☕️Legal ‘Loophole’

Hedge fund founder on trial for $2.55b tax scam.

Good morning.

Founder of ‘Solo Capital PartnersSanjay Shah, who is on trial for orchestrating a tax scam that cost Denmark $2.55 billion, has claimed that his creative ‘Cum-Ex’ trades were lawful and that any rumours of wrongdoing in the industry were merely borne out of jealousy.

In fact, the self-acclaimed rainmaker said that because competitors didn’t believe he would make money, when he “made a lot of money,” he treated himself to a Ferrari for his 38th birthday. Shah asserted that “the rumours and the bad mouthing was due to jealousy and nothing else.”

Around 1,800 people are under investigation in Germany for the tax-driven trading strategy, nine have already been charged in Denmark for the ploy.

ASX as at market close. Commodities and crypto in USD.

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Market movers

Shares in James Hardie plunged almost 15% to close at $46.67 on Tuesday, as the building materials manufacturer's FY25 guidance came in below analysts' consensus. While the building materials manufacturer posted a record result for the fourth quarter, and full-year adjusted EBITDA which rose 18% year on year to US$1.125 billion, the company warned of an "uncertain" global housing market.

The quick sync

  • Canva co-founder’s family office, Wedgetail, is pioneering ‘venture conservationism’ to channel funding toward improving biodiversity. (Capital Brief)

  • Lead contractor on ExxonMobil and QatarEnergy’s US$10b Texas LNG development, Zachry Holdings, filed for bankruptcy, creating new delays for the major US export project. (Financial Times)

  • Australia's big banks have all raised wholesale funding in recent weeks as capital flees China. (Capital Brief)

  • WSJ ranks the highest paid CEOs of 2023, as stock awards push median package to a record US$15.7m. (Wall Street Journal)

  • How Schroders is leveraging AI to assist portfolio managers and build investment teams. (Capital Brief)


  • Hard Rock denies interest in Star takeover, despite Star's stock jump on takeover rumors. (Capital Brief)

  • Data centre operators Next DC and EQT weren't invited to bid on Global Switch's Australian assets. (The Australian)

    • Only Stonepeak and QIC remain in the bidding for Global Switch's Australian data centres (AFR)

  • Speculation swirls about SkyCity Entertainment's commitment to Australia, with Delaware North seen as a potential buyer for its Adelaide casino (The Australian)

  • Alternate asset manager Carlyle Group has raised ¥430b for its fifth Japan buyout fund, the largest Japan-focused buyout fund ever raised. (Bloomberg)

  • Guardian Childcare's owner, Partners Group, boosted earnings forecasts to attract buyers ahead of an auction. (AFR)

  • Australian Unity Office Fund is in final stages of reviewing a bid for its St Kilda Road property. (AFR)

  • APM seeks financing from CBA and HSBC as potential buyer Madison Dearborn conducts due diligence on a $1.3b acquisition. (The Australian)

Capital Markets

  • JPMorgan sold $187m of ASX stock for unnamed sellers on Tuesday. (AFR)


  • LaunchVic invested $900,000 in Melbourne VC firm Skalata. (Startup Daily)

  • Sydney’s CIA-backed startup Visionary Machines has won a $2.5 million Department of Defence contract. (Capital Brief)

  • CLT Toolbox secures $1m to expand globally after a successful seed funding round last year. (Smart Company)

People moves

  • Zip Co appoints Joe Heck as new US CEO, replacing founder who will become US chair. (Capital Brief)

  • John Mulcahy emerges as frontrunner for Lendlease chairman role, with potential backing from major shareholders. (The Australian)

  • Anthropic has hired Airbnb veteran Krishna Rao as its first chief financial officer. (The Information)

☝️ Know about a deal or people move we don’t? Hit reply.

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