Morgan Stanley's Long Romance Of Palantir Pays Off Every Bit Ipo Nears (Also Thiel On Dope)

We don't position coin into IPOs, can't larn the ones nosotros want, besides much of ones nosotros don't; simply the information content of an IPO, both inwards disclosure together with equally a mensurate of stance tin travel quite valuable.
In the illustration of Palantir yous tin bet in that location volition travel tremendous need for the offering documents inwards sure enough northern Virginia locales equally good equally Moscow, Beijing, Tehran together with Tel Aviv.
London together with Paris equally well.

First up, Bloomberg via Crain's New York Business, September 4:

Morgan Stanley is unremarkably at the forefront of whisking immature tech companies public—handling stock offerings for Apple Inc., Google Inc. together with Facebook Inc. Now its bankers are finding it’s also lucrative to slow-walk a unicorn into the lite of day.

After a decade vying with Wall Street rivals, Morgan Stanley is emerging equally the adviser-of-choice for Palantir Technologies Inc., Peter Thiel’s secretive data-mining together with visualization venture. The depository fiscal establishment has earned virtually $60 i G one thousand inwards fees arranging soul funding for the 14-year-old company. That haul powerfulness double if Morgan Stanley handles an initial world offering for Palantir, a bargain people familiar with the affair say is nearing equally the fellowship turns profitable.

The investment bank’s spot at the forepart of the herd caps an unusually long together with elaborate Wall Street courtship of a Silicon Valley startup. Along the way, roughly of the fiscal industry’s largest firms stimulate got taken stakes inwards Palantir, buy the farm its customers, together with inwards i case, fifty-fifty stumbled into a tyke scandal, prompting a severing of ties.

At Morgan Stanley, investment bankers led the endeavor to create a relationship, simply a sleepier portion of the theater also proved pivotal. Its $474 billion asset-management arm helped furnish funding to Palantir, giving the soul enterprise fourth dimension to develop.

Morgan Stanley is with banks that conform equity investments for large investors including theater unit of measurement offices, hedge funds together with sovereign wealth funds, helping heart additional cash into the likes of Uber Technologies Inc., WeWork Cos. together with Flipkart Online Services Pvt.—closely held ventures that, inwards an before era, would in all probability stimulate got gone world already. Part of the argue Palantir picked Morgan Stanley was its powerfulness to piece of employment with government-backed entities that tend to travel patient, long-term shareholders, 2 people said.

Palantir expects to plough a lucre inwards 2018 together with volition in all probability file for an IPO inwards 2019 or early on 2020, according to people with cognition of the matter. The increasingly earnest preparations for its debut stimulate got added urgency to banking relationships that stimulate got been inwards flux for to a greater extent than than a decade.
Representatives for Palantir together with Morgan Stanley declined to comment.

Morgan Stanley began strengthening ties to Palantir Chief Executive Officer Alex Karp to a greater extent than than v years agone inwards an inaugural that involved the bank’s primary operating officeholder at the time, Jim Rosenthal. Morgan Stanley became a client of Palantir together with began raising working capital missive of the alphabet for the information firm. Some of Morgan Stanley’s most senior dealmakers—technology banking primary Michael Grimes, caput of soul sponsors David Dwek, together with atomic number 82 software dealmaker David Chen—nurtured the relationship.

Watching bankers

While regulatory filings demonstrate Morgan Stanley has been the primary depository fiscal establishment arranging soul funding to Palantir inwards recent years, it wasn’t ever necessarily inwards the lead.

JPMorgan Chase & Co. became i of Palantir’s offset large commercial customers, enlisting its assist to hunt for misconduct inwards the wake of the 2008 fiscal crisis. That was a turning betoken for the startup, which previously catered to the Department of Defense together with other authorities agencies. At times, Palantir stationed to a greater extent than than 100 engineers at the bank’s offices, which functioned equally an unofficial query together with evolution lab to prepare commercial applications.

JPMorgan praised Palantir’s software publicly, using it for years to spot insider trading together with fraud, together with inducted the startup into its Hall of Fame. The depository fiscal establishment also bought a stake inwards the venture. But, later on a senior JPMorgan executive got caught using the software to spy on employees, the human relationship unraveled. The depository fiscal establishment quietly unopen downwards the plan a few years ago.

UBS Group AG also has worked with Palantir inwards the past, although its history is less colorful. It helped heighten roughly soul funding for Palantir inwards 2015 simply isn’t currently working equally a formal adviser to the company, 2 people familiar with the province of affairs said.

At its elevation inwards 2015, Palantir investors valued it at $20 billion. An IPO for such a fellowship would generate virtually $60 i G one thousand inwards underwriting fees, according to consulting theater Freeman & Co., which based its gauge on a transaction for $2 billion inwards proceeds....MORE

And at ZeroHedge before today:

How Peter Thiel Made Influenza A virus subtype H5N1 Killing In Tilray

The momentum stock du jour - Tilray - has captivated trader attentions ever since its IPO at $17 inwards July, next which it has catapulted inwards what has been a relentless parabolic fashion. And spell most know the full general storey behind the Canadian pot company, what may come upwards equally a surprise is that Tilray CEO Brendan Kennedy’s Privateer Holdings, holds to a greater extent than than 58 i G one thousand of the full 76 i G one thousand shares outstanding, a stake straight off worth to a greater extent than than $12 billion later on the stock soared to a greater extent than than 10-fold from its July world offering. And, according to Bloomberg, when Tilray’s unlisted Class 1 shares are included, Privateer’s holdings ascent to almost 75 i G one thousand shares, worth to a greater extent than than $15 billion.

The curiously depression float - together with a painful brusk mash - is i of the reasons behind the stock's tremendous move. As Bloomberg notes, the express discover of shares available for trading is also travel adding to the volatility, making it to a greater extent than expensive for skeptical investors to brusk the stock. That nevertheless has non daunted the skeptics such equally Citron Research, which before on Midweek said it remains brusk on Tilray, calling the stock’s surge “beyond comprehension” inwards a Tweet Wednesday.
However, what fifty-fifty fewer know is that i of the biggest winners from Tilray's explosion, is none other than Peter Thiel who is an investor inwards Privateer.

Privateer’s partners include Brendan Kennedy, 46, who serves equally Tilray’s primary executive officer, Michael Blue and Christian Groh. Kennedy together with Blue are both graduates of Yale School of Management’s MBA program. Kennedy together with Groh both formerly worked together at SVB Analytics, a non-bank affiliate of Silicon Valley bank.

Thiel’s Founders Fund became the offset institutional investor inwards the cannabis manufacture through Privateer Holdings’ $75 i G one thousand Series B financing circular inwards Dec 2014, according to the company’s website. That stake may straight off travel approaching (or has surpassed) $1 billion.

And equally investors were counting their profits, Tilray surpassed Canopy Growth equally the world’s largest cannabis company, with a marketplace value of to a greater extent than than $20 billion. Canopy, which added a New York listing inwards May, is worth exclusively $12 billion. Tilray jumped roughly other 50% to $230, giving it a value higher than American Airlines Group....

...MORE