☕️Brutal Workouts

Good morning.

Global investment giant Mercer tried to redeem funds from a private credit investment that went south in 2017. It's still waiting to get its money back.

Speaking to Capital Brief, Mercer’s global chief investment officer for private markets Mike Forestner, says that the relatively few blow-ups in the sector to date could be breeding dangerous levels of complacency.

“Some of those really aggressive lending strategies — I don't care what the collateral is — when those start to have trouble the workouts are brutal," Forestner told Capital Brief. "You end up with duration extension, you end up with default risks, and you have remaining assets that often take a lot longer to work out than you think,” he said.

Perhaps unsurprisingly with a ‘regulated unregulated’ asset class, when things go bad in private credit, they go really bad.

🏆 LOI Subscriber #TBD

Market movers

Shares in Capstone Copper surged 10.8% on Thursday, lifted by a rally in copper prices after Freeport’s giant Grasberg mine in Indonesia was crippled by a fatal mudslide. Analysts cited by the FT warned the supply shock, compounded by accidents in Chile and the DRC, could cut global copper output by about 6% this year.

The quick sync

• Infratil boss Jason Boyes says Asian investors back AI as a long-term trend, unlike more doubtful Australian and US peers. (Capital Brief)

• The RBA’s push to lower interchange caps and lift transparency on card fees is a long overdue step to ease small business costs and level the playing field, writes Marco Lamantia. (Capital Brief)

• Former judge Richard Button is giving journalism students a court reporting masterclass inside the NSW Supreme Court. (Capital Brief)

• Family law lending goes from wild west to booming, as Craig Carroll’s JustFund grows 40% a year with $200m backing from MA Financial. (Capital Brief)

• Treasury has unveiled draft crypto laws promising long-awaited clarity for digital assets, underscoring the Albanese government’s renewed push on innovation. (Capital Brief)

Trading floor

M&A

• Monadelphous wins $220m BHP and Fortescue contracts for WA mining and energy projects. (Capital Brief)

• Computershare to sell UK mortgage services to Pepper Advantage, expects £35m–£40m loss. (Capital Brief)

• Gold Fields launches $1.1b Northern Star selldown via JPMorgan. (AFR)

• Canada’s NACG has shown takeover interest in Emeco, offering a possible exit for major shareholder Black Diamond, but no firm bid has been lodged. (The Australian)

• ACCC sets 9 Oct decision date on Elders’ $475m Delta Agribusiness takeover amid competition concerns. (Capital Brief)

• Allegro tests $500m sale of Strait Link amid economic and union headwinds. (AFR)

• Woodside teams with Japan Suiso Energy, KEPCO on Perth hydrogen export project using gas + CCS. (Capital Brief)

Capital Markets

• The tech sector argues new data centres will accelerate renewable power, but the Climate Change Authority sees their soaring energy demand as a key risk to emissions cuts. (AFR)

• Macquarie to repay $321m to super members over Shield Fund failures after ASIC action. (Capital Brief)

• Premier profit up 31% to $338.2m on Apparel Brands sale; Peter Alexander strong, Smiggle sales fall. (Capital Brief)

• Premier’s investigation into Smiggle revealed a culture of serious misconduct, compounding weak sales at the stationery chain. (AFR)

• Liontown reports $193m FY25 loss, flags FY26 as transition before full underground benefits from FY27. (Capital Brief)

• Peel Mining’s new execs are raising capital to advance Cobar and Broken Hill projects. (AFR)

• Nickel Industries raises $1.2b in debt to refinance loans, lower costs, and extend maturities. (Capital Brief)

• Copper prices jump as Freeport declares force majeure at Grasberg mine after deadly mud rush. (Capital Brief)

• Instagram hits 3b users, shifts focus to Reels and messaging. (AFR)

• ASIC to extend exemption letting intermediaries distribute a second licensed stablecoin. (Capital Brief)

• RAM secures $300m in debut listed note amid hybrid phase-out. (AFR)

• ASX gold miners drop as strong US housing data dents Fed rate cut hopes, pressuring gold prices. (Capital Brief)

• ASX energy stocks climb as oil prices rise on Trump’s NATO comments and US inventory drop. (Capital Brief)

• Vection lifts raising to $20m, bids for Digital Experience Labs. (AFR)

• JustFund secures $200m to expand divorce lending, tapping the growing family law finance market. (Capital Brief)

• The Star Gold Coast licence suspension extended to Sept 2026 due to slow remediation progress. (Capital Brief)

• Zembl is seeking advisers as it prepares to explore private equity interest. (AFR)

• Zijin Mining hits USD103b valuation, nears BHP and Rio, boosted by gold growth and planned USD3.2b Hong Kong IPO. (Capital Brief) (Bloomberg)

• US Q2 GDP revised up to 3.8% on stronger spending, lower imports, and AI investment. (Capital Brief)

• Adam Zampa backs Ambra Spirits’ $3m raise as limoncello sales surge. (AFR)

• CoreWeave adds USD6.5b to OpenAI deal, lifting total partnership value to USD22.4b. (Capital Brief)

• Amazon settles FTC case for USD2.5b over deceptive Prime sign-ups and cancellation barriers. (Capital Brief)

• Citigroup cuts its losses on Banamex with a cheap stake sale, paving the way for a delayed Mexican IPO. (Bloomberg)

• Ryman Healthcare’s $2b ASX debut aims to broaden its investor base and fuel growth in Australia’s aged care sector. (AFR)

• ASIC’s high-profile stop order on La Trobe was lifted after changes to its Target Market Determination, leaving the wider industry braced for similar scrutiny. (AFR)

• Accenture to ‘exit’ staff that cannot be retrained for age of AI. (FT)

• Yellen, Bernanke, Greenspan urge court to block Trump bid to remove Cook. (Capital Brief)

• Richard White debuts bombshell new investor relations team at Rockpool as he cashes out more WiseTech stock. (AFR)

VC 

• None

People moves

• Nine’s Catherine West to retire; Peter Tonagh appointed chair-elect. (Capital Brief)(AFR)

• Sonic Healthcare CEO Colin Goldschmidt retiring after 32 years; Jim Newcombe named successor, Evangelos Kotsopoulos to become COO. (Capital Brief)

• Harry Moore named CEO of First Sentier Group from Jan 2026, replacing Mark Steinberg. (Capital Brief)

• Andrew Batmanian takes RBC’s top ECM role after long Macquarie stint. (AFR)

• Whitehaven’s Raymond Zage to step down from board at October AGM. (Capital Brief)

• SGH chair Terry Davis will retire in 2026, with audit chair Annabelle Chaplan also stepping down. (Capital Brief)

• Domino’s faces possible further board changes after Lynda O’Grady’s exit, amid profit collapse and leadership turmoil. (The Australian)

• Starbucks to cut 900 jobs, close 1% of stores in USD1b restructure amid falling sales and higher costs. (Capital Brief)

The watercooler