Latest news with #JefferiesFinancialGroup
Bloomberg
2 days ago
- Business
- Bloomberg
Fund Founder George Weiss Files Bankruptcy Over Jefferies Debt
Hedge fund founder George Weiss has filed personal bankruptcy months after a federal judge ruled he's liable for more than $100 million in debt his eponymous firm owes Jefferies Financial Group Inc. Weiss sought court protection Wednesday in Florida, listing assets and liabilities each of between $100 million to $500 million on a Chapter 11 petition. Besides the Jefferies debt, Weiss' bankruptcy petition also listed a $180 million claim from the Internal Revenue Service, which he disputes.
Forbes
22-05-2025
- Business
- Forbes
Is Harvard's Private Equity Selloff A Trap For Retail Investors?
CAMBRIDGE, MASSACHUSETTS, UNITED STATES - APRIL 22: A view of Harvard University in Cambridge, ... More Massachusetts, United States, on April 22, 2025. (Photo by Kyle Mazza/Anadolu via Getty Images) Harvard University's $53.2 billion endowment, the largest in higher education, is offloading $1 billion in private equity stakes, a move advised by Jefferies Financial Group and potentially involving Lexington Partners as a buyer, according to Reuters. This seismic shift in the Ivy League's financial strategy comes amid a broader trend of elite universities unloading illiquid assets. While this may seem like a golden opportunity for retail investors to access the once-exclusive world of private equity, the reality is far more cautionary. As large institutions like the Harvard and Yale endowments seek liquidity and a reduction in private equity investment, it is no coincidence that simultaneously Wall Street has been pushing to 'democratize' private equity. This push to 'democratize' private equity should raise red flags, as it may be a strategic move to offload overvalued, illiquid assets onto less sophisticated investors at a time when the largest investors in private equity are looking for an exit. Harvard's endowment, an early adopter of the Yale Model, has long relied on alternative assets like private equity, which make up nearly 40% of its portfolio, according to its latest annual financial report. This strategy, championed by David Swensen, delivered robust returns for decades, funding everything from faculty salaries to student aid. But today, universities face a perfect storm: the Trump administration's threats to freeze $9 billion in federal funding, hiring freezes, and a sluggish private equity market have created a liquidity crisis. Harvard's response—a $750 million bond issuance reported by Reuters and the sale of $1 billion in private equity stakes—mirrors moves by Yale, which plans to offload $6 billion in similar assets according to the Yale Daily News. These sales represent a sector-wide scramble for cash as endowments grapple with aging fund vintages tied up in illiquid investments. The private equity market itself is faltering. According to MSCI, private equity returns lagged behind private credit in 2024, with private equity posting a 5.6% annual return compared to private credit's stronger performance. All three private equity subgroups tracked by MSCI delivered positive but underwhelming returns, trailing broader market benchmarks due to a slowdown in exit opportunities and persistent high interest rates, which have constrained liquidity and valuations. This environment has forced endowments to rethink their heavy reliance on private equity, which locks up capital for years and offers little flexibility in times of need. Private equity has historically been restricted to high-net-worth individuals and institutional investors due to its speculative and illiquid nature, as regulated by the Securities and Exchange Commission. These investments involve acquiring stakes in private companies or startups, with returns realized through liquidity events like IPOs or sales. But as markets falter—particularly in tech—and rising interest rates, the ability to exit these investments has dwindled. MSCI data highlights that private equity funds are increasingly turning into 'zombie' funds, holding investments far longer than intended due to a scarcity of exit opportunities, such as IPOs or sales, in a high-interest-rate environment. This liquidity drought has left institutional investors, including universities, stuck with capital they can't access in private equity investments with potentially sub-par future returns. Enter Wall Street's sudden enthusiasm for 'democratizing' private equity. Regulatory changes, such as the SEC's loosened restrictions on private market access, have opened the door for retail investors through financial advisors and firms like Franklin Templeton, which owns Lexington Partners. Companies like Empower are even offering private market investments in retirement plans, per the company's recent news release. On the surface, this seems like a chance for everyday investors to tap into the high returns once reserved for the elite. But the timing is suspicious. Why would Wall Street share a historically profitable asset class with the public now, when exits are scarce and valuations are shaky? The answer lies in liquidity. Private equity investors, including endowments, are desperate to offload illiquid stakes. By marketing these assets to retail investors, Wall Street creates a new pool of buyers—less sophisticated investors who may not fully grasp the risks. Historically, private equity has used IPOs to offload overhyped, often unprofitable companies onto the public, reaping massive profits while leaving retail investors and retirement accounts holding overvalued stock. 'Democratizing' private equity skips the IPO step, directly selling illiquid, potentially overvalued shares to the public. As billionaire investor Bill Ackman warned, endowments like Harvard's may face meaningful losses on these discounted sales, as reported by Bloomberg. And retail investors could be next in line to bear the cost. For retail investors, the allure of private equity is undeniable but fraught with peril. These investments are complex, with long lock-up periods and opaque valuations that can mask underlying weaknesses. Unlike mutual funds, private equity offers little transparency, and retail investors may struggle to assess true value. In this environment, financial advisors face a steep challenge in conducting due diligence to protect clients. Entering the market now, when endowments are selling at discounts, raises the risk of buying at inflated valuations or after peak returns have passed. The broader financial ecosystem is also at a turning point. Harvard's sell-off could trigger a wave of secondary market activity, with sovereign funds, family offices, and retail-focused firms stepping in. But discounted sales may spark broader price corrections, challenging the high returns that once justified private equity's appeal. For universities, unloading these stakes provides short-term liquidity but risks locking in losses and signaling a retreat from alternative investments. Wall Street's push to 'democratize' private equity may seem like an opportunity for retail investors, but it's likely a strategy to transfer risk to a less savvy public. Financial advisors must prioritize education, ensuring clients understand the illiquidity and complexity of these investments. When Wall Street suddenly shares its exclusive opportunities, history suggests it's not out of generosity. Buyer beware: Harvard's loss could become retail investors' burden.
Bloomberg
14-05-2025
- Business
- Bloomberg
Listed Subsidiaries Get the Ax in Japan After Investor Pressure
By and Kanoko Matsuyama Save Japanese conglomerates are scaling back their hundreds of listed subsidiaries, a structure that critics say is often a poor use of capital and raises potential conflicts of interest. The trend stems from mounting pressure on companies to cater to shareholders in response to activist campaigns, demands from the stock exchange and even hostile takeovers. Japan has 212 so-called parent-child listings, which is down from 285 in 2020, but still more than the 178 in Europe and 59 in the US, according to Jefferies Financial Group.
Kuwait Times
14-05-2025
- Business
- Kuwait Times
Boursa Kuwait, KCC promote Kuwaiti capital market to London's leading asset managers
Roadshow held in collaboration with Jefferies Financial Group in London from May 12-13 KUWAIT: As part of their ongoing efforts to support the development of the Kuwaiti capital market and elevate its position within the international investment community, Boursa Kuwait and Kuwait Clearing Company (KCC) organized a roadshow in London from May 12 to 13, 2025 in collaboration with Jefferies Financial Group, a world-renowned global investment banking and capital markets institution. The roadshow provided Boursa Kuwait and KCC with a unique opportunity to conduct focused one-on-one meetings with ten leading global investment management firms and advisory institutions. The delegation was led by Mohammad Saud Al-Osaimi, Chief Executive Officer of Boursa Kuwait, and Duaij R Al-Saleh, Chief Executive Officer of Kuwait Clearing Company, who were joined by senior executives, including Boursa Kuwait Head of Markets Sector Noura Al-Abdulkareem and Abdulkarim A Al-Yaqout, the Director of Strategy and Product Development at KCC. During the roadshow, representatives highlighted recent developments in the Kuwaiti capital market, promoting its growing range of investment opportunities and presenting updates on key infrastructure and service enhancements, to global investors from several world-renowned financial institutions, including progress on the forthcoming Central Counterparty (CCP) framework, which is set to launch alongside exchange-traded funds (ETFs) as well as a platform for fixed-income instruments including bonds and sukuk. The roadshow also served as a valuable forum for direct engagement with some of the world's leading financial institutions, enabling the delegation to exchange views, gather investor feedback on their experience in Kuwait and gain a deeper understanding of their expectations and requirements. 'Boursa Kuwait remains focused on strengthening its ties with the global investment community, showcasing the progress of the Kuwaiti capital market and its growing range of opportunities to global capital. Over the past few years, the company has worked to build an integrated investment ecosystem with a solid market infrastructure, introduce investor-centric services and financial products tailored to international standards, while streamlining foreign investor onboarding to ensure a seamless and secure experience. This roadshow serves as a vital platform to promote the Kuwaiti capital market and foster deeper engagement with leading financial institutions, in line with Boursa Kuwait's efforts to position Kuwait as a prominent investment destination in the region,' said Mohammad Saud Al-Osaimi, the Chief Executive Officer of Boursa Kuwait. In collaboration with its partners in the Kuwaiti capital market apparatus, Boursa Kuwait is working on the launch of the Central Counterparty (CCP) framework, a foundational step in strengthening market infrastructure. Designed to enhance the efficiency, transparency and security of post-trade processes, the CCP serves as the counterparty to all transactions, ensuring safe and orderly settlements between buyers and sellers and will play a vital role in mitigating counterparty risk and aligning Kuwait's market operations with global standards in clearing and settlement. Kuwait Clearing Company CEO Duaij R Al-Saleh Commenting on the roadshow, KCC CEO Duaij R Al-Saleh said, 'Our participation in this roadshow alongside Boursa Kuwait reflects our shared commitment to advancing the Kuwaiti capital market, elevating its stature in the region and the world and strengthening engagement with international investors. It provided a valuable platform to engage with world-renowned financial institutions to highlight our clearing and settlement infrastructure and share updates on strategic initiatives, such as the CCP framework, which will enhance post-trade efficiency, reduce counterparty riskand serve as the foundation for more advanced financial instruments and services.' As part of its ongoing efforts to strengthen market infrastructure and enhance the appeal of the capital market to foreign investors, the Kuwaiti capital market apparatus has introduced a series of enhancements and regulatory reforms to its clearing and settlement systems over the past few years, aligning them with the standards and expectations of leading global financial institutions. These enhancements include the acceleration of trading account openings for foreign clients, which are now completed within a single business day. Similarly, the process for transferring accounts between custodians has been redesigned to match this timeframe, improving operational efficiency and execution speed, while the introduction of partial settlement rejection has given foreign investors greater flexibility in managing their investment obligations. In addition, the omnibus account mechanism was introduced to further streamline order execution and reduce transaction volume, allowing institutional and foreign investors to execute trades through a single consolidated account, with shares allocated to individual beneficiaries immediately after settlement. Furthermore, a fully automated and upgraded version of the electronic general assembly meeting (eAGM) system has been launched. This system, which is mandatory for all listed companies, enables investors to participate and vote through multiple convenient digital channels. Other key developments include an enhanced mechanism for foreign investor participation in initial public offerings (IPOs), aimed at boosting cross-border investment, as well as the introduction of a Securities Lending and Borrowing (SLB) framework which broadens the range of financial instruments available in the market and offers investors increased flexibility and strategic options. Boursa Kuwait and the KCC play a pivotal role in the development of the Kuwaiti capital market and the diversification of the national economy and have remained steadfast in their dedication to establishing a transparent, efficient and advanced exchange platform, which has led to the creation of a liquid capital market. Boursa Kuwait and the KCC's unwavering commitment to promoting the Kuwaiti capital market and its participants through a series of roadshows and corporate days has also helped provide prospective institutional investors worldwide with profound insights into the market's opportunities. Since Boursa Kuwait took over operations of the Kuwaiti stock exchange, the Kuwaiti capital market has undergone an unprecedented development, thanks to the diligent efforts of the capital market apparatus. Their focus on empowering participants and raising standards has resulted in several key initiatives, including the diversification of products and services, establishing an appealing investment platform, expanding the issuer base, and adapting rules and regulations to meet market demands. The apparatus has also significantly enhanced the market's infrastructure and fostered an attractive investment environment, which resulted in the Kuwaiti capital market's reclassification to an Emerging Market by three prominent global index providers, and solidified Kuwait's position as a leading financial center in the region.
Al Bawaba
13-05-2025
- Business
- Al Bawaba
Boursa Kuwait and Kuwait Clearing Company promote Kuwaiti capital market developments to London's leading asset managers
As part of their ongoing efforts to support the development of the Kuwaiti capital market and elevate its position within the international investment community, Boursa Kuwait and Kuwait Clearing Company (KCC) organized a roadshow in London from May 12 to 13, 2025 in collaboration with Jefferies Financial Group, a world-renowned global investment banking and capital markets institution. The roadshow provided Boursa Kuwait and KCC with a unique opportunity to conduct focused one-on-one meetings with ten leading global investment management firms and advisory institutions. The delegation was led by Mr. Mohammad Saud Al-Osaimi, Chief Executive Officer of Boursa Kuwait, and Mr. Duaij R. Al-Saleh, Chief Executive Officer of Kuwait Clearing Company, who were joined by senior executives, including Boursa Kuwait Head of Markets Sector Noura AlAbdulkareem and Mr. Abdulkarim A. Al-Yaqout, the Director of Strategy and Product Development at the roadshow, representatives highlighted recent developments in the Kuwaiti capital market, promoting its growing range of investment opportunities and presenting updates on key infrastructure and service enhancements, to global investors from several world-renowned financial institutions, including progress on the forthcoming Central Counterparty (CCP) framework, which is set to launch alongside exchange-traded funds (ETFs) as well as a platform for fixed-income instruments including bonds and sukuk. The roadshow also served as a valuable forum for direct engagement with some of the world's leading financial institutions, enabling the delegation to exchange views, gather investor feedback on their experience in Kuwait and gain a deeper understanding of their expectations and requirements.'Boursa Kuwait remains focused on strengthening its ties with the global investment community, showcasing the progress of the Kuwaiti capital market and its growing range of opportunities to global capital. Over the past few years, the company has worked to build an integrated investment ecosystem with a solid market infrastructure, introduce investor-centric services and financial products tailored to international standards, while streamlining foreign investor onboarding to ensure a seamless and secure experience. This roadshow serves as a vital platform to promote the Kuwaiti capital market and foster deeper engagement with leading financial institutions, in line with Boursa Kuwait's efforts to position Kuwait as a prominent investment destination in the region,' said Mr. Mohammad Saud Al-Osaimi, the Chief Executive Officer of Boursa Kuwait. In collaboration with its partners in the Kuwaiti capital market apparatus, Boursa Kuwait is working on the launch of the Central Counterparty (CCP) framework, a foundational step in strengthening market infrastructure. Designed to enhance the efficiency, transparency and security of post-trade processes, the CCP serves as the counterparty to all transactions, ensuring safe and orderly settlements between buyers and sellers and will play a vital role in mitigating counterparty risk and aligning Kuwait's market operations with global standards in clearing and settlement. Commenting on the roadshow, KCC CEO Mr. Duaij R. Al-Saleh said, 'Our participation in this roadshow alongside Boursa Kuwait reflects our shared commitment to advancing the Kuwaiti capital market, elevating its stature in the region and the world and strengthening engagement with international investors. It provided a valuable platform to engage with world-renowned financial institutions to highlight our clearing and settlement infrastructure and share updates on strategic initiatives, such as the CCP framework, which will enhance post-trade efficiency, reduce counterparty risk and serve as the foundation for more advanced financial instruments and services.'As part of its ongoing efforts to strengthen market infrastructure and enhance the appeal of the capital market to foreign investors, the Kuwaiti capital market apparatus has introduced a series of enhancements and regulatory reforms to its clearing and settlement systems over the past few years, aligning them with the standards and expectations of leading global financial enhancements include the acceleration of trading account openings for foreign clients, which are now completed within a single business day. Similarly, the process for transferring accounts between custodians has been redesigned to match this timeframe, improving operational efficiency and execution speed, while the introduction of partial settlement rejection has given foreign investors greater flexibility in managing their investment addition, the omnibus account mechanism was introduced to further streamline order execution and reduce transaction volume, allowing institutional and foreign investors to execute trades through a single consolidated account, with shares allocated to individual beneficiaries immediately after a fully automated and upgraded version of the electronic general assembly meeting (eAGM) system has been launched. This system, which is mandatory for all listed companies, enables investors to participate and vote through multiple convenient digital key developments include an enhanced mechanism for foreign investor participation in initial public offerings (IPOs), aimed at boosting cross-border investment, as well as the introduction of a Securities Lending and Borrowing (SLB) framework which broadens the range of financial instruments available in the market and offers investors increased flexibility and strategic Kuwait and the KCC play a pivotal role in the development of the Kuwaiti capital market and the diversification of the national economy and have remained steadfast in their dedication to establishing a transparent, efficient and advanced exchange platform, which has led to the creation of a liquid capital market. Boursa Kuwait and the KCC's unwavering commitment to promoting the Kuwaiti capital market and its participants through a series of Roadshows and Corporate Days has also helped provide prospective institutional investors worldwide with profound insights into the market's opportunities. Since Boursa Kuwait took over operations of the Kuwaiti stock exchange, the Kuwaiti capital market has undergone an unprecedented development, thanks to the diligent efforts of the capital market apparatus. Their focus on empowering participants and raising standards has resulted in several key initiatives, including the diversification of products and services, establishing an appealing investment platform, expanding the issuer base, and adapting rules and regulations to meet market demands. The apparatus has also significantly enhanced the market's infrastructure and fostered an attractive investment environment, which resulted in the Kuwaiti capital market's reclassification to an Emerging Market by three prominent global index providers, and solidified Kuwait's position as a leading financial center in the region. © 2000 - 2025 Al Bawaba ( Signal PressWire is the world's largest independent Middle East PR distribution service.
