The Corporate DEI Retreat Courtesy of LegoMy first story of 2024 was headlined: “Big business will be the next target of DEI attacks.” I promise that idea was revelatory enough last January to be worth printing, which shows just how quickly public sentiment has turned against corporate diversity efforts. The backtracking started at heartland brands like Tractor Supply and John Deere, but by December had come for Walmart. The pandemic, inflation, labor shortages, regulatory crackdowns, and geopolitical tensions have kicked CEOs down Maslow’s pyramid from leisurely self-actualization to bare subsistence, and they no longer have the time, money, or credibility to spend on DEI. Trump promised in a sprawling speech on Sunday to “stop woke” and target diversity initiatives at private companies. He has support from a growing group of MAGA money managers pitching, in one investor document seen by Semafor, “the S&P without the woke sh*t.” Obsessed with insurance “There are two kinds of money managers these days: those with an insurance arm, and those that want one,” I wrote in May. Wall Street sees insurance premiums and upfront cash from other products that guarantee retirement income as a cheap and plentiful way to pay for their dealmaking. Private investment firms are acquiring insurers (like Apollo and KKR have done) and striking partnerships to manage their money (the Blackstone and Blue Owl route). Insurers are beefing up their own investing prowess, but most are finding it too little, too late. “Insurance companies over the last two decades really blew it because they got out of investing,” said Anant Bhalla, chief investment officer of JAB, which is on the hunt for an insurer to buy. “So who stepped in? The people who are very good at it.” My last scoop of 2024 (barring any welcome tips between now and Dec. 31) was about Prosperity Life, a major insurer, drawing takeover interest. My prediction for 2025: It will get sold, as will many of the independent companies on this list. Wall Street’s one-stop shops“Private equity retains its image as finance’s youthful rogue, but it is, generationally speaking, an old millennial,” I wrote in March, when we scooped merger talks between two giants. Specialty shops are selling out to superstores that can offer a wider range of products at lower prices. Blue Owl grew from $165 billion to $235 billion in 2024, mostly through acquisitions. BlackRock spent heavily (at some eyebrow-raising prices) on takeovers in credit and infrastructure. General Atlantic made the first major acquisition in its 40-year history. We haven’t yet seen a blockbuster merger, mostly because these firms have healthy egos and distinct cultures. But expect that to change as the pressure on fees continues. In selling itself to BlackRock, HPS showed that even $100 billion in client assets and a long track record of profits isn’t enough to go it alone. | 
