Greenleaf Trust’s Post

I'm going to take a detour from The Foundations of Gifting to talk briefly about ESG in the trust context. The news hook here is a bill introduced in New Hampshire "that would prohibit the state’s treasury, pension fund and executive branch from using investments that consider environmental, social and governance factors. 'Knowingly' violating the law would be a felony punishable by not less than one year and no more than 20 years imprisonment." Yikes! As Matt Levine so deftly explains in the article below, this bill is really really dumb. (It's a crime to consider a company's governance - or lack thereof - when choosing where to invest state funds?!?!) What's interesting to me is the extent to which ESG is connected with the Great Wealth Transfer. Much has been written about how trillions of dollars are and will be passing between generations, mostly from baby boomers to their children and grandchildren. But I've seen a lot less discussion of the fact that many of the recipients of this wealth strongly want ESG factors to be considered when they invest. Individual investors can obviously take ESG factors into account when picking stocks, but what about trustees? That can be trickier, since you can read fiduciary duties as requiring the trustees to consider only future returns when they invest trust assets. Interestingly enough, states have started to pass legislation specifically allowing a trustee to weigh ESG factors when investing. One of the first states to pass legislation on this topic? New Hampshire! In 2021 the state added language to its trust code stating that, among other things, a trustee investing trust assets can take into account "the expressed wishes of the interested persons of the trust... as reflected in a nonjudicial settlement agreement..., to have the trustee... engage in investing strategies that align with the interested persons' social, environmental, or governance objectives or other values or beliefs of the interested persons, regardless of investment performance." Two points of clarification here: 1. The "interested persons" would be the trust beneficiaries. 2. A nonjudicial settlement agreement (or NJSA) is a document by which the trustee and current beneficiaries agree on a course of action for a trust; typically the current beneficiaries will be signing on behalf of themselves AND representing future beneficiaries. Interested in more detail? Be sure to check out "ESG Investing for Trust Assets Under the Prudent Investor Rule," an ACTEC Law Journal article written by my brilliant friend and former colleague Jane Ditelberg.

Sorry, no medals if you guess America's top-ten M&A deal-makers by fees* .. But ... who are the champs just below that? Who are the banks who earned shy of USD 500m from American M&A fees in 2023? We can't spill the beans but here are some hints ... Guggenheim Partners - we salute you! Especially impressive pick up in healthcare and technology Wells Fargo Corporate & Investment Banking - what a jump from 2022! Piper Sandler - M&A captain for all things financial services BMO Capital Markets - All hail the Canadian king of energy! *all fees estimated by our proprietary algo-driven model #MNA #investmentbanks #fees #americas #revenues

BlackRock TCP Capital, a direct lending services provider, completed the merger with BlackRock Capital Investment, a business development company. Financial terms were not disclosed. “We are excited to close this transaction that brings together two portfolios that we know well and that have substantial overlap. The combination with BCIC positions TCPC for sustained growth that we believe will create meaningful value for shareholders," Rajneesh Vig, BlackRock TCP Chairman and CEO. BlackRock TCP Capital (led by Rajneesh Vig, Philip Tseng, Erik L. Cuellar and Laurence Paredes) was advised by Houlihan Lokey and Dechert LLP (led by Harry Pangas and Eric Siegel). Houlihan Lokey was advised by Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates (led by David Hepp). BlackRock Capital Investment (led by Jim Keenan, Nik Singhal and Chip Holladay) was advised by KBW (led by Allen Laufenberg) and Vedder Price. #MergersAcquisitionsDivestitures #PrivateEquity #FinancialServices

New York investment banks are benefitting from an unusually persistent wave of bankruptcy and restructuring work Creditor-on-creditor violence, the growth of private lending and tech disruption are all set to keep momentum going for advisory firms like Lazard, Evercore, PJT Partners, Moelis & Company, Houlihan Lokey, Centerview Partners and Perella Weinberg The boom helped such firms consistently beat analysts’ expectations across the board last quarter It’s a sign that thorny financing questions facing boardrooms are far from over, even as costs may have peaked with the Federal Reserve hinting at lower interest rates later this year “This restructuring pipeline, by the way, I think everybody’s been saying it feels extended,” said Ken Moelis, the chief executive officer of New York-based Moelis & Co., on his company’s earnings call on last week. “It feels like there’s just so much paper out there.” Read the full story on Bloomberg News w/Neil Callanan & Jill R. Shah and reach out to me if you have any thoughts https://lnkd.in/eR7KDrfk

Government Intervention and Strategic Acquisitions: The Role of TARP in Bank of America's Acquisition of Merrill Lynch during the 2008 Financial Crisis In my latest analysis, I explore the critical interplay between government intervention and strategic acquisitions during the 2008 financial crisis. Focusing on the Troubled Asset Relief Program (TARP) and the pivotal Bank of America-Merrill Lynch deal, I discuss how these actions helped stabilize the financial system. This analysis covers the crisis's historical context, the strategic rationale behind key acquisitions, and the outcomes of such interventions. Check out the full analysis to understand the crucial decisions made during one of the most turbulent times in financial history and their long-term implications for the industry. #Finance #Banking #MergersAndAcquisitions #FinancialCrisis #Economics #BankofAmerica #MerrillLynch

LSEG (London Stock Exchange Group) should take heed from what is happening in the U.S. primarily on the NASDAQCM. Diluted investor protection coupled with a small group of unscrupulous bankers, lawyers and advisors leads to IPOs that never should have happened, shares placed with stock flippers not long term investors, a laundry list of out of compliance “penny stocks” stuck in a downward spiral of stock splits and dilutive financings all at the expense of true investors. OTC Markets Group has been leading the way in calling out the problems with the U.S. small/micro cap IPO process and has also been a vocal advocate for International companies raising capital and listing in their local markets. We offer a unique perspective and think we can help issuers from around the world as well as regulators and exchanges. #lawfulbutawful #listlocaltradeglobal

Active managers within the high-yield space can add value by finding under-valued opportunities and avoiding weak credits, according to Franklin Templeton Fixed Income’s Glenn Voyles. Learn more. https://lnkd.in/dkjkJTzT.

“When small caps recover, they significantly outperform and by a greater amount than they underperformed on the way down.” 💬   Ken Wotton, fund manager of Strategic Equity Capital plc (SEC), speaks to Gavin Lumsden, for The Telegraph’s Questor column, about the attractions of investing in smaller UK-listed companies. After years of being buffeted by economic fears and ignored by investors, are #uksmallercompanies set to rally? https://lnkd.in/euKUSacV #ukequities #publicequity | For professional investors only. Capital at risk. Not an investment recommendation. Past performance is not necessarily a guide to future performance. Opinions are the fund managers own and not necessarily those of Gresham House.

Active managers within the high-yield space can add value by finding under-valued opportunities and avoiding weak credits, according to Franklin Templeton Fixed Income’s Glenn Voyles. Learn more. https://lnkd.in/gx9uJ3nR.

We have received a few inquiries about the economy and the market since the Charles Schwab/TD Ameritrade merger, so we wanted to address those questions. Please click the image below to read the recent blog post by our financial guide, Dany Martin. #WFA #PlanInvestInspire #BlogPost