☕️ Private credit collab

Good morning.

Citigroup and Apollo’s US$25 billion ($36 billion) private credit alliance seems more than just a marriage of convenience. It shows banks have evolved from pretending to resist the rapid rise of private credit to now joining the party – for a fee.

The world’s largest direct lender of its kind will pay Citi an undisclosed fee for transactions generated in the partnership, with Apollo and partners like the UAE’s Mubadala providing the capital.

“This is where the industry is going,” Apollo co-president Jim Zelter told Bloomberg. Zelter, is a former CIO at Citi and also previously ran the high yield and leveraged finance business for the bank, which should see its standing on the lev-fin league tables boosted by the deal.

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Market movers

Brickworks swung to a $119 million statutory loss, its first in decades, amid declining building activity and major writedowns. Shares still rallied to $28.52 as the result was better than expected. The company lifted its final dividend to 43 cents per share, up by 1 cent.

The quick sync

• Gold hit a new record and silver surged to highest since 2012 as Fed rate cut expectations fuelled a precious metals rally. (Bloomberg)

• Richard Goyder admits to mistakes as Qantas chairman but says people forgot the pandemic changed the game. (AFR)

• Culture Amp co-founder Doug English reflects on the HR software unicorn's early Adobe win, managing employee expectations and AI-driven opportunities. (Capital Brief)

• Phil King's Regal tipped to prevail in Platinum play, despite a formal rejection and rival interest, as Challenger meeting rumours swirl. (Capital Brief)

• $700,000 worth of luxury vehicles from the Plutus Payroll tax fraud case hit the auction block as the saga's endgame unfolds. (Capital Brief)

• China's politburo pledged "necessary fiscal spending" to hit its 5% growth target. (Capital Brief)

Trading floor

M&A

• Platinum Asset Management rejected Regal Partners' takeover bid, saying it undervalued the company but remains open to future proposals. (Capital Brief)

  • Regal is viewed as the most probable acquirer of Platinum Asset Management, despite its recent rejection of Regal's $600m offer. (Capital Brief)

• REA Group acquired a 19.9% stake in Athena Home Loans, building on their partnership and collaboration on home loan products, which saw $1.2bn in settlements in FY24. (Capital Brief)

• The ACCC is investigating the merger of Weet-Bix and Vita Brits to determine if it would harm competition or raise prices, amid ongoing scrutiny of supermarket pricing practices. (AFR)

• The ACCC approved Lendlease's sale of 12 community projects to Stockland and Supalai, requiring Stockland to divest a project near Dapto. (Capital Brief)

• Hub24 has partnered with Reach Alternative Investments, acquiring a minority stake and collaborating to expand alternative investment offerings for Australian investors. (Capital Brief)

• The Star Entertainment Group has written down $819m from its Brisbane assets, including Queen’s Wharf, leading to total losses of $4bn over the past two years. (BNA)

• TPG Telecom is in discussions with Vocus Group regarding the sale of its fibre network, addressing media reports of a $6bn bid involving a new investor. (Capital Brief)

• De Grey Mining is reportedly the target of a buyout proposal from Agnico Eagle, valued at $3.2bn, but De Grey has not commented on the speculation. (The Australian)

• eToro acquired investment app Spaceship for $80m to enhance its product range and include superannuation, allowing Spaceship users access to eToro’s tools and resources. (Capital Brief)

• Vinyl Group has bought Funkified Entertainment for $2.5m, following its recent acquisition of Mediaweek. (BNA)

Capital Markets

• Star Entertainment secured a debt deal with lenders and will release FY24 results after weeks of talks, following the sale of its Brisbane property and a suspension from the ASX. (Capital Brief)

• Delta Lithium, supported by Gina Rinehart, has commissioned Bell Potter for a strategic review of its Mt Ida gold project. (AFR)

• Bell Potter rated Netwealth a 'hold,' highlighting expected growth in FY25 and potential benefits from new technologies and adjacencies, similar to rival Hub24. (Capital Brief)

• Calidus Resources' directors are seeking $170m to challenge billionaire Mark Creasy in the battle for the collapsed gold miner. (AFR)

• Qoria is raising $25m by offering shares at 37¢ each to reduce debt and make a small acquisition. (AFR)

VC

• Mary Technology, a Sydney legaltech startup, raised $1.35m to use AI for automating chronology drafting in legal cases, led by Empress Capital and supported by various investors. (Startup Daily)

People moves

• OpenAI plans to restructure into a for-profit benefit corporation, no longer controlled by its non-profit board, with CEO Sam Altman receiving equity. (Capital Brief)

• AustralianSuper appointed Chandu Bhindi as chief liquidity officer, emphasizing liquidity management as members approach retirement with larger balances. (Capital Brief)

• GPT Group has appointed Matthew Brown as head of office, marking its third hire from Charter Hall. (AFR)

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The watercooler