☕️ VC count

Good morning.

Australian startups pulled in $695 million in Q3—half of what they grabbed last quarter, but the big guns are still out. Deals are up, but no one’s writing cheques north of $100 million, and deals over $50 million hit a multi-year low, according to the latest Cut Through Quarterly report.

Fintech still tops the funding charts, with climate tech leading in deal volume, according to the report. Meanwhile, nearly half of investors reckon the market’s looking brighter, but as in the parallel universe of PE, the focus for many is on exits and delivering cash returns.

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Market movers

West African Resources is taking investors on a wild ride this week, tumbling nearly 20% Monday over permit fears, before bouncing back over 7% higher yesterday after Burkina Faso’s officials reassured them that their mining permits are still valid.

Production is down, but they’re still sticking to full-year guidance, so market’s buying it.

The quick sync

• PE firm Butterfly Equity's $US2b ($2.97b) acquisition of wine business Duckhorn Portfolio is being funded by an unusual backer: the US Farm Credit System, shifting leveraged buyout financing from traditional banks to farmers. (FT)

• JPMorgan’s CEO Jamie Dimon calls for fewer regulatory hurdles for US IPOs and more mid-sized bank mergers while warning inflation risks remain high. (Bloomberg)

• Hurricane Milton threatens massive losses for catastrophe bond investors as they brace for one of the largest reinsurance events in history. (Bloomberg)

• KKR's climate head Emmanuel Lagarrigue warns green hydrogen remains largely 'uninvestible'. (Bloomberg)

• Barrenjoey proposes to rebalance mortgage risk weights for banks to lower rates for first home buyers, offering savings without increasing overall lending risk. (Capital Brief)

• US banks brace for shrinking profits as interest income falls, with JPMorgan Chase and Wells Fargo kicking off earnings for the sector on Friday. (Reuters)

• China’s stimulus letdown cuts Hang Seng's rally short, triggering its worst drop since 2008 and hits global markets. (Capital Brief)

Trading floor

M&A

• DroneShield received a $13.5m repeat order from a US government customer for its counterdrone systems, to be delivered this quarter. (Capital Brief)

• Ares Management striked US$5.2b ($7.71b) deal for GLP Capital’s ex-China assets, boosting its real estate AUM to US$96b. (Bloomberg)

• Jarden analysts believe Infratil's $10bn CDC valuation update signals a possible sale within the next year. (The Australian)

• Freedom Furniture is set to test market interest for a sale, led by Blaine Callard, marking the third attempt since 2019 after efforts to revitalize the brand and boost profitability. (AFR)

• NRW Holdings secured a mining services contract from Evolution Mining for surface mining at the Castle Hill gold deposit in Western Australia. (Capital Brief)

• The $800m sale of Buckeridge Group's building materials portfolio is heating up, with buyers set to submit offers next week amid sector scrutiny. (The Australian)

• Clarity Pharmaceuticals partnered with SpectronRx to produce its prostate cancer diagnostic product for phase III trials, ensuring broad US distribution. (Capital Brief)

• Greenbox Architecture, a Sydney data center designer, has been acquired by US firm Woolpert for an undisclosed amount. (BNA)

• Jarden analysts suggest Sims conduct a strategic asset review for potential surplus land sales, as investors seek further divestments following the sale of its UK Metals business.(The Australian)

Capital Markets

• Rio Tinto's potential acquisition of Arcadium Lithium boosted both companies' shares, with analysts highlighting the strategic benefit but cautioning on valuation and market factors. (Capital Brief)

• Investors in $3.5bn Go1 are seeking to sell shares for about $10 each, down from $16.85. (AFR)

• Brambles' shares gained after RBC raised its price target, citing stronger business resilience and improved cashflow. (Capital Brief)

• Melbourne fintech Butn has launched its first retail private credit fund to leverage recent growth in transactional funding for small and medium enterprises. (BNA)

• TPG Capital is auctioning Novotech for $4bn, receiving initial offers from at least three firms, but not all buyers are interested. (AFR)

VC

• Q-CTRL raises an additional US$59m in Series B, bringing the total to US$166m. (Capital Brief)

• Songtradr is raising $175m in a pre-IPO round, potentially funding an IPO and another acquisition by founder Paul Wiltshire. (AFR)

• Virescent Ventures has secured $100m for its second climate tech fund, backed by Westpac and CEFC, targeting innovations for the net zero transition. (Capital Brief)

People moves

• Labor MP Peter Khalil steps down as PJCIS chairman, with Raff Ciccone replacing him amid Khalil's challenge from the Greens for his Melbourne seat. (Capital Brief)

• Nicole Scurrah's Create Advisory has hired Luke Baxby from Deloitte, expanding her firm after leaving Luke Sayers' consultancy a year ago. (AFR)

• Incitec Pivot's CFO, Paul Victor, will leave in February 2025, assisting with the FY24 results and transition. (Capital Brief)

• Nick Speer, country head of Affinity Equity Partners since 2023, is contemplating his exit from the firm. (AFR)

• Iress promotes Harry Mitchell to deputy CEO and announces Jason Hoang’s departure, with Geoff Rogers appointed as his replacement. (Capital Brief)

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