—— Goldman Sachs Fires 125 Managing Directors; Billionaire Buys Manhattan Apartment Building; Blackstone Sells $3.1B Property Portfolio; IBM Acquires Apptio for $4.6B; Apollo Leads $2B Corporate Loan; SL Green Sells Manhattan Office Stake; UBS Downgrades Google Stock
1. Goldman Sachs Fires 125 Managing Directors
Sources revealed that Goldman Sachs Group Inc. will fire approximately 125 Managing Directors worldwide, with some cuts coming from the investment banking division.
Since last year, Goldman has entered a “deep cost-cutting” mode and has conducted at least three rounds of layoffs in under a year.
In 2020 and 2021, Goldman and other banks hired aggressively to meet booming M&A and IPO demand.
According to Bloomberg data, global M&A and IPO volumes are down 40% this year to $1.2 trillion, with Goldman ranking second in market share.
In the past month, several senior Goldman bankers have jumped ship to competitors like Wells Fargo and Evercore.
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2. Billionaire Buys Manhattan Apartment Building
According to New York City records, billionaire Eyal Ofer’s Global Holdings Management Group purchased an apartment building at 51 Irving Place in Gramercy Park for $30.7 million.
The building comprises 57 residential units.
Driven by strong apartment demand and limited inventory, Manhattan rental prices have hit historic highs.
Eyal, with an estimated net worth of $20.8 billion, has developed several luxury condo buildings in Manhattan, including 15 Central Park West and Greenwich Lane.
This year’s rental market is extremely hot, with high renewal rates for quality buildings.
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3. Blackstone Sells $3.1B Property Portfolio
According to a joint statement, Blackstone has sold a portfolio of warehouses and industrial properties to Prologis for $3.1 billion.
The transaction enables Prologis to expand in California, Atlanta, and other regions, with the portfolio totaling 14 million square feet.
Despite pressure across the commercial real estate sector, e-commerce demand continues to support warehouse assets.
Prologis Chairman Dan Letter said the portfolio complements the firm’s long-term investment strategy and existing holdings.
The deal also allowed Blackstone to realize gains across several opportunistic funds, with logistics real estate being one of its most successful investments.
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4. IBM Acquires Apptio for $4.6 Billion
IBM announced today that it will acquire software company Apptio for $4.6 billion.
CEO Arvind Krishna, who took office in 2020, aims to transform IBM into a hybrid cloud and AI company; this is IBM’s seventh acquisition this year.
Founded in 2007, Apptio sells software that helps companies manage IT budgets and forecasts. Clients include Bank of America, Cargill, and Chevron.
Bloomberg analysts noted this acquisition was strategic for IBM’s hybrid cloud push, and IBM’s capital strength allowed for such a large deal.
Many of Apptio’s clients are Fortune 100 companies, making the acquisition particularly successful for IBM.
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5. Apollo Leads $2B Corporate Loan
According to a statement seen by Bloomberg, a consortium led by Apollo Global Management will provide up to $2 billion in financing to semiconductor firm Wolfspeed Inc. to support its US expansion.
The seven-year loan carries a 9.875% interest rate and is callable after at least three years. It includes $1.25 billion in immediate cash and $750 million in delayed funding.
Sources said Wolfspeed chose private financing to limit the number of parties accessing its IP, and the consortium agreed to provide additional future funding.
Headquartered in North Carolina, Wolfspeed has a market value exceeding $7 billion, with products used in automotive, renewable energy, defense, and aerospace sectors.
Private credit offers more flexible terms and greater confidentiality advantages.
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6. SL Green Sells Manhattan Office Stake
SL Green, Manhattan’s largest office landlord, agreed to sell a 49.9% stake in the 245 Park Avenue office tower to Japan’s Mori Trust.
The transaction is the largest office sale since the Federal Reserve began raising rates in March 2022, valuing the building at $2 billion.
SL Green has been among the hardest hit by rising interest rates—its stock fell from $80 to $20 before rebounding 20.5% today to $28 after the announcement.
SL Green CIO Harrison Sitomer said the Park Avenue building has maintained strong rents through market turmoil and expects further international investment interest.
This deal breathes rare life into Manhattan’s office market and provides SL Green with much-needed liquidity.
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7. UBS Downgrades Google Stock
Today, UBS downgraded Alphabet Inc., the parent of Google, from “Buy” to “Neutral.”
UBS analyst Lloyd Walmsley explained that Google’s revenue growth may struggle to meet the anticipated 11%, and additional AI-driven revenues could take longer to materialize.
Google stock has risen 37% year-to-date. Although Bloomberg data shows 90% of analysts still rate Google a “Buy,” the share of “Neutral” ratings has increased.
Last month, Loop Capital also downgraded Google, citing too much uncertainty in the AI transition.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.