The road to completing LVMH Moët Hennessy Louis Vuitton SE’s (“Louis Vuitton”) acquisition of Tiffany & Co. (“Tiffany”) was a bumpy one. Louis Vuitton and Tiffany announced they agreed on a revised merger agreement (the “Merger Agreement”), and closed the transaction on January 7, 2021 (LVMH). Over the past year, the two companies have had a rocky relationship. Louis Vuitton, the buyer, originally walked away from the initial agreement, and Tiffany sued to keep the deal moving forward. (Angelina Rascouet & Kim Bhasin, Bloomberg). The revised deal is now worth almost $16 billion. Id.
Read MoreThe 2020 presidential election between President Donald Trump and former Vice-President Joe Biden marked a highly contentious race with a record-setting $14 billion in election spending between the two candidates. (Brian Schwartz, CNBC). After days of ballot-counting, former Vice-President Joe Biden was declared the president-elect of the United States (“U.S.”). (Scott Detrow and Asma Khalid, NPR). This article will address how a Biden Presidency may change financial regulations and the resulting impact these changes will have on the securities market.
Read MoreVenture capital hubs are historically based in cities such as San Francisco and New York and have a predilection for supporting Democratic candidates. (Thorne, Pitchbook). The most recent election proved to be no exception, venture capital contributions to the democratic party were even higher than they were in the 2016 election. (Center for Responsive Politics). The industry’s support for the democratic party grew in the most recent election due to Biden’s favorable policy proposals and industry grievances with the Trump administration. (Thorne, Pitchbook).
Read MoreOne of the more recent investing trends that has gained a foothold in financial markets is Environmental, Social, and Governance (“ESG”) investing. The trend represents a shift in the investment community, focusing on how investments can help increase environmental, social, and corporate governance goals rather than unchecked profitability. While ESG investing has seen increased participation in the last few years, the trend is not without objection, both from industry peers and regulatory bodies alike.
Read MoreThe 2020 presidential election could trigger an overhaul of private equity regulations, as the Democratic party, if elected into the White House, could unwind the Trump administration’s deregulation efforts. (APK Metropolitan News). The private equity industry is no stranger to change; the past ten years have brought dramatic changes to the industry. First, the private equity industry has grown considerably. The 2020 McKinsey Global Private Equity Markets Review reported there are now approximately 7,000 private equity firms, a 40% increase since 2010. (MJ Hudson). The Securities and Exchange Commission (“SEC”) estimated $2.7 trillion was raised in private markets in 2019, compared to the $1.2 trillion raised in public markets. (Zach Gibson, The Wall Street Journal).
Read MoreCartica Management LLC (“Cartica”) is a Washington D.C.-based investment firm that is thriving at global investing while utilizing a trending activist approach. Cartica utilizes an environmental, social, and governance (“ESG”) investment approach, which has become increasingly popular in 2020. (Kim, Bloomberg). In addition to seeking socially responsible opportunities, ESG investing has proven to be a lucrative method as 88% of indexes utilizing this sustainable method did better than their non-sustainable counterparts during the first quarter of 2020. Id. Companies, such as Cartica, are demonstrating that social progress and financial gain can coexist.
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