Robinhood Express

BoE warned of PE bubble risks, McKinsey upped pressure on US consultants, Robinhood launched a credit card, global ECM rallied in Q1, US small-caps are severely underperforming, the Chemours scandal is heating up, and the FX carry trade continues to shine.

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Litquidity Capital
March 28, 2024

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Good Morning,

BoE warned of PE bubble risks, McKinsey upped pressure on US consultants, Robinhood launched a credit card, global ECM rallied in Q1, US small-caps are severely underperforming, the Chemours scandal is heating up, and the FX carry trade continues to shine.

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Let’s dive in.

Before The Bell

As of 03/27/2024 market close.

Markets

  • US stocks rose yesterday with the S&P closing at a new record high and heading for its best Q1 since 2019

  • Mexican peso reached a 9-year high 

  • Japanese yen dipped to a 34-year low against the dollar

Earnings

  • Jefferies missed Q1 profit estimates on losses from an investment in HF Weiss Multi-Strategy Advisers but nonetheless posted gains in IB and asset management (RT) 

  • H&M shares jumped 16% after smashing Q1 profit estimates on improved margins, lower inventory and strong cash flow (CNBC) 

  • What we're watching this week:  

    • Today: Walgreens Boots Alliance 

  • Full calendar here

Headline Roundup

  • Q1 share sales outpaced IPOs as global ECM rallies (RT)

  • Russell 2000 is underperforming the S&P 500 by most in over 20 years (FT)

  • BoE warned of risks to UK businesses from PE bubble (FT)

  • McKinsey raises ‘up or out’ stakes on US consultants (BBG)

  • Fee cuts fail to make significant impact on European ETF flows (FT)

  • Lucrative FX carry trade sustained by low volatility (RT)

  • ​​Robinhood launched a credit card (AX)

  • US banks face loss risk from multi-family property loan exposure (RT)

  • S&P affirmed US ratings as stable (RT)

  • Housing-bond sales hit a 10-year high (BBG)

  • DraftKings shares slump on news NCAA wants to ban college prop bets (BBG)

  • Short sellers target Reddit as stock slips (RT)

  • Egan-Jones backed activist Nelson Peltz in Disney proxy fight (RT)

  • Deutsche Bank shares climbed to a six year high (RT)

  • S&P downgraded Paramount debt to junk (BBG)

  • JPMorgan bets on new wealth planning tool to draw investments (RT)

  • Bain Capital promoted top Asia dealmaker David Gross to co-managing partner (FT)

  • Chemours received information requests from prosecutors and SEC (WSJ)

  • Insurers could face up to $4B in losses after Baltimore bridge tragedy (RT)

  • Amazon's senior employees may not see cash pay raise this year (RT)

  • More Chinese companies to be added to US import ban list (WSJ)

  • Ex-UBS trader Tom Hayes loses UK appeal over LIBOR crimes (BBG)

  • Trafigura to pay $126M and plead guilty to US charges (BBG)

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Deal Flow

M&A / Investments

  • London-listed Ithaca Energy is in exclusive talks to take over Italian oil major Eni’s UK upstream assets, including Neptune Energy, which Eni bought for $4.9B last year (FT) 

  • F1 owner Liberty Media is in exclusive talks to buy MotoGP-owner Dorna Sports for over $4.3B (FT) 

  • French builder Vinci and Spain’s state-controlled airport manager Aena SME are competing to acquire Edinburgh Airport from Global Infrastructure Partners, which is seeking over $3.8B (BBG) 

  • Ardian-backed laboratories chain Inovie Group is considering a potential sale at an over $3.2B valuation (BBG) 

  • The owners of boutique hotel chain CitizenM, which include Dutch pension provider APG, Singaporean SWF GIC and founder Rattan Chadha, are exploring options including a potential sale; GIC took a 25% stake in CitizenM five years ago in a $2.2B deal (FT) 

  • PE firm Cinven Group paused a sale process for pet food manufacturer Partner in Pet Food due to valuation differences (BBG) 

  • Keysight Technologies is preparing to launch a ~$1.45B offer for UK telecom testing firm Spirent Communications; US-based Viavi Solutions agreed to acquire Spirent for ~$1.3B on March 5 (RT) 

  • A group including Japan’s Mitsui and Rohto Pharmaceutical is nearing a deal to acquire a majority stake in Eu Yan Sang International in a deal that could value the healthcare company at ~$800M (BBG) 

  • Utility firm CPS Energy will buy natural gas plants in Corpus Christi and Laredo from Talen Energy for ~$785M (RT) 

  • PE firm Genstar Capital is seeking buyers for 2-10 Home Buyers Warranty, which could be valued at ~$600M in a sale (BBG) 

  • Oil-field-services company Schlumberger will pay ~$400M to acquire 80% of carbon-capture company Aker Carbon Capture (WSJ)

  • Honeywell International agreed to buy Italian aircraft component developer Civitanavi Systems for an equity value of $217M (BBG)

  • Brown University and Brazil’s BTG Pactual are in advanced talks to invest in Fortress Investment Group alongside SWF Mubadala (BBG) 

  • Abu Dhabi SWF ADQ is among potential suitors considering a possible bid for Polish meat giant Cedrob Group (BBG) 

  • Spindrift Beverage is exploring strategic options including a sale (BBG) 

VC

  • AI startup Anthropic received a $2.75B investment from Amazon, bringing Amazon's stake to $4B (WSJ)

  • Celestial AI, the creator of the Photonic Fabric optical interconnect platform, raised a $175M Series C led by US Innovative Technology Fund (BW)

  • Data observability platform Observe raised a $115M Series B at a $400M-$500M valuation led by Sutter Hill Ventures (TC)

  • Hume AI, a startup building AI optimized for human well-being, raised a $50M Series B led by EQT Ventures (BW)

  • Indonesian insurance startup Qoala raised a $47M Series C led by PayPal Ventures and MassMutual Ventures (TC)

  • Nourish, a telenutrition platform that connects people with registered dietitians, raised a $35M Series A led by Index Ventures (BW)

  • NewRetirement, a software to help create financial retirement plans, raised a $20M Series A led by Allegis Capital (TC)

  • Champ Titles, a startup providing digital vehicle title, registration, and lien systems of record, raised an $18M Series C led by Point72 Ventures (VC)

  • Gather AI, a startup building computer vision and AI-powered warehouse inventory monitoring solutions, raised a $17M Series A-1 led by Bain Capital Ventures (BW)

  • TurbineOne, a govtech startup simplifying ML, raised a $15M Series A led by Bessemer Venture Partners (BW)

  • Blockchain for real-world applications startup Peaq raised a $15M Series A led by Generative Ventures and Borderless Capital (FN)

  • Web3 gaming distribution platform Elixir Games raised a $14M seed round from Solana Foundation, Shima Capital, and more (PRN)

  • Oriole Networks, a startup using light to train LLMs, raised a $12.7M seed round from UCL Technology Fund, Clean Growth Fund, XTX Ventures, and Dorilton Ventures (FN)

  • BOB (Build on Bitcoin), a hybrid UK-based hybrid Layer-2 powered by Bitcoin and Ethereum, raised a $10M seed round led by Castle Island Ventures (FN)

  • AI-driven ERP platform Nominal raised a $9.2M seed round led by Bling Capital and Hyperwise Ventures (BW)

  • ValidMind, an AI model risk management platform for financial services, raised an $8.1M seed round led by Point72 Ventures (BW)

  • Cloverleaf, an automated coaching technology company, raised a $7.3M Series A extension led by Advantage Capital, Conductive VC, and Cintrifuse Capital (FN)

  • Cyvl.ai, a startup helping municipalities and civil engineering firms bring a digital layer to tracking transportation infrastructure, raised a $6M round led by Companyon Ventures (TC)

  • Sports entertainment company Victory League raised a $4M seed round from backers including Improbable, LocalGlobe and more (FN)

  • Allium Engineering, a startup improving infrastructure durability and sustainability, raised a $3.3M seed round led by Propeller (VC)

  • Orchard Robotics, a startup building an AI-powered vision system that attaches to farm equipment, raised a $3.2M seed round led by General Catalyst (TC)

IPO / Direct Listings / Issuances / Block Trades

  • Bayer-backed drug maker Boundless Bio raised $100M in a US IPO (BBG)

  • Renault plans to sell a ~2.5% stake in Nissan for ~$392M (RT)

Debt

  • Apollo Global will purchase Credit Suisse's $8B securitized products business from UBS (RT) 

  • Citigroup marketed up to $433M of cash-equivalent exchangeable bonds referable to LVMH ordinary shares (BBG) 

  • Crypto miner Bitdeer is in talks with private credit firms to arrange ~$100M in financing (BBG) 

Fundraising

  • HSBC will create a $1B ASEAN Growth Fund to lend to companies scaling up via digital platforms (RT) 

Crypto Corner

  • Crypto group Copper served sushi off partially clad models (FT)

  • A turbocharged Bitcoin ETF is more popular than TSMC in Korea (BBG)

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