☕️Emergent Opportunity

Good morning.

Private credit lenders want in on emerging markets, and the big names are clambering to solidify their foothold across opportunities in the up-and-coming regions.

Bloomberg reports that funding from the likes of Blackstone and Apollo Global Management is putting EM deals from private lenders on course for the biggest year on record. The first half of 2025 saw USD11.7 billion ($17.9 billion) deployed, already nearly reaching 2024’s full-year total. KKR and Ares are also hunting for alternatives to US assets.

Private credit investors are keen to spread into EM for portfolio diversification and potentially higher returns. Their confidence is being helped by a surge in inflows into public EM markets, where stocks have surged 23% this year and hard-currency bonds have returned nearly 9%.

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Market movers

Shares in dual-listee critical minerals producer IperionX rose Friday after it secured a further USD25 million ($38.2 million) commitment from the US Department of War. The funding is designed to accelerate its titanium supply chain and bolster US industrial and defence capacity.

The quick sync

• Canva's Obrecht backs royalties for creators in AI training, splitting from the Tech Council chair's push to weaken copyright as Labor finalises its AI plan. (Capital Brief)

• Anika Wells acted decisively on Labor’s world-first social media ban, but industry figures remain wary of her approach and priorities. (Capital Brief)

• The RBA is set to keep rates on hold, but with economic signals mixed, Bullock’s comments may show if November is still live for a cut. (Capital Brief)

• Trump’s 100% pharma tariffs threaten Australia’s $2b export industry and set up a clash with Albanese over the PBS ahead of his Washington visit. (Capital Brief) Local firms insist they’ll escape unscathed as uncertainty reigns. (Capital Brief)

• Andrew Hastie insists he backs Sussan Ley, but his bolder policy push is edging him ahead of Angus Taylor as the conservative wing’s leadership contender. (Capital Brief)

Trading floor

M&A

• Quadrant offloads Grays.com to Slattery Auctions for a nominal sum. (AFR)

• Oaktree’s AZ NGA in talks to buy Perpetual Wealth amid investor exit pressure. (The Australian)

• Sembcorp eyes $1b BP green energy assets alongside Alinta bid. (AFR)

• Affinity eyes Qscan acquisition after Lumus Imaging deal. (The Australian)

• TCorp looks to sell 11% stake in Lendlease’s APPF industrial fund. (AFR)

• EQT weighs $1b bid for Quadrant-owned Aidacare. (The Australian)

• Ontario Teachers’ tests bids for Sydney desal plant stake from global funds. (The Australian)

• Videogame maker EA in advanced talks to go private at roughly USD50b valuation. (WSJ)

• Occidental Petroleum in talks to sell OxyChem unit for about USD10b. (FT)

Capital Markets

• Tesoro Gold seeks $30m in second capital raise this year. (AFR)

• Massive buyouts, risky debt and early cracks in consumer credit are making the echoes of 2007 harder to ignore. (Bloomberg)

• Toronto hedge fund manager loiters outside Drake’s house in a bizarre bid to turn struggling Opendoor into the next meme-stock sensation. (Bloomberg)

• With Oracle, Broadcom and Palantir soaring, Wall Street is asking whether the Magnificent Seven still captures the real winners of the AI boom. (Bloomberg)

VC 

• NSW names startup hub Stone & Chalk to run Tech Central and boost Sydney as an innovation hub. (Capital Brief)

People moves

• Firmus hires ex-Xero CFO, names Grant Dempsey chairman ahead of ASX float. (AFR)

The watercooler