☕️'Fire K&E!'

Good morning.

Corporate lawyers may not be known for their soft and nurturing tone, but to be called out by limited partners (LPs) for bad behaviour kind of takes things up a level.

The FT reports that Kirkland & Ellis gave its lawyers communication training as it combats a reputation for truly bratty behaviour in negotiations between its private equity clients and their investors.

Investors are fed up with Kirkland’s refusal to negotiate on even minor fund terms and the way that its lawyers tend to communicate the news. FT sources said K&E lawyers often gave little explanation as to why they were rejecting changes suggested by the other side and would frequently stick to a stock phrase: “We respectfully decline.” 

Organisers of an industry event in New York last year asked LPs to name one thing they would like PE groups to do if they could wave a “magic wand”.

Displayed prominently in a word cloud of responses was: “Fire K&E”, according to people who attended.

🏆 LOI Subscriber #TBD

Market movers

Shares in logistics software firm WiseTech Global plummeted on Tuesday after the company disclosed that ASIC and federal police had executed a search warrant at its Sydney office over share trading by founder Richard White and three others. WiseTech said no charges had been laid and there were no allegations against the company itself.

The quick sync

• Investor group CEIG urges climate impacts be considered in environment law reforms before parliament. (Capital Brief)

• The critical minerals deal is a milestone, but rising US tariffs still endanger Australian manufacturing, writes Luke Branson. (Capital Brief)

• Labor’s climate push is reigniting Coalition chaos over net zero, threatening unity. (Capital Brief)

• Jamaica’s catastrophe bond is expected to pay out in full after Hurricane Melissa met trigger conditions. (Bloomberg)

• Nvidia CEO rebuts fears of AI bubble as he lines up partners. (Bloomberg)

Trading floor

M&A

• Coronado extends coal supply deal with Stanwell to 2043, securing a $404m funding facility to boost liquidity and financial stability. (Capital Brief)

• AUB confirms $5.25b buyout offer from EQT’s Arbutus at $45 per share. (Capital Brief)

• Fantastic Furniture, targeting $570m sales and $20m EBITDA for FY26, is up for sale again as Quadrant prepares to list Amart Furniture. (The Australian)

• Domino’s denies Bain Capital takeover talks after share surge. (Capital Brief)

• Boral and BMI make $80–$120m bids for Brisbane recycling project. (AFR)

• OpenAI–PayPal deal to launch ChatGPT’s first payments wallet by 2026. (Capital Brief)

• AirTrunk partners with PIF-backed HUMAIN on USD3b AI data centre in Saudi Arabia. (Capital Brief)

• Skyworks and Qorvo merge in USD22b deal to form major radio-chip giant. (Capital Brief)

Capital Markets

• WiseTech shares fall 13% after ASIC and AFP raid over alleged insider trading. (Capital Brief)

• CSL cuts earnings outlook and delays Seqirus demerger amid weak US vaccine demand and China cost pressures. (Capital Brief)

• CSL’s share price slumped after it slashed its profit forecast, with shareholders revolting over pay. (Capital Brief)

• Li-S Energy launches Australia’s first lithium foil production line to boost local battery manufacturing and exports. (Capital Brief)

• Epiminder launches $125m IPO with $10m backing from Cochlear. (AFR)

• Liontown’s revenue fell 29% amid shipping delays and price declines, but underground expansion and rising cash reserves support its FY26 outlook. (Capital Brief)

• Fitch upholds Australia’s AAA rating, praising fiscal discipline but warning of spending risks. (Capital Brief)

• NAB shifts private banker lending targets to favor in-house loans over brokered mortgages. (AFR)

• Rare earth stocks fall as China is expected to delay export controls. (Capital Brief)

• Trion targets $90–$110m IPO, seeks $32.5m in November 5 bookbuild. (AFR)

• Australia’s US minerals deal is a win for resources but fails to shield manufacturers from looming tariffs. (Capital Brief)

• Rinehart’s Hancock Prospecting invests $125m in Arafura Rare Earths, nearly fully funding the Nolans project. (AFR)

• The Clean Energy Investor Group wants climate impacts considered in new environmental laws despite the government rejecting a “climate trigger.” (Capital Brief)

• Stonepeak debt IPO off to a strong start with $100m+ early bids. (AFR)

• Fleet Space’s ExoSphere platform could enable asteroid mining, winning it an innovation award. (AFR)

• ASIC deems stablecoins and wrapped tokens financial products, granting firms until 2026 to get licensed. (Capital Brief)

• MYOB’s Solo app gives Australia’s sole traders AI-powered finance and payments tools. (AFR)

• ASIC says Bitcoin isn’t a financial product unless used within licensed financial arrangements. (Capital Brief)

• Healthscope staff back salary packaging plan, enabling potential charity restructure to avoid closures. (AFR)

• OpenAI’s restructuring lifts Microsoft to USD4t valuation with 27% stake in AI firm. (Capital Brief)

• Glencore turns down $35m grant for WA nickel mine renewable hub, citing losses. (AFR)

• ADP launches weekly US payroll reports amid government data delays. (Capital Brief)

• AGL’s vehicle-to-grid trial attracts 500 users in a week, half from outside its customer base. (AFR)

• Nvidia invests USD1b for 2.9% of Nokia to build AI-driven networking systems. (Capital Brief)

• Trump Media to enter booming prediction markets business. (Bloomberg)

VC 

• Apate.ai, a Sydney AI startup spun out of Macquarie University, uses AI bots to chat with scammers, earning major clients within a year. (AFR)

• NZVC’s NZD50m Fund II will back 50–60 AI-focused startups in Australia and New Zealand, targeting software, robotics, health, and supply chain innovation. (Startup Daily)

People moves

• Union slams Optus for cutting staff perks and office space amid low morale. (Capital Brief)

• Ex-Webjet lawyer sues, claiming CEO Katrina Barry resume fraud led to her firing. (AFR)

• CSL’s Chris Cooper exits for JPMorgan as the company downgrades earnings and delays its Seqirus spin-off, with shares dropping 15.8%. (The Australian)

• Ord Minnett MDs Gavan Carroll and Sam Robinson depart; Carroll set to join E&P Capital. (AFR)

• Amazon will cut about 14,000 corporate roles as part of a major restructuring. (Capital Brief)

• WaveStone Capital will oppose re-election of James Hardie chair Anne Lloyd and four directors, urging more Australia-based board representation. (AFR)

The watercooler