☕️Blundy’s Undies

Good morning.

Reclusive billionaire Brett Blundy is best known for launching or reviving small Australian retailers. That's why his activist campaign against an iconic US lingerie brand is surprising, Capital Brief reports.

In June, Blundy’s BBRC Capital Management fired off an angry letter to the board and management team of Victoria's Secret, accusing the company's leadership of delivering "Dismal Total Stockholder Returns" and engaging in "Failed Capital Allocation." Blundy isn’t the only investor with their knickers in a twist. Last month around 16 million shares were cast against the election of each of Victoria’s Secret board members, with almost 15 million cast against their compensation.

BBRC, which owns 10.3 million shares, is now on a collision course with Victoria's Secret (which has threatened to issue one right per share if BBRC’s stake rises above 15%), but the question being asked in market and retail circles is: to what end?

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Market movers

Shares in Lifestyle Communities lost over a third of their value Wednesday as a shock VCAT ruling triggered a legal scramble and wiped out millions in expected fees.

The quick sync

• Singapore’s Acclime has acquired Boutique Capital, the quiet force behind Australia’s new wave of VCs, as demand grows for niche, strategic funds. (Capital Brief)

• Dimitri Burshtein and Peter Swan write that banning dual-class shares limits investor choice and drives innovative Australian companies offshore. (Capital Brief)

• Calls to reveal how individual RBA board members voted raise a crucial question: how much transparency is too much when it comes to rate decisions? (Capital Brief)

• Claire Bristow writes that Australia’s VC sector is bleeding young talent, and without real change, it’s risking a future shaped by too few voices. (Capital Brief)

Trading floor

M&A

• Merck to buy Verona Pharma for US$10b to expand respiratory portfolio as Keytruda patent expiry nears. (Capital Brief)

• SynCo puts SA battery projects up for sale via CS Capital. (AFR)

• AGL buys SA solar storage project, boosting investment in after-dark solar energy. (AFR)

• KKR and Warburg eye La Trobe Financial as Brookfield seeks $3b+ sale. (The Australian)

• Capricorn Metals acquires WA’s Claw gold project from BPM Minerals for $1.5m. (Capital Brief)

• InStitchu hires advisers after offshore buyers show interest amid $40m sales surge and Myer deal. (AFR)

• Meta buys ~$5.3b stake in Ray-Ban maker EssilorLuxottica to boost smart glasses push. (AFR)

• Bell Potter backs Platinum–L1 merger, citing growth, $20m synergies, and stronger performance. (The Australian)

• Apple eyes F1 US rights, challenging ESPN in live sports push. (AFR)

Capital Markets

• West African gold output dipped in Q2, but full-year guidance remains on track as Kiaka mine ramps up. (Capital Brief)

• GQG Partners posts 2% FUM growth in June with $1.1b in inflows. (Capital Brief)

• Coller Capital raises US$6.8b for second private credit secondaries fund. (Capital Brief)

• Investors may oust Lendlease from a $10b fund in favour of Mirvac, echoing a prior AMP Capital fund clash. (AFR)

• UBS flags $47m earnings risk for Lifestyle Communities after VCAT voids DMF clause; company plans appeal. (Capital Brief)

• Morgan Stanley urges Ramsay to spin off Ramsay Sante to unlock value. (The Australian)

• Oil stocks rise as EIA lowers 2025 US production forecast. (Capital Brief)

• RBNZ holds rate at 3.25%, citing uncertain global outlook. (Capital Brief)

• Bega to shut down Peanut Company of Australia after continued losses and industry challenges. (Capital Brief)

• Nvidia hits record US$4t valuation, fueled by AI demand and rising investor confidence. (Capital Brief)

• Tesla loses ground to BYD as analysts urge limits on Musk’s distractions. (AFR)

• Enormous bets made by the big four banks are distorting interest rate markets, lifting the odds of RBA easing by over 10%. (AFR)

VC

• AI startup Brainfish raises $10m to expand globally and launch US headquarters. (Capital Brief)

• RecycleSmart raises $1.5m to scale its doorstep recycling service across Australia. (Smart Company)

• AMSL Aero launches $30m+ raise to back hydrogen plane project, with support from Hostplus and TelstraSuper. (AFR)

• Cohabit raises $1.2m to speed up development of its housing data platform. (Smart Company)

• Boutique Capital powers Australia’s rising VCs, quietly supporting most emerging funds outside the big players. (Capital Brief)

• MogoPlus banks $1.5m to grow its AI credit insights and expand globally. (Startup Daily)

People moves

• Orica appoints Boral CEO Vik Bansal as chair elect and non-executive director. (Capital Brief)

• Breakthrough Victoria cuts staff and funding as new CEO shifts focus to tech and self-sufficiency. (AFR)

• X CEO Linda Yaccarino resigns after two years under Elon Musk’s leadership. (Capital Brief)

• Employee wellness startup Sonder has replaced Brad Newton amid mounting UK expansion woes and a string of senior exits. (Capital Brief)

• Tech Council of Australia is seeking a new policy chief as former Turnbull and Morrison adviser Harry Godber exits. (Capital Brief)

• Managerial reshuffle takes place at Red Bull, with Laurent Mekies replacing Christian Horner as CEO of the operation, fuelling fresh speculation over Max Verstappen's future. (F1.com)(Reuters)

The watercooler