a16z PE

a16z is moving into PE, PJT's founder expects dealmakers to move from big banks to boutiques, machines are taking the helm at AQR, Amazon is working on a ChatGPT rival, and on-cycle PE recruiting kicked off in the most meme-worthy fashion…

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Litquidity Capital
June 26, 2024

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Good Morning,

a16z is moving into PE, PJT's founder expects dealmakers to move from big banks to boutiques, machines are taking the helm at AQR, Amazon is working on a ChatGPT rival, and on-cycle PE recruiting kicked off in the most meme-worthy fashion…

With summer in full force, Hampton Racquet is excited to announce their 12th season of Rising Stars Tennis Camp - an unparalleled tennis opportunity for your child in the heart of the Hamptons. Check ‘em out!

Let’s dive in.

Before The Bell

As of 06/25/2024 market close.

Markets

  • US stocks closed mixed, with chip stocks recovering as investors bought the dip

  • The 2Y-10Y yield curve inversion deepened to over 50 bps for the first time YTD

Earnings

  • FedEx surged ~14% on a Q4 beat-and-raise thanks to impactful cost cutting efforts despite challenged revenues (RT)

  • What we're watching this week:  

    • Today: Micron, Jefferies, General Mills

    • Thursday: Nike

  • Full calendar here

Headline Roundup

  • Fed's Bowman warned Fed may need to hike rates again (FT)

  • Bulge bracket dealmakers will keep moving to boutiques, PJT founder says (BBG)

  • European banking's biggest merger battle entered uncharted territory (FT)

  • Machines are making increasingly more decisions at AQR (BBG)

  • Germany business sentiment weakened amid political uncertainty (WSJ)

  • Brazilian markets reel on fears of Lula's spending plans (FT)

  • JPMorgan's tax strategy business raked in over $15B from wealthy (FT)

  • Amazon is secretly working on a ChatGPT rival (BI)

  • Nvidia short sellers made $5B from three-day selloff (RT)

  • AI stocks to have big impact on upcoming Russell reconstitution (RT)

  • EU is cracking down on Microsoft, one day after charging Apple (WSJ)

  • BlackRock launched five climate transition ETFs in Europe (FT)

  • Lufthansa will impose a green surcharge on passengers (FT)

  • LVMH’s Arnault acquired a stake in rival Richemont (FT)

  • 401(k) contributions are at a record high (CNBC)

  • Home prices hit another ATH (CNBC)

  • Support for SoftBank CEO's reappointment fell from 96% to 79% (RT)

  • Greenlight Capital slammed 'Head of Macro' Fishback in fresh lawsuit (BBG)

A Message From Bond Life Club

The fun and excitement of the Rising Stars summer camp continues into its 12th season!

Hampton Racquet Club, located in East Hampton, is thrilled to continue the legacy of training and skill-building while providing a summer filled with fun for its youth. As a premier tennis destination for the past decade, Hampton Racquet is renowned for their world-class instructors dedicated to the development and training for children aged 4-18.

This is an unparalleled opportunity for your child to experience coaching in a top-tier facility, right in the heart of the Hamptons.

Don't miss the chance to elevate their tennis skills and passion for the sport.

Deal Flow

M&A / Investments

  • French pharma giant Sanofi called for initial bids for its $20B consumer health unit, which is simultaneously preparing an IPO (BBG) 

  • Brookfield agreed to buy a ~53% stake in French renewables company Neoen at a $6.5B valuation (WSJ) 

  • Volkswagen will invest $5B to form a JV with EV maker Rivian (BBG) 

  • Boeing switched its offer for aerospace supplier Spirit AeroSystems from cash to stock (BBG) 

  • Thoma Bravo is exploring the sale of Canadian automotive market place and software provider Trader, which could be valued at $2.9B, including debt (BBG) 

  • Italy's UniCredit and Hungary’s largest lender OTP Bank submitted competing bids for Baltic bank Luminor, whose owner Blackstone is seeking a $2.3B equity valuation (BBG) 

  • KKR acquired a portfolio of over 5.2k apartment units across the US for $2.1B from Quarterra, the apartment development arm of Lennar (WSJ) 

  • Quantum Capital Group agreed to buy Caerus Oil and Gas for $1.8B (BBG) 

  • A consortium led by global investor Equitix will acquire Macquarie's 40% stake in Italy's Hydro Dolomiti Energia at a ~$1.1B valuation (RT) 

  • Dental implants manufacturer ZimVie, which has a ~$500M market cap, is weighing options including a sale after receiving takeover interest (BBG) 

  • English winemaker Chapel Down Group is kicking off a strategic review that may result in a sale (BBG) 

  • LVMH will acquire Swiza, which owns Swiss high-end clock maker L’Epée 1839  (BBG) 

  • Blackstone made a 'best and final' offer for Hipgnosis Songs Fund (FT)

  • Doordash held takeover talks with UK rival Deliveroo last month (RT)

  • Newsletter platform Beehiiv acquired website builder Typedream (BD) 

VC

  • AI chipmaker Etched raised a $120M Series A led by Primary Venture Partners (CNBC)

  • AI-focused manufacturing startup Bright Machines raised a $106M Series C from Nvidia, Microsoft, and others (RT)

  • Protein-generating AI startup EvolutionaryScale raised a $142M seed round led by Nat Friedman, Daniel Gross, and Lux Capital (TC)

  • Swiss pharmatech startup SkyCell raised a $116M Series D led by Tybourne Capital Management (EU)

  • k-ID, a safety compliance startup for game developers, raised a $45M Series A led by a16z and Lightspeed Ventures (TC)

  • AI-powered internal talent management startup TechWolf raised a $42.75M Series B led by Felix Capital (TC)

  • Package tracking and protection solution Route raised a $40M Series C at a $1.4B valuation led by Hanaco VC (PRN)

  • Coder, a startup moving dev environments to cloud, raised a $35M Series B extension led by Georgian (TC)

  • Healthcare fintech platform Adonis raised a $31M Series B led by Point72 (PRN)

  • Formic, a Robots-as-a-Service for US manufacturers, raised a $27.4M Series A led by Blackhorn Ventures (BW)

  • Deskpro, a help desk solutions provider, raised a $25M Series A led by Elsewhere Partners (PRN)

  • Software-for-hardware startup Sift raised a $17.5M Series A led by GV (TC)

  • Connect Money, a startup for non-banks to offer embedded finance services, raised an $8M seed round led by DisrupTech Ventures, and others (TC)

  • AnchorZero, a platform enabling financial planning for founders, raised an $8M seed round led by Bain Capital Crypto and Spark Capital (FN)

  • Daytona, an open source development environment manager, raised a $5M seed round led by Upfront Ventures (PRN)

  • BlueFlame AI, a GenAI platform for alternative investors, raised a $5M Series A (BW)

IPO / Direct Listings / Issuances / Block Trades

  • Vista-backed automotive SaaS provider Solera is seeking to raise over $1B at an up to $13B valuation in its planned IPO (BBG)

  • Drug-trial software maker Clario confidentially filed for an IPO and is targeting a $10B+ valuation (BBG) 

  • Denmark's Zealand Pharma will sell ~$900M in new shares to fund obesity drug R&D (BBG) 

SPAC

  • Indian data center provider Nidar Infrastructure will merge with Cartica Acquisition Corp. in a ~$2.8B deal (PRN)

Debt

  • UAE sold $1.5B in eurobonds at a 60 bps premium (BBG)

  • Chinese shopping platform Meituan is considering raising over $1B in a bond sale (BBG)

  • Brazilian mining giant Vale sold $1B in dollar bonds at a 210 bps premium (BBG) 

  • HSBC led a $250M ABS financing to Hong Kong fintech FundPark (BBG) 

  • Low-cost gym chain EoS is seeking to raise $100M in private debt (BBG)

Bankruptcy / Restructuring

  • Trucking firm US Logistics Solutions filed for Chapter 7 liquidation (WSJ) 

  • Chinese developer Shimao sweetened offshore debt restructuring terms in efforts to avert liquidation (RT)

  • State-owned Vietnam Airlines risks insolvency if certain debt maturities aren't extended (BBG) 

Fundraising

  • Macquarie Asset Management closed an opportunistic real estate fund at ~$1.9B to invest worldwide (CS)

  • Blackstone raised ~$1.1B for a targeted ~$2B European credit fund (FT)

  • RE PE firm Meadow Partners closed its sixth flagship fund at $530M (BW)  

  • VC giant a16z plans to raise its first PE fund (FR) 

Crypto Corner

  • Bybit surpassed Coinbase as world’s second-largest crypto exchange (BBG) 

  • Memecoins emerged as most profitable crypto sector in H1 (CT)

  • 54% of Japanese institutional investors plan to allocate to crypto (CP)

Exec’s Picks

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Litney Partners - Financial 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 widespread layoffs, 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:

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