☕ Dealquake unleashed?

Good morning.

Expectations that the Federal Reserve might have to cut rates more aggressively are probably glass half-full news to the ears of four top PE equity giants.

According to FT calculations, Ares, Apollo, Blackstone and KKR have just splashed out a combined US$162b ($248b) in the June quarter, with Apollo shelling out over 40% of that.

With interest rates easing, a wave of pent-up transactions looming, and some exits finally delivering cash to LP investors, Blackstone President Jon Gray’s briefcase is bursting with deal docs. Is the deal-making revival about to hit full throttle?

🏆 LOI Subscriber #TBD

Market movers

Block's shares took a skyward leap last week, soaring 5.10% on Friday in Sydney after the fintech titan tweaked its full-year forecast and expanded its multi-billion buyback program. Shares rose a further 0.80% in New York trading hours on Friday.

The company also said Afterpay’s Nick Molnar is stepping up to steer a centralised sale function for the ship. He will report directly to Jack Dorsey.

The quick sync

• Now under Canva's wing, Leonardo.Ai still faces stiff generative AI competition from challengers like Midjourney for creative dollars. (Capital Brief)

• Catholic-operated private hospitals want to change how they negotiate funding deals with health insurers, being allowed to collectively boycott Medibank Private, Bupa, NIB, HCF and HBF Health. (AFR)

• Anthony Albanese is facing growing calls to launch a royal commission into the CFMEU, with the Business Council of Australia and the Civil Contractors Federation warning an administrator is inadequate to investigate the union’s misconduct. (AFR)

• Commonwealth Bank is in talks with the Australian government to set up a venture with little commercial appeal in Nauru to help counter China’s growing influence in the South Pacific and among Australia’s closest neighbours. (AFR)

• VCs and corporate lawyers warn planned changes to Australian merger laws could stifle in the innovation sector as a key deadline in the reform process fast approaches. (Capital Brief)

Trading floor

M&A

• Abu Dhabi's MGX has joined the IFM-DigitalBridge-GIP consortium in the $20bn+ sale of AirTrunk, creating a strong rival to Blackstone and CPPIB. (AFR)

• Minemet Recycling has acquired Melbourne's Highett Metal, boosting its presence in Victoria and adding $21m in annual revenue. (AFR)

• Alberta Investment Management has bought the Kimberley Meat Company for $30-40afterm its collapse, despite strong interest from Bindaree Food Group. (Weekly Times)

• Vocus and TPG Telecom are back in early-stage negotiations for TPG's fibre network, nine months after a previous $6.3bn deal fell through. (AFR)

• PAG delays appointing a receiver as EY prepares for Rex's sale. (The Australian)

Capital Markets

• Sports stars Karrie Webb, Matthew Dellavedova, and Mitchell Starc have invested in electric golf buggy maker MGI with Anacacia Capital, which will become the majority shareholder. (AFR)

VC

• None

People moves

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