria: agencies
You’re never going to get $10,000 for your United seat
Maybe we shouldnt tell our enemies our step-by-step plan on how were going to crush them...
Half of those arrested in immigration raids only had traffic offenses or no record: report
Authors of Made With @creativecommons interview kicking off at #ccsummit @pgstacey @shinchpearson @ryanmerkley
How Woodrow Wilson’s propaganda machine changed American journalism @ConversationUS
A trick that hides censored websites inside cat videos, @kavehwaddell reports:
A look inside New Yorks most important new restaurant
Burns, lung cancer and carbon pollution—the high price paid by open fire cooking.
Study: People are Confused about Climate Change, Weather and Climate Definitions #tcot
Some #Russian #LNG projects are speeding ahead - while others lag behind #OOTT
Trump: My trips to my golf clubs cost almost nothing
Give your immune system a booger bust  #health #wellness #natural
EU says united Ireland would be automatic full member
Why not a probe of Israel-gate?
Googles CEO gets another massive pay package
New effort aims to inspire the next generation of pro-environment women candidates
Fargo, North Dakota official faces recall threat for statements about refugee resettlement
VIDEO: Watch Pioneering Spirit do worlds heaviest offshore lift
Lyft drivers sue Uber, saying it spied on them to gain an edge
apparently screaming are you Kevin James at everyone who walks out of here gets the cops called on you, weird
Japans Abe cautions against Brexit regulation cliff edge
Meanwhile in Kharkiv metro via @_Sovinskiy Said to be 4 phones connected with power bank inside with duct tape
Lone Tree, Mansfield, Victoria, Australia
Good read #Giant companies that won’t buy your #startup #fintech #insurtech @jglasner #VC
Immigrants who joined military in exchange for faster citizenship facing extensive delays
Ngoepe Is Africas First Gift to US Major Baseball League: #Africa
The most popular drunk food in 21 cities around the world
Its the longest wall in the world - and construction began in 770 BC:
This photographer documents the refugee camps of Western Sahara, Africas last colony:
Elephant Rock, Iceland
Music can be beautiful... Via @CollectiveEvol
Chinas naval task force begins its 6-month, 20-nation grand tour
10 Tricks and Tips to Slay the’ #Vegan Pizza Game #food
Duterte warns: Kim Jung Un wants to end the world
Despite the new ‘plan’, this is -still- a no-brainer tax strategy
The link between green space and well-being isnt as simple as we thought #citylabarchive
Philippine leader says North Koreas Kim wants to end the world, urges U.S. restraint
EU leaders try to clear unnecessary irritants before Brexit talks
Trump’s tax plan hits its first land mine: Blue-state Republicans
Yales College Republicans hold BBQ near a hunger strike to increase protesters anguish.
Own one of the finest #Caribbean addresses - #Barbados   #investing #realestate
Making America great again.
Peoples Climate March Stockholm. #climatemarch #whyIMarch
#PopeFrancis urges mediation to end #NorthKorea crisis, avert devastating war
Could a North Korean missile hit the White House? Heres what you need to know
Fine wine is ready to party
Wait — maybe globalization isnt dead after all!
Pollsters look for clues in French success with more elections coming up
Our cover story — Demetri Sevastopulo on the first 100 days of Donald Trump
Is it ok to wear camouflage to the office?
Emma Watson says The Circle brought home pitfalls of social media
Donald Trumps chief strategist Steve Bannon is reportedly back in the circle of trust.
Jeff Bezos is just $5 billion away from being the worlds richest person
Apple recruits NASA talent for its big AR push
12-year-old girl asked to change out of seductive dress to continue in chess tournament.
25 things to eat before you die – the ultimate foodie bucket list
Voting intent in upcoming #GE17 - Conservatives ahead of Labour in 8 regions
Roissy : 1302 hectares de prairie pour développer la biodiversité @ParisAeroport #partenaire
Labour is within 11% points of the Tories, according to an exclusive Telegraph poll
Frances Le Pen softens on timetable for dumping euro
Turkish authorities expel more than 3,900 from civil service in latest purge
The world is watching to see if France votes for Choisir or Ensemble
Nine clever signs from the Climate March
Could a North Korean missile hit the White House? Heres what you need to know
Walking with my dog in downtown NYC - amazing feeling to have the sun back finally! #enjoylyfe #t1d #cure
Merkel says she has good relationship with Trump despite frosty start
This Canadian auto-parts maker is at the center of Trumps Nafta clash
These are the 15 best cabernets under $50
EU throws down the gauntlet to Britain ahead of Brexit talks
EU suspects Brexit mind games in UK veto on budget
Brexit is causing problems for Labour - new Telegraph poll
How many people actually believe in astrology?
Amsterdam, Netherlands, 8000 march for climate action. #climatejustice #climatemarch #climatechange #climatemarchnl
Here we go. Join us for live coverage of #JoshuaKlitchsko from a packed-out Wembley Stadium
In one powerful tweetstorm, this woman demolishes the hypocrisy of fat shaming.
Tomorrows Sunday Telegraph front page: May rejects Brussels demands #tomorrowspaperstoday
Does Putin still favor his sidekick Medvedev?
US service member dies after explosion in Iraq
LIVE from the Climate March in Washington DC
Germany: Hundreds rally against Monsanto-Bayer mega-merger in Berlin
Hassan #Rouhani warns voters to prevent extremism returning to #Iran
Ten thousand IKEA refugee shelters left unused over fire fears, United Nations admits:
Todays Post: Measuring Perceptions of Uncertainty
This is a very curious idea
Revisiting the Rodney King verdict 25 years later
Humor
Fewer Twitter users engaging with Trump’s tweets: report
More US GDP
haha this is good
Pakistan army rejects PMs actions on security leak
Senator slams Trump tweet: Not reality TV
DiCaprio marches with climate protesters
#Resistance to Greet Trumps 100-Day Campaign Rally in Pennsylvania
Leonardo DiCaprio leads climate march holding climate change is REAL sign
You have one month to come up with a better system to govern the world →
Motor racing: Mercedes face a big battle as domination disappears
US GDP growth
Actors trek to Capitol Hill to lobby against funding cuts for arts programs
US service member killed after blast near Iraqi city of Mosul, coalition reports
How India’s Safecity gives women a voice against violence
Poland: The case for #EBA in the east #Brexit
New orders for durable goods rose by 0.7% in March after climbing by 2.3% in prior month
The NYSE Behaving Badly ..as told by Bloomberg. Chilling:
David Bowie’s 1987 slump held its own weird magic, writes @jason_m_heller
Speculative investor positioning


Tyler Durden
Median LBO Multiple Rises To 10.8x, Highest Since The Financial Crisis
12 days ago




As equity multiples continue to levitate to unprecedented highs, recently rising above 20x on a trailing basis, now in the 99th historical percentile according to Goldman Sachs, the lack of bargains is reflected in the acquisition prices paid by PE firms. According to a new report by PitchBook, after reaching new highs in 2016, acquisition multiples inched even higher in the first quarter of this year, and as a result the median EV/EBITDA multiple hit 10.8x in 1Q 2017, up from 10.7x last year. That was the highest median multiple paid since the financial crisis.

As the report notes, "PE firms are victims of their own success when it comes to pricing. The industry’s strong returns have led to significant stores of dry powder available to tap which, in turn, has created more competition for suitable buyout targets. Meanwhile, strategic acquirers provide plenty of additional competition and have no shortage of available capital. If anything, corporate ability to pay top dollar has only intensified in the last few months. Additionally, rising public market valuations will drive mark-to-market PE prices higher."

Is there any hope that multiples will pull back from what are the current bubble levels? Not much: PitchBook cautions that "barring economic disaster, multiples shouldn’t recede for at least the next few quarters."

The lack of any notable bargains has also resulted in a general slowdown in average LBO activity: "after three consecutive years of strong PE activity, US deal flow started off slow in 2017. 745 transactions were closed totaling $118.7 billion in value, compared to $138.7 billion across 867 deals in the final quarter of last year."

That, however, has not dented the capital allocation mood and fundraising has continued at a rampant pace and dry powder sits at a record $552.6 billion as of 3Q 2016 according to PitchBook. "Due to higher multiples and strong competition, capital deployment will be a challenge" the report notes.

Though we’ve been expecting a slowdown in PE fundraising this year, the first quarter could not have told a more different story. Capital commitments totaled $55.8 billion across 57 vehicles in 1Q 2017. Extrapolated across the entire year, that puts PE funds on track for a 15.8% year-over-year increase in commitments across 14.6% fewer funds. In a world where yield is hard to find and there are more available dollars than feasible investment opportunities, LPs are increasingly leaning on PE to meet their growing obligations.

 

Fund sizes grow KKR led the way this quarter with its $13.9 billion upper-middle-market buyout fund, exemplifying the shift toward larger and larger funds. LPs, often anxious to not get cut out of top-tier funds, have been increasing the size of their commitments and reducing the number of managers they employ. This also gives them more leverage when it comes to negotiating fee structures and co-investment.

Yet while overall deal activity has slowed down despite strong flow of capital in PE firms, one sector stands out: one-fifth (20.4%) of all PE deals completed in the first quarter involved companies in the IT sector, above the 10%-15% range seen for most of the last decade. The most popular targets have been software companies, which have made up 54.2% of all PE investments in the space since 2006 and 63.1% of IT transactions in 2016.

Some prominent Q1 examples of this included KKR's $2 billion acquisition of Optiv Security, and Thoma Bravo's $800 million purchase of PlanView.

In an amusing tangent, the report notes that "in the tech industry, there are returns to be made by avoiding quarterly earnings expectations and focusing instead on longer-term growth initiatives." The reason is clear: if one were to focus on the deteriorating cash flows among some of the most overvalued tech giants, the PE community would have nightmares every day. Best to just leave it to "growth" and avoid some of the scarier cash burn stories out there.

The report also highlights the disappearance of mega-deals. It highlights one of the major themes in PE last year, namely the rate at which firms were investing in “mega-deals.” Though generally not of the magnitudes seen prior to 2008, 20 transactions were completed at enterprise values $2.5 billion or greater last year. 2017, however, is off to a slow start. Just two deals of this size were completed in the first quarter: Blackstone’s $6.1 billion take-private of healthcare administrator Team Health Holdings, and Koch Equity Development’s $2.5 billion growth investment in enterprise software developer Infor. The latter represents a new type of “corporate private equity,” similar to what we see in the venture capital realm, and could mirror the permanent capital strategy used by firms such as Berkshire Hathaway. Having made similar investments since 2013, Koch also participated in the aforementioned buyout of insurance software provider Solera.

Perhaps the most interest point of the report is how PE firms are exiting existing investments: not through such conventional methods as corporate acuqisitions or IPO, but increasingly more frequently by flipping to other PE firms, or secondary buyouts: "it’s no longer in vogue for tech founders to exit via IPO. Just 5.0% of US venture-backed exits in 2016 happened via IPO, down from a post-financial-crisis high of 11.6% in 2014. Conversely, 13.3% of venture-backed exits last year were via PE firms, the highest of any year since at least 2006."

Some more observations on exits:

PE-backed exits of all types fell to their lowest level in almost four years last quarter. Just 207 PE backed exits were completed, totaling $31.2 billion in deal value, representing quarter-over-quarter decreases of 28.9% and 58.0%. Firms have already divested of most of their portfolio companies bought before the financial crisis, and median hold periods for PE portfolio companies have hovered between five and six years for the last half decade. That leaves the vintages of 2011 and 2012 now ready for harvest. It will still be some time until the bulk of PE investments made in the boom years of 2014-2016 are realized.

Finally, for those curious, here is the latest PE leage table according to PitchBook: