☕️Messy Success

Good morning.

Next-gen Australian fund managers are riffing on traditional VC models, creating retail-accessible funds, secondary market strategies and hybrid debt-equity structures as competition from mega-funds forces innovation.

Capital Brief reports that as mega-funds like Blackbird and Airtree dominate traditional deal flow, emerging managers like Advance VC, FB Ventures and Ecotone Partners are breaking down the gates to carve out entirely different strategies.

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Market movers

Shares in supermarket giant Coles rose over 8% after its results beat expectations on the back of supermarket growth. Liquor sales were weaker and profit slipped, but analysts pointed to improving sales and operating leverage in the year ahead.

The quick sync

• Tech giants Google and Microsoft tell Canberra to loosen copyright rules or watch AI talent and capital shift offshore. (Capital Brief)

• Without a step-change in speed and efficiency, Australia risks squandering its world-class renewables advantage, Darren Miller writes. (Capital Brief)

• Trump team eyes new ways to tighten control over Federal Reserve’s 12 regional banks. (Bloomberg)

• Crescent Capital prepares US$3b credit continuation fund. (Bloomberg)

• Hedge funds are shorting the VIX at a rate not seen since 2022. (Bloomberg)

Trading floor

M&A

• Ki and Public Storage scrap $2.2b Abacus bid. (Capital Brief)

• Benson and Jones Radiology in SA, generating $100m–$150m revenue, are weighing potential sales. (The Australian)

• Betr has raised its takeover offer for PointsBet to 4.375 shares per PointsBet share, surpassing rival MIXI’s cash bid. (Capital Brief)

• Matt Latimore and his Indonesian partner aim to increase their stake in Terra from 5.4% to 20% as part of a capital raising. (AFR)

• Trump Media and Crypto.com plan a $6.4 billion deal to create a crypto treasury company. (Capital Brief)

• AT&T to buy EchoStar spectrum for $23b. (Capital Brief)

• MinRes to acquire collapsed garnet miner RDG. (Capital Brief)

Capital Markets

• AUB’s profit jumps 31%, boosting dividends. (Capital Brief)

• Genesis Energy profit up 29%, FY26 guidance lower. (Capital Brief)

• West African Resources profit jumps 133% on rising gold prices. (Capital Brief)

• Fortescue profit down 41% as iron ore prices slide. (Capital Brief)

• GIC eyes co-investment in Goodman Group data centres. (AFR)

• G8 Education profit up 12% amid challenges and abuse claims. (Capital Brief)

• Coles profit down 3.5% as sales rise. (Capital Brief)

• Healius stock surges 12% on takeover chatter as rival ACL posts strong results. (The Australian)

• Viva Energy profit drops 67% on weak sales and margins. (Capital Brief)

• Salter Brothers eyes $200m ASX backdoor listing. (AFR)

• Nanosonics profit up 59% on trophon business growth. (Capital Brief)

• Kelsian profit down 6% amid heavy capital investment. (Capital Brief)

• Vulcan Steel raising $87m to buy Kiwi roofing firm. (AFR)

• Jumbo Interactive profit down 7.3% as jackpot activity eases. (Capital Brief)

• Scentre profit nearly doubles on strong occupancy and valuations. (Capital Brief)

• Quadrant pitches $550m Aidacare to buyers. (AFR)

• Tyro profit drops to $17.8m amid takeover interest. (Capital Brief)

• Web Travel Group first-half transaction value hits $3.1b, record EBITDA expected. (Capital Brief)

• Cyprium Metals plans $60m equity raise for WA copper mine. (AFR)

• Elanor FFO up 6.9% as valuations fall; takeover concerns remain. (Capital Brief)

• Australia Post halts most US shipments amid tariff uncertainty. (Capital Brief)

• Corporate Travel hires KPMG to probe European accounting problems. (AFR)

• CTM delays FY25 report and halts trading over accounting review. (Capital Brief)

• Realm launches second debt deal to tap LIT boom. (AFR)

• 500+ Australian businesses back 75% emissions cut by 2030. (Capital Brief)

• Fortescue emissions rise, challenging 2030 carbon-neutral goal. (AFR)

• Dubber flags $17.5m impairment after losing major contract. (Capital Brief)

• L1 Capital challenges Geoff Wilson’s fund performance at Platinum LIC. (AFR)

• Humm results delayed as chairman Abercrombie withholds sign-off amid takeover bid. (AFR)

• JPMorgan’s US$500m bet puts crowdsourced hedge fund Numerai on track for expansion after comeback year. (Bloomberg)

• Polymarket secures investment from Trump Jr-backed 1789 Capital. (Reuters)

• ASIC says it is stepping up private market scrutiny, zeroing in on insider trading and major compliance risks. (Bloomberg)

• ASIC sues Equity Trustees over failed $160m Shield fund and warns more super trustees face court. (AFR)

• Australian housing dysfunction mirrored in the RBA’s blowout HQ rebuild. (Bloomberg)

• Star Entertainment’s lenders are blocking $430m debt waivers. (AFR)

• Trump administration weighing direct stakes in defence giants like Lockheed Martin, Boeing and Palantir. (Reuters)(Bloomberg)(Politico)

• Kogan.com swings to $39.5m loss on Mighty Ape write-down despite sales growth. (Capital Brief)

VC 

• Emerging Australian VCs adopt alternative models amid market maturity. (Capital Brief)

• Diag-Nose.io and Human Health win $3m grant for AI respiratory disease platform. (Startup Daily)

• ResetData launches Melbourne “AI Factory” and $1m AI competition, winner revealed at SXSW Sydney. (Startup Daily)

• Apate.ai raises $2.5m to expand scam-fighting AI bots globally. (Startup Daily)

• Perth ed-tech startup Coursebox raises $750k to grow AI course creation platform. (Startup Daily)

• Auckland cleantech startup Nurox Hydrothermal partners with Interwaste to turn hazardous waste into safe by-products onshore. (Startup Daily)

• Paris prosecutors launch investigation into Australian-owned video platform Kick. (Reuters)

People moves

• Yancoal names Sharif Burra as new CEO. (Capital Brief)

• Slater and Gordon’s chairman James MacKenzie and two other long-serving directors to exit as Allegro reshapes board. (AFR)

The watercooler