Posts tagged with "Blackstone"

Report: Amazon, Tesla, and Meta are among world’s top companies undermining democracy

September 23, 2024

Some of the world’s largest companies have been accused of undermining democracy by financially backing far-right political movements, funding and exacerbating the climate crisis, and violating trade union rights and human rights in a report published on Monday, September 23, by the International Trade Union Confederation (ITUC).

Indeed, as reported by The Guardian, Amazon, Tesla, Meta, ExxonMobil, Blackstone, Vanguard, and Glencore are the corporations included in the report.

The companies’ lobbying arms are attempting to shape global policy at the United Nations Summit of the Future in New York City on September 22 and 23.

At Amazon, the report notes that the company’s size and role as the fifth largest employer in the world—and the largest online retailer and cloud computing service—has had a profound impact on the industries and communities it operates within.

“The company has become notorious for its union busting and low wages on multiple continents, monopoly in e-commerce, egregious carbon emissions through its AWS data centers, corporate tax evasion, and lobbying at national and international level,” states the report.

The report cites Amazon’s high injury rates in the United States, the company challenging the constitutionality of the National Labor Relations Board (NLRB), its efforts in Canada to overturn labor law, the banning of Amazon lobbyists from the European parliament for refusing to attend hearings on worker violations, and its refusal to negotiate with unions in Germany, among other cases.

Amazon also has funded far-right political groups’ efforts to undermine women’s rights and antitrust legislation, and its retail website has been used by hate groups to raise money and sell products.

At Tesla, the report cites anti-union opposition by the company in the United States, Germany, and Sweden; human rights violations within its supply chains; and Elon Musk’s personal opposition to unions and democracy, challenges to the NLRB in America, and his support for the political leaders Donald Trump, Javier Milei in Argentina and Narendra Modi in India.\

The report cites Meta, the largest social media company in the world, for its vast role in permitting and enabling far-right propaganda and movements to use its platforms to grow members and garner support in the United States and abroad. It also cited retaliation from the company for regulatory measures in Canada, and expensive lobbying efforts against laws to regulate data privacy.

Glencore, the largest mining company in the world by revenue, was included in the report for its role in financing campaigns globally against indigenous communities and activists.

Blackstone, the private equity firm led by Stephen Schwarzman, a billionaire backer of Donald Trump, was cited in the report for its roles in funding far-right political movements, investments in fossil fuel projects, and deforestation in the Amazon.

“Blackstone’s network has spent tens of millions of dollars supporting politicians and political forces who promise to prevent or eliminate regulations that might hold it to account,” the report noted.

The Vanguard Group was included in the report due to its role in financing some of the world’s most anti-democratic corporations. ExxonMobil was cited for funding anti-climate science research and aggressive lobbying against environmental regulations.

Even in “robust democracies” workers’ demands “are overwhelmed by corporate lobbying operations, either in policymaking or the election in itself”, says Todd Brogan, director of campaigns and organizing at the ITUC.

“This is about power, who has it, and who sets the agenda. We know as trade unionists that, unless we’re organized, the boss sets the agenda in the workplace; and we know as citizens in our countries that unless we’re organized and demanding responsive governments that actually meet the needs of people, it’s corporate power that’s going to set the agenda.

“They’re playing the long game, and it’s a game about shifting power away from democracy at every level into one where they’re not concerned about the effects on workers; they’re concerned about maximizing their influence and their extractive power and their profit,” adds Brogan. “Now is the time for international and multi-sectoral strategies, because these are, in many cases, multinational corporations that are more powerful than states, and they have no democratic accountability whatsoever, except for workers organized.”

Research contact: @guardian

Spanx founder launches shoe brand Sneex

August 26, 2024

Sara Blakely is off on her next venture. Three years after selling a majority stake in her shapewear brand, Spanx, to Blackstone, she has set out to reimagine high heels, reports Fashion Dive.

Blakely is entering the shoe market through the launch of her next venture, Sneex. The shoe brand combines features from a high heel and a sneaker to create a hybrid heel, or what the company calls “hy-heels.”

Using materials such as napa leather and suede from Italy and Spain, Sneex shoes retail for $395 to $595 and come in sizes 5 to 11, according to a company press release.

The product, which is available in three styles and ten “colorways,” is available for purchase on Sneex’s website.

Blakely founded the shapewear brand in 2000 using $5,000 in savings. The idea behind the brand came after Blakely struggled to find the right undergarments to wear under white pants, leading her to cut the feet off her control top pantyhose.

Now, Blakely is returning to her innovation roots, looking to solve another pain point many people face when it comes to wearing high heels: “Men invented the high heel centuries ago, and its basic construction hasn’t really changed,”  Blakely said in a statement. “There has been a void in comfortable footwear, and women deserve a new option. I wanted to create a luxury high heel that prioritizes how women feel, not just how we look. We are fed the line that ‘beauty is pain’… but I don’t believe it has to be.”

The company aims to address three common concerns in its shoe construction: lack of support, uneven weight distribution and toe squeezing.

Broader trends, like the casualization of apparel, also contributed to Sneex’s creation. But Blakely added that, “while sneakers have been embraced as an option, there are many times I put on clothes and still want the height and look of a heel with the vibe of a sneaker. There was an opportunity there.”

Research contact: @fashiondive

Reese Witherspoon sells her fashion brand, Draper James

September 7, 2023

Private equity group Consortium Brand Partners announced on Wednesday, September 6, that it has acquired actress Reese Witherspoon’s fashion and lifestyle brand, Draper James, through a majority stake, reports CNN.

According to the deal, Consortium Brand Partners acquired a 70% stake in the company for an undisclosed amount while Witherspoon remains a partner and board member in the business.

The Oscar-winning actress, producer, and entrepreneur launched the retail brand inspired by her Southern roots in 2015 as a direct-to-consumer business selling clothing in bright hues and bold prints, as well as accessories and home items.

As the business grew, the brand subsequently opened three retail locations and entered Kohl’s nationwide and kohls.com through an exclusive partnership in 2022.

Following the deal, Consortium Brand Partners said Draper James products would continue to sell online on the company’s website and at its three retail stores and in Kohl’s.

In the future, the private equity group said, consumers could expect to see Draper James merchandise expand into the big box home improvement space, department stores, pet store chains, and overseas.

“Draper James was inspired by a deep personal connection to my roots, my family, and the women who shaped me. It’s been so amazing to see so many women connect with this brand, our products, and our mission to bring a little southern joy into everyone’s homes and wardrobes,” Witherspoon said in a statement. “We are excited to join forces with the team at Consortium, who understand our vision as a company and the importance of our community.”

The sale of Draper James comes two years after Witherspoon sold her media company, Hello Sunshine, in 2021 for more than $900 million to a media company backed by the private-equity firm Blackstone.

Hello Sunshine was behind several of the actress’ TV projects, such as “Big Little Lies,” “Little Fires Everywhere” and “The Morning Show.” The business also includes Reese’s Book Club. Witherspoon launched the company in 2016 as a joint venture with AT&T.

Research contact: @CNN

JPMorgan wants to be your landlord

May 16, 2023

At first glance, there’s nothing out of the ordinary about Cantabria Bradenton. Located 46 miles south of Tampa and 14 miles north of Sarasota, Florida, the recently constructed rental community comprises 172 attached townhomes and 12 detached single-family homes on 36 acres, reports Fortune Magazine.

Cantabria Bradenton has a clubhouse, gym, and a pool. It looks like a modern community, with townhomes renting anywhere between $2,400 to $3,000. However, under the surface, there’s something that makes it novel: The rental community is owned by J.P. Morgan Asset Management.

Earlier this month, the Pennsylvania-based Wolfson Development Company sold Cantabria Bradenton, which was constructed between summer 2020 and spring 2023, to J.P. Morgan Asset Management for $59 million.

When it comes to institutional homeownership, firms like Blackstone or Invitation Homes come to mind. But this Cantabria Bradenton purchase is a reminder that the U.S. housing market has the attention of Wall Street’s top dog: JPMorgan Chase.

Even before analysts realized that a housing boom would form during the pandemic, J.P. Morgan Asset Management announced in May 2020 that it planned to establish a $625 million joint venture with American Homes 4 Rent to build 2,500 single-family rentals across the West and Southeast. As millennials age out of apartments, JPMorgan Asset Management argued that the U.S. housing market would see increased demand for single-family rentals.

Then in November 2022, JPMorgan announced that its asset-management arm would form another joint venture—this time alongside real estate investment firm Haven Realty Capital. They’d allocate $1 billion to purchase single-family rentals across the country in the form of so-called “build for rent”—meaning they’d buy directly from developers. The JPMorgan and Haven Realty Capital joint venture planned to start with the purchase of 250 homes in metropolitan Atlanta.

While JPMorgan continues to push deeper into the U.S. housing market some institutional players are waiting things out.

See, the pandemic housing boom—a period of low interest rates, soaring home prices, and sky-rocketing rents—saw a stampede of institutional home buying in 2020 and 2021. However, that boom has been followed by a sharp institutional slowdown as the Fed’s interest rate hikes, coupled with frothy home prices, cut into the potential returns.

Indeed, an analysis conducted by John Burns Research and Consulting finds that institutional investors—those owning over 1,000 homes—bought 90% fewer homes in January and February than they did during the first two months of 2022. And Invitation Homes—the largest owner of U.S. single-family rental homes—sold more homes in the first quarter of 2023 (297) than it bought (194).

“There is no space immune from capital markets, broadly speaking. Every food group in real estate, whether it’s multi-family or single-family, everyone has difficulty finding an institutional buyer right now,” says Adam Wolfson, CEO of Wolfson Development.

According to Wolfson, institutional homebuyers are waiting on the sidelines for either a dip in interest rates or home prices. At the end of the day, institutional investors are looking for financial returns (i.e., cap rates) which justify their investment.

While institutional home buying has slowed down, it won’t go away. That’s perhaps the biggest takeaway from J.P. Morgan Asset Management’s purchase of Cantabria Bradenton from Wolfson Development. That’s also why Wolfson Development’s build-for-rent arm currently has a pipeline of 2,000 housing units “with a total exit valuation of nearly $1 billion.”

Research contact: @FortuneMagazine