—— Temasek Reports Worst Return in 7 Years; Uber CFO Plans Departure; 777 Partners Seeks €200 Million for Football Investments; Qatar Sovereign Fund Buys Stake in Sports Company; Salesforce Raises Prices for the First Time in 7 Years; Bank of America Fined $250 Million; Saudi Sovereign Fund Reports $11 Billion Loss
1. Temasek Reports Worst Return in 7 Years
Singapore’s Temasek Holdings, one of the world’s largest and most active investment firms, revealed that as of the fiscal year ending in March, its portfolio value fell from $403 billion in 2022 to $285 billion.
Approximately two-thirds of Temasek’s portfolio companies are based in Asia, including notable investments in Ant Group and payments firm Stripe.
Last year’s performance was the worst since 2016, mainly due to the collapse of tech stock valuations severely impacting private and public markets. Economic recession fears, higher interest rates, and geopolitical tensions also played roles.
Temasek, along with sovereign wealth fund GIC, is one of Singapore’s largest contributors to the national budget.
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2. Uber CFO Plans Departure
Sources revealed that Uber CFO Nelson Chai has informed CEO Dara Khosrowshahi of his plan to leave the company.
An Uber spokesperson stated that during his five-year tenure, Nelson made significant contributions to Uber’s financial health—not only steering the company away from billions in losses but also boosting profitability and free cash flow.
Before Nelson’s appointment in 2018, Uber had operated without a CFO for more than three years.
During his tenure, he oversaw milestones like Uber’s $2.65 billion acquisition of Postmates and the $2.26 billion acquisition of Transplace.
Nelson will be Uber’s highest-ranking executive to resign since the company’s 2019 IPO.
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3. 777 Partners Seeks €200 Million for Football Investments
Sources revealed that Miami-based investment firm 777 Partners, a stakeholder in several football clubs, is seeking to refinance $220 million for its invested teams.
777 Partners is among the largest multi-club ownership groups, with stakes in Brazil’s Vasco da Gama and Italy’s Genoa Cricket and Football Club.
777 expects to generate €350 million in revenue for the 2022–2023 fiscal year.
Supporters of multi-club ownership say it saves costs through data and player sharing and can secure better sponsorship deals, but critics argue it reduces competition and fosters weaker teams.
In recent years, sports like basketball and football have attracted growing investor interest.
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4. Qatar Sovereign Fund Buys Stake in Sports Company
Two sources revealed that Qatar Investment Authority (QIA) has acquired a 5% stake in Monumental Sports and Entertainment for $200 million. Monumental owns the NBA’s Washington Wizards, the WNBA’s Washington Mystics, and the NHL’s Washington Capitals.
In recent years, soaring media and broadcast rights values have made sports a hot investment sector. Last year, the NBA changed its policies to allow sovereign funds to invest in teams.
QIA, which manages $450 billion in assets, will not gain a board seat at Monumental, as this is purely a financial investment.
QIA’s investment marks the first time a foreign sovereign wealth fund has acquired a stake in a US sports company.
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5. Salesforce Raises Prices for the First Time in 7 Years
Today, enterprise software giant Salesforce announced it will increase prices by 9% starting in August, marking the company’s first price hike in seven years.
Salesforce stated that since its last price increase, it has launched 22 new products and thousands of new features, including generative AI capabilities.
Launching AI features requires significant computing resources, and Salesforce said the new AI starter package will cost $360,000 per year for 50 users.
Salesforce shares rose 3.9% following today’s announcement.
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6. Bank of America Fined $250 Million
Today, the US Consumer Financial Protection Bureau (CFPB) announced that Bank of America must pay $250 million in penalties for repeatedly charging customers overdraft fees and opening accounts without consent.
The CFPB said Bank of America also improperly withheld credit card rewards, double-charged fees, and opened accounts without permission, seriously violating customer trust.
Sources said the fine will be reflected in the bank’s second-quarter cost reports to be released next week.
$100 million will be refunded to consumers, and $150 million will be paid as penalties.
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7. Saudi Sovereign Fund Reports $11 Billion Loss
Today, Saudi Arabia’s Public Investment Fund (PIF) reported a $11 billion investment loss for 2022, compared to a $19 billion profit in 2021.
PIF stated that a strong stock market in 2021 helped deliver a 25% return, roughly matching the S&P 500’s performance. So far in 2023, PIF’s returns stand at about 15%.
Earlier this year, the Saudi government also transferred an additional 4% stake in Aramco, valued at about $80 billion, to PIF.
PIF’s total assets under management have now grown to $778 billion.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.