☕️ Size matters

Private credit kings tighten grip as mid-tiers slip

September 16, 2024

Good morning.

Amid a flurry of private credit raisings, the divide between winners and losers in the industry is becoming ever starker. Big names like Apollo, Blackstone, ICG and Ares are pulling in record-setting funds, while mid-tier players like Fidelity and Polen Capital are reportedly bowing out.

ICG locked in €15.2b ($25.06b) in Europe this week, according to Bloomberg, following Ares’ US$34b ($50.61b) US success in July. Meanwhile, Fidelity and Polen have halted their European direct lending efforts after struggling to get them off the ground.

Does this mean that in private credit, size (and experience) does matter?

ASX as at market close. Commodities and crypto in USD.

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Market movers

Mineral Resources shares surged 25% last week, leading a rally in Australian mining stocks.

Reports of China’s CATL halting lithium production and Putin threatening to restrict uranium, nickel and titanium exports fuelled the rally. Citi expects lithium prices could climb up to 25% in the next three months and investors are eyeing a resources rebound, driven by restocking demand and potential US Fed rate cuts.

The quick sync

  • Nine has hired David Bamford’s TalentCraft to find a new CEO, while C-Suite and board jockeying over the role begins. (Capital Brief)

  • The RBA warns banks to recognise the benefits of the new payments system, not just its costs amid their push for extra fees. (Capital Brief)

  • Former Macquarie dealmaker Ben Brazil is ready to swoop on a wave of distressed unlisted companies unable to refinance their loans. (AFR)

  • Sublime Funds Management boss Rodney Forrest is trying to gain a seat on Perpetual’s board. (The Australian)

  • Oliver Curtis, the former banker who went down in an insider trading scandal, is back riding the AI wave to make a $447m fortune in Singapore. (AFR)

Trading floor

M&A

  • Axel Springer and KKR are close to a €13.5bn split, with KKR exiting after five years. (Capital Brief)

  • GIP has suspended the $2.5bn sale of its Pacific National stake amid tough logistics conditions, as bidders were unwilling to pay the sought-after price. (The Australian)

  • CommSec is seeking a new vendor to replace FinClear’s iBROKER post-trade system, ending its relationship with FinClear. (AFR)

Capital Markets

  • Canberra Data Centres, backed by major investors, is set to launch a blockbuster capital raise after receiving approval for all required preparations. (AFR)

  • Amaero International will announce a $25m equity raise after securing a key client, receiving nearly $45m in bids. (AFR)

VC

  • QuantX Labs landed a $2.7m deal to supply optical atomic clocks for the ADF, supporting precision navigation in the AUKUS defence pact. (Startup Daily)

  • Neurode raised $5.3m for its headband that uses non-invasive brain stimulation to help with ADHD symptoms, offering an alternative to medication. (Smart Company)

  • Helfie AI health start-up chases $1.5b valuation with testing ap. (AFR)

People moves

  • Nine Entertainment has started a global search for a new CEO, with internal contenders positioning themselves, and shareholder Bruce Gordon expected to play a key role in the selection. (Capital Brief)

☝️ Know about a deal or people move we don’t? Hit reply.

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