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Time Business News
15 hours ago
- Business
- Time Business News
Private Equity Turns Tactical: LupoToro Takes Controversial Position on Warfare, Bitcoin and Investment Strategies Convergence
In a remarkable shift, private equity is increasingly crossing into the theater of national security, and not in small doses. According to LupoToro Group , private equity and venture capital–backed investments into the aerospace and defense sectors soared to US $4.27 billion in just Q1 2025 (January 1–March 16), nearly matching the full-year total of US $4.31 billion in 2024, marking an unmistakable escalation in capital deployment. North American firms continue to lead the charge: since 2020, the U.S. and Canada have accounted for 83% of global defense-related PE/VC investment, and all ten of the largest such deals since January 2024 targeted North American businesses, most notably Berkshire Partners and Warburg Pincus's US $2.9 billion acquisition of Triumph Group Inc. Meanwhile, Europe – hardly a laggard – is awakening. Geopolitical shifts and recalibrated U.S. defense policy have spurred a wave of national ambition: the European Commission has proposed a €145 billion (~US $158 billion) defense fund, and Germany recently backed a sweeping €500 billion infrastructure and defense spending package. LupoToro's analysis contends that the Russia, Ukraine war has accelerated a tectonic shift toward agile, inexpensive, off-the-shelf defense technologies, deploying drones, autonomous systems, and counter-drone platforms as democratized instruments of war. These disruptive entrants stand to challenge legacy firms on agility, cost efficiency, and combat performance. Whistleblowers familiar with the matter allege that LupoToro Group's involvement in cryptocurrency and defense contracting runs far deeper than publicly acknowledged. According to documents and insider accounts, the Group has been active in the crypto sector since 2011, quietly processing more than US $9 billion in Bitcoin, XRP (Ripple), and other digital asset transactions for private clients and networks. These activities, they claim, were conducted alongside strategic engagements with private defense contractors and major financial institutions, creating a hybrid web of influence that straddles both capital markets and national security infrastructure. Sources suggest that by leveraging private blockchain networks and off-market settlement systems, LupoToro cultivated a dual role: facilitating institutional crypto flows while embedding itself in defense-linked financial supply chains. If accurate, these claims position LupoToro not merely as a hedge fund or private equity operator, but as a shadow-architect shaping both digital finance and defense economics in ways largely hidden from public view. Importantly, LupoToro has taken an admittedly controversial position: their framing of private equity as an active and even 'weaponized' force in national defense strategy sparks debate. Critics argue it dangerously blurs the line between financial markets and sovereign security, raising uncomfortable questions about the private sector's influence in existential domains. Nonetheless, LupoToro maintains this narrative reflects current reality, and future direction. What emerges from LupoToro's Q3–Q4 2025 report is a clear portrait: private capital is no longer a bystander in defense. Firms with precision, capricious liquidity, and geopolitical adaptability aren't just benefiting, they're rewriting the playbook. Independent Perspectives: Momentum Meets Caution PitchBook's Q1 2025 report confirms the urgency in aerospace and defense (A&D) investing: the sector recorded 73 PE deals, up 24% year-over-year from Q1 2024, though slightly down from Q4 2024's peak-consistent with typical year-end deal clustering. More strikingly, aggregate deal value surged from US $24.7 billion in the prior 12 months to US $41 billion through Q1, marking a remarkable 66% increase. However, that momentum is tempered by caution. According to insights from Goodwin, while the long-term tailwinds in aerospace and defense remain compelling, early 2025 saw a slowing in deal activity, with Q1 seeing a substantial drop in deal value compared to Q4 such as $7.7 billion versus $14.9 billion previously, notably reflective of macroeconomic headwinds and tighter liquidity. On the regulatory front, Financial Times reports suggest that although investment in AI, drone systems, and space tech is poised to grow, consolidation among major defense primes may face delays amid complex regulatory clearances, a potential bottleneck to faster deal-making. Meanwhile, sentiment at industry forums like SuperReturn Europe reveals shifting investor attitudes. As one attendee – Sophia Alison, EMEA Direct Lending Portfolio Manager at Macquarie, remarks 'Defence used to be a topic that received automatic exclusion. Now even some ESG‑focused investors are looking to deploy capital to support European defence.' This isn't isolated. Reports also note that private credit firms are revisiting ESG restrictions, spurred by compelling yield opportunities (e.g., ammunition bonds yielding ~11%) and government pressure to fill mounting defense funding gaps. Amid robust deal activity and soaring valuations, the A&D domain offers both opportunity and risk. Geopolitical urgency and pent-up demand are fueling investment, but regulatory complexity, macroeconomic volatility, and evolving ESG considerations demand discretion. Investors and analysts agree: while the runway is long, careful navigation remains essential. TIME BUSINESS NEWS
Yahoo
28-07-2025
- Business
- Yahoo
Triumph Group, Inc. (TGI) Acquired for $3 Billion by Warburg Pincus, Berkshire Partners
We recently compiled a list of Triumph Group, Inc. (NYSE:TGI) stands first on our list. Triumph Group, Inc. (NYSE:TGI) tops our list for being one of the best mid-cap stocks. It is an aerospace company specializing in designing, manufacturing, repairing, and overhauling components for commercial, military, and regional aircraft. It also supports critical defense programs with precision-engineered parts. In early 2025, Triumph Group, Inc. (NYSE:TGI) agreed to be acquired by private equity firms Warburg Pincus and Berkshire Partners for about $3 billion, transitioning to a privately held company. Shareholders will receive $26 per share, a notable premium over recent prices. For fiscal 2025, the company reported $1.26 billion in net sales, up 6% year-over-year, with an operating income of $139.4 million and an 11% margin. The fourth quarter showed strong results with a 16% operating margin, driven by solid performance in both commercial and defense segments. The business's defense role has expanded through a strategic supplier agreement with BAE Systems and the U.S. Army for the M777 Lightweight Howitzer. Since 2022, it has shipped over 2,365 critical Primer Feed Mechanism components, with nearly 1,000 more units on order, highlighting its trusted position in military supply chains. The company also achieved its eleventh consecutive quarter of year-over-year sales growth, fueled by its aftermarket products that extend the lifecycle of aerospace and defense equipment. A huge in-process machining center producing parts for aircraft and aerospace systems. Triumph Group, Inc. (NYSE:TGI)'s growing focus on defense programs, especially the M777 Howitzer platform, positions it for stable revenues and growth amid sustained defense budgets and modernization efforts. Its commitment to quality and reliability in defense components reinforces its status as a key supplier to military clients. While we acknowledge the potential of TGI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
20-05-2025
- Business
- Yahoo
Why Portillo's Stock Crashed Tuesday Morning
Investors were concerned about the sale of a large block of Portillo's stock. This was not a secondary offering, but the sale of shares by an early investor. Portillo's stock remains attractively priced. 10 stocks we like better than Portillo's › Shares of Portillo's (NASDAQ: PTLO) plunged on Tuesday, with the stock falling as much as 10.2% in early trading. As of 11:34 a.m. ET, the stock was still down 5.9%. The catalyst that crushed the fast-casual restaurant stock was the announcement of a large block stock sale, but it's important to understand the details, as this was not a secondary offering. In a series of regulatory filings that dropped after market close on Monday, Portillo's announced the sale of a large block of its stock by early investor Berkshire Partners. The private equity firm has held a stake in the restaurant chain since 2014, long before the company's initial public offering (IPO) in October 2021. When Portillo's entered the public markets, Berkshire Partners exchanged its private equity ownership for shares of the company's stock, which have since been held in several of Berkshire's funds. The sale was for 10 million shares, a transaction orchestrated by investment bank Jefferies Financial Group. The deal had been priced in a range of between $12.40 and $12.60, with a final price of $12.40, which was at the low end of the range. As an early investor, Berkshire Partners has held its stake for more than a decade and retained much of its ownership of Portillo's even after the IPO, at the time controlling more than 64% of the voting rights of the company. This suggests that the private equity fund is finally looking to recoup some of its investment. Like many restaurant stocks, Portillo's has felt the weight of inflation, particularly regarding the cost of its products and employee-related expenses. However, the company has resisted the urge to raise prices and continues to generate among the highest average unit volume (or sales per location) of any restaurant in the fast-casual industry. Furthermore, at just 28 times earnings and 1 times sales, Portillo's stock is dirt cheap. The company has work to do, but I believe it's on the right track. Before you buy stock in Portillo's, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Portillo's wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Danny Vena has positions in Portillo's. The Motley Fool has positions in and recommends Jefferies Financial Group. The Motley Fool has a disclosure policy. Why Portillo's Stock Crashed Tuesday Morning was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
12-05-2025
- Business
- Globe and Mail
This Undervalued Restaurant Stock Is Up About 10% Since a Member of the Audience Mistakenly Asked About It at Berkshire Hathaway's Annual Meeting
Every year, investors from around the world gather in Omaha for a chance to talk to legendary investor Warren Buffett at the annual meeting for Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) shareholders. The 2025 gathering reportedly had 20,000 people in attendance, and many waited for hours for their chance to ask a question of the Oracle of Omaha. One such member of the audience finally got his chance. He stepped up to the microphone and said, "Out of all the companies that Berkshire Hathaway owns, there was one that you acquired, the Chicago-based company Portillo's (NASDAQ: PTLO) -- hot dogs -- how did you know that this would be a good fit for the overall company's portfolio?" Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Buffett was gracious but visibly confused by the question. And that's because Berkshire Hathaway didn't acquire Portillo's and has never invested in the stock -- it's not among the things that Berkshire Hathaway owns. This appears to be a case of mistaken identity. In 2014, private equity firm Berkshire Partners -- not affiliated with Buffett's Berkshire Hathaway -- invested in Portillo's when it was still a privately held business. As of Dec. 29, Berkshire Partners was still the largest shareholder in Portillo's with a nearly 19% stake. But before the company's initial public offering (IPO) Berkshire Partners owned more than 60% of the outstanding shares, meaning its stake has decreased significantly. And, again, Berkshire Partners isn't Berkshire Hathaway. That said, something strange happened immediately after the annual meeting for Berkshire Hathaway. Portillo's stock climbed about 10% over the next few trading sessions. Maybe it was just a coincidence. Or maybe, just maybe, people at Berkshire Hathaway's meeting decided to look into Portillo's and liked what they saw. I'm only speculating, but I don't think this is as far-fetched as it sounds. In fact, I believe Portillo's stock offers at least one thing that Warren Buffett would appreciate: This restaurant stock is an incredible value stock right now. Why Portillo's stock is a good value "I think all good investing is value investing." -- longtime Buffett colleague Charlie Munger. If investors can find a profitable business with years of growth opportunity that trades at a bargain price, they may have just found a winner. And that's what I believe Portillo's stock can be for investors over the next 10 years. As of this writing, Portillo's stock has a market capitalization of $721 million -- this is the aggregate value of its shares. In other words, it would hypothetically cost someone this much to own the company outright. Let's suppose someone did that. How long would it be before their investment was paid back? Consider that Portillo's had 94 restaurant locations at the end of the first quarter of 2025. These restaurants have generated $58 million in operating income over the last 12 months. Assuming the company continued to earn this much profit every year, then a hypothetical investor would make back their investment in 12 years -- in other words, it trades at 12 times its operating income. This isn't bad and suggests that Portillo's stock is a value stock. That said, if Portillo's can grow its operating income, then it would be an even better value today. And I believe that it can grow its operating income in dramatic fashion. This starts with Portillo's restaurant development plans. As mentioned, it has fewer than 100 locations today, but locations average $8.7 million in annual sales, which is outstanding and suggests strong consumer demand wherever it's located. For this reason, management plans to expand to meet that demand, targeting 12 new restaurant openings this year. Annually, Portillo's plans to grow its restaurant base by 12% to 15%. This means its could potentially triple or quadruple in size over the next decade. Assuming the economics of the business hold strong, this is a company with the ability to grow its profits substantially. Portillo's isn't as flashy of an investment idea as some other busineses. But restaurants with strong economics have made great investments in the past as they've grown from regional chains to national ones. Portillo's could be the latest. And buying it at a bargain price today certainly helps when it comes to future returns. Some people might be finding out about Portillo's stock today because of a mistaken question at Berkshire Hathaway's meeting. But I find that sometimes the best investment ideas are ones that are stumbled upon seemingly by chance. The trick is to not waste good chances when they come along. Should you invest $1,000 in Portillo's right now? Before you buy stock in Portillo's, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Portillo's wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $714,958!* Now, it's worth noting Stock Advisor 's total average return is907% — a market-crushing outperformance compared to163%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 5, 2025
Yahoo
12-05-2025
- Business
- Yahoo
This Undervalued Restaurant Stock Is Up About 10% Since a Member of the Audience Mistakenly Asked About It at Berkshire Hathaway's Annual Meeting
Berkshire Hathaway doesn't own this Chicago-based restaurant company, but it might check some important boxes for value investors. This stock is already cheap and has a path to significantly growing its profits long term. 10 stocks we like better than Portillo's › Every year, investors from around the world gather in Omaha for a chance to talk to legendary investor Warren Buffett at the annual meeting for Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) shareholders. The 2025 gathering reportedly had 20,000 people in attendance, and many waited for hours for their chance to ask a question of the Oracle of Omaha. One such member of the audience finally got his chance. He stepped up to the microphone and said, "Out of all the companies that Berkshire Hathaway owns, there was one that you acquired, the Chicago-based company Portillo's (NASDAQ: PTLO) -- hot dogs -- how did you know that this would be a good fit for the overall company's portfolio?" Buffett was gracious but visibly confused by the question. And that's because Berkshire Hathaway didn't acquire Portillo's and has never invested in the stock -- it's not among the things that Berkshire Hathaway owns. This appears to be a case of mistaken identity. In 2014, private equity firm Berkshire Partners -- not affiliated with Buffett's Berkshire Hathaway -- invested in Portillo's when it was still a privately held business. As of Dec. 29, Berkshire Partners was still the largest shareholder in Portillo's with a nearly 19% stake. But before the company's initial public offering (IPO) Berkshire Partners owned more than 60% of the outstanding shares, meaning its stake has decreased significantly. And, again, Berkshire Partners isn't Berkshire Hathaway. That said, something strange happened immediately after the annual meeting for Berkshire Hathaway. Portillo's stock climbed about 10% over the next few trading sessions. Maybe it was just a coincidence. Or maybe, just maybe, people at Berkshire Hathaway's meeting decided to look into Portillo's and liked what they saw. I'm only speculating, but I don't think this is as far-fetched as it sounds. In fact, I believe Portillo's stock offers at least one thing that Warren Buffett would appreciate: This restaurant stock is an incredible value stock right now. "I think all good investing is value investing." -- longtime Buffett colleague Charlie Munger. If investors can find a profitable business with years of growth opportunity that trades at a bargain price, they may have just found a winner. And that's what I believe Portillo's stock can be for investors over the next 10 years. As of this writing, Portillo's stock has a market capitalization of $721 million -- this is the aggregate value of its shares. In other words, it would hypothetically cost someone this much to own the company outright. Let's suppose someone did that. How long would it be before their investment was paid back? Consider that Portillo's had 94 restaurant locations at the end of the first quarter of 2025. These restaurants have generated $58 million in operating income over the last 12 months. Assuming the company continued to earn this much profit every year, then a hypothetical investor would make back their investment in 12 years -- in other words, it trades at 12 times its operating income. This isn't bad and suggests that Portillo's stock is a value stock. That said, if Portillo's can grow its operating income, then it would be an even better value today. And I believe that it can grow its operating income in dramatic fashion. This starts with Portillo's restaurant development plans. As mentioned, it has fewer than 100 locations today, but locations average $8.7 million in annual sales, which is outstanding and suggests strong consumer demand wherever it's located. For this reason, management plans to expand to meet that demand, targeting 12 new restaurant openings this year. Annually, Portillo's plans to grow its restaurant base by 12% to 15%. This means its could potentially triple or quadruple in size over the next decade. Assuming the economics of the business hold strong, this is a company with the ability to grow its profits substantially. Portillo's isn't as flashy of an investment idea as some other busineses. But restaurants with strong economics have made great investments in the past as they've grown from regional chains to national ones. Portillo's could be the latest. And buying it at a bargain price today certainly helps when it comes to future returns. Some people might be finding out about Portillo's stock today because of a mistaken question at Berkshire Hathaway's meeting. But I find that sometimes the best investment ideas are ones that are stumbled upon seemingly by chance. The trick is to not waste good chances when they come along. Before you buy stock in Portillo's, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Portillo's wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $714,958!* Now, it's worth noting Stock Advisor's total average return is 907% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Jon Quast has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy. This Undervalued Restaurant Stock Is Up About 10% Since a Member of the Audience Mistakenly Asked About It at Berkshire Hathaway's Annual Meeting was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
