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Good Morning,

FTX is considering proposals from three bidders to restart its crypto exchange, Jamie Dimon ripped central banks for being 100% wrong on their forecasts, the BoE is likely to hold its rates steady, Microsoft’s earnings growth accelerated, and China’s property crisis is upending tens of thousands of lives.

With equity and debt markets as volatile as ever, many investors are looking to invest in uncorrelated assets. Accredited investors can access private credit opportunities with APYs up to 20% with today’s sponsor, Percent.

Let’s dive in.

Before The Bell

Markets

• US stocks closed higher as investors digested a fresh round of corporate earnings while monitoring treasury yields

  • The Nasdaq led indices with a 0.93% gain

• European stocks snapped a five-day losing streak thanks to upbeat earnings

Earnings

• Microsoft shares rose 4% after it beat fiscal Q1 estimates for earnings and revenue in all segments; its cloud computing and PC businesses are growing thanks to customer AI product rollout anticipation (RT)

• Alphabet shares fell 6% despite beating Q3 analyst earnings and revenue expectations due to its cloud business missing revenue expectations (CNBC)

• Verizon shares soared 9% in its best day in 15 years after beating Q3 analyst expectations for adjusted earnings, revenue, and postpaid phone net additions (CNBC)

• Coca-Cola reported better-than-expected Q3 earnings and revenue as consumers shook off higher prices; Coca-Cola raised its full-year outlook (CNBC)

• Spotify shares soared 10% after it reported its first quarterly profit in over a year thanks to a price increase, a stronger ad market, and cost control (WSJ)

• What we're watching this week:

  • Today: Meta, Boeing, Evercore, Hilton, T-Mobile, IBM 

  • Thursday: Amazon, Chipotle, Comcast, UPS, Intel, Ford, US Steel

  • Friday: Exxon, Chevron, AbbVie, Piper Sandler, T. Rowe Price

• Full calendar here

Headline Roundup

• Deficit doubling as US economy grows shows why yields are at 5% (BBG)

• Jamie Dimon rips central banks for being ‘100% dead wrong’ on economic forecasts (CNBC)

• Israel-Hamas war casts shadow over Saudi Investment Summit (BBG)

• BoE likely to keep high rates on hold even as signs of slowdown mount (RT)

• Google’s cloud sales disappoint as advertising rebounds (WSJ)

• Elite universities face donor revolt over mideast conflict (WSJ)

• Why China’s 1T yuan debt plan isn’t necessarily such a big deal (CNBC)

• Debt and scandal throw billionaire Drahi’s empire into turmoil (BBG)

• Microsoft earnings growth accelerates on stronger-than-expected cloud demand (WSJ)

• Meta’s harmful effects on children is one issue that unites Republicans and Democrats (CNBC)

• GE, Safran find bogus parts on more jet engines in AOG probe (BBG)

• Chevron’s Hess deal leaves future of midstream firm in question (BBG)

• Cruise’s driverless-car permits suspended in California by DMV (WSJ)

• The corporate retreat from Hong Kong is accelerating (WSJ)

• China’s property crisis is upending tens of thousands of lives (BBG)

A Message From Percent

Finding returns in a ‘higher-for-longer’ interest rate environment

With interest rates expected to remain high through 2024, can investors still find outsized returns? Yes, with private credit. Investment management firm KKR¹ expects private credit to outperform the S&P 500, Russell 2000, and US 10-year Treasuries over the next 5 years.

Private credit can provide higher yields, recurring income, and portfolio diversification. That’s why large fund managers and pensions continue to increase private credit allocations, and why the market is expected to reach $2.3 trillion by 2027².

And, with a lower correlation to public markets, such as equities and bonds, Morgan Stanley³ research shows adding private credit can help reduce portfolio volatility and improve risk-adjusted returns.

Percent gives accredited investors access to opportunities previously available only to big-name investors. Find APYs up to 20% on the only platform exclusively focused on making private credit investing more transparent and accessible. On Percent, it’s easy to find deals, compare their yield/income mix, and invest.

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1.KKR
2.2.3 Trillion by 2027
3.Morgan Stanley

Deal Flow

M&A / Investments

• The Bank of Montreal is exploring a sale of a portfolio of recreational vehicle loans with a face value of at least $5B (BBG)

• Poland picked France's Vinci Airports and Australian IFM Global Infrastructure Fund as preferred investors in a planned aviation hub for Central and Eastern Europe; they may invest up to $1.9B (RT)

• French sporting goods retailer Decathlon is exploring a minority stake sale in its $1B China business (BBG)

• Arthur J Gallagher will acquire Cadence Bank’s insurance brokerage business for $904M (RT)

• Macquarie Asset Management will acquire a majority stake in fiber internet business SwyftFiber through a ~$275M structured equity investment (BBG)

• Chicago-based Madison Industries will acquire Canada-based CAE’s healthcare business for $226M (RT)

• European real estate services and technology group Emeria will acquire Chestertons, one of the UK’s oldest estate agents, for ~$122M (FT)

• Italian furniture group Poltronesofà will acquire sofa and flooring retailer ScS in a $121M deal (FT)

VC

• Aiolos Bio, a clinical-stage biopharmaceutical company focused on respiratory and inflammatory conditions, raised a $245M Series A led by Atlas Venture, Bain Capital Life Sciences, and Forbion (BW)

• Clean energy startup Husk Power Systems raised a $103M Series D ($43M equity / $60M debt) from STOA Infra & Energy, International Finance Corporation, and Proparco (TC)

• Rampart Bioscience, a biotech company developing DNA-based medicines, raised an $85M Series A led by Forbion (BW)

• Adlumin, a security operations platform and managed detection and response provider, raised a $70M Series B led by SYN Ventures (BW)

• Quantum Systems, an AI-powered drone robotics company, raised a $67.6M Series B led by HV Capital and DTCP (EU)

• AI-based data center optimization startup MangoBoost raised a $55M Series A led by IMM Investment and Shinhan Venture Investment (TC)

• Zenoti, a cloud-based software solution for the beauty and wellness industry, raised a $50M Series C led by Tiger Global (VC)

• Censys, a cybersecurity startup, raised a $50M Series C and $25M in debt from investors including Google Ventures, Greylock, Decibel, and Intel Capital (TC)

• DermBiont, a clinical-stage biotechnology company focused on targeted topical therapeutics for dermatological indications, raised a $35.2M Series B led by Double Point Ventures (BW)

• Web3 security startup Blockaid raised a $33M Series A led by Ribbit, Variant, Cyberstarts, Sequoia, and Greylock (FN)

• EarthGrid, a startup building infrastructure for infrastructure tech, raised a $30M seed round led by Netcapital (BW)

• Signos, a metabolic health platform that includes a continuous glucose monitor, raised a $20M Series B led by Cheyenne Ventures and GV (BW)

• Greater Good Health, a healthcare organization enabling and expanding access to value-based care for seniors, raised a $20M Series A led by Flare Capital Partners (BW)

• LyGenesis, a clinical-stage biotechnology company focused on cell therapies, raised a $19M Series A-2 led by Prime Movers Lab (FN)

• Financial data reconciliation platform Aleph raised a $16.7M round led by Bain Capital Ventures (TC)

• Insurtech startup QuoteWell raised a $15M Series A led by New Enterprise Associates (PRN)

• AirWorks, an AI-powered mapping solution, raised $15M in funding led by PSG (BW)

• PhaseV, a startup specializing in causal machine learning for clinical trial design and analysis, raised a $15M round led by Viola Ventures and Exor Ventures (FN)

• OnsiteIQ, a construction intelligence platform for commercial real estate investors, raised a $14M Series B led by Vertical Venture Partners (BW)

• German video platform Oxolo raised a $13.7M Series A led by DN Capital (TC)

• Eden, a startup enabling targeted permeability enhancement for geothermal, geologic hydrogen, geologic carbon storage, and sustainable mining, raised a $12M seed round led by TechEnergy Ventures and Helmerich & Payne (BW)

IPO / Direct Listings / Issuances / Block Trades

• Midea Group, China’s largest home appliance maker with a $51B market cap, filed for a Hong Kong IPO and could sell 10% of its total capital (BBG)

• OQ Gas Networks rose 7% on its trading day debut after raising $749M in its IPO, Oman’s largest on record (BBG) 

• Kokusai Electric shares climbed 15% today on its debut day of trading on the Tokyo Stock Exchange in a $723M IPO, Japan’s largest since 2018 (BBG)

• Investcorp Capital plans to raise $322M in its Abu Dhabi IPO (RT)

SPAC

• Critical care products developer Citius Pharmaceuticals will merge with TenX Keane Acquisition in a $675M deal (PRNW)

Debt

• KKR reached an agreement with a consortium of private lenders led by Blue Owl Capital for a new $2.3B unitranche loan paying 6% above benchmark that will help it recapitalize its portfolio company, veterinary hospital chain PetVet Care Centers (BBG)

• Commonwealth Bank of Australia raised $794M through an issuance of subordinated notes (RT)

• South American nation Suriname offered to swap $675M worth of dollar bonds for new notes, including those linked to oil royalties (BBG)

• Concord Music Group finalized a $500M asset-backed bond sale with Apollo Global Management to help finance its acquisition of Round Hill Music (BBG)

Bankruptcy / Restructuring

• Air Methods, which is owned by PE firm American Securities, filed for bankruptcy protection with a plan to reduce $1.7B of debt (RT)

Fundraising

• OrbiMed Advisors raised a combined $4.3B for its ninth flagship heath care VC fund, its fifth Asia-focused fund, and its fourth royalties and credit opportunities fund (AX)

• Major Investments, which is a VC dedicated to Israeli technologies, closed its second fund, Maor II, at $180M (FN)

Crypto Corner

• FTX is negotiating with three bidders to restart trading (BBG)

• Crypto lender BlockFi exited bankruptcy and will wind down operations and return crypto assets to customers (RT)

Exec’s Picks

• The time for a more powerful perspective is here. Tegus provides access to expert calls, custom financial models, and public filing data — all in one place. Trial Tegus for free today.

• Remember the guy who got locked out of his USB with $235M in bitcoin? One team of hackers cracked the code, but then the situation got weird.

• Endowment funds are getting hampered by startup valuation write-downs, according to The Wall Street Journal.

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