What’s Going On Here?
The German media giant – Axel Springer saw its shares surge 22% following news that investment firm KKR was looking to take Axel private.

What Does This Mean?
Despite investing heavily in its more profitable digital offering, tough competition has made Axel Springer’s shares value decreases by 1/4 in the last 12 months.

KKR thinks it could do better. It’s seeking approval to make an offer for the rest 55% of the $6 billion-valued company .

Why Should I Care?
For markets: More spring in everyone’s step.
In taking Axel off the stock market, KKR (with previous experience in German media) may hope to split up some of the company’s publishing businesses before listing shares of the restructured firm.

The bigger picture: Private equity is taking over.
The “alternative” investment industry is expected to control $14 trillion by 2023, growing 155% from 2017. While several big US firms are finally “going public”, private equity spending in Europe is at a 12-year high. Such investment is only likely to become more widespread – and more accessible to investors like us.

Alternative investments include private equity or venture capital, hedge funds, managed futures, art and antiques, commodities, derivatives contracts, and real estate. Most of them are held by institutional investors or accredited individuals because of their complex nature, lack of regulation, and degree of risk.

Source:
Chen J. (2019) Alternative Investment. [Online] Available from https://www.investopedia.com/terms/a/alternative_investment.asp
Finimize. (2019) Axel Gets Sprung. [Online] Available from https://www.finimize.com/wp/news/axel-gets-sprung