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Good Morning,

Global wealth is on track to decline 2% this year, mutual fund managers are holding record amounts of cash, Biden says a 'slight recession' is possible, JPMorgan broke up with Yeezy, Delta and Starbucks are linking their loyalty programs, Tom Brady and Kim Clijsters are the newest owners of a Major League Pickleball team, and Elon Musk launched a fragrance called 'Burnt Hair' for $100. He really missed a layup with "Elon's Musk" smh.

Shoutout to everyone who made it out to the Founders & Funders event on Tuesday, which I co-hosted with Republic and Carta. More events to come in the near future!

If anyone is in the market for comfortable and stylish dress shirts, check out today's sponsor Mizzen+Main. $35 dollars off a $125+ order with code "EXECSUM" at checkout.

Let's dive in.

Before The Bell

Markets

• US stocks slipped in choppy trading yesterday as investors weighed hot inflation data and the Fed's September meeting minutes while anticipating today's September CPI reading and Friday's slew of bank earnings

  • The S&P 500 hit its lowest close since November 2020

  • Fed's meeting minutes revealed that high interest rates are here to stay

• UK 30Y gilt rose 0.2% on mixed messaging by BoE regarding emergency intervention

• Aluminum spiked 7% on reports that US may ban Russian imports

Earnings

• PepsiCo beat Q3 earnings and revenue estimates and hiked its FY forecast as higher prices helped lift revenue by 9% YoY; their stock gained 4%+ on the day (CNBC)

• What we're watching this week:

  • Today: Delta Air Lines, BlackRock, Taiwan Semiconductor

  • Friday: JPMorgan Chase, Wells Fargo, Morgan Stanley, Citigroup

• Full calendar here

Headline Roundup

• US PPI rose 0.4% in September and 8.5% YoY, a higher-than-expected monthly increase but down 0.2% from August's YoY (CNBC)

• Federal deficit fell by $1.4T in FY 2022: CBO estimate (WSJ)

• Global wealth is on track to decline more than 2% this year (AX)

• Global money market funds saw $89B of inflows in the first week of October, the largest weekly injection into cash since April 2020 (CNBC)

• Mutual fund managers are holding a record amount of cash (CNBC)

• Social Security payments are set for the biggest increase since 1981 (AX)

• Biden said a 'slight recession' is possible but he doesn't anticipate it (AX)

• BoE purchased a record $2.63B of gilts at reverse auction (CNBC)

• UK PM Truss said UK will not cut public spending to fund tax cuts (CNBC)

• Nearly $5B in EU funds were misspent last year in error (RT)

• TikTok parent ByteDance is planning a music-streaming expansion to challenge Spotify (WSJ)

• Intel plans to cut thousands of jobs amid PC demand slump (BBG)

• Philips will write down value of its sleep-apnea business by $1.26B (WSJ)

• Delta Airlines and Starbucks are linking their loyalty programs (CNBC)

• Anti-woke ETF 'God Bless America' launched on Tuesday under ticker 'YALL' (RT)

• ACT test scores fell to its lowest level in over three decades (AX)

• World's first space tourist is set to fly around the Moon with SpaceX (AX)

• Tom Brady is the latest Major League Pickleball team owner (CNBC)

• Elon Musk launched a new fragrance 'Burnt Hair' for $100 (RT)

• A jury ordered Alex Jones to pay nearly $1B in Sandy Hook defamation trial (AX)

• JPMorgan Chase cut ties with Kanye West's Yeezy business (TMZ)

A Message From Mizzen+Main

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Deal Flow

M&A / Investments

• Japanese conglomerate Toshiba chose a consortium led by PE firm Japan Industrial Partners as its preferred bidder for a potential ~$19B buyout (BBG)

• US coal producer Peabody Energy is in talks to combine with Australian rival Coronado Global Resources, a merger which would create a ~$6B giant (WSJ)

• Vista Equity Partners agreed to pay $4.6B for software-security firm KnowBe4 (BBG)

• Canada's Quebec-owned Hydro-Quebec agreed to buy Great River Hydro and its 13 hydroelectric generating stations in a $2B deal, including $750M in debt (BBG)

• Volkswagen is in advanced talks to invest ~$1B towards a JV deal with Chinese autonomous driving startup Horizon Robotics (BBG)

• Indian craft beer maker Bira 91 agreed to buy beverage chain operator The Beer Cafe (RT)

• Brad Pitt’s Plan B Entertainment is exploring strategic options including a possible sale of all or part of the company (WSJ)

VC

• Corporate travel and expense startup TripActions raised $304M in funding at a $9.2B valuation: a $154M equity round led by al6z, Premji Invest, Base Partners and others, and a $150M structured financing deal from Coatue (TC)

• Data-driven mobile gaming tools startup Homa raised a $100M Series B led by Quadrille Capital and Headline (TC)

• Cyber training platform Immersive Labs raised a $66M round led by Ten Eleven Ventures (TC)

• DataGrail, a startup helping companies automate data privacy compliance, raised a $45M Series C led by Third Point Ventures (TC)

• French cybersecurity platform TEHTRIS raised a $42.7M round led by Jolt Capital (PRN)

• Tatum, a blockchain development platform, raised $41.5M in funding led by Evolution Equity Partners (PRN)

• Vanta, a security compliance automation startup, raised a $40M Series B extension from CrowdStrike and others (TC)

• Pleno, a multi-omic instrument platform company, raised a $40M Series A led by Deerfield Management (BW)

• nxyz, a web3 platform enabling fast data infrastructure for blockchains, raised a $40M Series A led by Paradigm (BW)

• Metalenz, a startup building tiny 3D cameras, raised a $30M round led by Neotribe Ventures (TC)

• FOLX Health, a digital healthcare service provider for the LGBTQIA+ community, raised a $30M Series B led by 7wireVentures (PRN)

• Diagrid, a fully-managed Dapr service for Kubernetes, raised $24.2M: a $4.2M seed round led by Amplify and a $20M Series A led by Norwest (TC)

• IronVest, a startup building biometric account access security, raised a $23M seed round led by Accomplice (BW)

• Connectbase, a connectivity marketplace platform, raised a $21M Series C led by DigitalBridge Ventures (PRN)

• Egyptian consumer money app Telda raised a $20M seed round from Sequoia, GFC, and Block (TC)

• Web3 wallet startup Zerion raised a $12.3M Series B fund led by Wintermute Ventures (PRN)

• Net Purpose, a sustainability focused investment platform, raised an $11M Series A led by ETF Partners (TC)

• Isthara, a premium co-living brand and smart food court pioneer, raised $10M in funding led by Eagle Investments (PRN)

• e-Zinc, a zinc air battery startup, raised $7M in venture debt from SVB (BW)

• Shopping cart startup Veeve raised a $6.7M round led by Foothill Ventures and Creative Ventures (TC)

• Sustainability intelligence platform Continue AI raised a $5.7M seed round led by Grove Ventures and Maple Capital (BW)

• Middle Eastern revenue-based financing platform FlapKap raised a $3.6M seed round led by QED (TC)

• Nigerian pharmaceutical B2B marketplace Lifestores Healthcare raised a $3M pre-Series A led by Health54 (TC)

• InVintory, a wine cellaring platform, raised a $1.5M seed round led by NBA players Josh Hart and JJ Redick (PRN)

• UK-based carbon accounting platform Spherics raised a $1.4M round from angel investors (TC)

IPO / Direct Listings / Issuances / Block Trades

• Saudi oil field-services firm Arabian Drilling Co. is set to raise ~$710M at a ~$2.37B implied valuation in a Saudi IPO after pricing its shares at the top of the range; the company drew $43B in orders, underscoring strong investor demand (BBG)

• Chip design firm Socionext raised ~$455M in Japan’s largest IPO this year, defying global rout (BBG)

• Riyadh Cables Group, a Saudi manufacturer and exporter of power and telecom cables, is planning a Saudi IPO that could raise ~$400M (BBG)

Fundraising

• Growth oriented PE firm Sunstone Partners raised a $925M Fund III to focus on growth equity / buyouts in profitable, founder-owned, tech-enabled services and software companies (BW)

Crypto Corner

• Crypto ecosystem is becoming less decentralized: Morgan Stanley report (CD)

• Crypto HF Grayscale accused the SEC in court of setting the bar too high for spot Bitcoin ETFs (RT)

• Prominent UK artist Damien Hirst burned ~$11M worth of his art after selling series of NFTs (RT)

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The Hiring Block 💼

If you're looking to break into finance, lateral, or move out, check out our job board on Pallet, where we curate highly relevant roles for you. We aim to curate jobs across IB, S&T, VC, tech, private equity, DeFi, crypto, CorpDev and more. We'll sift through all the noise on LinkedIn, Indeed, Monster, etc. so you don't have to.

If you're a company looking to hire candidates and want to list a job opening on our board and feature on Exec Sum, click the button below:

Meme Cleanser

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