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Norway’s SWF chief said 'Europeans are less hard-working' than Americans, Kim Kardashian’s PE firm is facing fundraising hurdles, McKinsey is under criminal investigation, KPMG UK canceled some foreign graduate job offers, and the TikTok sell-or-ban bill was signed into law.

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Let’s dive in.

Before The Bell

Markets

• US stocks wobbled to close relatively flat yesterday as higher bond yields dampened earnings enthusiasm

  • A record $70B auction of US 5Y Treasuries helped push yields higher

  • Five S&P 500 stocks hit new ATHs

Earnings

• Meta shares plunged ~16% despite beating Q1 earnings and revenue estimates due to a light Q2 revenue forecast (CNBC) 

• Boeing reported its first revenue drop in seven quarters but nonetheless beat analyst estimates that were lowered due to recent safety incidents (RT) 

• Ford beat Q1 earnings estimates but slightly missed on revenue as truck sales offset losses in EVs (CNBC) 

• IBM shares fell ~8% as a Q1 revenue miss overshadowed their announcement to acquire HashiCorp (CNBC) 

• Chipotle reported better–than-expected Q1 earnings and revenue driven by higher traffic despite a rise in prices (CNBC) 

• What we're watching this week:  

  • Today: Microsoft, Alphabet, Intel, Snap Inc., American Airlines

  • Friday: ExxonMobil, Chevron, Abbvie

• Full calendar here

Headline Roundup

• Europeans 'less hard-working' than Americans, says $1.3T Norway SWF CEO (FT)

• McKinsey under criminal investigation over Opioid-related consulting (WSJ)

• KPMG UK cancels foreign graduate job offers after tighter visa rules (FT)

• Goldman and Bank of America shareholders rejected proposals for CEO-chair split (RT)

• Morgan Stanley Asia PE unit to reorganize as CEO retires (RT)

• Goldman tapped two senior BofA bankers for India dealmaking roles (RT)

• HSBC says growing Chinese wealth fuels client investments in US (RT)

• Jefferies CEO sold $65M in stock to buy a client's yacht (FT)

• UK's largest asset manager Schroders launched a search for a new CEO (FT)

• UBS analyst who took on Evergrande now bullish on China property (BBG)

• UBS faces new lawsuit by HF Appaloosa over Credit Suisse $17B bond wipeout (RT)

• NYCB faces tough choices on CRE loans, balance sheet diversification (RT)

• Florida home insurance industry may be in deep trouble (BBG)

• Russian court orders seizure of $440M from JPMorgan (FT)

• Foxtrot abruptly ceased all operations (WP)

• AI has an urgent power problem (WSJ)

• Whirlpool to cut 1k jobs globally (RT)

• Biden signed the TikTok sell-or-ban bill into law (CNBC)

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Deal Flow

M&A / Investments

• BHP Group, the world’s largest miner, is considering a potential all-share takeover of $36.2B miner Anglo American in what could be this year’s biggest acquisition (BBG) 

• KKR is shelving its sale of consumer food company Upfield after talks with SWF ADQ fell apart due to price disagreements; KKR was seeking ~$10B (BBG) 

• IBM agreed to acquire software company HashiCorp in a $6.4B cash deal (BBG) 

• MassMutual agreed to acquire a minority stake in lending business Atlas from Apollo Global for over $2B (FT) 

• Blackstone will acquire restaurant chain Tropical Smoothie Cafe for ~$2B including debt from PE firm Levine Leichtman Capital Partners (RT) 

• Music rights investor Concord increased its takeover bid for Hipgnosis Songs Fund to $1.5B at $1.25/share, topping Blackstone’s $1.24/share bid (FT) 

• KKR is considering a $1B acquisition of Indian medical-device maker Healthium Medtech from Apax Partners (BBG) 

• Nvidia agreed to acquire Israeli AI software provider Run:ai for $700M (BBG) 

• Five Arrows' sale of wealth management software company Harvest, which is valued at $535M, attracted initial interest from suitors including French investment group Wendel and PE firm Cinven (BBG) 

• Bain Capital is considering a sale of Apex Tool Group’s China business that could value the assets at up to $500M (BBG) 

• The FDIC is seeking bids for the Philadelphia regional bank Republic First Bancorp (BBG) 

VC

• Xaira Therapeutics, an integrated AI biotech company, raised $1B in funding from Sequoia Capital, Lightspeed Venture Partners, Menlo Ventures and more (FN)

• AI-powered coding platform Augment raised a $252M round at a $977M post-money valuation from ex-Google CEO Eric Schmidt, Index Ventures, Lightspeed Venture Partners, and more (TC)

• ThreatLocker, a cybersecurity startup offering a Zero Trust endpoint security solution, raised a $115M Series D led by General Atlantic (FN)

• Conversational AI platform Parloa raised a $66M Series B led by Altimeter Capital (TC)

• Virtual care clinic Midi Health raised a $60M Series B led by Emerson Collective (PRN)

• Tines, an automation platform for security teams, raised a $50M Series B extension led by Accel and Felicis (TC)

• MARKT-PILOT, an optimized dynamic pricing platform, raised a $43M Series A led by Insight Partners (PRN)

• Proactive security and threat exposure management startup Nagomi Security raised a $30M seed round led by TCV (BW)

• FinQuery, an AI-powered solution for companies to manage spend, received a $25M investment from Periphas Capital (FN)

• Nooks, an AI dialing and prospecting platform, raised a $22M Series A led by Lachy Groom (FN)

• Email security platform Sublime Security raised a $20M Series A led by Index Ventures (PRN)

• Precision oncology startup Flindr Therapeutics raised a $22M Series A led by V-Bio Ventures (PRN)

• Chemix, a self-driving lab for the development of EV batteries, raised a $20M Series A led by Ibex Investors (VC)

• BforeAI, a startup using AI to predict and preempt cyber attacks, raised a $15M Series A led by SYN Ventures (PRN)

• Alaffia Health, a startup using AI to streamline health plan claim operations, raised a $10M Series A led by FirstMark Capital (PRN)

• RWX, a continuous integration platform, raised a $7M seed round led by Quiet Capital (BW)

• Bioform Technologies, a Canadian startup developing bio-based plastic alternatives, raised a $5M seed round from Suzano Ventures (BW)

• KEY, an all-natural energy drink, raised a $4M seed round led by AgFunder (PRN)

• PeppercornAI, an insurtech company that uses conversational AI, raised $4.2M in funding led by Wealth Club, EHE Capital, and Angels Invest Wales (FN)

• Diddo, a startup providing an API for streaming services to integrate shoppable videos, raised a $2.8M seed round led by Link Ventures (TC)

• Handl Health, a startup helping benefits consultants design and deliver affordable health benefits, raised a $2.5M seed round led by Mucker Capital and Everywhere VC (PRN)

IPO / Direct Listings / Issuances / Block Trades

• KKR-backed ship maintenance company HD Hyundai Marine Solution plans to raise ~$540M in what may be South Korea’s biggest IPO in two years (WSJ) 

• EquipmentShare, a construction equipment rental company, is exploring an IPO after being valued at $3.8B (BBG) 

• UK futures broker Marex's IPO raised $292M in its US IPO (BBG)

• Saudi hospital group Dr. Soliman Abdul Kader Fakeeh Hospital is planning a local IPO (BBG) 

• Saudi Arabian water infrastructure company Miahona is planning a local IPO (RT) 

Debt

• Citigroup and Wells Fargo are preparing a $2B debt package to support Berry Global Group's spinoff of the majority of its health, hygiene and specialties business with Glatfelter (BBG) 

• Lenders led by RBC launched a $365M bond sale to offload debt related to Apollo's LBO of automotive components manufacturer Tenneco in 2022 (BBG)

Fundraising

• KKR raised $11B for its targeted $20B KKR Global Infrastructure Investors V fund (BBG)  

• Investcorp, the Middle East’s biggest alternative asset manager, will set up a new $1B fund backed by Chinese SWF CIC to invest in companies across the Persian Gulf and China (BBG) 

• Seed-stage VC Eniac Ventures closed two funds totaling $220M (TC) 

• Kim Kardashian's SKKY Partners raised just $121M for a targeted $1B-$2B debut fund (AX)

Crypto Corner

• SEC is seeking a $5.3B fine on Terraform Labs and its co-founder Do Kwon (BBG) 

• Binance co-founder CZ is facing up to three years in US prison (BBG)

• Two founders of the Samourai Wallet crypto-mixing service were charged with helping criminals launder $100M (BBG) 

Exec’s Picks

• WSJ published an interesting piece on how giant investment companies are taking over the financial system.

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