Largest Pharma Companies by revenue, 2016-2022

 

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Global EV Production: BYD Surpasses Tesla

 

2022 was another historic year for EVs, with annual production surpassing 10 million cars for the first time ever. This represents a sizeable bump up from 2021’s figure of 6.7 million.

In this infographic, we’ve used data from EV Volumes to visualize the top 15 brands by output. The color of each brand’s bubble represents their growth from 2021, with the darker shades depicting a larger percentage increase.

BYD Auto

BYD Auto has leaped past Tesla to become the new EV king, boosting its output by a massive 211% in 2022. Given this trajectory, the company will likely become the world’s first automaker to produce over 2 million EVs in a single year.

BYD has a limited presence in non-domestic markets, but this could change rather quickly. The company is planning a major push into Europe, where it expects to build factories in order to avoid EU tariffs on Chinese car imports.

The company is also building a factory in Thailand, to produce right-hand drive models for markets like Australia, New Zealand, and the UK.

Tesla

#Tesla increased its output by a respectable 40% in 2022, staying ahead of Western brands like Volkswagen (+10%) and GM (+13%), but falling behind its Chinese rivals such as Geely (+251%).

Whether these Chinese brands can maintain their triple digit growth figures is uncertain, but one thing is clear: Tesla is facing more competition than ever before.

The company is targeting annual production of 20 million cars by 2030, meaning it will need to keep yearly growth rates in the high double digits for the rest of the decade. To support this initiative, Tesla is planning a multi-billion dollar factory in Mexico capable of producing 1 million cars a year.

Hyundai

Hyundai Motor Company, which also owns Kia, posted a similar growth rate to Tesla. The South Korean automaker was a relatively early player in the EV space, revealing the first Hyundai Ioniq in 2016.

In late 2022, several countries including South Korea expressed their disapproval of the Biden administration’s Inflation Reduction Act, which withdrew tax credits on EVs not produced within the United States.

Hyundai is currently building a $5.5 billion EV factory in the state of Georgia, but this facility will not become operational until 2025. In the meantime, South Korea has revised its own EV subsidy program to favor domestic brands.

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The 25 Largest Private Equity Firms in One Chart

 

By

 Omri Wallach

Frequent the business section of your favorite newspaper long enough, and you’ll see mentions of private equity (PE).

Maybe it’s because a struggling company got bought out and taken private, just as Toys “R” Us did in 2005 for $6.6 billion.

Otherwise, it’s likely a mention of a major investment (or payout) that a PE firm scored through venture or growth capital. For example, after Airbnb had to postpone its original plans for a 2020 initial public offering (IPO) in light of the pandemic, the company raised more than $1 billion in PE funding to plan for a new listing later this year.

Yet many people don’t fully understand the size and scope of private equity. To demonstrate the impact of PE, we break down the funds raised by the top 25 firms over the last five years.

How Private Equity Firms Operate

First, we need to differentiate between private equity and other forms of investment.

A PE firm makes investments and provides financial backing to startups and non-public companies (or public companies that are being taken private).

Each firm raises a PE fund by pooling capital from investors, which it then uses to carry out transactions such as leveraged buyouts, venture and growth capital, distressed investments, and mezzanine capital.

Unlike other investment firms such as hedge funds, private equity firms take a direct role in managing their assets. In order to maximize value, that can mean asset stripping, lay-offs, and other significant restructuring.

Traditionally, PE investments are held on a longer-term basis, with the goal of maximizing the target company’s value through an IPO, merger, recapitalization, or sale.

The List: The Most PE Funds Raised in Five Years

So which names should you know in private equity?

Here are the largest 25 private equity firms by their five-year PE fundraising total over the last five years, with data on funds and investments from respective firms and Private Equity International.

They include well-known private equity houses like The Blackstone Group and KKR (Kohlberg Kravis Roberts), as well as investment managers with private equity divisions like BlackRock.

Rank	Private Equity Firm	5-Year Funds Raised ($B)	Notable Current Investments
1	The Blackstone Group	95.95	Refinitiv, Merlin Entertainments
2	The Carlyle Group	61.72	ZoomInfo, PPD
3	Kohlberg Kravis Roberts & Co.	54.76	Axel Springer SE, Epic Games
4	TPG Capital	38.68	Cirque du Soleil, Cushman & Wakefield
5	Warburg Pincus	37.59	Airtel, Sundyne
6	Neuberger Berman	36.51	Marquee Brands, Telxius
7	CVC Capital Partners	35.88	Petco, Premiership Rugby
8	EQT Partners	34.46	Dunlop Protective Footwear, SUSE
9	Advent International	33.49	Cobham, Serta Simmons Bedding,
10	Vista Equity Partners	32.1	Finastra, Mindbody

11	Leonard Green & Partners	26.31	Lucky Brand, Signet Jewelers
12	Cinven	26.15	Kurt Geiger, Hotelbeds
13	Bain Capital	25.74	Virgin Voyages, Canada Goose
14	Apollo Global Management	25.42	ADT, Chuck E Cheese's
15	Thoma Bravo	25.29	Dynatrace, McAfee
16	Insight Partners	22.74	Monday.com, HelloFresh
17	BlackRock	22.46	Authentic Brands Group, Qumulo
18	General Atlantic	22.42	Airbnb, Vox Media
19	Permira	22.21	Dr. Martens, Informatica
20	Brookfield Asset Management	21.69	Multiplex, Westinghouse Electric

21	EnCap Investments	21.33	Pegasus Resources, Lotus Midstream
22	Francisco Partners	19.13	Verifone, GoodRx
23	Platinum Equity	18.00	Livingston International, Palace Sports & Entertainment
24	Hillhouse Capital Group	17.89	Miniso, Belle International
25	Partners Group	17.87	Civica, KinderCare Education

Most of the world’s top PE firms, including TPG Capital (which invested in Ducati Motorcycles, J. Crew, and Del Monte Foods) and Advent International (an early investor in Lululemon Athletica) are headquartered in the U.S.

In fact, of the largest 25 private equity firms in the last five years, just four are headquartered in Europe (CVC, EQT, Cinven, and Permira) and one in Asia (Hillhouse).

Another name that might be recognizable is Bain Capital, which was co-founded by Utah Senator and former Republican Presidential nominee Mitt Romney and found success with investments in AMC Theatres, Domino’s Pizza, and iHeartMedia.

Famous Private Equity Investments

One of the most surprising things investors discover about private equity is how many large organizations have been funded through the PE world.

More well-known investments include KKR’s $31.1 billion takeover of food and tobacco conglomerate RJR Nabisco in 1989, and Blackstone’s $26 billion buyout of Hilton Hotels Corporation in 2007.

But other well-known companies have been funded, saved, or restructured through private equity. That list includes grocery chain Safeway, fast food chain Burger King, international racing operator Formula One Group, and hotel and casino company Caesars Entertainment (then called Harrah’s Entertainment).

Many other notable investments could soon pay off for private equity. With IPOs back in season, tech companies like Airbnb and Epic Games are ripe for payouts. At the same time, restructuring companies like J. Crew and Chuck E Cheese’s always offers a chance to recapitalize.

With the COVID-19 economic downturn resulting in newly distressed companies and potential takeover targets, expect the private equity world to be very active in the foreseeable future.

https://bit.ly/3BSKC1B

Ranked: The Most Innovative Companies in 2021

 

By 

Carmen Ang

Ranked: the Top 50 Most Innovative Companies in 2021

This year has been rife with pandemic-induced changes that have shifted corporate priorities—and yet, innovation has remained a top concern among corporations worldwide.

Using data from the annual ranking done by Boston Consulting Group (BCG) using a poll of 1,600 global innovation professionals, this graphic ranks the top 50 most innovative companies in 2021.

We’ll dig into a few of the leading companies, along with their innovative practices, below.

Most Innovative Companies: A Breakdown of the Leaderboard

To create the top 50 innovative company ranking, BCG uses four variables:

• Global “Mindshare”: The number of votes from all innovation executives.
• Industry Peer Review: The number of votes from executives in a company’s industry.
• Industry Disruption: A diversity index to measure votes across industries.
• Value Creation: Total share return.

For the second year in a row, Apple claims the top spot on this list. Here’s a look at the full ranking for 2021:

	Company	Industry	HQ
1	Apple	Technology	U.S.	--
2	Alphabet	Technology	U.S.	--
3	Amazon	Consumer Goods	U.S.	--
4	Microsoft	Technology	U.S.	--
5	Tesla	Transport & Energy	U.S.	+6
6	Samsung	Technology	South Korea	-1
7	IBM	Technology	U.S.	+1
8	Huawei	Technology	China	-2
9	Sony	Consumer Goods	Japan	--
10	Pfizer	Healthcare	U.S.	Return

11	Siemens	Technology	Germany	+10
12	LG Electronics	Consumer Goods	South Korea	+6
13	Facebook	Technology	U.S.	-3
14	Alibaba	Consumer Goods	China	-7
15	Oracle	Technology	U.S.	+10
16	Dell	Technology	U.S.	+4
17	Cisco Systems	Technology	U.S.	-5
18	Target	Consumer Goods	U.S.	+4
19	HP Inc.	Technology	U.S.	-4
20	Johnson & Johnson	Healthcare	U.S.	+6

21	Toyota	Transport & Energy	Japan	+20
22	Salesforce	Technology	U.S.	+13
23	Walmart	Consumer Goods	U.S.	-10
24	Nike	Consumer Goods	U.S.	-8
25	Lenovo	Technology	Hong Kong SAR	Return
26	Tencent	Consumer Goods	China	-12
27	Procter & Gamble	Consumer Goods	U.S.	+12
28	Coca-Cola	Consumer Goods	U.S.	+20
29	Abbott Labs	Healthcare	U.S.	New
30	Bosch	Transport & Energy	Germany	+3

31	Xiaomi	Technology	China	-7
32	Ikea	Consumer Goods	Netherlands	Return
33	Fast Retailing	Consumer Goods	Japan	Return
34	Adidas	Consumer Goods	Germany	Return
35	Merck & Co.	Healthcare	U.S.	Return
36	Novartis	Healthcare	Switzerland	+11
37	Ebay	Consumer Goods	U.S.	Return
38	PepsiCo	Consumer Goods	U.S.	Return
39	Hyundai	Transport & Energy	South Korea	Return
40	SAP	Technology	Germany	-13

41	Inditex	Consumer Goods	Spain	Return
42	Moderna	Healthcare	U.S.	New
43	Philips	Healthcare	Netherlands	-20
44	Disney	Media & Telecomms	U.S.	Return
45	Mitsubishi	Transport & Energy	Japan	New
46	Comcast	Media & Telecomms	U.S.	New
47	GE	Transport & Energy	U.S.	Return
48	Roche	Healthcare	Switzerland	Return
49	AstraZeneca	Healthcare	UK	New
50	Bayer	Healthcare	Germany	-12

One company worth touching on is Pfizer, a returnee from previous years that ranked 10th in this year’s ranking. It’s no surprise that Pfizer made the list, considering its instrumental role in the fight against COVID-19. In partnership with BioNTech, Pfizer produced a COVID-19 vaccine in less than a year. This is impressive considering that, historically, vaccine development could take up to a decade to complete.

Pfizer is just one of four COVID-19 vaccine producers to appear on the list this year—Moderna, Johnson & Johnson, and AstraZeneca also made the cut.

Meanwhile, in a completely different industry, Toyota snagged the 21st spot on this year’s list, up 20 places compared to the rankings in the previous year. This massive jump can be signified by the company’s recent $400 million investment into a company set to build flying electric cars.

While we often think of R&D and innovation as being synonymous, the former is just one innovation technique that’s helped companies earn a spot on the list. Other companies have innovated in different ways, like streamlining processes to increase efficiency.

For instance, in 2021, Coca-Cola performed an analysis of their beverage portfolio and ended up cutting their brand list in half, from 400 to 200 global brands. This ability to pare down and pivot could be a reason behind its 20 rank increase from 2020.

Innovation Creates Value

As this year’s ranking indicates, innovation comes in many forms. But, while there’s no one-size-fits-all approach, there is one fairly consistent innovation trend—the link between innovation and value.

In fact, according to historical data from BCG, the correlation between value and innovation has grown even stronger over the last two decades.

For example, in 2020, a portfolio that was theoretically invested in BCG’s most innovative companies would have performed 17% better than the MSCI World Index—which wasn’t the case back in 2005.

And yet, despite innovation’s value, many companies can’t reap the benefits that innovation offers because they aren’t ready to scale their innovative practices.

The Innovation Readiness Gap

BCG uses several metrics to gauge a company’s “innovation readiness,” such as the strength of its talent and culture, its organization ecosystems, and its ability to track performance.

According to BCG’s analysis, only 20% of companies surveyed were ready to scale on innovation.

What’s holding companies back from reaching their innovation potential? The most significant gap seems to be in what BCG calls innovation practices—things like project management or the ability to execute an idea that’s both efficient and consistent with an overarching strategy.

To overcome this obstacle, BCG says companies need to foster a “one-team mentality” to increase interdepartmental collaboration and align team incentives, so everyone is working towards the same goal.

https://bit.ly/3ntz7pX