☕️Alleged Activity

Good morning.

Sydney VC firm EVP has contacted the police to investigate “alleged activity” at one of its portfolio companies, StrongRoomAI, less than two weeks after it announced a $17 million raise, valuing the medtech startup at around $70 million.

Declining to elaborate on the nature of the conduct, in a statement provided to Capital Brief, EVP said it had contacted authorities in an attempt to recoup the millions it invested into StrongRoomAI as a result of unspecified developments at the company.

🏆 LOI Subscriber #TBD

Market movers

Mineral Resources shares jumped Monday after work safety authorities cleared the restart of haulage at Onslow Iron, with capacity expanding and road upgrades on track.

The quick sync

• Donald Trump aides bungled a Signal chat, allowing The Atlantic’s editor-in-chief to watch Yemen war plans unfold in real time. (The Atlantic)

• Blackbird Ventures begins raising sixth fund as global investors circle Australia’s top VC amid a tough funding climate. (Capital Brief)

• Yarra’s Phil Strano urges investors to exit misvalued private credit as stress builds and transparency risks grow. (Capital Brief)

• Trump’s trade envoy revives a decade-old coal dispute with Australia, pressing for stalled compensation to US investors over a cancelled NSW mining licence, as Canberra scrambles to dodge looming tariffs. (AFR)

• Washington’s proposed billion-dollar hit on Chinese ships could sink global trade faster than Trump’s tariffs. (Bloomberg)

Trading floor

M&A

• James Hardie is buying AZEK for $14b to boost growth and profitability. (Capital Brief)

• BGC to sell Midland Brick for $150m–$300m after offloading key assets. (The Australian)

• Van Eck Associates sold a 1.5% stake in Bellevue Gold, causing its shares to drop. (Capital Brief)

• Gold Road rejects $3.3b Gold Fields bid, affecting Northern Star’s De Grey deal. (AFR)

• Korean AI chip startup FuriosaAI rejected an $800m takeover bid from Meta, opting to remain independent and focus on its own growth. (Capital Brief)

Capital Markets

• Helia risks losing CBA’s mortgage insurance contract, affecting future earnings. (Capital Brief) (The Australian)

• Mineral Resources resumes Onslow iron haulage and expands operations. (Capital Brief)

• Albanese secured a $2.8b schools funding deal with Queensland, completing agreements with all states and territories. (Capital Brief)

• Sovereign Metals, backed by Rio Tinto, is raising $40m to fund development at its Kasiya rutile-graphite project in Malawi. (AFR)

• Morgans upgrades Cleanaway after $377m Contract Resources buyout. (Capital Brief)

• Yorkway Private raises $10m to aid iProsperity fraud victims via One Investment Group. (AFR)

• Australia accelerates $1b in defence spending amid security concerns. (Capital Brief)

• InfraBuild delays accounts for the third time in a month amid $800m creditor pressure. (AFR)

• 23andMe files for bankruptcy, CEO steps down amid data concerns. (Capital Brief)

• Roc Partners raises $160m for new multi-strategy private equity fund. (AFR)

• UK private sector growth hits six-month high despite manufacturing slump. (Capital Brief)

• BYD overtakes Tesla in revenue, hitting $107b with rapid EV growth and tech advances. (Bloomberg)

• Hyundai plans a $20b US investment to counter Trump’s tariffs, with an announcement expected at the White House. (Capital Brief) (CNBC)

• Regal Funds risks $200m+ loss as biotech Opthea faces collapse after poor trial results. (The Australian)

• Trump to impose a 25% tariff on all trade with countries buying Venezuelan oil, affecting China, Spain, and Italy. (Capital Brief)

• Protecht has secured a $445m investment from PSG Equity, which buys out earlier investors and becomes the majority owner. (AFR)

• Trafigura cancels $750m green hydrogen plant in SA, citing costs and low demand, raising doubts about Australia’s hydrogen ambitions. (The Australian)

• Blackbird Ventures has begun raising its sixth fund, securing commitments from international and domestic institutional investors. (Capital Brief)

• Notion expands into Australia, opening a Sydney office as part of its APAC growth, positioning itself as a productivity platform beyond note-taking. (Smart Company)

• Aussie Home Loans franchisees to file ACCC complaint against Lendi Group over bullying claims. (AFR)

• Private money is buying time, but startups can’t dodge IPOs forever with investors waiting to cash out. (Bloomberg)

• Tim Gurner’s Saint Haven spa raises tax questions as 'wellness and co-working' blur business and pleasure. (AFR)

• ASX hits second-biggest trading day as $12b floods in during Friday’s index rebalance frenzy. (AFR)

• Clearlake to acquire Dun & Bradstreet for US$4.1b in second take-private deal in seven years. (Bloomberg)

• With insiders across Washington, Elon Musk’s SpaceX is set to score billions in contracts—blurring lines between power, profit and policy. (NYT)

VC

• Australian small businesses lost over $25m to scams in two years, with investment scams and false billing being the most costly. (Smart Company)

• AI medical scribe startup Heidi is betting on doctors, not hospital deals, to win the AI scribe war — and just banked $26m to prove it. (Capital Brief)

People moves

• Lottery Corp CEO Sue van der Merwe will retire by the end of 2025, with a search for her successor underway. (Capital Brief)

• Morgan Stanley hires UBS's Tom Tepaa to grow block-trade business. (AFR)

• Steadfast COO Nigel Fitzgerald is stepping down for a personal venture, with Noelene Palmer named as his successor. (Capital Brief)

• Alvarez & Marsal hires Deloitte partner Sam Roberts. (AFR)

• KMD Brands has appointed Nike executive Ashley Reade as the new CEO of Rip Curl. (Capital Brief)

The watercooler