WeWork mania, Citigroup winds down a secretive $1 billion business, real-estate data changing the game
Love it or hate it, WeWork was no doubt the story of the week.
The $47 billion coworking company filed to go public Wednesday, providing the first in-depth look at its financials and starting the countdown to one of the most highly anticipated — and possibly most scrutinized — market debuts of the year.
In the filing, WeWork revealed billions in losses, a sprawling collection of leases, and plans to continue spending aggressively to go after a market that could be worth as much as $1.6 trillion.
At the center of WeWork’s vision is CEO and cofounder Adam Neumann, the charismatic and controversial 40-year-old Israeli businessman who will control a majority stake of WeWork’s voting power as a public company.
Here are some of the WeWork stories from the Business Insider team this week:
- WeWork is the most valuable startup to head for the public markets since Uber earlier this year. But as it does so, it’s facing some big questions that could dampen investors’ enthusiasm for its shares and dog its stock. Here are the five biggest questions facing WeWork as it prepares for its IPO.
- WeWork’s S-1 shows how big the company thinks it can get and gives a sense of the high costs of getting there. In the filing, WeWork lays out a path to profitability, but most of its options involve slowing its breakneck growth.
- WeWork CEO Adam Neumann has been criticized for perceived conflicts of interest between his investments and WeWork. Now prospective investors are getting a closer look at Neumann’s web of loans, real-estate deals, and family involvement with the company.
Separately, I’m excited to announce that in several weeks Business Insider will be hosting its first-ever cannabis webinar with marijuana-analytics company Headset.
Earlier this year, Headset raised $12 million and signed deals with market-research firm Nielsen and the accounting firm Deloitte.
You can join Headset CEO Cy Scott for a BI Prime webinar on September 5 at 2 p.m. ET as he takes readers through his pitch deck and explains how he convinced VCs, including early Juul investor Poseidon Asset Management, to buy in.
Poseidon partner Emily Paxhia will also weigh in on the unique challenges of investing in cannabis — and how she picks winners in a crowded market. You can sign up here.
Have a good weekend!
A top Citigroup executive is departing as the bank winds down a secretive $1 billion business amid competition from private equity
A little-known principal-investing team at Citigroup is being wound down, and the executive who led the group has left the firm, according to people familiar with the matter.
What remains of Citi Credit Opportunities, a vestige of pre-financial-crisis banking that had $1 billion in its balance sheet to make loans to small and midsize companies, is being absorbed into the bank’s broader financing operation.
The boom in buy-side private-lending shops, combined with a prolonged run of low interest rates, has made this type of business more difficult and less lucrative for banks than in years past.
From an army of traders in Long Island to quants around the world: What’s coming next for hedge-fund powerhouse Schonfeld Strategic Advisors
The billionaire Steven Schonfeld’s hedge fund was quick to adopt algo-trading strategies and now has 75 portfolio managers around the world.
Schonfeld Strategic Advisors has been open to outside capital for just over three years and has bold aspirations. Its chief investment officer says the goal is to be the world’s premier equities hedge fund.
The firm keeps to its roots, though, with 50 old-school traders still working in Long Island, about half of whom have been with the firm for more than 15 years.
KKR has quietly started hiring college seniors— we have the details, and what it says about how private equity is battling banks to fill six-figure jobs
For the first time ever, private equity giant KKR is rolling out a formal analyst program that it will fill with college graduates.
Many private equity firms traditionally only hired people after they spent a couple years honing their skills at investment banks. Hiring out of college puts PE head-to-head with banking.
PE has been pushing to recruit earlier and earlier to battle fierce competition for young talent, both within the financial sector and from hot areas like tech.
‘We see everything that happens’: Real-estate data is changing the game, and execs at Cresa, Niido, and other firms explain why
While other industries are jumping into machine learning and artificial intelligence, and data scientist has been dubbed the best job in America, real estate still has a reputation for handshake deals and decisions made on gut instinct.
But companies that revolve around real estate are quickly finding ways to adapt to a digital world. Documents that used to live in a file cabinet are being digitized. Zillow, Redfin, and other “i-buyers” are closing on homes within a week of the application. Venture-capital money is flooding into “proptech” startups that