☕️ Big DPI Energy

Good morning.

The dust is only just settling on Eucalyptus' $1.6 billion sale to Hims & Hers — but for its earliest VC backers, the returns are exactly the kind of signal the sector under pressure has been hungry for.

Blackbird was Eucalyptus’ largest shareholder with more than 25% of the company and first backed Eucalyptus at seed in 2019, going on to participate in every subsequent round. “The transaction will see more than 2x our entire 2018 fund returned over the coming years — a showcase of the fund-returning outcomes our core funds are built to deliver,” Blackbird partner Nick Crocker told Capital Brief.

But, the most significant shift from the sale is Distributed to Paid-In capital (DPI)— actual cash distributed back to LPs. The Eucalyptus proceeds will begin converting that into real distributions, a metric that has become increasingly scrutinised as the exit drought has dragged on.

🏆 LOI Subscriber #TBD

Market movers

Shares in network-as-a-service provider Megaport plunged on Monday after the company’s half-year results prompted Citi analysts to warn its recently acquired Latitude business appears to be tracking to the lower end of second-half expectations and flag additional pressure on future capex.

The quick sync

• Metrics Credit Partners says Australia’s smaller tech sector reduces the risk of a Blue Owl style private credit shock. (Capital Brief)

• Navigator CEO Stephen Darke pushes back on market jitters over major shareholder Blue Owl. (Capital Brief)

• One Nation sits one point behind Labor in new Capital Brief/Demos AU polling, with Hanson posting a stronger net favourability rating than Albanese. (Capital Brief)

• Archangel is raising $40m to back pre-seed and seed startups, betting a funding gap and improving LP appetite will favour smaller VCs. (Capital Brief)

• New polling shows deep AI scepticism among lower income, older and regional Australians, casting doubt on its role in lifting productivity. (Capital Brief)

Trading floor

M&A

• Crown Coaches sold to Ventura Group for $20m. (AFR)

• Steadfast fields buyout interest for IQumulate premium funding business. (AFR)

• IFM Investors pulls out of $400m Benson Radiology deal. (AFR)

• Malabar’s Maxwell Mine tipped as potential $1b coal sale. (The Australian)

• Bain nears deal to acquire Perpetual wealth unit, keeping brand. (AFR)

• Keyton likely to be bought by Aware Super amid Lendlease asset sales. (The Australian)

• Olivier Goudet buys 6% of Treasury Wine Estates, backs long-term. (AFR)

• Heidi Health grows beyond AI scribe with UK acquisition and new tools. (Capital Brief)

• PayPal attracts takeover interest after stock slump. (Bloomberg)

• Citi nears Banamex stake sales to Blackstone, Televisa CEOs. (Bloomberg)

Capital Markets

• Reece shares jumped even after profit and dividend fell, as revenue growth and outlook reassured investors. (Capital Brief)

• Fisher & Paykel raises FY26 outlook despite ongoing US tariff uncertainty. (Capital Brief)

• Perenti shares slid after a weaker-than-expected first-half result despite higher profit. (Capital Brief)

• Austal’s profit jumped on strong defence contracts, driving revenue growth and a record order book. (Capital Brief)

• Mobile Tyre Shop eyes ASX debut with $10–20m raise. (AFR)

• Ampol’s statutory profit fell sharply, but stronger underlying earnings allowed it to raise dividends. (Capital Brief)

• Nuix swung to profit on strong licence sales and growth in its Nuix Neo platform. (Capital Brief)

• NIB’s half-year profit was steady, supported by revenue growth and strong local membership momentum. (Capital Brief)

• Lendlease posted a 1H loss due to asset write-downs but kept guidance and expects earnings recovery ahead. (Capital Brief)

• IMDEX shares rose after underlying profit beat forecasts despite lower statutory earnings. (Capital Brief)

• Genesis Energy to raise NZD400m for renewable energy expansion. (The Australian)

• Kogan’s profit fell on Mighty Ape weakness, though revenue rose and the dividend increased. (Capital Brief)

• Regis Healthcare shares rose despite lower statutory profit, backed by steady underlying earnings and revenue growth. (Capital Brief)

• Adairs’ profit fell sharply on margin pressure, even as revenue grew, prompting a lower dividend. (Capital Brief)

• NRL nears $1b revenue ahead of broadcast deal talks. (AFR)

• Aussie Broadband profit drops 58%, revenue rises; to buy Nexgen for $50m to expand business. (Capital Brief)

• EVT reports 21.6% profit rise, led by hotel growth. (Capital Brief)

• Data#3 H1 profit up 3.6%, interim dividend raised. (Capital Brief)

• Mayne Pharma CEO Shawn Patrick O’Brien replaced by CFO Aaron Gray after $600m deal collapse. (Capital Brief)

• Chorus eyes infrastructure deals after denying earlier strategic review. (The Australian)

• Pantoro Gold shares rally on 10% buyback announcement. (Capital Brief)

• AI scepticism in Australia may limit productivity gains, poll shows. (Capital Brief)

• Koala Furniture may scale back $100m IPO amid market uncertainty. (The Australian)

• US tariff ruling spurs ASX dip amid business uncertainty. (Capital Brief)

• Navigator Global Investments CEO Stephen Darke says Blue Owl issues have no impact amid share drop. (Capital Brief) (Capital Brief)

• Farrell says Trump’s tariffs could help clinch an Australia–EU trade deal. (Capital Brief)

• Bendigo will spend $80m fixing risk and compliance as digital arm Up turns profitable in a tougher banking market. (Capital Brief)

• US-exposed Australian businesses warn uncertainty is worse than the tariffs themselves. (Capital Brief)

• Software, payment shares sink after Citrini post on AI risks. (Bloomberg)(WSJ)(FT)

• Dimon seeks to sell JPMorgan investors on USD2b-a-week costs bill. (FT)

• ASML unveils EUV light source advance that could yield 50% more chips by 2030. (Reuters)

VC 

• Eucalyptus $1.6b sale delivers strong VC returns in Australia. (Capital Brief)

• Archangel’s $40m fund signals small VC resurgence. (Capital Brief)

• Government offers $500m co-investment for Australian defence tech. (Startup Daily)

• EatClub raises $27m Series B, doubles valuation to $200m. (Startup Daily)

• Victoria tops Australia in VC funding with $2.2b in 2025. (Capital Brief)

People moves

• Coronado CEO Douglas Thompson resigns; interim leaders appointed. (Capital Brief)

• Graeme Barclay joins Green Square DC, leaves Aussie Broadband board. (Capital Brief)

• Harvey Norman to vigorously defend new class action. (Capital Brief)

• Tribeca Investment Partners hires Daniel Porter to boost corporate advisory resources team. (AFR)

• Caroline Oosterbaan appointed Rabobank Australia CEO. (Capital Brief)

• Southern Cross Media CEO Jeff Howard resigns ahead of FY26 results. (Capital Brief)

• Steadfast CEO Robert Kelly to retire; successor due by August. (Capital Brief)

• Albanese backs removing Andrew Mountbatten-Windsor from succession line. (Capital Brief)

• UK police arrest Peter Mandelson on suspicion of misconduct. (Bloomberg)

• Christine Lagarde receives EUR140,000 from BIS despite payment ban for ECB staff. (FT)

The watercooler