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Good Morning,

A federal judge blocked JetBlue’s Spirit acquisition, Japan’s market has been doing well, Uber is closing Drizly, China’s population dropped for a second year, the bill for a record amount of commercial real estate debt is coming due, emerging markets are off to their worst start since 2016, and JPMorgan has to pay an $18M fine for whistleblower protection violations.

Looking to upgrade your private equity chops in 2024? Wharton Online and Wall Street Prep just opened enrollment for their Winter Cohort for their Private Equity Certificate Program, and you can sign up here.

Let’s dive in.

Before The Bell

Markets

• US stocks fell as bond yields ticked higher and investors digested corporate earnings

  • The Dow led indices with a 0.62% decline

• Asian stocks mostly fell, led by Hong Kong’s HSI, ahead of China’s release of 2023 economic data; China’s GDP grew 5.2% in 2023 

Earnings

• Goldman Sachs reported better-than-expected Q4 results thanks to higher-than-expected asset and wealth management revenue (CNBC) 

• Morgan Stanley shares fell ~4% despite beating revenue expectations thanks to strength in investment banking; its Q4 profit took a $535M hit due to two one-time regulatory charges (CNBC) 

• What we're watching this week:  

  • Today: Charles Schwab, Discover, Prologis, Kinder Morgan

  • Thursday: TSMC, Truist 

  • Friday: Ally Financial, State Street

Headline Roundup

• Japan’s market roars back to life - with old-timers leading the way (BBG)

• Rogoff sees six Fed rate cuts as ‘pipedream’ if economy holds up (BBG)

• Uber is closing an alcohol-delivery business it bought for over $1B three years ago (WSJ)

• ETFs make bitcoin’s problems even worse (WSJ)

• China’s population drops for a 2nd year, raises long-term growth concerns (RT)

• Walt Disney makes its case for rejecting activist shareholder (RT)

• The bill is coming due on a record amount of commercial real estate debt (WSJ)

• Emerging market assets extend worst start to year since 2016 (BBG)

• Microsoft CEO Satya Nadella says consensus on AI is emerging (CNBC)

• Wall Street’s cloudy quarter has some rays of sunshine (WSJ)

• JPMorgan to pay $18M for whistleblower protection violations (WSJ)

• OpenAI CEO, Time owner Benioff disagree on AI’s use of copyrighted content (BBG)

• Natural-gas prices remain under pressure despite cold snap (WSJ)

• Appeals court rejects X challenge to special counsel secret demand for Trump Twitter data (CNBC)

A Message From Wall Street Prep

Learn the Essentials of Private Equity with Industry Experts

Wharton Online and Wall Street Prep are excited to announce that enrollment is now open for the upcoming Winter Cohort for the Private Equity Certificate Program. 

During this 8-week online program, students will learn the essentials of private equity through a theory-meets-practice methodology, taught by the top instructors at both Wharton Online and Wall Street Prep. Students will also be able to hear and gain insight from industry experts such as David Rubenstein and Martin Brand through our guest lecturer series.

In addition, students will have access to our exclusive graduate benefits, which include peer-to-peer networking events, invitation-only LinkedIn and Slack groups, and exclusive recruiting events with top private equity recruiting firms. 

Use code LITQUIDITY to save $300 when you register for the program.

Deal Flow

M&A / Investments

• Chip-design company Synopsys agreed to acquire software developer Ansys for ~$34B in cash and stock (BBG) 

• US investor General Atlantic will acquire London-based PE firm Actis, which has ~$12.5B AUM (BBG) 

• A federal judge blocked JetBlue Airway’s planned $3.8B acquisition of ultra-low-cost carrier Spirit Airlines due to competition concerns and harm to consumers; Spirit shares fell ~47% (RT)  

• Ardagh Group and Ontario Teachers’ Pension Plan Board, owners of Trivium Packaging, are exploring a sale of the company, which may fetch over $3.5B (BBG) 

• Shareholders in Heathrow Airport accounting for a 35% stake intend to sell their shares alongside Spanish firm Ferrovial, putting its $3B, 25% stake sale of Heathrow to PIF and Ardian into question (RT) 

• Italy asked for an additional review of ION Group’s $1.4B acquisition of alternative asset manager Prelios after deciding against using its special powers to block the deal (BBG) 

• A consortium of local Nigerian companies will acquire Shell’s Nigerian onshore oil business for over $1.3B (BBG) 

• Japanese financial conglomerate Orix is in discussions to buy renewable energy developers in the US and Europe; individual deals could top $1B (BBG) 

• Restaurant Brands International, the owner of Burger King, will acquire the fast food chain’s largest franchisee, Carrols Restaurant Group, for $1B; Carrols operates over 1,000 locations (BBG) 

• Singapore sovereign wealth fund GIC is considering selling The Hilton Fukuoka Sea Hawk hotel in western Japan, which has an asking price of $538M-$617M (BBG)  

• British Airways owner IAG expects EU antitrust regulators to open a full-scale investigation into its $436M plan to buy Spain's Air Europa and will offer remedies (RT) 

• German carrier Lufthansa’s bid for a minority stake in ITA Airways is set to face a full-scale EU competition inquiry (RT)

VC

• EV charging startup Electra raised a $330M Series B led by Dutch pension fund PGGM and Bpifrance’s Large Venture Fund (TC)

• Quantinuum, a quantum computing company, raised $300M in equity from JPMorgan, Mitsui, Amgen, and Honeywell (PRN)

• Counterparty and supply chain risk intelligence provider Sayari received a $228M strategic majority investment from TPG (BW)

• Aira, a Stockholm-based provider of clean energy technology solutions, raised a $157M Series B led by Altor, Kinnevik, and Temasek (FN)

• INERATEC, a startup producing e-fuel, raised a $129M Series B led by Piva Capital (PRN)

• Noctrix Health, a startup developing a novel device treatment for Restless Legs Syndrome, raised a $40M Series C led by Sectoral Asset Management (PRN)

• Onera Health, a startup providing sleep diagnostic and monitoring technology, raised a $32M Series C led by EQT Life Sciences and Gimv (TC)

• On-street electric vehicle charging startup Trojan Energy raised a $33M round: $10.4M from BGF and $22.6M from the Scottish National Investment Bank (EU)

• Panacea Financial, a fintech startup providing financial services for doctors, raised a $24.5M Series B from Valar Ventures (BW)

• Weavix, a startup developing ‘smart’ radios for frontline workers, raised a $23.6M round led by Insight Partners (TC)

• Disco Pharmaceuticals, a biotech company developing drugs in the field of cancer cells, raised a $21.8M seed round from backers including Sofinnova Partners, Panakes Partners, M Ventures, and AbbVie Ventures (FN)

• ZymoChem, a startup building a carbon-efficient bio-manufacturing platform, raised a $21M Series A led by Breakout Ventures (PRN)

• Nigerian neobank Kuda raised a $20M bridge round at a $500M valuation in 2023 (TC)

• Car financing startup Carmoola raised $20M in funding from QED Investors, VentureFriends, InMotion Ventures and others (EU)

• Hardware-as-a-service startup Xyte raised $20M in Series A funding led by Intel Capital and a $10M debt line from BlackRock (TC)

• Passwordless enterprise authentication platform Secret Double Octopus raised a $15M Series C led by BGV (BW)

• Granata Bio, a biopharma company focused on the infertility medication market, raised a $14M Series A led by GV (PRN)

• Oxford Medical Simulation, a VR healthcare training startup, raised a $12.6M Series A led by Frog Capital (PRN)

IPO / Direct Listings / Issuances / Block Trades

• Saudi Arabian online cosmetics retailer Nice One is planning a local IPO (BBG) 

Debt

• Dish Network parent EchoStar proposed swapping over $5B of debt due in the coming years for new 10% notes backed by DishTV subscribers (BBG) 

• Swedish battery manufacturer Northvolt raised $5B through debt financing from 23 banks as well as the European Investment Bank and the Nordic Investment Bank (FT) 

• The private-investing arm of insurer Thrivent Financial for Lutherans issued a $400M collateralized fund obligation to generate cash from its PE holdings yielding ~7.7% to holders (WSJ)

Bankruptcy / Restructuring

• Crypto mining firm Core Scientific won court approval to exit bankruptcy and implement a restructuring plan to reduce $400M of debt and repay creditors thanks to a recovery in Bitcoin prices (BBG) 

• Enviva, the largest US wood pellet exporter, skipped a $24M payment due to its bondholders yesterday as it continues restructuring talks (WSJ) 

• Trussardi is nearing a deal to transfer the struggling fashion house to a new owner and sell off assets as part of a debt restructuring (BBG) 

Fundraising

• CA-based VC Thomvest Ventures closed a $250M fund to invest in fintech, cybersecurity, and AI (TC) 

• The Qatar Investment Authority and fund manager Ashmore Group launched a $200M Ashmore Qatar Equity Fund aimed at encouraging foreign investors to buy into the Gulf country's stock market (RT) 

Crypto Corner

• Investors pulled $579M out of Grayscale’s Greyscale Bitcoin Trust during its first days of trading as an ETF (BBG) 

• 2023’s best-performing ESG fund was Ark Investment Management’s Nikko AM Ark Positive Change Innovation Fund, which returned 68% thanks to crypto (BBG)

Exec’s Picks

• Introducing a new Onyx Business Account¹ . With a Unified Personal and Business App, you enjoy great perks!  Benefit from easy money movement, multiple virtual cards² , effortless deposit and send mobile checks, and high limits and free transfers. Join us with the LIT010 code and get 10% discount on the first year of your premium membership.

• Packy McCormick discussed the value that entrepreneurial experimentation plays in business success.

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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:

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