☕️ MYOB priced?

Good morning.

KKR’s MYOB exit is on the clock, but the actual timing remains uncertain. Industry sources told Capital Brief’s Jack Derwin a trade sale should start taking shape this year, with Macquarie and Jefferies seen as likely runners of the process. But with no mandate in place, KKR isn’t rushing—some suggest reinvestment, not divestment, is still the focus.

MYOB’s numbers complicate the exit. A $156 million pre-tax loss in 2023, a cooling growth trajectory and key executive departures raise questions about its valuation. ANZ walked away from a $4 billion deal two years ago and Xero’s outperformance only adds to the pressure. KKR will sell—but as Derwin notes, the real question is whether it’ll be cashing in or cutting losses.

🏆 LOI Subscriber #TBD

Market movers

Brookfield crashed the bidding war for Insignia Financial, matching rival offers from CC Capital and Bain valuing the company at nearly $3.1 billion, and sparking a surge in Insignia’s share price.

The quick sync

• Macquarie is ditching US debt capital markets, cutting jobs and offloading loans, as it bets big on the booming private credit sector. (Bloomberg)

• Microsoft signals openness to striking deals with Australian publishers under Labor’s new tech levy, breaking its silence as Google and Meta push back. (Capital Brief)

• Apollo is shaking up private credit with a first-of-its-kind marketplace, to give investors real-time trading access to a US$1.6t market long controlled by Wall Street. (Bloomberg)

• Dovetail abandoned efforts to keep secret a human rights claim against the company and its CEO Benjamin Humphrey, clearing the way for court documents to go public. The claim includes allegations of sexual harassment and discrimination. (Capital Brief) (AFR)

Trading floor

M&A

• Morgan Stanley sells $5.5B of X debt after strong demand. (Bloomberg)

• Nissan scraps $96B merger talks with Honda. (Capital Brief)

• AirTrunk's CEO, Robin Khuda, donates $100M to the University of Sydney to boost women in STEM and support future talent for his data centers. (AFR)

• Allianz and IAG are reportedly considering bids for the insurance arm of the Royal Automobile Club of Western Australia. (Bloomberg)

• Lone Star might delay its bid for Orora due to market conditions, while Amcor begins asset sales after it acquires Berry Global. (The Australian)

• Jeff Bezos’s Earth Fund cuts ties with Science Based Targets initiative (SBTi) amid concerns over influence, aligning with Trump’s climate views. (FT)

• Microsoft backs Australia’s tech levy, open to media deal talks. (Capital Brief)

• KKR is expected to start preparing for an exit from its investment in MYOB, possibly in 2025. (Capital Brief)

• Jo Horgan’s Mecca Brands, valued at over $1B, may be up for sale. (The Australian)

Capital Markets

• Deel raises $484M in secondaries from new investors. (Capital Brief)

• Future Fund hit $238B after a 12.2% return in 2024. (Capital Brief)

• Australia's new strategy makes gender equality central to foreign policy, focusing on women’s health, security, and financial inclusion. (Reuters)

• Centuria Office REIT cut losses and maintained guidance. (Capital Brief)

• ASX miners surged as China tariffs and cyclones lifted iron ore prices. (Capital Brief)

• The EU plans to target US Big Tech with retaliatory measures if Trump imposes tariffs, using its "anti-coercion instrument." (FT)

• Trump wants US to control Gaza and Palestinians to leave. (Capital Brief)

• Trump’s Gaza plan disrupted Albanese's Medicare announcement. (Capital Brief)

• Australia continues to support a two-state solution in the Middle East, despite Trump’s Gaza takeover plan. (Reuters)

• Meme coin mania fuels crypto revival and fundraising. (Capital Brief)

• CSL led an ASX healthcare selloff as vaccine stocks fell after RFK Jr. advanced toward becoming US health secretary. (Capital Brief)

• Iress faces anger from stockbrokers over fee hikes and an extra charge for an ASX-required overhaul. (AFR)

• Steadfast and AUB rise on Goldman Sachs' positive outlook. (Capital Brief)

• Disney exceeded earnings expectations with Moana 2’s success and rising streaming profits. (Capital Brief)

• MA Financial upsizes IPO to $330M amid strong demand, closing the book early. (AFR)

• Uber’s record bookings fail to impress as stock drops on weak outlook. (Capital Brief)

• Barrenjoey avoids block trades in Guzman y Gomez, even as shareholders plan to cash out after strong IPO gains. (AFR)

• Top US Fed official says it would be ‘mistake’ to ignore tariff risks. (FT)

• Wall Street banks cut losses on Elon Musk’s Twitter takeover, shedding US$5.5b in debt after struggling to sell the risky loans. (FT)

• Jeff Bezos’s US$10b Earth Fund stops backing the Science Based Targets initiative, with insiders linking the move to his growing ties with Trump. (FT)

• Donald Trump’s White House claims Politico, AP and The New York Times received millions from USAID, fuelling calls to shut the agency down. (Times Now)

VC

• Westpac invests $10M in Lawpath to provide legal and compliance services to businesses. (Startup Daily)

People moves

• Ken Henry denies Treasury was politicised over tax-free lunch costing. Capital Brief)

• Minister Murray Watt urges Virgin Australia to consider the industrial relations background of Paul Jones, the likely successor to Jayne Hrdlicka as CEO. (AFR)

• PsiQuantum appoints ex-spy chief Nick Warner to board. (Capital Brief)

• The Trump administration’s federal workforce reduction plan faces resistance, with many employees questioning the legality and others vowing to stay unless forced out. (Bloomberg)

• Former Star CFO Harry Theodore is disqualified for nine months after settling with ASIC over misleading representations sent to NAB in 2019. (The Australian)

• Ares Management promotes two senior partners to co-president in push to expand beyond private credit and nearly double assets under management to US$750b by 2028. (FT)

The watercooler