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Good Morning,

Goldman is pitching Stripe's latest fundraise to their richest clients, Morgan Stanley is getting into the ETF game, US average mortgage rates are up for the third straight week, Google asked employees to share desks to cut costs, Coinbase launched a layer 2 blockchain, and Ozy Media was charged with fraud.

Wharton and today's sponsor, Wall Street Prep, have partnered to launch the best Private Equity Certificate Program on the market. Check it out here.

Let's dive in.

Before The Bell

Markets

• All three major US indexes rallied late to finish higher yesterday as investors digested more economic data while remaining uncertain about the path of Fed rate hikes 

  • The S&P snapped a four-day losing streak

• Gold hit its lowest price in two months as rates appear to be higher for longer

Earnings

• Alibaba crushed Q3 EPS and revenue estimates on cost cutting efforts and China's abrupt easing of Covid curbs in December, while forecasting faster revenue growth as the full effect of the China's reopening is felt (CNBC)

• Wayfair beat Q4 revenue estimates but posted a wider-than-expected loss on declining active customers and orders per customer; their stock fell 23%+ (YH)

• Carvana missed Q4 revenue estimates and posted a wider than expected loss on tumbling used car sales and prices; the firm will reduce annual costs by $1B in H1 2023 (BBG)

• Full calendar here

Headline Roundup

• US Q4 GDP growth was revised 0.2% lower to 2.7% on weaker consumer spending (BBG)

• US average mortgage rates rose for a third straight week to 6.5% (BBG)

• China is expected to poach overseas listings from Wall Street amid new IPO rules (FT)

• Eurozone inflation was revised slightly upwards to 8.6% in January (RT)

• New Zealand's central bank hiked rates by 50 bps to 4.75% (AP)

• Bank of Japan intends to maintain easy monetary policy (RT)

• S&P 500 pandemic-driven earnings growth has come to an end (AX)

• Jamie Dimon believes the Fed ‘lost a little bit of control of inflation’ (CNBC)

• PE pioneer Thomas H. Lee was found dead of a self-inflicted gunshot wound in NYC office (NYP)

• Morgan Stanley plans entry into the ETF industry with a multi-asset class platform (FT)

• Google asked employees to share desks in cost-cutting move (CNBC) 

• Netflix cut subscription prices in over 36 countries (WSJ)

• Goldman Sachs is offering rich clients access to Stripe's $4B fundraise (BBG)

• Canada launched a privacy investigation into TikTok (RT)

• Humana will exit employer insurance business to focus on government plans (RT)

• Biden nominated ex-MasterCard CEO Ajay Banga as World Bank President (RT)

• Two EU bodies banned TikTok on staff phones (RT)

• Ozy Media and CEO Carlos Watson were charged with fraud (WSJ)

• Harvey Weinstein was sentenced to 16 years in prison (AP)

A Message From Wall Street Prep

Wall Street Prep is the go-to resource for getting you prepared for your next investment banking interview, and Wharton is one of the world’s top business schools.

 And guess what? WSP and Wharton just joined forces to launch a new Private Equity Certificate Program, sponsored by KKR, Blackstone, Thoma Bravo and Carlyle!

 The program is an 8-week, intensive, online course that leverages Wharton’s world-class faculty and resources to teach the foundational concepts and practical techniques deployed in investment analysis and deal execution, featuring guest lectures from David Rubenstein, Martin Head (Blackstone’s North America Head of Private Equity), and more!

 And no, this isn’t another Investing 101 class. You will learn how to analyze private equity investments by blending investment theory with the real-world analysis done at the world’s leading private equity investment firms. 

The Private Equity Certificate Program is currently open for enrollment for its May 2023 cohort, and you can secure your seat here!

Deal Flow

M&A / Investments

• Apollo offered to acquire UK-based engineering services firm John Wood Group at a $1.92B valuation (RT)

• Swiss investment firm Partners Group is nearing a deal to buy a minority stake in UK pharmaceutical manufacturing services provider Sterling Pharma Solutions in a potential $1.2B+ deal (BBG)

• Czech billionaire Daniel Kretinsky is reportedly ready to buy German electronics retailer Ceconomy's 24% stake in French retailer Fnac Darty, which has a $1.1B market cap (RT)

• The SEC and New York's financial regulator opposed Binance.US's $1B deal to buy bankrupt crypto lender Voyager (RT)

• Biotech firms Redx Pharma and Jounce Therapeutics will merge in $425M deal (RT)

• Iberia-owner International Airlines Group agreed to pay $424M to Spain's Globalia for the remaining 80% of airline Air Europa it did not already own (RT)

• Data center operator GDS is considering selling a minority stake in its international business for ~$300M-$400M (BBG)

• PE firm Potentia Capital raised its takeover offer for Australian software maker Nitro Software to $364M, trumping a rival offer by KKR-backed Alludo (RT)

• Dubai Holding, an investment firm owned by the Emirate’s ruler, is in talks to sell the local branch of luxury beach club resort Nikki Beach at a potential ~$218M valuation (BBG)

• PE firm L Catterton is in advanced talks to buy mezcal liquor maker Ilegal Mezcal at a less than $200M valuation (BBG)

• Indonesia's investment authority INA and China's Silk Road Fund subscribed to pharmaceutical company Kimia Farma's convertible bonds and also acquired 40% of shares in their Kimia Farma Apotek unit for $122.5M (RT)

• Dick’s Sporting Goods agreed to buy outdoor retailer Moosejaw from Walmart, which they purchased for $51M in 2017 (CNBC)

VC

• Spreetail, an e-commerce accelerator for manufacturers, raised $208M in funding led by McCarthy Capital (FN)

• Indian omni-channel eyewear retailer Lenskart is in talks to raise $100M at a $4B valuation from ChrysCapital (ET)

• Cloud optimization startup ProsperOps raised a $72M round led by H.I.G. Growth Partners (TC)

• Chain Reaction, a startup developing semiconductors and related architecture to use in blockchain hardware, raised a $70M Series C led by Morgan Creek Digital (TC)

• Transcend Therapeutics, a mental health focused biotechnology company, raised a $40M Series A led by Alpha Wave Global (FN)

• Aeroseal, a climate tech startup providing software-enabled energy solutions, raised a $30M Series B led by OGCI Climate Investments (FN)

• Logistics startup Slync raised a $24M debt / equity round led by Goldman Sachs (TC)

• AI-centric greenhouse management startup Source.ag raised a $23M Series A led by Astanor Ventures (TC)

• Unyoked, an Australia-based nature-focused hospitality startup, raised a $19.1M round led by SURPLUS Equity Partners and Realside Financial Group (FN)

• Aquafortus, a startup extracting metals / minerals from difficult-to-treat wastewater, raised a $17M Series A-1 led by DCVC and Novo Holdings (FN)

• CyberSmart, an all-in-one cybersecurity and insurance solution for SMBs, raised a $15.4M Series B led by Oxx (TC)

• Digital estate planning startup Trust & Will raised $15M in funding from Amex Ventures, Northwestern Mutual Future Ventures, SEI Ventures, and USAA (TC)

• 3D-printing and footwear technology startup Zellerfeld raised a $15M seed round led by Founders Fund (FN)

• Gridium, a decarbonization partner for real estate firms, raised $14M in funding led by Navitas Capital (BW)

• Future Fields, a startup using fruit flies for recombinant protein production, raised a $11.2M round led by Bee Partners and Toyota Ventures (FN)

• Logistics SaaS platform BlueCargo raised $11M in funding led by Soma Capital and Left Lane Capital (PRN)

• Worldwide Webb, a London-based provider of an interoperable pixel art MMORPG metaverse game, raised a $10M Series A led by Pantera Capital (FN)

• Finway, a Munich-based provider of finance operating systems for SMBs, raised a $9.8M Series A led by Capital.49 (FN)

• DirectID, an Edinburgh-based fintech startup specialized in risk analytics and predictive modeling, raised a $9.5M round led by Ingka Investments (FN)

• Carbon insurance company Oka raised a $7M seed round led by Aquiline Technology Growth (PRN)

• Earthly Technologies, a ‘CI / CD-as-a-service’ platform, raised a $6.5M seed round led by Innovation Endeavors (BW)

• Green Check Verified, a fintech startup working in the cannabis industry, raised a $6M Series A led by Mendon Venture Partners (BW)

• IrisCX, a smart video platform for virtual product selection, raised a $4.6M seed round from Arthur Ventures (FN)

• LaborWorx, a skilled worker marketplace for understaffed construction and manufacturing companies, raised $4.2M in funding from undisclosed backers (FN)

• AI-driven sales intelligence platform Autobound raised a $4M seed round led by Dundee VC (PRN)

• Spoke.ai, an AI-powered workplace operating system provider, raised a $2.1M pre-seed round led by byFounders, Possible Ventures, and IBB (FN)

• Web3 native messaging platform Salsa raised a $2.1M pre-seed round led by IDEO CoLab VC and Inflection.xyz (FN)

IPO / Direct Listings / Issuances / Block Trades

• Abu Dhabi National Oil Co’s IPO of a 4% stake in natural gas unit Adnoc Gas raised $2B at a ~$50B valuation, with investors purchasing all available shares within hours (BBG)

• Romania-owned hydropower producer Hidroelectrica plans to float Franklin Templeton's 15-20% stake in the business at a $2.65B valuation in a Romanian IPO in May or June (RT)

• Indian carmaker Tata Motors is in talks with sovereign wealth funds and PE funds to raise up to $1B via a stake sale in its EV business (RT)

• Saudi property developer Dar Global plans to list directly in London at a ~$600M valuation (RT)

• Malaysian pet food maker Pet World Nutritions is planning to raise up to $100M in what could be Singapore's biggest IPO this year (RT)

• A biotech subsidiary of Sichuan Kelun Pharmaceutical selected Citic Securities and Goldman Sachs for its upcoming Hong Kong IPO (BBG)

• Italian security solutions firm CAME is aiming to list in Milan before summer break (RT)

Debt

• A group of international investors proposed to Ethiopia's government to extend the maturity of their $1B eurobond issue due in 2024 (RT)

Bankruptcy / Restructuring

• Akorn Pharmaceuticals filed for Chapter 7 bankruptcy and will shutter US operations after failing to be acquired for $4.3B under Chapter 11 (FP)

Fundraising

• Blackstone is set to raise ~$10B for its tactical opportunities strategy (RT)

• Alternative credit investment firm Crescent Capital Group raised an $8B eighth private credit solutions fund (BW)

• SkyBridge Capital plans to raise a $50M recovery fund to acquire holdings in 10-15 companies from distressed investors (RT)

Crypto Corner

• Coinbase launches layer 2 blockchain Base to provide on-ramp for Ethereum, Solana, and others (CD)

• US prosecutors brought four new criminal charges against SBF (WSJ)

• The Fed, FDIC and OCC said crypto-related deposits pose liquidity risks to banks (AX)

• IMF board 'generally agreed' crypto shouldn't be legal tender (CD)

• Two ex-Barclays bond traders sold Bored Ape NFTs for a 700% profit (BBG)

Exec's Picks

• Bloomberg said it best: "Bezel is taking aim at established watch resale platforms including Chrono24, Bob’s Watches and EBay." Bezel is the most trusted marketplace for buying and selling luxury watches. Every watch is hand-authenticated by their team of in-house watchmakers and watch specialists. Get your next watch here.

• Eight Sleep is a high-tech smart bed system that has taken Silicon Valley by storm. They currently have a big Presidents' Day sale on their pod mattresses and covers so it's the perfect time to upgrade your mattress game here. Use code "LIT" at checkout for $250 off the pod and $150 off the pod cover!

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We aim to place strong candidates at leading private equity, hedge fund, venture capital, growth equity, and credit funds, as well as investment banks. 

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