☕️ BIS anxiety

Private credit is making global watchdog nervous

Good morning.

The private credit market is starting to make the overseer of global finance jittery.

The BIS is warning of an “incentive misalignment” that could turn this US$2.1 trillion ($3.1 trillion) sector into a financial funhouse, with Bloomberg noticing almost 40% of fund managers don’t have skin in the game.

Regulators seem on edge about the unseen risks and might want to tighten their grip on the shadow banking circus.

ASX as at market close. Commodities and crypto in USD.

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Market movers

Magellan Financial Group had a good weekend after it showed surging performance fees and stabilising funds flows. It extended Thursday’s gains on Friday to close the week almost 13% higher.

But not all analysts are convinced. Jarden raised their price target but, Macquarie wasn’t buying the hype, trimming their target price and warning that the investment performance is still a mixed bag.

The quick sync

  • Cashed-up start-ups like Cribl, ProHance, Wiz, Deel and Rippling are defying the slowing economy to carve out a presence in Australia and take advantage of the country’s wealth. (AFR)

  • The growing appetite for action in Nine's publishing division could see a newspaper staff strike for the first time since they walked off the job in 2017. (Capital Brief)

  • Scyne, spun out of PwC a year ago for $1, is heading towards $200m in revenue, rebuilding a third of the roughly $600m earned by its predecessor firm. (AFR)

  • Local universities are brimming with climate tech innovations, but the path to commercialisation is hard and funding gaps remain. (Capital Brief)

  • The $2.3b high-voltage line connecting renewables projects in SA to the national grid has been hit by cost blowouts, delays and payment defaults (AFR)

Trading floor

M&A

  • Palisade Investment Partners is expected to pull out of the Queensland Airports Limited sale, potentially leaving Vinci to seek another local partner in the bidding process. (The Australian)

  • River Capital has acquired Archer Capital's Aspire2 Group, a Kiwi education business, aiming to expand its business-to-business unit in Australia. (AFR)

  • Anglo American is set to sell its Queensland coal mines, valued over $7bn, after rejecting BHP's $75bn takeover offer. (AFR)

  • Australia's Takeovers Panel has stopped Crescent Capital Partners' takeover of Pacific Smiles due to disclosure issues, despite Crescent outbidding a smaller rival in April. (The Australian)

  • Quadrant Private Equity has hired Houlihan Lokey to review its premium pet food brand Prime100, potentially leading to a sale to capitalize on high valuations. (AFR)

  • Allegro Funds is well-positioned to buy Fletcher Building's Tradelink unit after US-based Pacific Avenue Capital Partners withdrew from the sale process. (The Australian)

Capital Markets

  • Newmont maintains its 8.6% stake in Antipa Minerals by participating in a $5.75m equity raise, alongside Lion Selection Group and others. (The Australian)

VC

  • Grow Inc has launched a $60m Series D raise, with Hitachi Ventures as a key anchor, to scale its superannuation administration services in Australia. (AFR)

  • Gelomics, a Brisbane biotech, raised $2.2m in pre-seed funding led by Jelix Ventures, QIC, and Angelloop. (Startup Daily)

People moves

  • None

☝️ Know about a deal or people move we don’t? Hit reply.

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