☕️ Midmarket squeeze

Good morning.

Bloomberg is reporting how midsize PE firms are feeling the burn, struggling to raise new funds and exit existing investments, even as the industry’s giants ride a boom. Trilantic Capital, once a poster child for midmarket success, is their first example. It’s raised just one-sixth of its target for Fund VII and is now reportedly pitching a US$1 billion continuation fund at a 30% discount to buy time.

There are others in the same bind. Names like Onex, Vestar, Crestview and Madison Dearborn, all have either paused or downsized fundraising efforts, caught in the same brutal loop where unsold assets mean no LP payouts and no fresh capital.

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Market movers

Shares in Insignia Financial surged after striking a $3.3 billion deal with Wall Street’s CC Capital, capping a hard-fought takeover contest and setting the stage for a shake-up in Australia’s wealth sector.

The quick sync

• Christopher Pyne’s lobbying firm is booming, even post-election, landing Anduril, Forrest’s Tattarang and Vietnam’s VinGroup as clients, among many others. (Capital Brief)

• Investors are seeding ETFs with appreciated assets, taking advantage of an infamous loophole to wash out taxable gains. (Bloomberg)

• Labor is nearing a decision to walk back YouTube’s exemption from teen social media restrictions.(Capital Brief)

• JPMorgan explores lending against clients’ crypto holdings. (FT)

Trading floor

M&A

• Fletcher Building may sell its construction arm after buyer interest and a strategic review. (Capital Brief)

• Insignia Financial to be acquired by CC Capital for $3.3b, with shareholders offered a 56.9% premium. (Capital Brief)

• Bain Capital and AZ NGA are final contenders for Perpetual’s wealth unit, with bids around $450m–$550m. (The Australian)

• Champion Iron sells 49% of Canada’s Kami project to Nippon and Sojitz for C$245m to co-develop the mine. (Capital Brief)

• Dental Corp founder launches new ADTY roll-up with plans for 180+ clinic acquisitions. (AFR)

• Rover to acquire Mad Paws for $62m; core business retained, others sold or closed. (Capital Brief)

• Fonterra's Mainland Group sale adds a third round with exclusive “black box” due diligence for final bidders. (The Australian)

• Aware Super becomes majority owner of The July amid $10.9b European investment push. (Capital Brief)

• Crikey owner buys David Koch’s Pinstripe Media to grow in startup news. (AFR)

• Sanofi buys Vicebio for US$1.6b to acquire Aussie vaccine tech. (Capital Brief)

Capital Markets

• Perpetual’s AUM rose 2.5% to $226.8b despite $3.9b in outflows, as it advances cost cuts and seeks a buyer for its wealth unit. (Capital Brief)

• Capricorn boosts Mount Gibson gold estimate by 13% to 4.5M ounces, citing strong development potential. (Capital Brief)

• Dreamworld revenues hit post-2016 high, but overseas tourists slow to return. (AFR)

• Carnarvon to invest $89m for 19.9% of Strike Energy, backing WA gas projects and halting planned capital return. (Capital Brief)

• Meteoric seeks $35m via discounted share placement to back Brazil rare earths push. (AFR)

• AUSTRAC clears Perth Mint operator after AML systems upgrade. (Capital Brief)

• Citi slashes Lovisa target price, maintains ‘sell’ on long-term risks. (Capital Brief)

• Traditional owners appeal approval of $1.3b Hemi gold mine in WA. (AFR)

• RBA held rates expecting steady unemployment—latest data now casts doubt. (Capital Brief)

• Future Group to offer early investors an exit via $280m secondary share sale. (AFR)

• Gold stocks rise on tariff fears and haven demand. (Capital Brief)

• Domino’s lifts as UBS backs stock despite store growth concerns. (Capital Brief)

• Amotiv flags 1% earnings dip and up to $190m impairment on weaker APG outlook. (Capital Brief)

• Sun Silver, American Rare Earths launch fresh capital raisings; Sun Silver seeks $25m. (AFR)

• Telix revenue jumps 63% in Q2; SEC issues subpoena over prostate cancer disclosures. (Capital Brief)

• AFCA logs 100K+ complaints in FY25, driven by insurance and investment issues. (Capital Brief)

• _SOUTHSTART festival gets $2m in funding to continue in Adelaide until 2028. (Startup Daily)

• General Motors’ Q2 profit hit by Trump tariffs, shares drop 7.5% on $1.1b cost. (Capital Brief)

• Pilot Energy seeks partner to fund Leander gas project in Perth Basin. (AFR)

• ASIC’s Joe Longo warns banks to use AI responsibly or face enforcement, stressing customer welfare must stay front and centre. (Capital Brief)

• Healthscope moves to not-for-profit status while in $1.6b administration. (AFR)

• Meme stock fever is spreading like it’s 2021, with Kohl’s and Opendoor favourites (Bloomberg)

• SpaceX warns investors Elon Musk could return to US politics. (Bloomberg)

VC

• 18-year-old Irish-Australian Liam Fuller raises A$2.15m for his AI startup QuickFind AI after viral school toilet photo. (Startup Daily)

• Mondus secures $100m to scale AI-driven zero-deposit home loans for deposit-strapped buyers. (Capital Brief)

People moves

• Austal admitted to the ASX that it failed to lodge a director's interest notice on time for new board member Richard Gibb due to an administrative oversight. (Capital Brief)

• Ex-Blackstone real estate MD Craig Newman returns to h. (AFR)

The watercooler