☕️ Shadow creep

Good morning.

Private credit’s booming at the top end of town. Forty-six percent of large corporates are already in or planning to enter deals, up from 28% a year ago, according to exclusive research by East & Partners and Capital Brief.

But as Capital Brief’s Jassmyn Goh writes, ASIC’s now circling hard, targeting the sector’s opacity and firing its first shots in September (slapping two La Trobe funds with stop orders).

 Seventy percent of users or would-be users say the scrutiny is a deterrent. Somewhat ironically, most haven’t built risk frameworks, and few seem in a rush to.

🏆 LOI Subscriber #TBD

Market movers

Shares in TPG Telecom fell over 30% on Friday after trading ex-dividend for a $1.61 per share capital return, as part of a $3 billion payout following the sale of key infrastructure and enterprise assets to Vocus. The drop from $5.6 per share to $3.8 each reflects the value stripped from the stock, as the company moves to simplify its business and focus on mobile services.

The quick sync

• Economists eye RBA and CPI updates for signs rate cuts are finished. (Capital Brief)

• Labor begins four-week consultation on new rules to make tech firms pay for news. (Capital Brief)

• OpenAI expands in Australia and pushes voice AI forward as it navigates copyright resistance. (Capital Brief)

• Jim Chalmers pushes Australia’s investment case, but economists flag supply constraints and policy gaps as growth risks. (Capital Brief)

• Chalmers suggests Cosette-Mayne standoff won't set precedent or spook investors. (Capital Brief)

• Sussan Ley abandons net zero echoing Abbott’s playbook, but today’s politics and markets have shifted. (Capital Brief)

Trading floor

M&A

• KKR has begun early talks to sell Colonial First State after completing a strategic review. (AFR)

• Boards are urged to prepare for growing shareholder activism that may drive more M&A. (AFR)

• Whyalla steelworks deal could cost taxpayers up to $2b in gas subsidies and infrastructure.(AFR)

• Made Group and Vitaco are being sold next year, testing demand for Australian health and wellness brands. (The Australian)

Capital Markets

• Airtasker is raising $10m to accelerate growth in the US and UK. (AFR)

• OpenAI still plans to grow in Australia, praising its tech strengths and stability. (Capital Brief)

• Zeus Street Greek aims to triple its stores to 150 by 2030, targeting $120m+ revenue. (AFR)

• Australian REITs are eyeing internal management to save fees and boost performance, following Vital Healthcare’s example. (The Australian)

• Unico Silver is seeking $40m to push its projects forward despite a turbulent market. (AFR)

• Trump wants a probe into Epstein’s links to Democrats and JPMorgan as new documents renew questions about Trump’s own ties to Epstein. (Capital Brief)

• Broker Capital has launched to lend to mortgage brokers with solid trailing commissions. (AFR)

• Saudi Arabia could invest in Woodside’s Louisiana LNG project at a US-Saudi forum, offering strategic and valuation insights. (The Australian)

• Westpac will keep regional branches open until 2030 and boost services and investment in regional areas. (Capital Brief)

• MetroElectro raised $5m to grow its commercial solar and battery business. (AFR)

• DroneShield’s leadership sell-off shakes investor trust, halting its share price surge. (Capital Brief)

• Private credit adoption is growing among Australia’s top corporates despite ASIC scrutiny. (Capital Brief)

VC 

• None

People moves

• John Neal steps back from AIG president role amid personal controversy. (AFR)

• James Hardie struggles to attract new directors amid turnaround challenges and CEO-related concerns. (The Australian)

The watercooler