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Good Morning,

PE has taken a liking to failing banks, OpenAI exposed Musk for hypocrisy, the Fed may reduce Basel capital burdens, Binance launched a perfume, Nvidia insiders cashed in, and NASA is recruiting astronauts in what may be the most competitive job ever.

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Let’s dive in.

Before The Bell

Markets

• US stocks recovered some ground yesterday as J Pow's Congressional testimony reinforced expectations of a 2024 Fed rate cut 

  • Traders priced in a 70% chance of a June rate cut 

• Gold extended its record run 

Earnings

• JD.com shares jumped ~16% after beating Q4 revenue estimates and initiating a $3B share buyback (RT) 

• Foot Locker shares plunged ~29% after reporting a holiday quarter loss, delaying a key profitability target, and issuing weak FY guidance (CNBC) 

• What we're watching this week:  

  • Today: Costco, Broadcom, Kroger, MongoDB

• Full calendar here

Headline Roundup

• PE increasingly drawn to investing in failing banks (CNBC)

• NYCB shares plunge, then recover, on $1B+ PE injection (WSJ)

• OpenAI reveals Musk emails urging firm to ‘start being less open’ (CNBC)

• Fed expects to significantly reduce Basel capital burden (FT)

• J Pow says Fed on track to cut rates this year (WSJ)

• Major economies are lagging behind America's (WSJ)

• Nvidia insiders cash in on $180M in shares (BBG)

• CEO confidence in US economic outlook at highest since 2022 (AX)

• Panera loosens ingredients standards ahead of IPO (RT)

• Chinese investors are exiting China investments in sign of low confidence (RT)

• Euro is back to being a central bank favorite (RT)

• China to mobilize nation to win tech supremacy from US (BBG)

• Apple nixes Epic Games' ability to make EU app store (BBG)

• AMD hits US roadblock in China AI chip sales (BBG)

• Google engineer charged with stealing AI secrets while working for Chinese groups (FT)

• UK plans new tax on vaping (RT)

• NASA is recruiting astronauts in most competitive job ever (BBG)

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Deal Flow

M&A / Investments

• ExxonMobil filed for arbitration to attain pre-emption rights in a giant Guyanese oil field, threatening Chevron’s $53B takeover of Hess (BBG)

• Apollo Global may explore a bid for travel information service TripAdvisor, which has a $3.7B market cap (BBG) 

• KKR is in talks to acquire renewable-energy producer Encavis in a deal that could value the company at over $2.2B (BBG) 

• PE firms including Advent International and Carlyle are among parties weighing bids for Adiuva Capital’s Sanecum Group, a German operator of medical centers that could be valued at as much as $1.6B (BBG) 

• European PE giant Ardian agreed to acquire OSU's parking operations manager CampusParc for over $850M, including debt (BBG) 

• Carlyle began the sales process of Japanese cosmetics supplier Tokiwa in a deal that could value the company at $800M (RT) 

• Reliance Industries is in talks to buy Paramount Global's minority stake in its Viacom18 Media JV in India (BBG) 

VC

• Singapore’s Temasek is in discussions to invest in OpenAI (FT)

• Alumis, a clinical-stage biopharmaceutical company developing oral therapies, raised a $259M Series C led by Foresite Capital, Samsara BioCapital, and venBio Partners (VC)

• Sionna Therapeutics, a clinical-stage life sciences company focused on cystic fibrosis, raised a $182M Series C led by Enavate Sciences (PRN)

• Cyber-physical systems protection company Claroty raised a $100M round led by Delta-v Capital (PRN)

• Carputty, a fintech startup focused on auto financing and ownership, raised $80M in funding: a $75M financing facility from SVB and a $5M equity investment led by TTV Capital (VC)

• Cloud security startup Sweet Security raised a $33M Series A led by Evolution Equity Partners (FN)

• Remofirst, an HR solution company for employing talent worldwide, raised a $25M Series A led by Octopus Ventures (FN)

• Hunch, a Dubai-based ‘new age social discovery app’ allowing users to engage anonymously, raised a $23M Series A led by Alpha Wave and Hashed (FN)

• Mental health platform Tava Health raised a $20M Series B led by Catalyst Investors (PRN)

• Tax advisory platform Harness Wealth raised a $17M extension to its Series A led by Three Fish Capital (TC)

• Betr, a Miami-based sports gaming and media company, raised a $15M round at a $375M valuation led by Harmony Partners and 10x Capital (PRN)

• BrainCheck, a digital health startup focussed on cognitive assessment, raised $15M in financing led by Next Coast Ventures, S3 Ventures, and UPMC Enterprises (PRN)

• Limbic, a clinical mental health AI company, raised a $14M round led by Khosla Ventures (FN)

• Hari Mari, a premium sandal brand, raised $10M in funding led by Landon Smith (PRN)

• Construction tech startup BRKZ emerged from stealth with an $8M Series A led by Beco Capital and 9900 Capital (TC)

• Cardiology platform Chamber Cardio raised an $8M seed round led by General Catalyst (PRN)

• Glacier, a startup building recycling robotics, raised a $7.7M round led by NEA and Amazon (FN)

• Fluent, a startup applying AI-based LLMs to business databases, raised a $7.5M seed round led by Hoxton Ventures and Tiferes Ventures (TC)

• AI-driven investment platform Theia Insights raised a $6.5M round led by Unusual Ventures (EU)

• Lettuce Financial, a startup providing a comprehensive solution to manage accounting and tax services for solopreneurs, raised a $6M seed round led by Zeev Ventures (FN)

• PayShepherd, a contractor management solution for industrial sites, raised a $5.2M seed+ round led by Inovia Capital (FN)

• Generative AI game engine startup Jabali raised a $5M seed round led by BITKRAFT Ventures (FN)

• Kurs Orbital, a startup building satellite servicing tech, raised a $4M seed round led by OTB Ventures (TC)

• Hook, a music platform for fans to remix popular music for social media, extended its seed round to $3.5M led by Point72 Ventures and Waverly Capital (VC)

• Nigerian health tech startup MDaaS raised a $3M pre-Series A led by Aruwa Capital and Newton Partners (TC)

IPO / Direct Listings / Issuances / Block Trades

• Skin care company Galderma plans to raise ~$2.3B in a Swiss IPO (RT) 

• Blackstone, Thomson Reuters, and other investors sold a 4% stake in the London Stock Exchange Group worth $2.4B (BBG)

• Klarna Bank’s largest investors asked the company to create a special class of shares that would hand early investors more control after its IPO (BBG) 

Debt

• Indian conglomerate Adani Group is considering offering another $1.2B of dollar bonds by June (BBG) 

Bankruptcy / Restructuring / Distressed

• Spirit Airlines bondholders are plotting a ‘triple-dip’ strategy in the event the airline cannot meet its $3B+ debt obligations (BBG) 

• Mnuchin’s Liberty Strategic Capital, Hudson Bay Capital, and Reverence Capital Partners led a capital injection of over $1B in New York Community Bank (BBG) 

• Aviation group Esken, the owner of London Southend Airport, agreed to a debt restructuring with creditors Carlyle Group and Cyrus Capital Partners, that will see Carlyle convert a $245M loan into an 82.5% equity stake (BBG)  

• Variant Equity-owned bus operator Coach USA is exploring restructuring options including a potential bankruptcy amid post-Covid struggles (WSJ) 

• Emergent BioSolutions entered into a forbearance agreement with lenders (WSJ) 

Fundraising

• VC a16z is weeks away from closing on up to $7B for multiple funds (AX) 

• Growth equity and VC firm Silas Capital closed its Fund II at $150M (FN)

Crypto Corner

• Crypto’s $800B rally is widening beyond Bitcoin (BBG)

• Binance launched a perfume (TC)

• Spain banned Sam Altman’s crypto Worldcoin for up to three months (RT) 

Exec’s Picks

• Financial Times published an interesting piece on the mysterious rise of the Chinese e-commerce giant behind Temu.

• Reuters explained why retail has lost its sparkle for PE firms.

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