☕️Scandal Shy

Good morning.

KPMG bosses want to merge dozens of national partnerships in efforts to boost growth and prevent audit scandals, according to the Financial Times.

As KPMG is concerned that smaller business units will be increasingly unable to fund essential tech investments alongside the necessary compliance demands required for audit quality, execs proposed that units which don’t meet a US$300 million ($475 million) revenue threshold would be too small to remain a full member. The strategy would drastically streamline the number of partnerships that comprise KPMG’s global network to 32, down from 100 two years ago.

The overhaul would signify a step change in the traditional operating model of Big Four firms, which are typically structured through a network of locally owned partnerships to reflect local audit rules and protect partners from liability or scandals elsewhere.

The company is insisting that the profit pools for partners must be split at least in part across the countries involved, and move toward full profit-sharing over time.

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Market movers

Johns Lyng’s stock nosedived again Monday as its ASX 200 exit deepened investor fears after a brutal earnings hit.

The quick sync

• Blackbird is doubling its Foundry program to fast-track academic researchers into deep tech startups, aiming to reshape Australia’s lagging research commercialisation sector. (Capital Brief)

• Crypto speculation is fueling more personal insolvencies in Australia, AFSA warns. (Capital Brief)

• As Jonathan Ng writes, Australia’s private credit boom is pushing fund managers into riskier deals, and with regulators eyeing tougher oversight, investors must act now to demand transparency and diversify beyond local property. (Capital Brief)

• Musk’s government efficiency team tightens its grip on Social Security, deploying private equity insiders as Trump ramps up his fraud-fighting crusade. (Bloomberg)

• The Trump M&A boom is missing in action, leaving Wall Street dealmakers in New Orleans restless as uncertainty clouds big deals and corporate manoeuvring. (FT)

Trading floor

M&A

• AACo may sell Darwin plant to billionaire-backed Bindaree. (AFR)

• Ron Finemore Transport has acquired a 9% stake in rival Lindsay Australia, sparking industry speculation. (The Australian)

• Northern Star has won Federal Court approval to acquire De Grey Mining, with a shareholder vote set for April 16. (Capital Brief)

• German pet care companies Freesnapf or Zooplus are reportedly interested in acquiring TPG Capital’s $4b Greencross. (The Australian)

• J. Safra Sarasin buys 70% of Saxo Bank; founder Kim Fournais keeps 28%. (Capital Brief)

• Brookfield moves to sell Healthscope amid hedge fund pressure. (The Australian)

Capital Markets

• US recession fears grow as markets slide; White House adviser predicts rebound from tax cuts. (Capital Brief)

• Trump dodged recession talk; advisor said "no chance." (Capital Brief)

• Hedge funds short Chalice and Liontown after Goyder’s sell-down. (AFR)

• Bitcoin drops as US reserve plan excludes new purchases. (Capital Brief)

• Koala is exploring a $500m+ ASX listing with Barrenjoey, following co-founder Dany Milham’s return as CEO. (AFR)

• Boss Energy partners with Eclipse on NT uranium project. (Capital Brief)

• Pro Medicus and Sigma Healthcare will join the ASX 50, replacing Mineral Resources and Ramsay Health Care after S&P Dow Jones Indices' quarterly review. (Capital Brief)

• Australia draws more green tech investment amid US uncertainty, with interest growing from Japanese and South Korean industrial conglomerates. (SmartCompany)

• Konvoy Kegs faces a liquidity crisis after AquAsia pulled funding, prompting FTI Consulting to review its capital structure and executive departures. (AFR)

• CBA is closing in on NAB’s long-held lead in business banking, leveraging its customer base and strength in payments. (Capital Brief)

• Quantum Brilliance and Pawsey develop hybrid quantum-HPC solution. (Startup Daily)

• New ABC boss Hugh Marks signaled potential changes in his first staff address, emphasizing innovation, audience reach, and a best-in-class user experience. (Capital Brief)

• Hedge fund urges Rio Tinto to drop UK listing despite $715m cost. (AFR)

• Star Entertainment is in talks with Salter Brothers for a $750m refinancing deal, aiming for financial stability. (AFR)

• Private credit surges, but ASIC warns of rising risks and potential tighter regulation. (Capital Brief)

• Seven’s AFL and cricket rights face threat from regional TV dispute. (AFR)

• Fitness boom fuels former soccer player Domenic Giampaolo’s Elite Supplements' rapid expansion. (AFR)

• Big banks and fintechs are diving into stablecoins, eyeing billions in crypto payments as regulations tighten and the race to dominate digital dollars heats up. (FT)

• Barclays chair Nigel Higgins concedes he misjudged Jes Staley’s Epstein ties, telling a court fresh evidence casts the relationship in a new light. (FT)

• Mark Uyeda is ditching crypto from the SEC’s trading system overhaul, shifting the focus to Treasury market players in a move that could still tighten rules for proprietary traders. (Bloomberg)

• A little-known funder wants to take over Melbourne’s embattled Sth Bnk project, but doubts swirl over whether it can pull off the $2.7b rescue. (AFR)

• Trump’s economic reset is rattling Australia’s super funds, with deepening US market turmoil dragging returns into the red. (AFR)

• Tesla’s worst stock drop in years signals deep trouble, with plunging sales in China, waning demand and Wall Street losing faith. (Bloomberg)

VC

• Sonder raises $40m to expand AI-driven employee wellbeing services. (Capital Brief)

• EcoJoule Energy raises $15m to expand renewable energy solutions. (Startup Daily)

• EG Funds has increased its stake in Avani Solutions to 68.7%, supporting the startup’s commercial property cost-optimization platform. (AFR)

• Australian-American cybersecurity startup Harmony Intelligence has raised $4.75m in Seed funding, led by Airtree Ventures. (Startup Daily)

People moves

• Mark Carney elected Liberal leader, to become Canada's Prime Minister. (Capital Brief)

• Nicola Forrest hires UBank CEO Philippa Watson to run her family office, Coaxial.(AFR)

• Kirstin Hunter named Birchal CEO, plans expansion and investor growth. (SmartCompany)

The watercooler