☕️ Sidelined banks

Good morning.

Private equity’s portability clauses are reportedly gutting bank fees in Europe.

According to Bloomberg, deals for drugmaker Stada Arzneimittel and metering company Techem are introducing clauses that let buyers keep old debt in place – as opposed to a sale triggering those old change-of-control provisions - cutting banks out of refinancing and slashing underwriting fees.  

Bain, Cinven and Carlyle are all apparently locking this in, leaving banks scrambling for smaller roles in deals they’d normally control. While not a trend in Australia yet, the rise of private credit here could see this perk creeping into the market.

🏆 LOI Subscriber #TBD

Market movers

South32’s share price shot up 3.61% yesterday, riding the wave of a juiced-up alumina price that Citi reckons will push the miner to $3.90 a share.

According to Citi, spot alumina is now 24% of aluminium price, compared with a long run average of about 17%.

The quick sync

• Founders Dom Pym and Grant Bissett are developing a high-end computer aimed at boosting workplace productivity by eliminating digital distractions. (Capital Brief)

• Bitcoin surges as Kamala Harris backs crypto framework, fuelling optimism amid election dynamics and delayed Mt Gox repayments. (Capital Brief)

• OPEC slashes oil demand forecast, dragging Brent prices down as China’s slowdown bites. (Capital Brief)

• One of Europe’s best-performing equity funds, Brandes European Value Fund, beats 99% of peers by avoiding Big Tech. (Bloomberg)

• Australian government hit by two data breaches in six months, Privacy Commissioner report shows, with agencies failing to disclose in time. (Capital Brief)

• Bird & Bird's Australia chief Shane Barber talks tough calls, AI growth, and a defence shift after a decade of strategic focus. (Capital Brief)

Trading floor

M&A

• TPG Group is selling its fibre network and fixed business to Vocus, following a failed deal last year. (Capital Brief)

• Bain Capital and Macquarie Asset Management are the finalists for I-MED, Australia’s largest radiology business, with final bids due on November 29. (AFR)

• Seek moves towards acquiring Xref, with directors supporting the deal, subject to final terms and due diligence. (Capital Brief)

• Atturra is exploring acquisitions, particularly targeting Plan B from The Growth Fund, which provides ICT solutions. (The Australian)

• Ebos CEO John Cullity opposes the $8.8bn Sigma Healthcare-Chemist Warehouse merger, arguing it would harm competition and limit consumer choices. (AFR)

• Banked has acquired Australian fintech Waave, enhancing its real-time payments capabilities in Australia with a cost-effective direct debit solution. (Startup Daily)

Capital Markets

• Appen shares fell after raising $50m for AI ventures, with a $5m share purchase plan opening soon for eligible shareholders. (Capital Brief)

• Titomic Limited is raising $20m in equity, led by Shaw and Partners, with shares currently halted at 13.5 cents. (AFR)

• Cuscal is seeking a cornerstone investor for its IPO planned before Christmas, having met with fund managers in Asia and Australian investors. (The Australian)

• Clarity Pharmaceuticals' shares rose after FDA approval for a new prostate cancer trial, promoting Michelle Parker to CEO, and securing a manufacturing deal with SpectronRx. (Capital Brief)

• Spark's CEO and chairman have been spotted in Australia, raising concerns about the company's falling share price. (The Australian)

VC

• Ryan Holsheimer, a former JPMorgan banker, has launched a $50m venture capital fund backed by wealthy Queensland families after retiring from investment banking in 2022. (AFR)

• Seven University of Melbourne startups are receiving $11.7m in early-stage venture capital from the Genesis Pre-Seed Fund and Tin Alley Ventures to support research commercialization. (Startup Daily)

People moves

• Lendlease appoints ex-Bunnings CEO John Gillam as chair, succeeding Michael Ullmer after a planned succession process. (Capital Brief)

• James Warburton has joined HCF-backed XT Venture as it plans to raise its first investment fund. (AFR)

•  Ansell CFO Zubair Javeed to resign in 2025, with a search underway for his successor. (Capital Brief)

• Jun Bei Liu is starting her own firm, moving her $1.45bn Alpha Plus fund with support from Tribeca's David Aylward and major investors. (AFR)

• Regis Healthcare co-founder Bryan Dorman to retire as a non-executive director in November, ending his long tenure. (Capital Brief)

• Lifestyle Communities co-founder James Kelly to retire by year-end; chair David Blight to serve as interim executive chair starting January 2025. (Capital Brief)

• Aware Super supports Susan Lloyd-Hurwitz as Lendlease chairman, but other investors prefer former Bunnings boss John Gillam for his fresh perspective on the company. (The Australian)

• Pacific Smiles appoints Gary Carroll as CEO, replacing Andrew Vidler after his resignation in September. (Capital Brief)

• Tim Reed, former MYOB CEO, is expected to step back from Potentia Capital amid internal issues, after nearly a decade working with founder Andrew Gray on major deals. (AFR)

• Audinate appointed Chris Rollinson as CFO after Rob Gross's resignation, citing his financial expertise to drive growth and shareholder value. (Capital Brief)

• Vic Buchan will leave Nine Entertainment after 15 years to make way for a regulatory affairs specialist. (Capital Brief)

• Andrew Vass, a Goldman Sachs veteran, is joining GCQ Funds as a cross-asset specialist starting next Monday. (AFR)

The watercooler