Billionaires: Gautam Adani set to take three more places on MSCI India index
Billionaire Gautam Adani is expected to see three more companies from his coal mining conglomerate to data centers join the MSCI India Index after shares of each have more than doubled this year, analysts say.
The group’s flagship product Adani Enterprises, gas supplier Adani Total Gas and electricity distributor Adani Transmission could be included in MSCI’s national benchmark after the semi-annual review of its gauges by the index supplier in May, according to broker Edelweiss Financial Services and independent research provider Smartkarma. Adani Green Energy and Adani Ports & Special Economic Zone are already there.
The potential inclusions further increase the wealth of Mr Adani, who added $ 20.2 billion to his net worth this year, the second highest increase among billionaires in the world.
The tycoon – who started as a commodities trader in the late 1980s – has branched out from mines, ports and power plants to airports, data centers and defense. The rally in stocks shows that investors have rewarded his strategy of interweaving his group’s interests with the Indian government’s infrastructure program.
There is “a very high probability that these Adani names will enter the index primarily due to their increasing market capitalization,” said Brian Freitas, New Zealand analyst at Smartkarma. “Exchange traded funds and other passive funds will have to buy, adding to Adani’s fortune.”
Passive funds may have to buy shares worth a total of around $ 830 million in the three companies after their inclusion, according to Freitas’ calculations. Still, these stocks “are trading much higher than their global peers and longer-term returns may not be worth the risks involved,” he wrote in an April 14 note.
The lack of analyst coverage for many companies in the Adani group has not dissuaded MSCI from adding its shares, as the index provider focuses more on other factors such as market value. Adani Green, who was added to the MSCI India gauge in late November, still does not have analysts covering it, according to data compiled by Bloomberg.
Mr. Freitas is also considering the possibility of Adani Green being included in the NSE Nifty 50 Index, the benchmark of the National Stock Exchange of India, once the exchange allows derivative contracts on the stock.
MSCI is set to report the results of its latest review on May 11 and the changes will take effect from the close of markets on May 28, the index provider said in February.
Michael Dell’s fortune topped $ 50 billion for the first time after his company Dell Technologies announced last week that it would divest its stake in VMware.
Dell shares hit a record high on April 15, valuing its founder’s net worth at $ 50.7 billion, according to the Bloomberg Billionaires Index. He is now the 26th richest person in the world after adding $ 10.6 billion to his fortune this year.
Most of his fortune is Mr. Dell’s stake in his eponymous Texas-based company. The 56-year-old listed Dell in 1988, but deprived it in 2013 with investment firm Silver Lake Management as personal computer sales plummeted. At the end of this year, Mr. Dell was worth around $ 15 billion and was 59th in the Bloomberg rankings.
Dell acquired VMware’s parent company, EMC, in 2016 for $ 67 billion, helping the company diversify from its origins as a personal computer maker, but in debt. Two years later, he put Dell back on sale in the United States and his fortune skyrocketed. This year alone, the stock has jumped 35 percent.
Mr. Dell’s personal wealth is managed by MSD Capital, an investment firm run by Gregg Lemkau and John Phelan. Founded in 1998, MSD is considered one of the most sophisticated family offices, with the expertise and capital to buy companies and manage in-house hedge funds.
Kjeld Kirk Kristiansen
The billionaire Lego owners are set to transfer more of their wealth to companies that figure out how to reduce excess plastic in an environmentally friendly way.
Kirkbi, who oversees around $ 20 billion in assets on behalf of the family behind toy maker Lego, is looking for at least one new plastic project to invest in this year. This is after testing the market for the first time in 2020 with its takeover of a stake in Quantafuel, a Norwegian company that turns old plastic into energy.
In an interview, Chief Investment Officer Thomas Schleicher identified plastic waste as a key focus area for the fund. But he’s also looking at ideas such as “new technology to produce alternatives to plastic,” he said.
Kirkbi is chaired by Kjeld Kirk Kristiansen, the grandson of the founder of Lego and one of Denmark’s richest men with a fortune of $ 7.3 billion, according to the Bloomberg Billionaires Index. In recent years, he has ceded further control of Kirkbi to his three children, Agnete Kirk Thinggaard, Sofie Kirk Kristiansen and Thomas Kirk Kristiansen, who each have personal wealth of around $ 7.1 billion.
The Lego family fund underlines its commitment to the fight against plastic waste with the creation of a new portfolio for such investments, called Circular Plastic.
Mr Schleicher says there is no connection between Kirkbi’s investments in the region and Lego’s own use of plastic in its production. The company, which manufactures nearly 100,000 tonnes of plastic bricks each year, is trying to develop a product that uses renewable materials of plant origin, such as sugar cane.
Kirkbi’s investment in Quantafuel has already paid off, with the value of its stake almost doubling since its June investment of around $ 26 million. Mr Schleicher said Kirkbi was willing to support Quantafuel if he needed to raise new capital.
Meanwhile, profit on the fund’s overall investments fell 62 percent last year. This is despite record results at Lego, which generates most of Kirkbi’s returns. But some of his other big investments lost money.
The fund is now keen to buy a lot more own assets, amid signs that the sector is generating healthy returns as well. Mr Schleicher said Kirkbi is also keen to invest more in solar and wind power, adding to the $ 1.3 billion already spent in the region. But prices have skyrocketed as more investors flock in.
Kirkbi therefore plans to invest earlier in the value chain, as it did with Adapture Renewables, which simultaneously develops, builds and owns solar cell farms.
Just last year, the world’s most successful start-up, ByteDance, was in a hurry from all sides.
The Trump administration wanted the Chinese company, which owns the video-sharing platform TikTok, to get rid of its assets, while India blacklisted some of its social media apps.
Despite all the obstacles, ByteDance has never stopped growing. Today, its founder, Zhang Yiming, 38, is one of the richest people in the world.
The company’s shares are traded in the private market at a valuation of more than $ 250 billion, people familiar with the transactions said. At that level, Mr. Zhang, who owns about a quarter of ByteDance, could be worth more than $ 60 billion, placing him alongside Pony Ma of Tencent Holdings, bottled water king Zhong Shanshan and members of the Walton and Koch families in the United States, according to the Bloomberg Billionaire Index.
Zhang is someone who is known to think long-term and is not easily deterred by short-term setbacks.
Ma Rui, partner, Synaptic Ventures
ByteDance, famous for its short video apps and news aggregator Toutiao, more than doubled revenue last year after expanding beyond its core advertising business into areas such as e-commerce and retailers. online games. He is now evaluating options for an initial public offering of certain companies.
“Zhang is someone who is known to think long-term and is not easily deterred by short-term setbacks,” said Ma Rui, partner of venture capital firm Synaptic Ventures. “He is determined to build a sustainable global business. “
In its most recent fundraiser, ByteDance reached a valuation of $ 180 billion, a source said. That’s up from $ 20 billion about three years ago, according to CB Insights. But in the private market, some investors recently requested the equivalent of a valuation of $ 350 billion to part with their shares, sources said.
The company’s value to private equity investors is approaching $ 400 billion, the South China Morning Post reported. It would mean even greater fortune for Mr. Zhang.
Born in Longyan City, southern China, Mr. Zhang, the only son of government officials, studied programming at Nankai University in Tianjin, where he made his name on the online forum. school by fixing the computers of his classmates. He joined Microsoft for a brief stint after graduation, later calling the job so boring that he “often worked half the day and read books the other half,” according to an interview with Chinese media. . He then developed several businesses, including a real estate search portal.
His breakthrough came in 2012, while working in a four-bedroom apartment in Beijing, he created the first hit of ByteDance – a joke-sharing app later shut down by censorship. It then turned to news aggregation before gaining more than a billion users worldwide with its TikTok short video platforms and Chinese twin app Douyin.
In doing so, it has attracted reputable investors such as SoftBank Group, Sequoia Capital, and proprietary trading firm Susquehanna International Group, making it a rarity among Chinese internet startups that are typically absorbed into larger ecosystems. wide of Tencent and Alibaba. Holding of the group.