☕️Lawd Have Mercy

Good morning.

What do the Burwood RSL Club, women’s fashion outlet Sheike and the charity arm of iconic food brand Sargents Pies have in common? They’re all going big on private credit.

Capital Brief reports that the trio, along with a string of Catholic and philanthropic organisations, have become some of the most unusual and prolific backers of an estimated $200 billion market which, according to its supporters, offers investors higher yields than comparable investments such as term deposits, but with attractive levels of risk and volatility.

The Order of the Sisters of Mercy in Queensland and Roman Catholic Archdiocese of Brisbane are particularly prolific, with $9 million and $8 million invested across private credit funds respectively.

🏆 LOI Subscriber #TBD

Market movers

Shares in HMC Capital nosedived Tuesday after it abandoned its $2b renewables strategy, delayed a key acquisition and replaced its energy transition chief.

The quick sync

• Tim Ayres vows to overhaul the National Reconstruction Fund's governance after a scathing audit revealed it lacked a formal investment strategy while deploying $436m. (Capital Brief)

• OpenAI is urging Australia to fast-track AI adoption, touting a $115b economic boost, but Canberra remains cautious amid unanswered questions on productivity and local benefit. (Capital Brief)

• Drew Bradford writes that stablecoins are not a financial detour but a clear signal of where money is heading next. (Capital Brief)

• The AI talent war is intensifying as Meta and OpenAI offer US$10m salaries to poach top engineers. (FT)

Trading floor

M&A

• Insignia expects binding bid soon from CC Capital after $5 offer. (Capital Brief)

• Adnoc-led group begins Santos talks under six-week due diligence deal. (AFR)

• Downer sells Keolis JV stake for $132m, wins $200m AusNet contract extension. (Capital Brief)

• Objective to buy Isovist for NZ$5m, integrate AI into planning tools. (Capital Brief)

• PE firms eye CMAX as bids near for Blackstone’s clinical trials unit. (The Australian)

• Reject Shop to delist after $259m Dollarama takeover approved. (Capital Brief)

• Hinterland Aviation up for sale under Project Falcon. (AFR)

• Cleanaway completes $110m Citywide waste business acquisition. (Capital Brief)

• Indue taps Gresham for strategic review, potential sale. (AFR)

• Malaysia’s Gamuda eyes Fletcher Building’s construction unit. (The Australian)

• UBS enters deal to buy 14m shares in Soul Patts–Brickworks TopCo merger. (Capital Brief)

• Three lenders back Cement Australia’s buyout of BGC Cement unit. (AFR)

Capital Markets

• Zuckerberg launches Meta Superintelligence Labs, led by Alexandr Wang and Nat Friedman. (Capital Brief)

• Grow Inc resumes fundraising after $70m round, HESTA tech launch. (AFR)

• IAG lifts profit guidance as disaster costs come in $200m lower. (Capital Brief)

• Woolworths reshapes supermarket team to win back share from Coles, Aldi. (AFR)

• Seven West becomes top regional TV broadcaster after Southern Cross deal. (Capital Brief)

• Dexus halts healthcare fund redemptions amid Adelaide property dispute. (The Australian)

• Macquarie backs Blackstone Minerals with $5m in $25m raise. (AFR)

• ACTU backs indexing $3m super tax threshold, but not urgently. (Capital Brief)

• ANZ taps McKinsey for risk and culture review after regulatory breaches. (AFR)

• Ashurst lifts partner profit to $2.9m amid AI rollout and global expansion. (Capital Brief)

• NSW’s $1b green bank to make first clean energy investment by year-end. (AFR)

• Standard Chartered sued for US$2.7b over role in 1MDB fraud. (Capital Brief)

• Fortescue’s UK battery unit posts $152m loss after $1b in funding. (AFR)

• Nyrstar warns its smelters could shut within weeks without urgent government support, putting Australia’s critical minerals supply at risk. (AFR)

• Cyberattacks on super funds are set to grow in size and frequency, with APRA warning Labor that shocks to the $4.1 trillion sector could destabilise the banking system. (AFR)

VC

• NSW axes Business Connect small business support program from Sept 30. (Smart Company)

People moves

• Boral CEO Vik Bansal to exit in 2026, join SGH board. (Capital Brief)

• HMC energy chief Angela Karl exits amid platform shake-up, Neoen deal delay. (Capital Brief)

• Carolyn McCann tipped to lead Westpac retail bank permanently. (AFR)

• Serpil Timuray resigns from TPG Telecom board. (Capital Brief)

• Metrics co-founder Graham McNamara to retire in March 2026. (Capital Brief)

• Marketech names ex-Saxo CEO Adam Reynolds chairman before IPO. (Capital Brief)

• Optiver opens a tech-forward Sydney HQ as it ramps up recruitment, AI-driven trading and $250k graduate salaries. (AFR)

The watercooler