☕️ Regal rides a wave

Good morning.

Phil King's Regal Partners is diving into the booming private credit sector, ignoring Jamie Dimon and meme mockery to snap up Merricks Capital for $235m.

Merricks, managing $2.9b in loans, adds a hefty chunk to Regal's assets, pushing its total up to $15.1b. Hot on the heels of HMC Capital's $127.5m acquisition of Payton Capital last month, the bet shows Aussie fund managers are ignoring the scepticism in some quarters.

When quizzed about a potential bubble in private credit, CEO Brendan O’Connor told Capital Brief that regulatory and ESG constraints are actually fuelling a rock-solid non-bank sector, not blowing up a bubble. Looks like memes won't be enough to halt this momentum!

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Market movers

In a jewellery world twist that reads like a retail soap opera, Lovisa's shares took a nosedive of 10.4%, closing at $30.40. The reason? John Cheston, the Smiggle boss, is jumping ship to take the helm of the jewellery retailer , replacing the high-flying Victor Herrero.

Brett Blundy’s raid on Solomon Lew’s team has caused quite the market stir, with Premier Investments – which owns Smiggle - also dipping 4.1%. The pay drop for Cheston from Herrero's eye-watering $30m to a mere $2.35m (plus bonuses) raised eyebrows. Lovisa’s stock market dance is on, with analysts and investors bracing for the next move in the retail drama.

The quick sync

• The VGI Partners founder breakup underscores the risks when personal conflicts can destabilize even the most successful investing firms. (Capital Brief)

• Qatar Airways confirmed its interest in acquiring a stake in Bain’s Virgin Australia, amidst a renewed push for additional flight rights to Australia. (The Australian)

• Tesla chairwoman Robyn Denholm and National Basketball League owner Larry Kestelman are among several bidders vying for partial ownership of Australia's women’s basketball league. (AFR)

• Hostplus, HESTA, CSL, and the Queensland Investment Commission have invested $270m into a new fund for Australia’s largest life science investment firm, Brandon Capital. (AFR)

• Australia has an AI shortage of talent forcing companies to increasingly hire developers from countries like Brazil, India, and Argentina. (Capital Brief)

M&A

• Generation Development Group (GDG) will acquire the remaining shares of investment research and consultancy Lonsec for $197.4m. (Capital Brief)

• DIF Capital Partners is auctioning $1b in Australian solar and wind assets due to an upcoming redemption deadline. (AFR)

• APM Human Services has recommended its shareholders accept a $1.3b takeover offer from its largest shareholder, Madison Dearborn Partners. (Capital Brief)

• Crescent Capital is in advanced talks to buy Quantum Radiology from The Growth Fund for $200m. (AFR)

• Regal Partners is set to fully acquire Merricks Capital, boosting its AUM by 24% to $15.1b. (Capital Brief)

• Approval for Lendlease's sale of 12 communities to Stockland and Supalai is delayed to July 4th. (Capital Brief)

• UBS is running the sale process of Loscam, a company attracting interest from major investment firms like Kohlberg Kravis Roberts and Brookfield. (The Australian)

• Billionaire Gina Rinehart's Hancock Prospecting increased its stake in Vulcan Energy Resources to 7.5% as part of a €40m ($65.2m) funding round to advance Vulcan's lithium project in Germany. (AFR)

Capital Markets

• Guzman y Gomez held talks about selling a stake to Blackstone before confirming plans to IPO. (AFR)

• BCAL Diagnostics raised $10.5m in an oversubscribed round, initially seeking $5m. (AFR)

• Immutep is raising $102m through a fully underwritten institutional placement and an entitlement offer at 38¢ per share, a 15.6% discount to the last close. (AFR)

• Wilsons analysts expect Nick Scali's share price to rise significantly once its products and brand are recognised globally. (The Australian)

• Genetic Signatures, a molecular diagnostics biotech backed by Chris Abbott, has raised $30m. (AFR)

• Iondrive has raised $2m to advance its sustainable lithium-ion battery recycling technology, supported by new and existing shareholders. (BNA)

VC

• Jekara and Tidal Ventures, investment firms, are increasing their focus on Queensland tech startups looking for the next big thing in energy and AI/software. (AFR)

People moves

• Lovisa Holdings has appointed long-time Smiggle boss John Cheston as its new CEO. (Capital Brief)

• Paul Giles, a divisional CEO at Iress, has left the company after being added to the leadership team a year ago. (AFR)

• Booktopia Group is cutting at least 50 jobs and has announced the immediate resignation of CEO David Nenke after just 12 months. (BNA)

• Woodside Energy appointed Tony O'Neill, a sustainability expert from the mining industry, to its board of directors. (Capital Brief)

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