☕️ Founder’s exit

Good morning.

The shock exit of Grow Inc’s founder and CEO, Mathew Keeley, rattled Australia’s startup circles just weeks after one of the most high-profile-backed startups secured a $66.5 million Series D round led by Hitachi Ventures.

As Capital Brief’s Bronwen Clune reports, the superannuation administration disruptor posted a hefty $44.2 million loss for FY2024 against $10 million in revenue, with substantial employee costs.

Keeley’s abrupt departure also followed intense board-level discussions at a time Grow is trying to scale its enterprise-grade tech offerings in the $3.4 trillion superannuation market.

There is no suggestion of any wrongdoing by Keeley; on the contrary Clune reports sources - including Debby Blakey, CEO of HESTA, both an investor and customer - praised his contribution to the company he founded eight years ago. Keeley remains on the board, but this means there’s a CEO vacancy.

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Market movers

Telix shares rose on Monday after CMS moved to unbundle payments for diagnostic radiopharmaceuticals in the US. Good news for their bottom line— Telix's Illuccix will continue to receive separate payments from CMS even after their initial "pass-through" payment status expires, ensuring continued revenue potential beyond the temporary phase.

The quick sync

• Trump's crypto-friendly promises, including firing SEC head Gary Gensler and integrating Bitcoin into US reserves, have captivated Australia's crypto investors, although experts caution potential gains may be short-lived. (Capital Brief)

• Crypto prediction markets are booming with billions wagered on Trump beating Harris, but their reliability as election indicators is questioned. (Reuters)

• MinRes faces investor backlash over founder Chris Ellison’s planned exit after governance scandals, but loyal investors are still backing the founder behind the company’s massive growth. (AFR) (Capital Brief)

• AFP raids PwC's Sydney office, seizing documents and computers in Operation Alesia's tax leak probe. (Capital Brief)

• Wall Street's US$11b debt market for AI-focused 'neocloud' firms reveals risky bets on Nvidia's GPU dominance, raising concerns over potential market saturation and depreciating collateral. (FT)

• Zuckerberg's plan for a nuclear-powered Meta AI data centre was stung by environmental and regulatory setbacks, including the discovery of rare bees, while rivals Amazon, Google, and Microsoft power ahead with nuclear deals. (FT)

Trading floor

M&A

• Billionaire Sam Chong is acquiring Anglo American's 33% stake in Queensland's Jellinbah and Lake Vermont coal mines for $1.6bn. (AFR)

• TPG Telecom’s share price may drop further after its $5.25 billion fibre asset sale. (The Australian)

• Spartan Resources sells two gold projects to Benz Mining for $15.6m and will offer technical support. (Capital Brief)

• Perpetual sold 129.7m shares of Star Entertainment at 20¢ each for $26m, with Regal and other hedge funds likely as buyers. (AFR)

• EQT is reportedly in a strong position to bid for the $1bn Waste Services Group through its infrastructure arm, benefiting from lower capital costs than private equity funds. (The Australian)

• Santos completes sale of 2.6% PNG LNG stake to Kumul Petroleum as part of its Oil Search acquisition agreement. (Capital Brief)

• Pacific Equity Partners has gained exclusivity to acquire a 50% stake in Opal HealthCare from its owners, including GK Goh Holdings. (AFR)

• Quinbrook to sell community energy provider Energy Locals to Palisade Impact-led consortium. (Capital Brief)

• Retail Food Group's $2.7m purchase of Cibo Espresso is a strategic move to ward off suitors, seen as a beneficial yet small investment. (The Australian)

• Perth's FBR has launched an $8m share purchase plan to fund its Florida home demonstration program. (BNA)

Capital Markets

• Burberry shares jumped 8.10% amid reports of a potential bid from Moncler, although both companies declined to comment. (Capital Brief)

• Salter Brothers' technology fund aims to acquire Brisbane telco reseller Bigblu Broadband's SkyMesh and has launched a capital raise for the deal. (AFR)

• Franklin Resources saw $31bn in record outflows, driven by SEC-probe-related issues at Western Asset Management. (Capital Brief)

• Unico Silver is raising $20m by hiring three brokers, capitalizing on strong silver trading before the US election. (AFR)

• WIA Gold is raising $30m, capitalizing on a 417% rally in its share price. (AFR)

• NextDC secures $2.9bn refinancing for enhanced growth funding, with finalization set for December. (Capital Brief)

• Breakthrough Victoria reported a $3m loss in its third year amid leadership changes and budget cuts after stopping its operating grant funding. (Startup Daily)

• Westpac's profit fell 3% in a competitive market, but strong capital allowed it to increase its share buyback. (Capital Brief)

• Strike Energy's shares increased 7% as it highlighted its value amid Gina Rinehart's $1.1bn purchase of Mineral Resources' energy assets, impacting the West Erregulla project. (The Australian)

• Equitise, a Sydney crowdfunding platform that raised over $90m, has gone into administration, with Olvera Advisors taking control. (BNA)

• Deutsche Bank and partners are stuck holding a big chunk of an US$875m loan for FitCrunch's buyout as investor interest falls short amidst a tough leveraged loan market. (Bloomberg)

VC

• Crimson Education, an online platform for elite university admissions, has raised $NZ67m ($61m), reaching a $1m valuation and achieving unicorn status. (AFR)

• JustFund, a Sydney fintech startup funding family law legal fees, has raised $5.7m in a Seed round led by Xilium Capital and supported by other investors. (Startup Daily)

People moves

• Mineral Resources’ Chris Ellison to step down as managing director amid tax evasion allegations. (Capital Brief)

• Endeavour appoints Paul Carew as ALH Hotels MD, with CEO Steve Donohue set to step down. (Capital Brief)

The watercooler