Naguib Sawiris is back among the 500 wealthiest b’naires in the world +
Naguib Sawiris moves up the list of 500 wealthiest b’naires: After briefly dropping off the Bloomberg B’naires Index in 2021, Egyptian tycoon Naguib Sawiris made his comeback on the list in 2022, and is currently ranked at 472 on the daily ranking of the world’s 500 richest people. Naguib’s estimated total net worth is currently at USD 5.6 bn, as of today, up USD 502 mn since the beginning of the year. His brother Nassef sits ahead of him on the list, at 309, with an estimated total net worth of USD 7.56 bn, up USD 533 mn since the beginning of the year.
Bernault Arnault is at the top of the list, followed by Elon Musk and Jeff Bezos. Arnault — France’s richest person and chairman of LVMH, the world’s largest luxury goods maker, sits at the top of the list with a net worth of USD 196 bn, according to the index. Tesla and Twitter chief executive, Musk holds the second spot with a net worth of USD 175 bn, followed by Bezos with a net worth of USD 128 bn.
Dealmakers are getting creative to keep debt low when expanding their portfolios, whether through new companies, large stake acquisitions, or complete takeovers, reports the Financial Times. Private equity firms and buyers are leaving old loans on books, to prevent taking on large debts in a tough lending climate of rising interest rates and limited credit options — allowing them to take on new investments without straining their wallets.
Portable Capital Structures (PCSs) are becoming a go-to move for savvy corporate buyers looking to acquire businesses, as they provide a direct liquid investment option that eliminates the need (and headache) of raising additional funds. PCSs require buyers to have strong debt ratings. The powers-that-be are particularly suspicious of PCSs, knowing the acquisitions might result in them holding debt that becomes riskier than when they first agreed to buy it, according to the FT.
Keeping debt in place during a transfer is a real asset, an executive told the FT. It can pay to hang onto this debt as transfer mechanisms like change of control provisions (which force buyers to refinance and repay existing loans) won’t be triggered if dealt with in just the right way. Secondary transfers — wherein new investors become minority stakeholders without setting off alarm bells — offer one such solution for those wanting strong outcomes but hold weaker financial profiles.