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Jane Street is the New Wall Street

Bankers are seeing break up fees for ditching offers, Air Canada staff are suspects in a $15M gold heist, UTIMCO wants to replicate a multi-manager hedge fund structure, Asia IB is seeing job cuts, and Jane Street made a killing in Q1.

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Good Morning,

Bankers are seeing break up fees for ditching offers, Air Canada staff are suspects in a $15M gold heist, UTIMCO wants to replicate a multi-manager hedge fund structure, Asia IB is seeing job cuts, and Jane Street made a killing in Q1.

Looking to access private markets alongside a decorated group of Wall Street veterans? Check out today’s sponsor, 10 East.

Let’s dive in.

Before The Bell

As of 04/17/2024 market close.

Markets

  • Major US indexes fell for a fourth-straight day yesterday as investors continued to reassess the path of US rate policy 

    • The S&P suffered its longest slide since January

    • The VIX hit its highest level since October

    • Cboe 1-Month Implied Correlation Index hit a four-month high

  • Wheat prices are at a four-year low on cheap supplies from Black Sea / Europe

Earnings

  • ASML shares fell ~7% after reporting a Q1 earnings beat but missing on revenue with a 22% YoY sales decline and ~66% QoQ net bookings decline (CNBC) 

  • What we're watching this week:  

    • Today: TSMC, Netflix, Blackstone

    • Friday: American Express, P&G

  • Full calendar here

Headline Roundup

  • Jane Street made $4.4B in trading revenue in Q1 (FT)

  • Morgan Stanley and HSBC cut Asia IB jobs on China deals slowdown (RT)

  • UBS plans more layoffs across banking, markets and wealth (BBG)

  • Bankers hit with millions in breakup fees for ditching new jobs (BBG)

  • US may be entering new era of persistently high interest rates (AX)

  • Air Canada staff are suspects in heist of 6.6k gold bars (BBG)

  • Vietnam mounts ‘unprecedented’ $24B rescue for bank where fraud led to a death sentence (RT)

  • E&Fs and pensions seek to emulate hedge-fund 'pod' strategies (BBG)

  • US regional banks seen booking more CRE losses and loan sales (RT)

  • Boeing whistleblower said firm ignores safety concerns at Senate hearing (FT)

  • AI demand threatens global electricity supply (FT)

  • UK inflation fell to 3.2% YoY in March (FT)

  • IMF, World Bank cite significant progress in debt restructuring cases (RT)

  • Telegram expects to hit 1B users by next year (RT)

  • An NBA player was banned for life for betting on games (WSJ)

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Deal Flow

M&A / Investments

  • Abu Dhabi National Energy Company is in talks with major shareholders of $22B Spanish energy firm Naturgy, who include PE firms CVC and GIP, over a potential takeover bid (RT

  • FTC is preparing a lawsuit to block handbag maker Tapestry’s $8.5B planned takeover of rival Capri Holdings (BBG

  • EQT is considering options for Belgian chemical distribution company Azelis Group, which has a $6.1B market cap, after receiving interest from potential buyers (BBG

  • International Distributions Services, the owner of Britain’s Royal Mail, rejected a $3.9B bid from Czech entrepreneur Daniel Kretinsky (BBG)

  • Ontario Teachers' Pension Plan is exploring a sale of luxury senior-living residences Amica Senior Lifestyles, which could be valued at ~$3.6B (BBG

  • Property developer China Vanke is seeking to sell its 21% stake in logistics firm GLP, which it acquired in 2018 for $2.5B (BBG)  

  • French construction company Vinci agreed to buy a 50.01% stake in Edinburgh Airport for $1.6B from GIP (BBG

  • $1.4B billing software company Zuora is exploring options including a sale (BBG

  • State Street is exploring a potential acquisition of Societe Generale’s custody business Societe Generale Securities Services at a potential $1.1B valuation (BBG

  • Abu Dhabi Islamic Bank is in talks to buy a 15% stake in Indonesia's top Islamic lender Bank Syariah Indonesia for $1.1B from Bank Rakyat Indonesia (RT

  • Asian PE firm Affinity Equity Partners will acquire SK Networks car rental business SK Rent-a-Car for ~$612M (WSJ

  • TPG Growth made a $235M strategic majority investment in commercial risk intelligence  platform Sayari (BW)

VC

  • OpenAI-rival Mistral AI is in talks to raise several hundred million dollars at a $5B valuation (TI

  • TPG Growth made a $235M strategic majority investment in commercial risk intelligence  platform Sayari (BW)

  • Spend management startup Ramp raised a $150M Series D at a $7.65B valuation led by Khosla Ventures and Founders Fund (TC)

  • Iceye, a startup building SAR satellites, raised a $93M round led by Solidium Oy (FN)

  • Danish payment solutions startup Flatpay raised a $47M Series B led by Dawn Capital (TC)

  • Anvilogic, a multi-data platform SIEM, raised a $45M Series C led by Evolution Equity Partners (VC)

  • NeuBird, a Gen AI for complex cloud-native environments, raised a $22M round from Mayfield (TC)

  • Vorlon, a cybersecurity startup focused on API breaches, raised a $15.7M Series A led by Accel (TC)

  • FYLD, an AI-powered field work execution platform, raised a $15.8M round led by OTPP (FN)

  • AI Squared, a startup helping organizations deliver data and AI insights into business applications, raised a $13.8M Series A led by Ansa Capital (PRN)

  • Heavy industry energy startup Found Energy raised a $12M seed round led by Autodesk Foundation, GiTV, and more (TC)

  • Toku, a Chilean all-in-one recurring payments platform, raised a $9.3M round led by Gradient Ventures (PRN)

  • Veesual, a virtual try-on platform for fashion, raised a $7.5M seed round led by AVP and Techstars (PRN)

  • Miggo, a cybersecurity startup building the first ADR platform, raised a $7.5M seed round led by YL Ventures (BW)

  • Jago, an Indonesian mobile cafe company, raised a $6M Series A led by Intudo Ventures and BEENEXT Accelerate (FN)

  • YieldNest, a liquid restaking protocol, raised a $5.2M seed round led by Faculty Group, Backed VC, and more (FN)

  • AgentSmyth, an autonomous AI agent for financial services, raised a $2.5M seed round from Michael Rafferty and Craig Milias (VC)

IPO / Direct Listings / Issuances / Block Trades

  • Vietnamese conglomerate Masan Group hired Jefferies, Morgan Stanley and UBS for a potential ~$1B-$1.5B local IPO of its consumer unit (BBG

  • Aerospace parts manufacturer Loar is seeking to raise up to $286M at a ~$2.3B valuation in a US IPO (RT

Debt

  • Morgan Stanley raised $8B through a four-part bond issuance (BBG

  • KKR is preparing to refinance over $4B of debt at medical transport provider Global Medical Response (BBG

Bankruptcy / Restructuring

  • Regional sports broadcaster Diamond Sports Group received US bankruptcy court approval to begin voting on its bankruptcy plan that would eliminate over $8B in debt (RT

  • Parlament Technologies, the former parent of right-leaning social network platform Parler, filed for Chapter 11 bankruptcy protection (WSJ

Fundraising

  • Ares Management is seeking to raise $1.5B for its first fund to lend to specialty healthcare businesses (WSJ

Crypto Corner

  • Crypto exchange Kraken developed its own wallet (CD

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