WeWork mania, Citigroup winds down a secretive $1 billion business, real-estate data changing the game

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Hey, everyone.

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.

If you aren't yet a subscriber to Wall Street Insider, you can sign up here.

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:

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!

Olivia


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.

READ MORE HERE »

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.

READ MORE HERE »

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.

READ MORE HERE »

'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 marry real estate and technology.

Business Insider spoke with executives at companies ranging from short-term-rental firms to commercial real-estate brokerages about the ways data will change how we work and live and the way that real-estate pros do their jobs.

READ MORE HERE »

Big Wall Street banks are quietly forming a group to explore the hidden risks in AI, and it shows how much the finance industry still has to learn about the technology

Wall Street is as competitive as it gets, but sometimes everyone benefits from working together. And when it comes to understanding the intricacies of artificial intelligence, some of Wall Street's largest financial firms have recognized the benefit of putting their heads together.

Citi and Morgan Stanley are among a group of large global banks banding together to create a working group examining the risks they may face when using artificial intelligence, according to three sources involved in the project.

While it's still early days, and specific goals for the group haven't been established, the hope is that by working together Wall Street will develop a better understanding of how best to use the innovative technology appropriately.

READ MORE HERE »

What it's like to launch a hedge fund when even the biggest managers are struggling and long-short equity is a 'dirty word'

Launching a hedge fund in 2019 hasn't been easy, and several people who are either raising capital or have recently launched gave us an inside look at the process.

More funds have been liquidated instead of launching, and even the biggest funds are struggling to keep assets right now.

"General long-short equity can kind of be almost a dirty word," one person told Business Insider, and new launches are better off with differentiated strategies that can help them stand out.

READ MORE HERE »

Wall Street move of the week:

Balyasny cut 10 people running a $2 billion book. The hedge fund axed the year-old team because of poor performance, sources say.

In markets:

In tech news:

Other good stories from around the newsroom:

 
 
 
 
 
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