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Hedge funds are dropping chip stocks for software, European stocks fell on a far-right election surge, OpenAI named its first CFO and product chief, UK is headed towards a major stock market overhaul, and Apple officially joined the AI race.

Looking to diversify beyond just stocks and bonds? Check out Percent, a highly democratized private credit market for exclusive private credit deals.

Let’s dive in.

Before The Bell

As of 06/10/2024 market close.

Markets

  • US indexes clinched their first winning day in three ahead of the Fed’s rate decision and CPI data due Wednesday

    • The S&P and Nasdaq closed at fresh ATHs

  • European stocks fell, led by a 1.4% drop in France's CAC 40 to a three-month low, and 10-year OAT yields hitting their highest in six months, on far right election victories 

  • Argentina dollar notes hit their lowest in two months on Milei reforms 

  • Mexican peso is down ~8% MTD

  • Wine, olive oil, coffee and cocoa are trading at record highs as climate woes impair supply

Earnings

  • What we're watching this week:  

    • Today: Oracle

    • Wednesday: Broadcom

    • Thursday: Adobe

  • Full calendar here

Headline Roundup

  • Apple introduced 'Apple Intelligence' and new OpenAI partnership in AI push (WSJ)

  • Hedge funds are dumping chip stocks for software (BBG)

  • UK poised to approve biggest overhaul of IPO regime in 40 years (FT)

  • Morgan Stanley CEO says AI could save advisers 15 hours a week (RT)

  • Moelis places banker on leave as it investigates NY altercation (FT)

  • BP toughens workplace intimacy rules in wake of CEO sacking (FT)

  • Singapore ramps up scrutiny of hedge funds and family offices (BBG)

  • Investors reduce exposure to long-term US Treasuries ahead of rate decision (RT)

  • BlackRock cautious on long-term US Treasuries ahead of elections (RT)

  • Outstanding zero-coupon Treasury bonds rose to a ~$500B high (BBG)

  • ECB could wait several meetings between rate cuts (RT)

  • Elliott seeks new leadership and strategy for Southwest Airlines (FT)

  • Nvidia stock split sparks speculation of Dow inclusion (RT)

  • OpenAI named its first CFO and chief product officer (CNBC)

  • CalSTRS will oppose Musk's ~$50B pay package (CNBC)

  • Mexico investors worry lopsided vote could threaten rule of law (RT)

  • JPMorgan named ex-PayPal exec Sri Shivananda as new CTO (RT)

  • Mnuchin's Liberty Strategic Capital reported a 7.7% stake in NYCB (RT)

  • Shopping center vacancy hits two-decade low as retail makes comeback (NYT)

  • 'Promotion recession' adds woes to entry-level job seekers (BBG)

A Message From Percent

How can you add private credit to your portfolio?

In 2023, private credit averaged a 12% return1 and the asset class is poised to grow to $2.3T by 2027.

As an individual investor though, alternative investments like private credit are often out of reach due to deal size and high minimums. 

That's changing with Percent, one of the first platforms to offer private credit to everyday accredited investors and that’s already funded over $1 billion in deals to date. 

What can you find with private credit deals on Percent’s marketplace?

  • Double-digit yield potential: Percent's Q1 LTM net APY was over 14% after fees.

  • Shorter term offerings: The average investment term is 9 months.

  • Diversification: Investors can choose from domestic or international deals in small business loans, trade finance, merchant cash advances, and other forms of direct lending.

  • Low minimums: Investments can start with as little as $500.

  • Monthly cash flow: Most deals offer cash flow through monthly interest payments.

Visit Percent to create an account and view all offerings – plus earn a welcome bonus of up to $500 with your first investment. 

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Deal Flow

M&A / Investments

  • Stonepeak-owned container firm Textainer is in advanced talks to acquire peer Seaco from an arm of failed Chinese conglomerate HNA Group at a potential ~$5B valuation, including debt (BBG) 

  • Apollo Global and IBM's IT spinoff Kyndryl are in talks for a joint bid to acquire IT company DXC Technology, which has a $3.3B market cap (RT) 

  • Vista Outdoor rejected a sweetened takeover offer of over $3B from investment firm MNC Capital (RT) 

  • Billionaire Hildebrand’s family office JDH Capital is leading a $2B cash takeover offer for Vista Outdoor’s ammunition unit Kinetic (FT)

  • Media executive Edgar Bronfman Jr. and Bain Capital are considering an over $2B offer for Paramount Global parent National Amusements (BBG) 

  • Offshore rig contractor Noble will purchase smaller rival Diamond Offshore Drilling in a $1.6B cash-and-stock deal (RT) 

  • Blackstone and Mexican developer MRP Group joined a bidding war for industrial REIT Terrafina with an all-cash tender offer for 100% of shares (BBG) 

  • IT consultant Cognizant agreed to acquire engineering firm Belcan from PE firm AE Industrial Partners in a $1.3B cash-and-stock deal (WSJ) 

  • Bain Capital offered to acquire Australian automotive parts retailer Bapcor for $1.2B (RT)

  • Ambar Energia will acquire a portfolio of thermoelectric power plants from Brazilian utility giant Eletrobras for $878M (RT) 

  • UAE investor Magellan Group agreed to pay over $754M for lender Danish Ship Finance (BBG) 

  • Home repair company Frontdoor will acquire 2-10 Home Buyers Warranty from PE firm Genstar Capital in an all-cash $585M deal (WSJ)

  • Real estate fund ARA Korea will acquire the Conrad hotel in Seoul from Brookfield Asset Management for $302M (BBG) 

  • US-listed company Critical Metals agreed to buy a 92.5% stake in the Tanbreez rare earth deposit in Greenland in a $211M deal (BBG) 

  • The Netherlands is considering a private sale or IPO for state-owned bank De Volksbank (BBG) 

  • UTA will acquire Representatives of Outstanding Footballers (BBG) 

  • Australian mining giant Rio Tinto will buy Mitsubishi Corp's 11.65% stake in JV Boyne Smelters (RT)

  • Japanese investment bank Daiwa Securities will buy a stake in Aozora Bank from a prominent activist fund (BBG)

  • Bitcoin miner Bitfarms adopted a poison pill against a hostile takeover by rival Riot Platforms (BBG)

VC

  • Italian AI startup iGenius is seeking to raise ~$700M at a ~$1.8B valuation  (BBG) 

  • Fibe, an India consumer app focused on young, tech-savvy consumers, raised a $90M Series E led by TR Capital, Trifecta Capital, and Amara Partners (FN)

  • Relay, a cloud-based communications platform for frontline teams, raised a $35M Series B led by G2 Venture Partners (PRN)

  • Nexus Laboratories, a zero-knowledge cryptography startup, raised a $25M Series A led by Lightspeed and Pantera Capital (PRN)

  • Anterior, a healthcare administrative AI startup, raised a $20M Series A led by NEA (BW)

  • Continuity, a French AI-powered risk detection platform for commercial insurers, raised a $10.9M Series A led by 115K (FN)

  • Whoosh Inc., a club operations software solution, raised a $10.3M Series A led by AlleyCorp (PRN)

  • FirmPilot, an AI marketing engine for law firms, raised a $7M Series A led by Blumberg Capital and DoubleVerify (FN)

  • Cybersecurity startup OnSecurity Technology raised a $6.5M seed round led by Gresham House Ventures (FN)

  • Jump, an AI software for financial advisors, raised a $4.6M round led by Sorenson Capital (FN)

  • Tomato.ai, an AI-powered speech accent softening software, raised a $2.1M seed extension from Cardumen Capital, Recursive Ventures, and Gaingels (FN)

IPO / Direct Listings / Issuances / Block Trades

  • Media network Newsmax is weighing a $225M private placement followed by a $75M potential Q4 IPO (WSJ)

  • Ticketing platform operator StubHub is preparing for a US IPO as soon as July (BBG) 

SPAC

  • Chinese trade financing company Oabay will merge with Bayview Acquisition Corp. in a $393M deal (MW) 

Debt

  • Debt-laden Atos chose anchor investor David Layani's offer to restructure debt (RT)  

Fundraising

  • Montreal-based VC Inovia Capital raised $300M for a $450M-targeted third growth equity fund (BK)

Crypto Corner

  • All top crypto VCs saw AUM valuation increases in 2023 (DL)

  • Bitcoin saw $2B in inflows last week (CD) 

Exec’s Picks

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