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Good Morning,

Investors are loving Indian healthcare PE and junk bonds, Texas electricity markets are out of control, Sweden became the second rich nation to cut rates, BNPL is generating billions in unaccounted-for debt, and over 85% of the best Covid-era stocks are down since Covid.

Let’s dive in.

Before The Bell

Markets

• US stocks closed mixed yesterday as investors shook off some pullbacks in tech

  • The Dow rose for a sixth-straight day

• Bullish bets on  European gas prices are a two year high

• Short bets on British pound are at a 16-month high

Earnings

• Uber fell ~6% after reporting an unexpected net loss due to equity markdowns (CNBC) 

• Airbnb beat on Q1 top and bottom lines but gave weaker-than-expected guidance despite expectations of robust travel demand causing shares to fall ~8% (CNBC) 

• Shopify plunged ~19% despite better-than-expected Q1 earnings and revenue due to sales guidance that represented a slowdown in growth (CNBC) 

• Robinhood rose ~4% after beating Q1 earnings and revenue estimates driven by the recent stock and crypto rally (CNBC) 

• Toyota smashed Q4 earnings estimates on booming hybrid demand but forecast a 20% FY profit decline citing looming investment in suppliers and strategy (RT)

• What we're watching this week:  

  • Today: Warner Bros Discovery

• Full calendar here

Headline Roundup

• PE targets India healthcare sector with record investments (FT)

• India boom drives Asian junk bond sales to five-year high (BBG)

• 43 of 50 best stocks of Covid are down since 2020 (FT)

• Texas spot electricity prices soared ~10,000% on tight supply (BBG)

• PIMCO adds bond exposure outside US on inflation risks (RT)

• Billions in phantom debt is lurking in BNPL services (BBG)

• Sweden becomes second rich nation to cut rates (WSJ)

• More BOJ board members see need for more rate hikes (RT)

• NYCB remains the cheapest US bank stock among big lenders (RT)

• Wells Fargo named ex-JPMorgan exec Rivas as co-head of CIB (RT)

• Saudi Arabia’s $100B AI fund will divest China if US asks (BBG)

• Rents remain final obstacle in inflation fight (BBG)

• Google employees question why performance isn’t translating to higher pay (CNBC)

• French air traffic controllers granted legal right to turn up late for work (SKY)

A Message From Plaid

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Get the scoop on everything you need to do to help your company onboard customers, authorize accounts, and start making bank by checking out the latest product release from our friends at Plaid. 

Watch their Spring 2024 Product Update here.

Deal Flow

M&A / Investments

• Paramount Global is in talks to open its books to a consortium of Sony Pictures and PE firm Apollo (RT)

• Bain Capital is in talks to take education-software provider PowerSchool at a ~$6B valuation, including debt (RT) 

• CVC Capital Partners will buy an up to 30% stake in Hempel, the Danish owner of upmarket British paint company Farrow & Ball, in a $3.6B+ deal (FT) 

• UK engineering firm John Wood Group rejected a $1.8B buyout proposal from Dubai-based peer Sidara (RT) 

• UK insurance firm Ardonagh will acquire Australia's PSC Insurance in a $1.5B deal (RT) 

• A JV between commodity trader Glencore and Indonesia’s PT Chandra Asri Pacific will acquire Shell Energy and Chemicals Park Singapore in a deal worth up to $1B (BBG) 

• SoftBank is in talks to acquire struggling UK semiconductor startup Graphcore, once valued at $2.8B (BBG) 

VC

• Abound, a UK fintech focused on access to fair credit, raised an $1B debt and Series B round from Citi and GSR Ventures respectively (EU)

• Data and AI governance startup Atlan raised a $105M Series C at a $750M valuation led by GIC (BW)

• XTEND, an AI OS for humans to interact with drones and robots, raised a $40M Series B led by Chartered Group (FN)

• Arbelos Markets, a principal liquidity provider in crypto derivatives markets, raised a $28M seed and debt round led by Dragonfly Capital (PRN)

• Kognitos, a GenAI to automate business processes, raised a $20M Series A led by Khosla Ventures (PRN)

• RunPod, a cloud platform to deploy custom full-stack AI applications, raised a $20M seed round co-led by Intel Capital and Dell Technologies Capital (BW)

• Satellite navigation startup Xona raised a $19M Series A led by Future Ventures and Seraphim Space (PRN)

• AI-driven cash flow management platform Panax raised a $15M round led by Team8 and TLV Partners (BW)

• XR tech startup Optix raised a $15M round led by Primavera Venture Partners (FN)

• Blockchain computation startup Lagrange Labs raised a $13.2M seed round led by Founders Fund (BW)

• Altera, an AI startup creating digital human beings, raised a $9M seed round led by Patron and First Spark Ventures (FN)

• Provable Markets, a provider of front/middle/back office tech for securities finance, raised an $8M Series A led by Dialectic Capital Management (BW)

• Rapid Liquid Print, an additive manufacturing startup, raised a $7M Series A led by HZG Group (FN)

• Token Security, an Israeli machine-first identity security platform, raised a $7M seed round led by TLV Partners and SNR (FN)

• Greenboard, a compliance and operations software for financial services, raised a $4.5M seed round led by Base10 Partners (PRN)

IPO / Direct Listings / Issuances / Block Trades

• Data-center REIT Digital Realty Trust raised $1.5B in US's largest FPO since March (BBG) 

• Indian mining firm and ABG conglomerate subsidiary Hindalco Industries is considering a ~$1.2B IPO of US aluminum products maker Novelis (BBG) 

• Proficient Auto Logistics raised $215M in an IPO priced at the marketed midpoint (BBG)

Debt

• PE-owned Citrix Systems is seeking to sell $1.5B of senior unsecured notes (BBG) 

• Barclays and BNP Paribas are leading $1.1B of debt financing for Apollo Global's purchase of US Silica Holdings (BBG)

• Monopoly maker Hasbro raised $500M in their first bond sale in five years (BBG)

Fundraising

• Tech-focused PE firm Silver Lake raised $20.5B for its seventh PE fund to shift focus back to big takeovers (FT) 

• PE firm Vance Street Capital closed its fourth fund at $775M (FN) 

Crypto Corner

• FTX plans to repay customers in full (FT)

Exec’s Picks

• Work smarter and faster with Rogo, the GenAI Platform for finance. Rogo combines the data you need with finance-specific AI models. Supercharge your research, streamline your diligence process, and automate your recurring work. See Rogo in action here!

• Reuters published a detailed timeline of Archegos' spectacular $10B failure.

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