Retail News CRM

Tag: Goldman sash

  • F&F Engages Goldman Sachs For Potential Acquisition Of Taylormade Amid Legal Tensions

    F&F Engages Goldman Sachs For Potential Acquisition Of Taylormade Amid Legal Tensions

    South Korean apparel company F&F Co announced on Monday that it had engaged Goldman Sachs as its advisor on the prospective purchase of TaylorMade. The company also stated that it would pursue legal action if the current owner of TaylorMade proceeds with an independent sale process.

    The Context of the Acquisition

    Earlier this year, Centroid Investment Partners, a private equity firm headquartered in Seoul, initiated a sales process for TaylorMade, which it had acquired in 2021. The company, based in Carlsbad, California, could potentially be sold for as much as $3.5 billion, according to those familiar with the transaction.

    F&F Co was a pivotal player in the 2021 acquisition of TaylorMade, participating as a strategic investor. As the most significant investor, F&F secured written Consent Rights over major business decisions, which included borrowing, key management decisions, and sales of equity. However, F&F has not approved Centroid’s current attempt to sell TaylorMade, and it views this action as a considerable violation of its contractual consent rights.

    Despite the potential acquisition, F&F stated that it is fully prepared to use all available legal and contractual measures to hold Centroid accountable for any violations. The company is carefully preparing to exercise its Right of First Refusal (ROFR) if necessary, to ensure alignment with its original investment thesis.

    Investment Breakdown

    F&F’s investment in the acquisition of TaylorMade by Centroid was substantial, contributing 358 billion won ($258 million) of a total subordinated equity investment of 619.2 billion won. This made F&F the primary equity investor as a limited partner (LP).

    Additionally, F&F contributed 195.7 billion won to a mezzanine investment of 471.5 billion won. The fashion company had already expressed its intent to acquire TaylorMade last month, explaining that its significant investment in TaylorMade in 2021 was made with the ultimate aim of acquiring the company.

    Centroid’s Sale Process

    According to insiders, Centroid’s advisors have sent confidential memoranda and process letters concerning the sale of TaylorMade to potential buyers. However, no official process has been initiated yet. Responding to a request for comment, Centroid confirmed it was in the process of selling TaylorMade to maximize its LPs’ return on investment.

    In the private equity sector, a GP, or General Partner, refers to the manager of a fund who is responsible for making investment and operational decisions. In contrast, LPs, or Limited Partners, are investors in the fund who usually have a passive role in individual deals. F&F is an LP investor in a fund managed by Centroid as the GP.

    Centroid confirmed that F&F holds the right of first refusal, which it guarantees. However, it pointed out that this right does not preclude a sale process from occurring.

    TaylorMade Overview

    Established in 1979, TaylorMade produces golf clubs, balls, and other golf-related accessories. The company has offices in Canada, China, Japan, South Korea, and Australia, in addition to its U.S. base.

    Questions & Answers

    What is F&F Co’s role in TaylorMade’s acquisition?
    F&F Co participated as a strategic investor in the 2021 acquisition of TaylorMade and is the largest equity investor as a limited partner (LP).

    What are the potential legal actions that F&F Co might take?
    F&F Co stated that it is fully prepared to use all available legal and contractual measures to hold Centroid accountable for any violations of its contractual consent rights.

    What is the right of first refusal that F&F Co holds?
    The right of first refusal allows F&F Co to decide whether or not to match the terms of a sale determined through the auction process.

  • Goldman Sachs Joins Crypto Wealth Wave

    Goldman Sachs Joins Crypto Wealth Wave

    Goldman Sachs is the latest to join the wave of global financial institutions seeking a share in the rapidly growing cryptocurrency market.

    Goldman Sachs plans to offer investments in bitcoin and other digital assets to its wealth clients, according to a report, starting from the second quarter.

    The planned offering could include physical bitcoin, derivatives and traditional investment vehicles.

    Earlier in March, the bank’s president and chief operating officer John Waldron had already signaled interest in launching its own crypto business.

    Client demand is rising, Waldron said, according to a report that said the bank’s crypto trading desk had reopened in the same month and began dealing bitcoin futures and non-deliverable forwards.

    We are regulated on what we can do. We continue to evaluate it and engage on it.

    A gradually increasing number of global banks are entering the crypto market, particularly with a focus on serving wealth management client demand.

    Morgan Stanley also launched its own crypto offering earlier last month via three funds.

    Outside of the U.S., DBS and Standard Chartered have also entered the crypto market, launching their offerings in December last year.

    Lees ook:

    Lees ook:

  • Goldman Sachs Keeps Partner Headcount Flat with 2020 Cap

    Goldman Sachs Keeps Partner Headcount Flat with 2020 Cap

    Goldman Sachs is reportedly adding no more than 60 partners in 2020 as part of a new drive to reduce the size and exclusivity of the top ranks. The cap is set to create the smallest class of partners since the mid-1990s, according to a report citing unnamed sources.

    Partners, which are appointed biennially, are considered the elite employees of the bank and receive various benefits including a small stake in the firm and access to exclusive investment opportunities alongside a $1 million salary.

    Any time one of the top 450 people at Goldman moves its gets written about, said Goldman CEO David Solomon, at a Credit Suisse forum in February this year, adding that top-10 executives exiting other banks would receive no such publicity.

    When appointed to the top role in late 2018, Solomon inherited a bank with around 500 partners. Although the total partner count doubled from 221 in 1999 when Goldman first went public, the 69 added that year was the lowest since. And in the two years after Solmon joined, at least 54 partners have left either by exiting Goldman or renouncing membership but remaining with the bank.

    At 60 or below, 2020 is set to become the new smallest class of partners for Goldman Sachs.

    In addition to a smaller class, Goldman is also offering partners «carried interest» or a share of future profits in its private investment funds which can be accessed investments as little as $10,000.

    Lees ook:

    Lees ook: