New Enron Brewing

Crypto HF mangers are working around the clock, Ray Dalio does not see US markets as in a bubble, trouble is intensifying at NYCB, New York shut down a Harvard MBA-run Ponzi scheme, Nasdaq closed at an all-time high, and Chemours is showing signs of an Enron.

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Litquidity Capital
March 01, 2024

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Crypto HF mangers are working around the clock, Ray Dalio does not see US markets as in a bubble, trouble is intensifying at NYCB, New York shut down a Harvard MBA-run Ponzi scheme, Nasdaq closed at an all-time high, and Chemours is showing signs of an Enron.

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Let’s dive in.

Before The Bell

As of 02/29/2024 market close.

Markets

  • US stocks advanced yesterday after inflation data came in line with expectations

    • The S&P and Nasdaq closed at record highs, with the Nasdaq recovering fully from its November 2021 decline 

    • All three major indexes capped a fourth-straight positive month

  • Markets are pricing in a 65% chance of a Fed rate cut in June

Earnings

  • Dell shares jumped ~20% after beating Q4 earnings and revenue estimates that showed strong demand for its AI servers (CNBC)

  • Best Buy beat Q4 earnings estimates but warned of another year of softer sales (CNBC)

  • Birkenstock reported better-than-expected quarterly revenue thanks to higher pricing and rising US demand (CNBC) 

  • Full calendar here

Headline Roundup

  • Fed policymakers look past 'bumpy' inflation toward rate cuts (RT)

  • US inflation eased to 2.4% (FT)

  • Ray Dalio see M7 stocks as "bit frothy but not in a bubble" (LN)

  • Bond giant PIMCO expects term premiums to rise again (RT)

  • Fed's QT may play out till 2025 (RT)

  • Foreign investors withdraw from Japanese stocks amid record highs (RT)

  • Tesla to earn billions by opening charging network to Ford, other EVs (CNBC)

  • NYCB fall over 20% after disclosing ‘internal controls’ issue and a CEO change (CNBC)

  • Vanguard CEO Buckley to retire by year-end, CIO Davis named president (RT)

  • ECB is expected to cut rates in June (RT)

  • Congress temporarily averted US government shutdown (WSJ)

  • Morgan Stanley opens Abu Dhabi office (RT)

  • PE-owned German bank hit after 25% of US office loans default (FT)

  • IRS will crack down on 125k high-income non-filers (RT)

  • Prada rides Asian luxury boom as mass retailers struggle (BBG)

  • Disney family rebukes Nelson Peltz, praises Bob Iger in shareholder letters (WSJ)

  • New York shut down a Ponzi scheme run by a Harvard MBA (FT)

  • Chemical giant Chemours suspends top executives, opens accounting probe (WSJ)

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Deal Flow

M&A / Investments

  • Greg Coffey’s macro-focused Kirkoswald Asset Management is in talks to acquire emerging-markets focused Emso Asset Management to create a money manager with $13B in combined assets (BBG) 

  • PE firms OMERS Private Equity and Harvest Partners are exploring a $3B sale of Epiq Systems, a provider of technology for the legal industry (BBG) 

  • Background screening services provider First Advantage will buy rival Sterling Check in a $2.2B cash-and-stock deal (RT) 

  • US-based warehousing firm GXO Logistics offered to buy UK peer Wincanton for ~$965M, outbidding CEVA Logistics (RT) 

  • A group of private investors will acquire Swedish gaming company Embracer Group’s subsidiary Saber Interactive in a deal worth up to $500M (BBG) 

  • UAE-state owned ADNOC closed the acquisition of a 24.9% stake in Austrian oil and gas group OMV from Abu Dhabi sovereign wealth fund Mubadala (RT) 

  • US brokerage firm B. Riley launched a review of strategic options for its valuation, retail, wholesale, and industrial solutions businesses, which could include a potential sale (RT) 

VC

  • AI robotics startup Figure raised a $675M Series B at a $2.6B valuation led by Microsoft, OpenAI Startup Fund, NVIDIA, and others (PRN)

  • BlossomHill Therapeutics, a biotech startup focused on small molecule treatments for cancer and autoimmune diseases, raised a $100M Series B led by Colt Ventures (BW)

  • Kenai Therapeutics, a biotech startup focused on developing cell therapies for neurological disorders, raised an $82M Series A led by Alaska Permanent Fund Corporation, Cure Ventures, and The Column Group (BW)

  • EasyKnock, a home equity solutions platform, raised a $28M Series D led by Northwestern Mutual Future Ventures (BW)

  • Orbis Medicines, an oral macrocycle drug discovery startup, raised a $26M seed round led by Novo Holdings and Forbion (BW)

  • Adtech startup Vibe raised a $22.5M round led by Singular (TC)

  • Anthro Energy, a startup providing lithium-ion batteries, raised a $20M Series A led by Collaborative Fund (FN)

  • Cybersecurity startup Filigran raised a $16M round led by Accel (TC)

  • No-code software platform Heyflow raised a $16M Series A led by Singular (FN)

  • EMVision, a medical device company focused on portable brain imaging, raised $10M in funding from Keysight Technologies (BW)

  • Relish, a startup providing solutions for businesses to optimize procurement systems, raised a $10M Series A led by Volition Capital (FN)

  • BounceBit, a startup building Bitcoin restaking infrastructure, raised a $6M seed round led by Blockchain Capital and Breyer Capital (PRN)

  • Heat Geek, a UK-based provider of a digital platform for heating engineers, raised a $4.6M seed round led by Transition (FN)

  • AI-powered news reader Particle raised a $4.4M seed round from Kindred Ventures and Adverb Ventures (TC)

  • Silence Laboratories, a startup building infrastructure to help enterprises protect data, raised a $4.1M round led by Pi Ventures and Kira Studio (TC)

  • Vitrue Health, a provider of a digital musculoskeletal health platform for workplaces, raised $4M in funding led by MC Ventures and Hambro Perks (FN)

  • Bfree, a Nigerian debt collection startup, raised $3M in funding led by Capria Ventures (TC)

  • AI-powered job management platform RoleMapper raised a $2.8M round from the British Business Bank’s SWIF, Mercia Ventures, QantX, and others (FN)

  • Bench IQ, a startup providing insights on judges’ rulings, raised a $2.1M pre-seed round led by Maple and Haystack (PRN)

IPO / Direct Listings / Issuances / Block Trades

  • Cloud storage service Egnyte hired JPMorgan as lead underwriter for a New York IPO that could value it at over $3B (RT)

  • German conglomerate JAB is seeking to raise as much as $2.5B from a block sale of 87M Keurig Dr Pepper shares (BBG)

Bankruptcy / Restructuring

  • Essence Magazine is in talks to acquire Vice Media’s women’s lifestyle site Refinery29, which Vice acquired for $400M in 2019 (WSJ)

Fundraising

  • Kedaara Capital is set to raise $1.7B for what would be India's biggest-ever PE fund (RT)

  • Early-stage VC Inspired Capital raised $330M for its third fund (TC)

  • Ares Management partnered with Australia’s Pallas Capital for a $326M fund that will provide liquidity to CRE firms who lack bank funding (BBG) 

  • Chipotle increased its commitment to its Cultivate Next VC fund to $100M (PRN)

Crypto Corner

  • Grayscale is lobbying the SEC to approve options on its spot Bitcoin ETF (RT)

  • Crypto hedge fund managers forgo sleep to cope with market surge (BBG)

  • Pig-butchering scammers have likely stolen over $75B from victims around the world (BBG)

  • BlackRock’s Bitcoin ETF netted $612M of inflows on Wednesday (BBG) 

  • Bank of America and Wells Fargo are offering spot Bitcoin ETFs (RT)

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