DAILY DOSE: February 24, 2021
Posted on 02/24/2021
1. Former U.S. Treasury Secretary Steven Mnuchin is planning to start an investment fund that would focus on financial technology and entertainment. The fund is expected to raise money from a wide range of investors including Gulf-based sovereign wealth funds. Former U.S. Treasury Secretary Timothy Geithner after leaving his post went on to become President of Warburg Pincus. Jack Lew, the last U.S. Treasury Secretary before Mnuchin, went to become a Managing Partner at private equity firm Lindsay Goldberg.
2. On a conference call, Square CEO Jack Dorsey said he will “double down” on commitment to bitcoin. Payments company Square believes cryptocurrency is an instrument of economic empowerment. Square Inc. in total has purchased about 3,318 bitcoin at an aggregate purchase price of US$ 170 million. Bitcoin now represents 5% of Square’s total cash and equivalents.
3. 5 ERCOT board members resigned effective February 24, 2021.
4. The State of New Jersey ends marijuana drug arrests.
5. Cathie Wood’s ARK Funds acquired more than 240,000 shares of Tesla, Inc. on Tuesday.
6. Mall owner Macerich Co. hired PJT Partners to assist in managing its massive debt load. Macerich has been deeply impacted by the COVID-19 lockdowns. The REIT’s earnings fell as mall occupancy rates drop and the REIT faces maturity of US$ 1.5 billion credit facility in July 2021. Earlier this year, Ontario Teachers Pension Plan sold off its top shareholder position in Macerich. Macy’s Inc. is targeting annual sales comps of low single digits.
7. Evergreen Gardens Mezz LLC, a 900-unit apartment complex in Bushwick, Brooklyn, is controlled by All Year Management. Evergreen Gardens Mezz LLC field for Chapter 11 protection on Monday in the Southern District of New York.
8. The Williamsburg Hotel in Brooklyn field for Chapter 11 bankruptcy in White Plains, New York. The hotel is held under 96 Wythe Acquisition LLC and is backed by Heritage Equity Partners. Benefit Street Partners, a credit investment firm owned by Franklin Resources (Franklin Templeton), is the largest creditor with a US$ 68 million claim. Heritage Equity Partners is headed up by Toby Moskovits. Heritage Equity Partners restructured 232 Seigel Acquisition LLC, a hotel development in Bushwick, Brooklyn in 2020.
9. The Richmond City Council, a city in Northern California, voted Tuesday to explore using the Hilltop Mall parking lot as a place for homeless people to sleep in their cars. The safe parking program will create a safe place for people living in their cars to park and sleep, according to the staff report. In the Bay Area, many homeless shelters have temporarily closed as a result of the COVID-19 pandemic.
