☕️Roll-up

Good morning.

Leading tech VC firms are using a textbook PE strategy to build out sector-dominating conglomerates, the FT reports.

Thrive Capital, for instance, is party to a US$72 million ($109.5 million) funding round for wealth management startup Savvy Wealth. The funding will go towards buying up smaller advisory firms and hiring individual advisers, as well as embedding AI into the group’s operations.

General Catalyst is likewise backing “roll-up” plays across call centres, legal services and property lettings, while Khosla Ventures, Bessemer Venture Partners and 8VC are exploring the strategy too.

Sounds like the old playbook indeed, but hey, if the model aint broke…

🏆 LOI Subscriber #TBD

Market movers

Helia shares tumbled Wednesday after the likely loss of a key ING contract sparked a major business review and raised fresh questions over the future of Australia’s biggest mortgage insurer.

The quick sync

• Figma’s IPO sets benchmark for Canva’s own debut, with billions in Australian VC and the nation’s tech reputation riding on how these design rivals perform. (Capital Brief)(AFR)

• Treasury to empower ASIC to hold major audit firms like PwC, KPMG, EY and Deloitte accountable for misconduct as part of sweeping reforms to restore trust in audit sector. (AFR)

• NRF’s top HR executive exits as $15b government fund faces audit rebuke, whistleblower probe and a push to strengthen governance. (Capital Brief)

• OpenAI ramps up its Australian lobbying, tapping tech leader Kate Pounder, as it launches its Economic Blueprint eyeing Australia’s $115 billion AI opportunity. (Capital Brief)

• Nine Entertainment’s Stan Sport quietly lifts its monthly price after clinching the English Premier League rights from Optus. (Capital Brief)

Trading floor

M&A

• James Hardie finalises $12.8b AZEK takeover, adds AZEK leaders to board. (Capital Brief)

• Helia warns ING deal at risk, starts review after losing key clients. (Capital Brief)

• Cutcher & Neale and BBB Partners merge to form $46m firm with 22 partners. (AFR)

• UBS says Coronado may sell part of its Curragh or US coal assets, as Curragh struggles with coal prices below US$200/tonne. (The Australian)

• KKR to buy poultry giant ProTen from Aware Super for $1.3b. (Capital Brief)

• Quadrant Private Equity eyes new radiology deal, faces doctor-shareholder test. (AFR)

• Domino’s share slump has raised takeover talk, with US parent or another global franchisee tipped as potential buyers. (The Australian)

• Takeovers Panel blocks ARN from voting full Southern Cross stake. (Capital Brief)

• Kinterra is tipped to win New World Resources takeover fight, thanks to regional synergies with its Nevada copper project. (The Australian)

• Westpac weighs sale of $9.3b KiwiSaver unit amid asset review. (AFR)

• KKR edges out Advent with a US$6.5b bid for UK’s Spectris, as takeover battles heat up in undervalued Britain. (Reuters)

• Bunge seals long-delayed Viterra acquisition, creating a global crop-trading powerhouse as industry profits tighten and competition heats up. (Bloomberg)

Capital Markets

• HAMR Energy seeks $10m to fuel green aviation and low-carbon projects. (AFR)

• AusPayNet and Australian Payments Plus have launched a consultation on modernising account-to-account payments. (Capital Brief)

• Luminous gets $4.9m ARENA grant to deploy solar robots in Australia. (Capital Brief)

• TA invests $300m+ in Viridian, with shareholder vote set for September. (AFR)

• Macquarie downgrades QBE as flood claims strain catastrophe budget. (Capital Brief)

• The Finance Sector Union fights Bendigo Bank’s regional closures affecting 32 jobs, 5 towns. (Capital Brief)

• Advanced Innergy sets $400m IPO at $1/share, with bids due Friday. (AFR)

• May building approvals up 3.2%, missing forecasts as non-residential value slumps. (Capital Brief)

• ANZ tips July rate cut after weak data, others urge caution amid uncertainty. (Capital Brief)

• Stan Sport hikes price after Nine’s Premier League deal with Optus. (Capital Brief)

• Freightways on alert as Airwork enters receivership after loan default. (Capital Brief)

• Tesla Q2 sales fall 13.5%, risking second yearly decline despite robotaxi push. (Capital Brief)

• Wise seeks US trust bank charter to directly access Fed payment rails. (Capital Brief)

• Up to 6 million Qantas customer records exposed in cyber incident. (Capital Brief)

• GemLife’s ASX debut puts Australia’s booming retirement housing market and a $417m payday for founders Peter and Adrian Puljich in the spotlight. (Bloomberg)

VC

• Square to launch AI assistant and new POS system in Australia by year’s end. (Smart Company)

People moves

• PEXA CFO Scott Butterworth to step down; Liz Warrell named interim. (PEXA Group chief financial officer Scott Butterworth to leave — Capital Brief)

• Domino’s CEO Mark van Dyck quits after 8 months, with chairman Jack Cowin stepping in as interim executive chair. (Capital Brief)

• BCG has promoted Andy Heaton, Chilman Jain, and Chris Bisset to managing directors and partners in Australia and New Zealand, bringing the local total to 45. (Capital Brief)

• Amelia Hamer joins Ord Minnett as tech analyst after Kooyong loss. (AFR)

• Snowy Hydro names Maia Schweizer COO as Roger Whitby retires. (Capital Brief)

• Microsoft cuts 9,000 jobs, hitting gaming division in latest layoffs. (Capital Brief)

• NRF HR chief quits as $15b fund faces audit fallout, leadership shake-up. (Capital Brief)

• OpenAI hires Kate Pounder to lead Australian policy push. (Capital Brief)

The watercooler