☕️ Blackstone’s redemption

Good morning.

If you’ve ever missed a big investment opportunity this might make you feel better.

Capital Brief’s Dan Van Boom is reporting the masters of the universe at Blackstone had a shot at AirTrunk in 2020 but passed — weren’t sure if data centres were real estate or infrastructure.

Fast forward five years and they’ve splashed a record $24 billion on the thing, eight times what a Macquarie consortium paid for it back then.

"We didn't appreciate data centres terribly well, going back four or five years," Blackstone’s Chris Tynan told the Citi Australia and New Zealand Investment Conference yesterday.

"We were struggling with what it was. Was it real estate? Was it infrastructure? Was it something else? The replacement cost didn't make sense in a real estate context."

Now, with a major push by big boss Steve Schwarzman into data centres and after flexing their muscles in the US with QTS, they saw AirTrunk’s footprint in Asia as too good to miss.

🏆 LOI Subscriber #TBD

Market movers

Regis Resources shares kept climbing on Tuesday as Morgans boosted its price target to $3.22, pointing to strong cash flow from higher gold prices.

The broker reckons that even with the McPhillamys project blocked, the hedge book closure leaves Regis fully exposed to spot prices, lifting earnings.

The quick sync

• Michelle Simmons champions Australia's quantum future at SXSW, taking on the global quantum race. (Capital Brief)

• WiseTech founder Richard White secretly married Zena Nasser amid a bitter legal battle with his alleged former lover over a bankruptcy notice. (AFR)

• Billionaire Richard White is accused by a second woman of trading business advice for sex in a relationship that began over LinkedIn. (The Australian)

• Cyber envoy Andrew Charlton pushes for a global cybersecurity pact to end Australia's 'digital chill,' drawing parallels to the G20's formation after the GFC. (Capital Brief)

• Salesforce urges Anthony Albanese to appoint AI safety officer, following Joe Biden’s lead. (Capital Brief)

• IMF warns global public debt will exceed US$100tn ($1.49tn) this year, heightening risks to financial stability amid economic uncertainty. (The Guardian)(FT)

• Deloitte knocks PwC from top spot as consulting’s revenue plunges, AI reshapes advisory landscape. (AFR)

• Gupta’s GFG Alliance faces escalating financial strain as high-profile directors exit, with no progress on repaying US$587m ($875.93m) owed to the collapsed Greensill Capital. (AFR) (The Australian)

• ASIC probes Super Retail's handling of whistleblower complaints as two former executives sue over allegations of misconduct and dysfunction. (AFR)

Trading floor

M&A

• Blackstone passed on bidding for AirTrunk in 2020 due to a limited understanding of data centers, explained senior managing director Chris Tynan. (Capital Brief)

• The bidding process for collapsed regional carrier Rex is nearing final bids, with optimism for a positive outcome despite market doubts about finding a buyer or potential government bailout. (The Australian)

• Greystar is set to acquire GIC's $1.6bn student accommodation business, which GIC bought for $568m in 2022. (AFR)

• The $1bn bid for Singapore Post’s Australian assets is now limited to private equity firms, as strategic buyers were excluded due to sensitive information concerns. (The Australian)

• AustralianSuper's $1.5bn investment in DataBank will help fund three new US data centres, with AustralianSuper joining DataBank's board as a minority owner. (Capital Brief)

• Cooper Investors opposed Verizon's $9.6bn takeover of Frontier, claiming the company's standalone value is up to 62% higher than the $38.50 per share offer. (AFR)

• The sale of Brookfield's $3bn Aveo retirement living business is expected to be delayed until next year, as Brookfield assesses buyer interest and pricing before moving to a formal auction. (The Australian)

• Alisdair Faulkner, who sold ThreatMetrix for over $1bn, aims for his new company, Darwinium, to be ten times larger. (AFR)

• EMR Capital is preparing to sell its $2bn Ravenswood gold mine in 2025, having enlisted UBS and Azure Capital, following strong interest driven by record-high gold prices. (The Australian)

Capital Markets

• Pilbara Minerals has secured a $1bn credit facility, repaying two existing debt facilities to increase financial flexibility. (Capital Brief)

• Goldman Sachs' 45% profit surge driven by strong trading and dealmaking amid an investment banking rebound. (Capital Brief)

• Citi’s Q3 profit dipped 9% despite a stellar trading performance that beating Wall Street estimates. (Capital Brief)

• Bank of America beats earnings forecasts as strong trading revenue offsets a drop in net interest income. (Capital Brief)

• Bodd is seeking a $100m valuation while preparing a $10m capital raise to expand globally. (AFR)

• Byron Bay Bio raised over $400,000 through crowdfunding to enhance the accessibility of its CBD products. (BNA)

• ERA to move ahead with $880m capital raise after the Takeovers Panel confirms proper procedures were followed. (Capital Brief)

• Astron Corporation is raising $13m to help fund its Donald project in Victoria, which requires $450m to $490m for construction. (AFR)

• Major banks are expected to announce more capital management initiatives in November, following Westpac's recent $1.5bn returns. (Capital Brief)

• Boeing aims to raise $35bn as it faces production challenges, a costly strike, and regulatory issues, with analysts expecting an equity raise due to high debt levels. (Capital Brief)

• Symal is launching a $500m IPO roadshow, with brokers reaching out to fund managers in Sydney and Melbourne to gauge interest ahead of a potential ASX listing before Christmas. (AFR)

• Molycop plans for a 2025 ASX IPO after its previous $1bn attempt was canceled by private equity owners. (AFR)

• ASML shares tank after mistakenly reporting weak Q3 earnings and a weak outlook, dragging tech stocks lower. (Reuters)

VC

• Swoop Aero, a drone delivery start-up, has entered administration after a fallout with a major backer over production practices, two years after rejecting a $100m buyout. (AFR)

• Kiwi fintech Emerge has raised NZ$12m in Series A funding to establish New Zealand’s first challenger bank, led by Altered Capital and supported by various investors. (Startup Daily)

People moves

• Telstra reaffirms earnings guidance and appoints ex-BHP CFO David Lamont to its board, focusing on customer experience and financial growth. (Capital Brief)

  • Telstra shareholders protested executive bonuses, voting 15% against the remuneration report after write-downs and restructuring costs impacted profits. (AFR)

• Jefferies poached Goldman Sachs banking analyst Andrew Lyons, leaving Goldman without banking coverage and surprising Jefferies' Matt Wilson. (Capital Brief)

• Potentia Capital's internal conflicts lead to the departures of dealmakers Lara Ong and Andrew Joyce after Amit Chand and Michael McNamara's recent promotions to partner. (AFR)

• ANZ engaged Oliver Wyman to review its markets team's culture and risk governance after APRA raised misconduct concerns. (Capital Brief)

The watercooler