☕️ Hero retreat

Good morning.

Human resources software unicorn Employment Hero is redefining its strategy — just don’t dare call it a pivot.

As Capital Brief’s Bronwen Clune writes today, the $2 billion startup’s latest manoeuvre is a sharp retreat from Southeast Asia, scrapping job roles and shelving projects to double down on its SmartMatch platform.

We won’t call the move a “pivot” as that’s apparently banned lingo. But some insiders aren’t buying the “strategic shift” narrative either, pointing instead to a familiar pattern of impulsive U-turns that sink time and resources.

The SEA pullback follows what a former employee estimates were $20 million spent for just $2 million in annual revenue. Now, SmartMatch is being groomed as the company’s revenue engine, aiming for $300 million ARR by late 2025.

But with a track record of scrapped initiatives, investors, including Airtree Ventures, OneVentures, US-based Insight Partners, TCV, and even Seek, must be wondering whether its latest pivot-that-isn’t can deliver.

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Market movers

Boss Energy surged on Monday as Russia imposed temporary restrictions on the export of enriched uranium to the US.

The quick sync

• Maxim accuses Australian publisher Nuclear Enterprises of breaching policy by charging models for shoots and exaggerating readership, sparking a Federal Court trademark battle. (Capital Brief)

• Vanguard expands its shareholder voting options to include prioritising profits over ESG issues, balancing investor preferences amid backlash against 'woke' policies. (FT)

• Microsoft's ambitious plan to curb AI-driven carbon emissions hinges on pioneering solutions like timber data centres, nuclear fusion and grid-responsive energy. Experts warn execution could be slow. (Capital Brief)

• Australia's financial advice reform plan faces collapse as disputes over who funds the new "simple advice" model stall progress. (AFR)

• The ACCC questioned Woolworths' competitive practices and potential land banking at the regulator's rare public inquiry scrutinising supermarket giants’ pricing and market power amid cost-of-living concerns. (AFR)

Trading floor

M&A

• Elders is acquiring Delta Agribusiness for $475m to expand its offerings and generate significant synergies. (Capital Brief)

• The sale of the $1bn poultry business, ProTen, has been delayed and is now expected to occur next year. (The Australian)

• Arbitrium Capital Partners battles  Deloitte for control over Keystone Asset Management's distressed $480m fund. (AFR)

• Maas Group could be a takeover target in the building materials industry. (The Australian)

• Life360 CEO Chris Hulls sold 1.2% of shares for wealth diversification, donating a third to charity and keeping most of his stake. (Capital Brief)

• CBA may soon start assessing whether to sell down its stake in buy now, pay later IPO candidate Klarna to release an estimated $1.8b in capital. (The Australian)

Capital Markets

• Lazard’s June-Yon Kim sees Japan’s equity market poised for long-term gains driven by stronger corporate governance, the end of deflation and dominant positions in key global tech components. (Capital Brief)

• MicroStrategy has significantly increased its Bitcoin holdings with a recent purchase of 51,780 BTC, making it the largest corporate holder of Bitcoin. (Capital Brief)

• Spirit Airlines has filed for bankruptcy protection due to financial difficulties and failed merger attempts. (Capital Brief)

• QIC has invested in Virescent Venture's second climate technology fund. (AFR)

• Web Travel Group halts ASX trading over potential FY24 adjustments, with no impact on first-half results. (Capital Brief)

• EQT is raising a new $22.4bn fund focused on private equity investments in Asia. (AFR)

• Pronto Pilates raised $1.64m to expand its network of "teacher-less" Reformer Pilates studios. (BNA)

• Labor's $15b National Reconstruction Fund (NRF) has made its first investment, $40m into Queensland-based resources equipment manufacturer Russell Mining Equipment. (Capital Brief)

VC

• Boman Group is launching a $1bn fund to support Australian startups seeking to expand into the Chinese market. (Startup Daily)

• Welly, a health food startup, has partnered with Woolworths to distribute its organic fruit bites. (BNA)

• Sydney-based startup AMSL Aero has successfully conducted test flights of its long-range electric vertical take-off and landing (eVTOL) aircraft, Vertiia. (Startup Daily)

People moves

• SafetyCulture founder Luke Anear is stepping down as CEO to become executive chairman, with Kelly Vohs taking over as the company shifts focus to expand its US growth. (Capital Brief)

• CBRE has hired Hugh Macdonald, a former Deutsche Bank executive, to lead its capital advisors business in the Asia Pacific region. (Capital Brief)

• Jarden Australia has hired Tim Leahy, a former executive from UBS, to strengthen its real estate team. (AFR)

• Resolute Mining seeks employee release, including the CEO, while negotiating the future of its mining operations in the country. (Capital Brief)

The watercooler