☕️VGI Diaspora

How the alumni of VGI Partners are keeping the dream alive.

May 28, 2024

Good morning.

While the once feared and respected VGI Partners no longer lays claim to its Phillip Street terrace, the legacy of Rob Luciano’s notorious hedge fund is living on through its former staff. The fund’s infamous shorts against Slater and Gordon, Pandora and Corporate Travel Management were the stuff of high-finance legend, and Luciano’s former 2IC Doug Tynan asserts that: "There’s a lasting bond between everyone who ever worked in the grand old terraces on Phillip Street. Because we invested together for so long.”

Capital Brief spoke to more than a dozen partners, employees, investors and advisors on the VGI story, its lessons, legacy and what comes next for its former stars.

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

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Market movers

Shares in Neuren Pharmaceuticals climbed almost 16% to close at $23.97 on Monday, after the company said phase two clinical trials of its drug candidate to treat neurological disorders have shown encouraging results. Neuren said the clinical trial of its second drug candidate, NNZ-2591 in children, for the treatment of Pitt Hopkins syndrome showed positive results, with statistically significant improvement across all four efficacy measures.

The quick sync

  • Dentons CEO Doug Stipanicev says law firms need to ‘grow or die’ to account for rising overheads. (Capital Brief)

  • Two senior executives depart Country Road Group as sexual harassment scandal takes hold. (The Australian)

  • Stockland inks $1b capital partnership with Invesco Real Estate as it pursues growth in the land lease communities subsector. (AFR)

  • Dealmakers are expecting to see green shoots emerge as economic conditions push M&A transactions forward in H2 2024. (Capital Brief)

  • Nine Network CEO Mike Sneesby signed off on an almost $1m golden handshake to Darren Wicks, after several sexual harassment claims were made against the journalist. (The Australian)

  • ECB’s chief economist says the central bank could be ready to cut interest rates from next week. (Financial Times)

M&A

  • Louis Dreyfus Company has increased its stake in Australian cotton operator Namoi Cotton. (Capital Brief)

  • Analysts say a sale of Santos’ WA assets could attract the same bidders interested in Woodside's Macedon oil and gas assets. (The Australian)

  • Regis Healthcare founder Bryan Dorman is looking to sell part of his 27.2% stake, potentially reducing it to 19.6%, with Bank of America handling the sale. (AFR)

  • QBE is considering buying Beazley for $10b despite a prior lack of interest. (AFR)

  • Accolade Wines in talks to buy Pernod Ricard Australia, ditching its merger with Australian Vintage. (The Australian)

  • Potentia buys 19.9% of Vista Group from Spheria Asset Management and Wilson Asset Management at a 14% premium. (AFR)

Capital Markets

  • S&P downgraded MYOB's refinancing outlook due to its high debt burden and upcoming maturities. (AFR)

  • Australian Vintage seeking a $30m equity raise after its Accolade deal fell through. (AFR)

  • EQT surpassed its $1.1b fundraising goal, securing $2.4b for its new Asian mid-market growth fund. (AFR)

VC

  • Blackbird-backed Bardee faces liquidation, having begun selling assets in 2023 to meet operational costs. (AFR)

  • Elon Musk xAI raises $6b to compete with AI leaders like OpenAI. (Capital Brief)

People moves

  • Morgan Stanley's wealth unit has recruited Daniel Elias from Perpetual Private. (AFR)

  • Three JBWere advisors managing $1b in client assets have jumped ship to join competitor Koda Capital. (AFR)

  • Lendlease CEO Tony Lombardo to retain position for another year on promise to sell assets and exit overseas markets. (The Australian)

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

Together with First Cheque podcast

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With close to 20 episodes released, the First Cheque podcast shares stories and lessons from world-class investors who deep-dive into their personal investing strategies. 

Learn from interviews with leading investors at Airtree, AfterWork, Archangel, Blackbird, Main Sequence, Startmate, and more.

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