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Good Morning,

UPS drivers are getting paid like investment bankers, Citadel boosted its fixed income presence, Brookfield expects record inflows in 2023, WeWork’s struggles paint a dim picture for the NYC office market, the FAA extended cuts to airlines’ minimum flight requirements from NY airports, and Portnoy bought Barstool back for $1.

Looking to diversify your portfolio with alternative assets? You can gain access to private credit deals through today’s sponsor, Percent!

Let’s dive in.

Before The Bell

Markets

• US stocks fell again yesterday as investors braced for today’s July CPI report

  • Nasdaq moved into negative territory for Q2

• Oil prices continued their climb, increasing 1.6% to $84.3 bbl due to fuel inventory draws

• Shanghai’s SSE and Hong Kong’s HSI closed mixed after China reported economic data approaching deflation

Earnings

• Roblox stock fell 22% after Q2 revenue and losses missed analyst expectations due to the higher levels of expenses required to support growth (CNBC)

• Disney reported mixed Q3 results, beating Q3 adjusted earnings expectations but missing revenue and a 5M subscriber miss for its Disney+ streaming platform (CNBC)

• Honda stock rose 3% after it crushed Q1 profit expectations after reporting a 78% rise in quarterly profit thanks to increased sales, especially in North America, and a weaker yen (RT)

• Sony stock fell ~7% after reporting an expected 31% Q1 operating profit drop due to weak performance in its movie division (RT)

• What we're watching this week:

  • Thursday: Alibaba, Brookfield, Ralph Lauren

  • Friday: Soho House, Spectrum Brands

• Full calendar here

Headline Roundup

• UPS CEO says drivers will average $170k in pay and benefits at the end of 5 year deal (CNBC)

• Biden restricts US investment in some Chinese tech, citing national security concerns (CNBC)

• Citadel Securities boosts fixed-income presence with new bond trade (BBG)

• Brookfield defies deal gloom, expects record inflows in 2023 (BBG)

• Banks’ problems aren’t over, according to the bond market (WSJ)

• WeWork’s struggles threaten more pain for NYC’s slumping office market (BBG)

• Disney raises prices for streaming services by as much as 27% (BBG)

• Jamie Dimon, JPMorgan board defeat shareholders’ Epstein lawsuit (RT)

• Desantis ‘welcomes Disney’s surrender’ on key lawsuit claims (CNBC)

• US FAA extends cuts to airlines’ minimum flight requirements at NY airports (RT)

• Saudis agree with US on path to normalize kingdom’s ties with Israel (WSJ)

• Maker of world’s hottest weight-loss drug struggles to meet demand (BBG)

• Retirees face $17,400 cut to social security benefits in 2033 (BBG)

• Slowing trade fuels fear of a fractured global economy (WSJ)

• North Korea’s Kim dismisses top general, calls for war preparations (RT)

• Dave Portnoy paid just $1 to buy Barstool Sports back (BBG)

A Message From Percent

The alternative asset you probably haven't yet considered: Private credit.

While the traditional 60/40 portfolio has fallen short over the past few years, private credit is currently offering double digit yields to investors…

…All while being less-correlated to the market.

Blackstone’s billionaire president Jonathan Gray when discussing private credit last month stated: “I would say whenever you can get equity-like returns taking debt-like risk, that’s something you should do.”

For years though, private credit has been an asset class that is out of reach for main street investors, but that’s changing thanks to Percent – a frontrunner in private credit investments.

Percent offers exclusive private credit deals previously out of reach to most investors. If you’re an accredited investor, you get access to:

• Attractive Yields: Percent’s current weighted average is 18.14% as of July 31, 2023

• Liquidity: Many deals mature in months, not years, with some having liquidity available after just the first month

• Low Minimums: Invest as little as $500 to start

Exec Sum readers can receive up to a $500 bonus with their first investment.

Deal Flow

M&A / Investments

• Coach owner Tapestry is nearing a deal to buy Michael Kors-owner Capri Holdings at a “high single-digit billion’ valuation (WSJ)

• L’Occitane International’s controlling shareholder, Billionaire Chairman Reinold Geiger, is in advanced talks to take the $6.5B skincare company private (BBG)

• PE firm STG will acquire editing software maker Avid Technology for ~$1.4B, including debt (BBG)

• Australian funeral home operator InvoCare agreed to PE firm TPG’s revised $1.2B takeover offer (BBG)

• Body Art Alliance is exploring options, including a sale that could value the tattoo products maker at ~$1B including debt (RT)

• Regeneron Pharmaceuticals will acquire clinical stage hearing and balance treatment biotech Decibel Therapeutics for up to $213M (GNW)

• European IT solutions company Cegeka Group will acquire IT company Computer Task Group for $170M cash (GNW)

• American pharmaceutical and cannabis company Tilray Brands will acquire 8 beer and beverage brands, including Shock Top and Blue Point, from Bud Light owner Anheuser-Busch (WSJ)

VC

• German renewable energy company NeXtWind raised $750M in equity from Sandbrook, Public Sector Pension Investment Board and Investment Management Corporation of Ontario (BW)

• Micro Connect, a Hong Kong-based exchange group that leverages financial tech to connect global capital with China’s micro and small businesses, raised a $458M Series C from a diverse group of new and existing investors (FN)

• ADARx Pharmaceuticals, a clinical-stage biotech company focused on RNA therapeutics, raised a $200M Series C led by Bain Capital Life Sciences and TCGX (BW)

• Alltrna, a startup helping RNAs regulate the protein universe, raised a $109M Series B from Flagship Pioneering (FN)

• SumUp, a fintech startup helping small merchants get cash advances, raised $100M in financing from Victory Park Capital (FN)

• Digital healthcare ecosystem platform Halodoc raised a $100M Series D led by PT Astra International (FN)

• Georgiamune, a clinical-stage biotech company focused on oncology and autoimmune diseases, raised a $75M Series A co-led by General Catalyst and Parker Institute for Cancer Immunotherapy (FN)

• Weights & Biases, an AI and ML development platform, raised a $50M round at a $1.25B valuation from former GitHub CEO Nat Friedman, ex-Y Combinator partner Daniel Gross, Coatue, Insight Partners, and more (TC)

• Credgenics, an Indian debt collection platform, raised a $50M Series B at a $340M valuation from WestBridge Capital, Accel India, Tanglin Venture Partners, and Beams FinTech Fund (FN)

• Singaporean wealth management platform Endowus raised a $35M round led by Citi Ventures and MUFG Innovation Partners (TC)

• Doc2Doc Lending, a personal lending platform designed specifically for physicians and dentists, raised $35M in debt and equity funding led by Professional Solutions and private investors (FN)

• Deepset, a platform for building enterprise apps using large language models, raised a $30M round led by Balderton Capital (TC)

• AI-powered data-centric security startup Symmetry Systems raised $17.7M in funding led by ForgePoint Capital and Prefix Capital (FN)

• Cloud security startup Sweet Security raised a $12M seed round led by Glilot Capital Partners (TC)

• Atmosfy, an app that helps you discover restaurants and local businesses through short-form videos, raised a $12M seed round led by Redpoint Ventures (TC)

• Chargeflow, a chargeback automation solution for online businesses, raised $11M in funding led by OpenView (FN)

IPO / Direct Listings / Issuances / Block Trades

• CVC Capital Partners is weighing an IPO of German perfume retailer Douglas, which could be valued at as much as $7.7B (BBG)

• Companhia Paranaense de Energia’s top shareholder, the Brazilian state of Parana, privatized the utility through a $1.1B equity offering (BBG)

• India’s Axis Bank will raise its stake in insurer Max Life from 10% to 16.2% with a $195M investment for preferential allotment of shares (RT)

SPAC

• AR/VR remote work software maker Immersed will merge with Maquia Capital Acquisition Corp. in a $150M deal (RT)

Debt

• Indian financial services provider Tata Capital plans to raise $3.4B through debt instruments and credit lines to fund its fast-growing credit business (RT)

Bankruptcy / Restructuring

• Yellow Corp is exploring alternate bankruptcy loan offers to Apollo’s from investment firm MFN Partners, which owns 41% of the company, and rival freight trucker Estes Express Lines (RT)

• Instant Brands, known for its Instant Pot pressure cooker and Pyrex glassware, received an additional $30M in bankruptcy financing (BBG)

• WeWork appointed four corporate bankruptcy experts to its board after casting doubt on its ability to stay in business (WSJ)

Fundraising

• Buyout firm Clayton Dubilier & Rice is set to close its biggest-ever fund, Clayton Dubilier & Rice Fund XII, at $26B (WSJ)

• South African growth-stage investor Knife Capital closed its Knife Capital III fund at $50M to invest in Series B startups with high exit potential (TC)

• Symbol, a VC firm focused on Israeli pre-consensus startups, raised a $50M debut fund (FN)

Crypto Corner

• SEC plans to appeal a court ruling that declared that Ripple’s sale of XRP tokens on public exchanges complied with US securities laws (RT)

• Coinbase launched its new Base blockchain, the first to be launched by a public company (CD)

Exec’s Picks

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• Matt Levine provided an excellent breakdown of Dave Portnoy buying back Barstool Sports for $1 from Penn Entertainment.

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