SBF's Parental Lawsuit

FTX is suing Sam Bankman-Fried’s parents, the US national debt hit $33T, Disney wants to invest $60B in its parks and cruises, Amazon is hiring 250k employees for the holiday rush season, stock buybacks are surging in Hong Kong, a Google exec claims they lost map traffic due to an Apple Maps switch on iPhones, and NYC’s transit network got a positive outlook from Moody’s.

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Litquidity Capital
September 20, 2023

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Good Morning,

FTX is suing Sam Bankman-Fried’s parents, the US national debt hit $33T, Disney wants to invest $60B in its parks and cruises, Amazon is hiring 250k employees for the holiday rush season, stock buybacks are surging in Hong Kong, a Google exec claims they lost map traffic due to an Apple Maps switch on iPhones, and NYC’s transit network got a positive outlook from Moody’s.

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Let’s dive in.

Before The Bell

As of 9/19/2023 market close.

Markets

  • US stocks fell as investors awaited the results of this week’s Fed meeting

    • The Dow led indices with a 0.31% decline

  • Interest rates continued to rise, with the 10-year yield hitting its highest level since 2007 as investors bet on higher rates for longer to fight inflation

Earnings

  • AutoZone beat fiscal Q4 earnings and sales estimates but shares still fell due to the company’s domestic commercial division falling short (BRRN)

  • What we're watching this week:  

    • Today: FedEx, General Mills

    • Thursday: Darden Restaurants 

  • Full calendar here

Headline Roundup

  • Global economy poised to slow as rate hikes bite (BBG)

  • The US national debt hit $33T for the first time (CNBC)

  • SoftBank is ramping up its AI investments (AX)

  • Justice Department probe scrutinizes Elon Musk perks at Tesla going back years (WSJ)

  • Amazon is hiring 250k employees for the holiday rush (CNBC)

  • China’s former foreign minister ousted after alleged affair (WSJ)

  • Google lost map traffic with Apple Maps switch on iPhones, executive says (BBG)

  • NYC’s transit network gets positive outlook from Moody’s (BBG)

  • Disney to invest $60B in theme parks, cruises over next decade (WSJ)

  • Ford reaches tentative deal with Canadian auto union (WSJ)

  • Brokers woo rich Japanese worth $2T with private assets (BBG)

  • A single oil trading firm is fueling a price runup in US barrels (BBG)

  • Channel checks in China suggest iPhone orders will be disappointing (CNBC)

  • Buybacks surge in one of world’s worst-performing stock markets (BBG)

A Message From The Information

It seems like there’s a new blockbuster story in tech every single day, from chip maker Arm’s IPO, to Nvidia’s rocketing stock performance, to Twitter’s tanking ad revenue.

To stay on top of the news each day, I read The Information. Not only do they track the biggest stories in tech and finance, they also break exclusive stories on everything from Gemini’s recent layoffs, to Thoma Bravo’s latest buyouts, to Google’s AI power struggle with Microsoft.

Deal Flow

M&A / Investments

  • US antitrust regulators urged a judge to give American television provider Dish Network more time to purchase T-Mobile’s $3.5B airwaves; Dish had an August deadline to complete the purchase (BBG)

  • Medical devices maker Boston Scientific will buy private medical tech company Relievant Medsystems for $850M cash (RT)

  • Intact Financial kicked off the sale of its UK personal insurance subsidiary, which could be valued at ~$620M (BBG)

  • Insurer Arthur J. Gallagher will acquire Eastern Bank’s Eastern Insurance Group for ~$510M (PRNW)

  • Goldman Sachs is in advanced talks to sell its GreenSky unit to a consortium that includes Sixth Street Partners for ~$500M (BBG)

  • M&G infrastructure equity investment arm Infracapital will acquire Dutch tank storage company Vopak’s chemical terminals in Rotterdam for $435M (RT)

  • PE firm TPG is exploring options for Mendocino Farms, including a sale that could value the fast-casual restaurant chain at over $400M (RT)

  • Cybersecurity company Crowdstrike finalized a deal to acquire security management platform Bionic.ai for $350M (TC)

  • US automotive dealership group Lithia will acquire all of UK automotive retailer Pendragon’s dealerships for $347M (FT)

  • Bankrupt opioid producer Mallinckrodt is in talks with investors to sell some or all of the company’s business units, which would potentially lead to an exit of the opioid business (WSJ)

  • Actis, a buyout firm pivoting toward energy and infrastructure investments, kicked off its sale of East African casual dining business Java House (BBG)

  • Redwood Materials acquired lithium-ion battery recycler Redux Recycling to increase battery recycling capability (RT)

  • Pro football leagues XFL and USFL are in advanced talks to merge, the leagues hope to close the deal before the 2024 season (AX)

VC

  • Cato Networks, a startup that packages software-defined networking, managed cybersecurity, and global backbone services into a single offering, raised a $238M round at a $3B+ valuation led by LightSpeed Venture Partners (TC)

  • HiBob, a provider of an HR platform for organizations, raised a $150M round led by Farallon Capital (FN)

  • B2B FinTech company Flex raised a $120M debt / equity round led by Florida Funders and CIM (FN)

  • AI-powered enterprise knowledge indexer Pryon raised a $100M round at a ~$500M valuation led by the U.S. Innovative Technology Fund (TC)

  • HiddenLayer, a cybersecurity startup focused on protecting AI from adversarial attacks, raised $50M in funding co-led by M12 and Moore Strategic Ventures (TC)

  • ReCode Therapeutics, a clinical-stage genetic medicines company, raised a $50M extension to its Series B led by BLV and Solasta Ventures (BW)

  • Magnet Biomedicine, a biotech company developing molecular glue, raised a $50M round led by Newpath Partners (FN)

  • ZayZoon, a fintech startup that charges employees $5 to get paid sooner, raised a $34.5M Series B co-led by Framework and EDC (TC)

  • Virtual Incision, a developer of a robotic-assisted surgery system, raised a $30M extension to its previously $46M Series C led by Bluestem Capital, Endeavor Vision, Baird Capital, and more (BW)

  • RNA editing therapeutics startup Airna raised a $30M round led by ARCH Venture Partners (FN)

  • Tabular, an independent data platform built on Apache Iceberg, raised a $26M round led by Altimeter Capital (BW)

  • Dallas-based individual healthcare benefits platform Take Command received a $25M growth equity investment from Edison Partners (BW)

  • Alcion, a startup providing backup and security services to enterprises, raised a $21M Series A led by Veeam (TC)

  • Together Women’s Health, a Michigan-based women’s health startup, raised $18.7M in financing led by Shore Capital Partners (BW)

  • Metaloop, a scrap metal trading marketplace, raised a $17M Series A led by FirstMark Capital (TC)

  • Yurts, a startup providing an enterprise-ready Generative AI platform, raised a $16M Series A led by Nava Ventures (FN)

  • HPNow, a clean water and sanitation startup, raised a $15M round led by The Export and Investment Fund of Denmark (FN)

  • Healthcare data exchange platform Briya raised an $11.5M Series A led by Team8 (FN)

  • Cyber insurance startup Stoik raised a $10.7M round led by Munich Re Ventures (TC)

  • BioLoomics, a company developing target-degrading antibodies, raised an $8.7M seed round led by Innovation Endeavors (BW)

  • Nanofiber Quantum Technologies, a startup building fiber connectable quantum computing hardware, raised $8.5M in funding from Phoenix Venture Partners, JAFCO Group, SPARX Group, and more (FN)

  • Clinical trial participant management platform Mural Health Technologies raised an $8M seed round led by Bessemer Venture Partners (FN)

  • Generative AI legal assistant startup Paxton raised a $6M seed round led by WVV Capital (FN)

  • Aspinity, a startup developing near-zero power AI solutions, raised a $5M Series B led by Anzu Partners, Birchmere Ventures, Mountain State Capital, and Riverfront Ventures (BW)

  • Online art platform Artue raised a $3M seed round led by SoftBank Ventures Asia (FN)

  • Discern Security, an AI-driven policy management cybersecurity startup, raised a $3M seed round from BoldCap, WestWave Capital, and more (FN)

  • AI-powered SaaS platform Pliable raised a $2.5M seed round led by Resolute Ventures (FN)

  • Leadership development platform Monark raised a $1.5M seed round led by Storytime Capital (BW)

  • Wamo, a London-based digital SME business account provider, raised a $1.5M seed extension round led by Finberg and RePie Asset Management (FN)

IPO / Direct Listings / Issuances / Block Trades

  • Instacart priced its IPO at $30/share and raised $660M; the online grocery delivery company rose 12% to a $11B valuation on its debut day of trading (BBG)

  • Marketing and data automation provider Klaviyo priced its IPO at $30 per share, above its indicated price, and will raise $576M at a $9.2B fully diluted equity valuation (RT)

  • Investor demand for shares in Schott’s $4.6B IPO of its medical vials division exceeds its deal size (RT)

  • South Korea's Doosan Robotics is set to raise $317M at a $1.3B valuation after pricing its IPO at the top of its marketed range (RT)

  • European PE giant CVC Capital Partners is preparing a potential IPO in November thanks to improved investor sentiment for IPOs (BBG)

  • Greece is planning to list the Athens International Airport on its stock exchange next year (RT)

SPAC

  • Abu Dhabi-based identification card printer United Printing & Publishing will merge with the first SPAC to list in the Middle East, ADC Acquisition Corp., which will provide a $500M investment (BBG)

Debt

  • India's Torrent Pharmaceutical is in preliminary talks with Apollo Global for a loan of up to $1B to help fund a bid for rival Cipla in a deal expected to be worth as much as $7B; Torrent is also in discussions with CVC Capital Partners and Bain Capital to raise $1.5B (RT & RT)

  • Nio fell ~17% after the Chinese EV maker announced that it would raise $1B through a convertible bond offering (BRRN)

  • South Korea's LG Energy Solution raised $1B through its first global green bond issuance (RT)

Bankruptcy / Restructuring

  • Creditors of major Chinese property developer Sunac China Holdings approved its $9B offshore debt restructuring plan; Sunac also sought Chapter 15 bankruptcy protection in New York (RT & BBG)

  • Emergency medical services provider American Physician Partners, which is majority-owned by PE investor Brown Brothers Harriman Capital Partners, filed for Chapter 11 bankruptcy (WSJ)

  • UpHealth’s subsidiary UpHealth Holdings filed for Chapter 11 bankruptcy after a court ruled against the company in a lawsuit with investment bank Needham & Co (WSJ)

Fundraising

  • Investment firm Humble Growth raised over $312M for its debt fund to invest in consumer brands (WSJ)

  • VC Gutter Capital has raised about half of its planned $50M fund to invest in early-stage startups (AX)

Crypto Corner

  • FTX sued SBF’s parents to recover ‘misappropriated funds’ (WSJ)

  • Stanford plans to return millions of dollars it was gifted by FTX (BBG)

  • SEC failed to convince a judge to immediately allow officials to inspect Binance.US’s software (BBG)

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