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Good Morning,

Hedge funds are hurting from lack of PE exits, Bill Gross thinks Trump would be worse for bond markets, more high-grade borrowers are at risk of downgrade, and Google botched its AI push again.

Looking to diversify into a range of private credit opportunities? Check out Percent, a highly democratized private credit market for exclusive private credit deals.

Let’s dive in.

Before The Bell

Markets

• US and UK stock markets were closed yesterday in observance of regional holidays

• US stocks rebounded on Friday on news of improving consumer outlook on inflation 

  • The Nasdaq rose for a fifth-straight week to an ATH

  • The Dow snapped a five-week win streak

• Markets are now pricing one rate cut in 2024, down from six earlier this year

Earnings

• What we're watching this week:  

  • Today: CAVA

  • Wednesday: Salesforce, HP

  • Thursday: Costco, Dell, Dollar General, Kohl's

• Full calendar here

Headline Roundup

• Hedge funds hit by lack of PE exits (FT)

• Swedish insider trading probe involves PE employees (BBG)

• Bill Gross says Trump would be worse for bond markets than Biden (FT)

• Janet Yellen expressed concerns over rising living costs (FT)

• More US high-grade borrowers at risk of downgrade as economy slows (FT)

• Google's AI search is producing embarrassingly wrong results (TV)

• UK life insurers tripled use of controversial reinsurance deals (FT)

• Trafigura faces off with aluminum bulls over huge metal stash (BBG)

• Most UK-focused pension funds severely lag index tracker (FT)

• US municipalities pile into Israel’s wartime debt (FT)

• UBS successor to CEO Ermotti to come from within bank (FT)

• Equity funds see massive weekly inflows on rate cut hopes (RT)

• 'Asset famine' in China curbs central bank's bond trading ambitions (RT)

• China's property stimulus raises risks for banks in smaller cities (RT)

• Citigroup asked 600 staffers to RTO full-time (RT)

• Boeing sees six-fold rise in employee concerns on safety and quality (RT)

A Message From Percent

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Percent offers investors:

• High APYs: Percent’s average APY is 18.1% as of Mar 31, 2024.

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• Shorter terms: Deals range from 6-36 months.

• Diversification: Access to multiple types of lending through both domestic and international deals.

Deal Flow

M&A / Investments

• KKR is set to receive EU approval for its $23.9B deal to acquire Telecom Italia's fixed-line network (RT) 

• PE firm PAG is considering buying Chinese conglomerate Dalian Wanda Group’s shopping mall properties, which could fetch a $13.8B valuation (BBG) 

• EQT is exploring strategic options including a minority stake sale for Reworld that could value the waste management firm at over $8B, including debt (BBG) 

• $4.8B waste disposal firm Stericycle is considering a potential sale after receiving takeover interest (BBG) 

• PE firm Advent International is nearing a deal to acquire a stake in industrial software firm Prometheus at an over $4B valuation, including debt (BBG) 

• Carlyle is planning a sale of Italian aerospace-focused manufacturer Forgital at a $2.7B EV (RT) 

• UK engineering firm John Wood Group rejected a third ~$2B takeover proposal from Dubai-based Sidara (RT) 

• UK homebuilding giant Persimmon is exploring a $1.3B takeover bid for rival Cala (BBG) 

• UK financial services company Coventry Building Society will acquire Co-operative Bank for $990M cash (RT) 

• ADNOC and Aramco are among firms weighing bids for Shell's downstream assets in South Africa, which could be valued at over $800M (BBG)  

• Swiss private bank Julius Baer is reportedly exploring a potential acquisition of rival EFG International (BBG)

VC

• Musk's xAI raised a $6B Series B at a $24B valuation from investors including Sequoia and a16z (WSJ)

• Indian e-commerce firm Flipkart is raising a $1B round at a $36B valuation led by Walmart and with significant participation from Google (TC) 

• German AI defense startup Helsing AI is in talks to raise a $400M Series C at a $4B valuation led by General Catalyst (EU)

• CBiGroup, a financial services platform for businesses, raised a $15M Series A led by Alpol Capital Family Office (FN)

• Cloud-based spreadsheet app Rows raised an $8.4M seed round led by Indico Capital Partners (EU)

• 5thScape, a startup developing products for VR, raised a $6M seed round (FN)

• ThinkLabs AI, a startup developing technology to enhance grid planning, raised a $5M seed round led by Powerhouse Ventures and Active Impact Investments (FN)

IPO / Direct Listings / Issuances / Block Trades

• Saudi Arabia is planning a ~$10B share sale in state-owned energy giant Aramco (RT) 

• India's Adani Energy Solutions secured board approval to raise as much as $1.5B (BBG) 

• Indian miner Vedanta is considering a share sale that could raise up to $1B (BBG) 

• Healthcare payments software firm Waystar is moving ahead with plans for a $950M IPO (BBG) 

• GameStop raised $933M from an at-the-market equity offering (RT)

• The IPO valuing Mauritian telecoms firm Emtel at $222M made it Mauritius' fifth-most valuable firm (BBG) 

• Luxury sneaker brand Golden Goose is planning a Milan IPO as soon as this week (BBG) 

• French energy giant TotalEnergies is exploring a cross-listing in US, while keeping its shares on Euronext (RT)

Debt

• Brazilian paper/pulp giant Suzano is in talks with Asian banks including Mizuho Financial, Nomura, and Mitsubishi UFJ, on financing a potential bid for $15.8B US rival International Paper (BBG) 

• French battery startup Verkor secured $1.4B in green loans (BBG) 

• Italian financial services specialist DoValue is nearing a $489M financing deal with a group of banks for its combination with Elliott's Gardant servicing unit (BBG)

Bankruptcy / Restructuring / Distressed

• Brazilian airline Gol expects to exit Chapter 11 bankruptcy with a $1.5B equity injection and a $2B debt refinancing (RT) 

• Struggling landlord SBB struck a second financing deal with investment firm Castlelake, to provide a $535M cash injection (BBG) 

• Rite Aid is nearing a deal on a post-bankruptcy financing package that would eliminate $2B in debt (RT) 

• Troubled German landlord Adler struck a deal with creditors to refinance debt and inject liquidity in its second debt overhaul in the last two years (BBG) 

• Italian fashion brand Benetton is planning a restructuring as losses mount (RT)

Fundraising

• China set up its third state-backed fund with $47.5B to back its semiconductor industry (RT) 

Crypto Corner

• A UK woman was sentenced to six years over a $5.6B China Bitcoin fraud (BBG) 

Exec’s Picks

• Considering investments in private markets but not sure how to access them? Check out Nomuscapital for solutions tailored to a range of investment needs, including entity formation, legal and accounting, cap table management…and everything you need to launch your investment fund today.

• The Information's founder Jessica Lessin gave an interesting take on how media companies are making a huge mistake with AI.

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