☕️Blind Spot

Good morning.

According to documents seen by Capital Brief, Regal Partners’ speculative bet on biotech Opthea, has blown a hole through the fund's performance figures, smashing the more than $56 million in equity the hedge fund promised to its staff last August.

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Market movers

Challenger shares jumped Thursday after the investment firm tightened profit guidance on the back of strong annuity sales, pointing to 10% earnings growth in FY25.

The quick sync

• ASIC warns of rising private credit fund failures, urging investors to scrutinise valuations and manager capabilities as defaults climb. (Capital Brief)

• The UAE is set to become the first country to use AI to write and revise laws, aiming to speed up legislation by 70%—but experts warn of serious risks. (FT)

• The Big Four banks may have survived Hayne, but a flood of new failures is keeping billion-dollar remediation pipelines alive and fuelling a quiet regtech arms race. (Capital Brief)

• Private equity is stuck with old assets and rising rates—Warburg Pincus boss Jeffrey Perlman says only the disciplined and diversified will thrive from here. (Goldman Sachs)

Trading floor

M&A

• Transgrid stake is up for sale as $17b renewable grid bill looms. (AFR)

• Zenith Energy narrows its sale to three bidders as Morrison exits. (AFR)

• Sentinel buys Fortitude Valley office for $140m, betting on Olympic boost. (The Australian)

• Banks chase Chemist Warehouse founders’ $16b stake ahead of escrow expiry. (AFR)

Capital Markets

• Markets sank after Trump slammed Powell and demanded rate cuts “NOW”. (Capital Brief)

• Energy One hires Lazard as adviser amid growing investor interest. (AFR)

• Trump fast-tracks Rio Tinto and BHP’s Arizona copper mine to reduce reliance on foreign minerals. (SMH)

• TikTok, Meta, and Snapchat demand answers over YouTube’s age restriction exemption. (AFR)

• HyTerra starts US drilling for natural hydrogen, backed by Andrew Forrest. (The Australian)

• Shein hits $1b in Australian sales, shaking up local retail market. (AFR)

• WeMoney, backed by Escalante and now valued at $100m, raised $12m to expand its AI-powered lending tools and is preparing for an ASX listing. (AFR)

• Toyota-backed Hino and Daimler’s Mitsubishi Fuso are nearing a long-delayed merger to form a Tokyo-listed truck giant, aiming to counter Chinese rivals and US tariffs by April 2026. (Nikkei)

• StrongRoom AI boss Max Mito denies fraud claim as court grants legal funds, setting up a high-stakes clash over the collapsed $70m startup. (Capital Brief)

• US student loan collections resume from 5 May as the Education Department ends pandemic-era leniency, targeting millions in default with wage garnishment and tax refund seizures. (AP)

• Mark Zuckerberg’s emails show a decade of paranoia over rivals—now they might help tear Meta apart. (Business Insider)(FT)

• US Homeland Security Secretary Kristi Noem's purse containing ID, credit cards and US$3,000 cash was stolen in DC as surveillance footage reveals a brazen theft now under investigation. (Bloomberg)

• RFK Jr will unveil a plan to cut synthetic food dyes from US shelves, escalating pressure on food giants ahead of a wider crackdown. (Bloomberg)

• Racing icons including Waterhouse and Waller urge urgent reform of Racing NSW, warning trust has collapsed under Peter V’landys' leadership as scrutiny over the $5b Rosehill sale intensifies. (AFR)

• Grill’d’s pay deal slammed by Fair Work Commission for undercutting penalty rates, risking lower wages despite 93% staff approval.(AFR)

• Chemist Warehouse's merger wealth is fuelling luxury buys, as managing partner Rami Saleh upgrades to a $26m Hawthorn mansion. (AFR)

VC

• Lorikeet CEO Steve Hind says startups miss what really attracts VCs, after closing a $9m raise. (Capital Brief)

People moves

• Deloitte hires Tony Smith for advice amid internal upheaval and political fallout. (AFR)

• Fonterra appoints Anne Templeman-Jones as audit chair ahead of a potential sale or listing of its consumer business in Australia and New Zealand. (The Australian)

The watercooler