Together with

Good Morning,

Crypto-focused bank Silvergate Capital is shutting down, J Pow said the Fed has not yet decided on the size of its next rate hike, eurozone Q4 GDP growth was revised downward to 0%, Japan posted its largest current account deficit ever in January, EY paused plans to split in two, and Adidas is projecting its first annual loss in 31 years this year.

Today's sponsor, Plaid, released their 2023 Fintech Predictions report, and it's full of gems. Dig into up-and-coming trends and opportunities in the space by downloading the report here!

Let's dive in.

Before The Bell

Markets

• US stocks ended mixed in a volatile trading session yesterday as investors digested comments from day two of J Pow's Congressional testimony and data pointing to a hot labor market  

  • The Fed is awaiting more data before it decides on its rate hike size this month

• Canadian dollar hit a near 5-month low as BoC paused rate hikes

Earnings

• What we're watching this week:  

  • Today: Oracle, JD.com, Ulta Beauty 

• Full calendar here

Headline Roundup

• J Pow said the Fed has not yet decided on the size of its upcoming rate hike (WSJ)

• Private payrolls rose by a better than expected 242k in February (CNBC)

• Eurozone Q4 GDP growth was revised downwards to 0% (RT)

• Bank of Canada left rates unchanged at 4.5% (RT)

• US imports/exports grew 3%+ in January in sign of solid global economy (WSJ)

• Japan posted its largest current account deficit ever in January (RT)

• China plans revamp of financial regulatory system (CNBC) 

• EY paused its plan to split in two amid partner infighting over fate of tax experts (FT)

• President Biden is set to propose a 25% minimum tax on billionaires, as well as other tax increases for investors, though unlikely to pass (BBG)

• Credit Suisse obtained approval to launch wealth business in China (RT)

• Adidas is projecting its first annual loss in 31 years amid Kanye split (CNBC)

• JPMorgan now has more employees in Texas than in New York (BBG)

• JPMorgan named Keith Canton as head of Americas ECM (RT)

• JPMorgan sued former private banking chief Jes Staley for any damages tied to Epstein case (BBG)

• S&P cut Nissan credit rating to junk status in biggest such downgrade since Covid (RT)

• Spotify crossed 500M monthly active listeners (RT)

• Citigroup Vice Chairman Ray McGuire will join Lazard as President (BBG)

• WWE is in talks with state regulators to legalize betting on scripted matches (CNBC)

• Business schools soften admissions requirements to woo laid-off tech workers (BBG)

• Percentage of senior women at European HFs halved since 2021 (RT)

• A US appeals court will decide whether syndicated bank loans are securities (AX)

A Message From Plaid

What’s the Future of Fintech?

There’s no dodging it, the economy has seen plenty of potholes in the last year with rising interest rates and a crypto freeze. With these variables in scope, how’s fintech doing?

In short, Plaid has a pretty good idea. In their 2023 Fintech Predictions report, Plaid sheds light on the current state of fintech while digging into the trends and opportunities on the horizon. 

Download the full report for free right here

What makes the report worth the download? Good question. Here are just a few highlights: 

• The potential repercussions of Dodd Frank 1033 rulemaking on customer access to financial data. 

• Anti-fraud in Fintech and the evolution of security in digital finance

• Banks increased interest in acquiring B2B fintech companies

For anyone looking to have a pulse on the big picture of Fintech in 2023, this report is a must-read. 

You can download it right here for free (but, as always, remember to say “Thank you, Plaid!”)

Deal Flow

M&A / Investments

• Advent International and CVC Capital Partners are among PE firms weighing bids for a minority stake in German airline Lufthansa’s aircraft maintenance and repair unit Technik that could be worth $6.3B+ (BBG)

• Specialty chemicals maker Solenis agreed to buy disinfectant maker Diversey in a $4.6B deal (RT)

• Digital infrastructure firm DigitalBridge is considering a sale of a minority stake in Vantage Data Centers that could be worth $1.5B+ (BBG)

• PE firm Ares Management agreed to invest $375M at a $1.6B valuation in WHP Global, the owner of the Toys “R” Us and Express retail brands (BBG)

• CVC Capital Partners will invest $150M in the Women's Tennis Association and take a 20% stake in a new vehicle called WTA Ventures (BBG)

• Germany renewables firm PNE is exploring a sale of its US solar and wind business (RT)

• Uber Technologies is exploring whether to spin off its Uber Freights logistics arm in a sale or as a separately publicly traded company (BBG)

VC

• Chinese online fashion retailer SHEIN is set to raise ~$2B in a new funding round and is aiming for a US IPO in H2 2023 (RT)

• Electric truck maker Volta Trucks is in advanced talks to raise up to ~$264M (RT)

• Silfab Solar, a North American photo-voltaic module manufacturer, raised a $125M round led by ARC (BW)

• Consensus, a platform for interactive SaaS product demos, raised $110M in funding from Sumeru Equity Partners (TC)

• Humane, a startup building an “integrated device and cloud services platform” for AI, raised a $100M Series C led by Kindred Ventures (TC)

• Socure, a provider of digital identity verification and fraud solutions, entered into a $95M credit facility from JPMorgan, Silicon Valley Bank, and KeyBanc Capital Markets (BW)

• Coherent Logix, a startup providing a system-on-chip (“SoCs”) and advanced development tools for the embedded systems market, raised $85M in funding from Atlas Credit Partners (FN)

• Centurion Invest, a crypto trading platform, raised $25M in a token subscription from GEM Digital (PRN)

• Intelligent asset tracking platform Cognosos raised a $25M round from Riverwood Capital (BW)

• Cloud infrastructure management startup Vantage raised a $21M Series A led by Scale Venture Partners (TC)

• Matchday, a startup building a web3 ecosystem of casual soccer games, raised a $21M seed round from Courtside Ventures, Greylock, HackVC, and others (FN)

• Revelstoke, a low-code security orchestration, automation, and response (“SOAR”) platform, raised a $20M Series B co-led by SYN Ventures and ClearSky (PRN)

• Fly by Jing, a startup bringing authentic Chinese flavors to the modern pantry, raised a $12M Series B from Prelude Growth Partners and Pendulum (PRN)

• Viirtue, a wholesale voice & unified communications-as-a-Service ('UCaaS”) startup, raised a $10.8M Series A led by Ballast Point Ventures IV (FN)

• Kubernetes traffic replay startup Speedscale raised $9M in seed and pre-seed funding led by Grotech Ventures (FN)

• FOUNT, a startup aiming to improve the work environment, raised an $8M Series A led by Lavrock Ventures (PRN)

• Aiberry, an AI-powered mental health screening startup, raised an $8M seed round led by Confluence Capital Group (BW)

• Patchworks, a UK-based business app integration platform, raised a $4.7M round led by Gresham House Ventures (FN)

• Web3 email startup EtherMail raised a $4M pre-Series A led by Tim Draper and Draper Associates (PRN)

• Compensation management platform Barley raised a $4M seed round led by Golden Ventures (PRN)

• ViridiCO2, a startup aiming to convert waste CO2 into valuable chemical products, raised a $3.6M seed round led by EQT Ventures (FN)

• Early-stage cancer detection startup CanSense raised a $1.8M round led by Mercia and Nonacus (FN)

IPO / Direct Listings / Issuances / Block Trades

• Utility American Water Works sold over $1.7B in stock in the largest US follow-on offering since June (WSJ)

• Chinese home rental platform Zirom is considering a Hong Kong IPO that could raise ~$1B (BBG)

• 3G Capital sold over $470M of stock in Burger King-owner Restaurant Brands International via block trade (WSJ)

• Bed Bath & Beyond raised another $135M in equity as part of its $1B deal to avoid bankruptcy (RT)

• Investcorp, the Middle East’s biggest alternative asset manager, is considering listing an investment vehicle in Abu Dhabi (BBG)

Debt

• Johnson & Johnson spinoff Kenvue will sell a $7.75B bond to finance its separation from J&J later this year (BBG)

• State Bank of India raised ~$453M from its third AT1 bond sale at an 8.25% coupon (BS)

Bankruptcy / Restructuring

• Crypto lender Celsius Network is seeking additional bids, despite having an offer to exit bankruptcy under guidance of asset manager NovaWulf Digital Management (RT)

Fundraising

• London-based PE firm Permira raised $17.7B for its latest flagship fund (BBG)

• Danish debt investor Capital Four raised ~$1B for its Private Debt V fund (GC)

• Berlin VC fund La Famiglia raised ~$265M for for its combined third seed fund and its first growth co-investment fund to invest in B2B startups (TC)

• Digital asset fund Alpha Sigma Capital and Transform Ventures will raise $100M for two new funds focused on the blockchain and Web3 ventures (RT)

• Ohio-based VC firm Drive Capital launched an $80M seed fund for startups between the Hudson River and Rocky Mountains (FN)

Crypto Corner

• Crypto-focused bank Silvergate Capital will shut down operations and liquidate (CNBC)

• JPMorgan is ending its banking relationship with crypto exchange Gemini (CD)

• Silvergate short bets have earned investors ~$780M (BBG)

• Axa Investment Managers registered as a crypto service provider in France (RT)

• All crypto companies in India must now KYC users (BW)

Exec's Picks

• How to Invest is a master class on investing featuring conversations with the biggest names in finance, from the legendary cofounder of The Carlyle Group, David M. Rubenstein. Check out his latest book here.

• Joe Pompliano covered how Netflix has dominated sports media without any live sports rights.

Litney Partners - Financial Recruiting 💼💼

If you're currently a junior investment banker looking to break into the buy side, considering lateraling to another investment bank, or have recently been impacted by 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 at leading private equity, hedge fund, venture capital, growth equity, and credit funds, as well as investment banks. 

To get started, simply head over to the Litney website and create your profile by dropping your resume / filling out the form:

Meme Cleanser

Advertise with us // Visit our merch store // Invest alongside Lit Ventures

Thinking of starting your own newsletter? Beehiiv is the best platform for creators, period. Click here to get started building your own audience.