Together with

Good Morning,

The VIX is falling at record pace, BofA urged bankers to report overwork after a scathing report, Millennial wealth is surging, and hedge funds continue to lean into AI amid portfolio reshuffles.

Check out our new opportunity with Chicago Atlantic Digital Mining Fund, an exciting entryway investment into the digital asset space.

Let’s dive in.

Before The Bell

As of 08/14/2024 market close.

Markets

  • US stocks roses slightly as investors digested encouraging CPI inflation data 

  • Markets are seeing 50-50 odds of 50 bps and 25 bps Fed rate cut, and 90% chance of a second 25 bps ECB rate cut in September

Earnings

  • UBS rose 6% after smashing Q2 profit estimates thanks to cost-cutting and a revenue boost from its consolidation of Credit Suisse (CNBC) 

  • Cisco jumped 6% after beating Q4 EPS and revenue estimates and announcing a cost cutting and restructuring plan to boost financials (CNBC) 

  • What we're watching this week:  

    • Today: Walmart, Alibaba, Applied Materials

  • Full calendar here

Headline Roundup

  • BofA urged bankers to report overwork after WSJ investigation (WSJ)

  • US CPI inflation slowed further to 2.9% (CNBC)

  • New Zealand cut rates for the first time in four years (CNBC)

  • Hedge fund Caxton made $270M in the market turmoil (FT)

  • Hedge funds add Apple in tech portfolio reshuffle (BBG)

  • Investors return to bonds as recession fears stalk markets (FT)

  • Financing conditions remained steady despite market selloff (RT)

  • Investors are cautious of junk / leveraged loans as economy slows (RT)

  • Asian bonds attracted global inflows for a third-straight month (RT)

  • China traders are buying bonds at premium to avoid regulatory curbs (BBG)

  • Demand for bond products is helping boost European ETF inflows (FT)

  • JPMorgan reshuffle erodes power base of Jamie Dimon's top deputy (FT)

  • Victoria's Secret fired and replaced its CEO (BBG)

  • Twenty-six Wall St firms will pay $393M over SEC texting charges (FT)

  • Barclays planned to leave Israeli bond market after activist pressure (FT)

  • Google's ex-CEO retracted WFH blame for Google losing AI race (WSJ)

  • Shareholders' lawyers in $1B Dell case clinch $267M fee award (FT)

  • Australia sued their stock exchange over botched blockchain upgrade (FT)

  • Japan prime minister Kishida is stepping down (CNBC)

  • Millennials' wealth is surging in historic fashion (WSJ)

A Message From Chicago Atlantic

Beyond Bitcoin

We're Chicago Atlantic, an alternative investment management firm with over $1.7 billion in assets under management. Our approach capitalizes on niche strategies where demand for capital exceeds traditional supply. We serve institutions, family offices and private clients.

Today, in partnership with Exec Sum, we've opened our new Digital Mining Fund to all accredited investors.

What's the Opportunity?

A de-risked investment in the crypto space with monthly cash flow distributions, tax depreciation benefits, attractive returns and potential capital appreciation.

Since inception, we have distributed annualized returns of 36 percent. 

Why Invest?

Infrastructure for miners is in high demand. With the Digital Mining Fund, you are investing in real assets with bonus depreciation and in data center infrastructure with significant electrical power availability and applications beyond the crypto landscape. These investments in a fund structure offer less volatility and higher potential for growth than simply buying and holding Bitcoin.

Want to Learn More?

Submit your interest here and a Chicago Atlantic advisor will share the opportunity.

I’m Interested

Deal Flow

M&A / Investments

  • Food giant Mars will acquire snack-maker Kellanova in a $36B cash deal (CNBC) 

  • The Glazer family rejected a record $6B acquisition offer for Tampa Bay Buccaneers (SCO)

  • Energy-focused PE firm EIG is exploring a sale of oil and gas producer Maverick Natural Resources at a $3B valuation, including debt (RT) 

  • Gambling company Flutter is in exclusive talks to buy UK betting company Playtech’s Italian business Snaitech for ~$2.6B (FT) 

  • Performance Food will acquire foodservice distributor Cheney Brothers from the Cheney family and CD&R for $2.1B cash (RT) 

  • StanCorp Financial will acquire insurer Allstate's employer voluntary benefits business in a $2B cash deal (RT) 

  • French PE firm InfraVia Capital is considering a sale of Swiss data center operator Green for ~$1.1B (BBG) 

  • Chinese solar manufacturer Tongwei plans to acquire at least 51% of smaller peer Runergy for up to $700M (BBG) 

  • A consortium led by CK Infrastructure will acquire a portfolio of UK wind farms from Aviva Investors for $449M (FT) 

  • Carlyle and German state lender KfW are in talks with German industrial engineer Thyssenkrupp for a majority stake in its warship division (RT)

  • UBS agreed to sell Credit Suisse's US mortgage servicing business (RT) 

  • Blackstone agreed to buy health-care consulting firm Chartis from Audax Private Equity (BBG)

VC

  • Cybersecurity startup Kiteworks raised a $456M round at a $1B+ valuation led by Insight Partners and Sixth Street Growth (TC)

  • Indian quick commerce startup Zepto raised a $340M Series G at a $5B valuation led by General Catalyst and Mars Growth Capital (TC)

  • EliseAI, an AI-powered property management tool, raised a $75M Series D at a $1B valuation led by Sapphire Ventures (TC)

  • Sahara AI, a decentralized blockchain platform for open and equitable AI, raised $43M from Pantera Capital, Binance Labs, and Polychain Capital (PRN)

  • Capitalize, a platform for consumers and institutions to find and transfer retirement assets, raised a $19M Series B led by RRE Ventures (BW)

  • Sling Money, a global payments fintech, raised a $15M Series A led by Union Square Ventures, Ribbit Capital, and Slow Ventures (BW)

  • Carbon capture materials startup Promethean Particles raised an $8M round led by Mercia Ventures and Aramco Ventures (EU)

  • Levels, a metabolic health app, raised a $10M Series A extension from a16z, Long Journey, and more (BW)

IPO / Direct Listings / Issuances / Block Trades

  • Hong Kong-based luggage maker Samsonite received board approval to pursue a dual listing in US (BBG) 

  • Bitcoin miner Riot Platforms raised its stake in rival Bitfarms to 18.9% (RT)

Debt

  • Mars received a $29B bridge loan from JPMorgan and Citigroup to help finance its $36B acquisition of Kellanova (BBG) 

  • JetBlue Airways raised $2B in junk bonds and $765M in a term loan (BBG) 

  • KKR is in early talks with private lenders for $500M to finance its $775M stake purchase of PR firm FGS (BBG)

Fundraising

  • European PE giant EQT seeks to raise $12.5B for the biggest-ever Asia-focused PE fund (BBG) 

  • LMM software-focused PE firm Resurgens Technology Partners closed its third fund at $800M (WSJ) 

  • Canadian AI VC Radical Ventures raised ~$800M for its latest fund (BBG)

Crypto Corner

  • US transferred ~$600M in seized Bitcoin to a Coinbase wallet (TB)

Exec’s Picks

Financial Services Recruiting 💼

If you're currently a junior banker looking to break into the buy side, lateral to another investment bank, or consider new paths amid changing market dynamics, it's time you check out Litney Partners, a partnership between Litquidity and Whitney Partners (the oldest purely financial services executive search and consulting firm).

We aim to place strong candidates across private equity, hedge funds, venture capital, growth equity, debt funds, and investment banking.

To get started, simply head over to Litney Partners and create your profile by dropping your resume / filling out the form:

GET HIRED

Meme Cleanser

Advertise with us // Visit our merch store // Invest alongside Lit Ventures // Book a call with Lit // Launch your own newsletter