The Week Ahead Of Us 🔍 | Welcome back! | Futures are up slightly, while earnings are nearly wrapped for the year, we have some massive economic numbers (Employment & CPI) later this week. | This is our 2nd to last newsletter of the year, and we have a quick survey we'd love for you to take a look at as we look towards 2026 and onwards. Thank you for your readership. | Btw, with Investment Banking recruiting about to kick off and with Private Equity recruiting kicking off shortly, make sure you sign up for our Banking recruiting resources & for Buyside Hub. | Here's a look at earnings this week. | Tuesday: Lennar Corporation, Korea Electric Power Corporation Wednesday: General Mills, Micron, Jabil Inc. Thursday: Accenture, Nike, Cintas, FedEx, Darden Restaurants, FactSet, Birkenstock, CarMax, KB Home Friday: Paychex
| Here's a look at economic data this week (estimates are in quotations). | Monday: Empire State manufacturing survey (10.0), Home builder confidence index (38) Tuesday: U.S. employment report (50,000), U.S. unemployment rate (4.5%), U.S. hourly wages (0.3%), Hourly wages year over year, U.S. retail sales (0.1%), Retail sales minus autos (0.2%), S&P flash U.S. services PMI, S&P flash U.S. manufacturing PMI, Business inventories (0.1%) Thursday: Initial jobless claims(223,000), Consumer price index, CPI year over year (3.1%), Core CPI, Core CPI year over year (3.0%), Philadelphia Fed manufacturing survey (3.6) Friday: Existing home sales (4.1 million), Consumer sentiment final (53.8)
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| | Kirkland & Ellis is facing pushback: Tensions are rising for the law firm as several of its clients were named as defendants in the Altice antitrust lawsuit. The firm represents clients on both sides of the battle, causing some to discuss bringing legal work elsewhere due to potential conflicts of interest Friendly fire in the cap stack: JPMorgan angered major distressed-debt investors by stepping into a controversial $2B refinancing that helped Patrick Drahi's Altice USA sidestep restrictive covenants and shift collateral away from existing lenders. The move — followed by an aggressive antitrust lawsuit against creditors — has shocked Wall Street funds and prompted some to reconsider relationships with the bank and Altice's advisers First Brands gets worse and worse: First Brands said on Friday that it had filed a request for expedited approval to access about $250mm as part of its bankruptcy restructuring. First Brands says the funds have artificially tightened its liquidity and fueled unnecessary concerns about its financial health, but investors see the request as critical, driving the debt to rapidly sell off
|  | Via Bloomberg |
| Saks Debt Sinks Ahead of Looming Interest Bill: The global fashion retailer's distressed bonds fell to fresh lows as the luxury retailer faces a more than $100M interest payment due by month-end amid weak sales and strained vendor ties. Subordinated first-lien debt plunged to roughly 12 cents on the dollar, down from about 30 cents earlier in the week, underscoring mounting fears over its ability to stabilize finances KPMG's 2026 outlook: The Accounting & Consulting giant came out with their predictions for 2026, here's the gist of what they're predicting: 2.8% GDP growth fueled by 45% growth in new data center construction Inflation remaining sticky, and peaking at 3.1% in 1Q26 Labor shortages continuing to get exacerbated, with young men having to deal with unpaid eldercare 89% of CEOs are exploring acquisitions to boost growth, a pro-economic growth boost from the Fed potentially cutting to 2%-2.5%.
Disney allows Sora Slop: Disney is making a $1B investment into OpenAI and will allow users to generate videos with copyrighted Disney characters on the Sora app. Disney will be compensated for the use of their characters, and is also getting warrants to buy more stock in OpenAI at its current $500B valuation Google would win big in a SpaceX IPO: Google holds a ~7% ownership stake in the startup, purchased back in 2019 for only about $900mm. Now SpaceX is set to IPO, and Google's stake would be worth a massive $111B if SpaceX were to go public at a valuation of $1.5T Coca-Cola Scrambles to Save its Costa Coffee Sale: Coca-Cola is holding last-ditch talks with private equity firm TDR Capital after negotiations over price threatened to derail the proposed sale of Costa Coffee. If no agreement is reached, the drinks giant may shelve the process next week, underscoring how rising costs and weak performance have weighed on the business since Coke's £3.9B acquisition in 2018 Thoma Bravo Eyes Shipping-Tech Giant: Thoma Bravo is in talks to merge its shipping software firm Auctane with logistics provider WWEX Group in a deal that could value the combined company at up to $12B. The proposal includes roughly $500 million of new equity from Thoma and about $5B of private credit financing to refinance existing debt and reduce leverage Big 12 Nears Private Capital Infusion: The athletic conference is close to a deal with RedBird and Weatherford Capital that could raise up to $500 million for conference members while preserving schools' full equity in the league. A final decision is expected in the coming weeks as college athletics increasingly explores private capital partnerships Tether is looking to acquire Serie A giant, Juventus, but Agnellis opposes the bid: Tether purchased an 11% stake in the club earlier this year, and has now submitted an all-cash offer to acquire full ownership of the team. However, the Agnellis family, who holds a majority stake in the club, says that its not for sale TPG Suffers $600M Loss on Anastasia Beverly Hills Investment: TPG has exited most of its stake in the cosmetics developer through a debt restructuring, reducing its ownership from about 38% to roughly 6% and largely wiping out its original investment. The company is negotiating with lenders and founder Anastasia Soare, who may inject around $225M to stabilize the business ahead of looming debt maturities Meanwhile, the firm closed more than $6.2B in commitments for its Credit Solutions Fund. Above its original $4.5B target, TPG's latest vehicle will target PE refinancings, providing highly structured, senior secured financing to sponsor-backed companies facing refinancing pressure from higher rates and looming debt maturities
How Pickleball Became a Massive Private-Equity Rollup: Billionaire Tom Dundon has quietly consolidated large swaths of the pickleball ecosystem, rolling up equipment retail, digital platforms, tournaments, and professional leagues into a vertically integrated portfolio. As the sport's market is projected to grow from $2.2B in 2024 to over $9B by 2034, investors see vast upside—though questions remain about whether pickleball's explosive rise proves durable or fades like past sports fads Peraton's Private Credit Loans Start trading as Banks Step In: Second-lien private credit debt at government contractor Peraton is now changing hands around 80 cents on the dollar after JPMorgan, Bank of America, and Goldman Sachs began making markets for the loans. The rebound follows Peraton's win of a $12.5B FAA contract, drawing opportunistic investors into a market that rarely sees secondary trading ServiceNow is in talks to acquire Armis, a cybersecurity startup for $7B. The deal might be announced tomorrow, and Armis recently passed $300mm of ARR
| | M&A Transactions💭 | URW Airports, operator of an airport management firm, was acquired for $295.0M by Grupo Aeroportuario (MEX: ASURB). RBC Capital Markets advised on the sale. | Heidrick & Struggles, a talent solutions advisory firm, was taken private by Advent, Corvex, and other strategic investors at a $1.3B valuation. | Tracim Cimento, operator of a cement factory, has reached a definitive agreement to be acquired for $190.0M by Titan (BRU: TITC). | Securiti, developer of privacy management software, was acquired for $1.725B by Veeam. Morgan Stanley advised on the sale. | Nilfisk (CSE: NLFSK), manufactures and produces cleaning equipment, has reached a definitive agreement to be acquired for DKK 3.798B by Freudenberg. EV/EBITDA was 7.95x and EV/Revenue was 0.53x. Guggenheim Partners and Carnegie Investment Bank advised on the sale. | The Mortgage Service Business of Mortgage Contracting Services was acquired by Stewart Information Services (NYS: STC) for $330.0M. Macquarie Group advised on the sale. | Liquid Nails, provider of construction adhesives, has reached a definitive agreement to be acquired for $725.0M by Henkel (ETR: HEN3). | Kellanova, has operated as a leading global manufacturer and marketer of salty snacks, snack bars, etc, was acquired for $35.048B by Mars. EV/EBITDA was 15.97x and EV/Revenue was 2.77x. Lazard and Goldman Sachs advised on the sale. | Iglu.com, operator of a travel agency, was acquired for GBP 127.0M by Flight Centre Travel Group (ASX: FLT). | Grasshopper Bank, operator of a commercial digital bank, has reached a definitive agreement to be acquired for $369.0M by Enova International (NYS: ENVA). Piper Sandler advised on the sale. | Diamond Hill Capital Management (NAS: DHIL), sponsors, markets, and provides investment advisory, has reached a definitive agreement to be acquired for $473.0M by First Eagle Investments. EV/EBITDA was 7.38x and EV/Revenue was 3.11x. Broadhaven Capital Partners advised on the sale. | Basler Electric Company, operator of an electronic manufacturing company, was acquired for $350.0M by Littelfuse (NAS: LFUS). EV/Revenue was 2.8x. | Alinta Energy, operator of power-generation facilities, has reached a definitive agreement to be acquired for AUD 6.5B by Sembcorp Industries (SES: U96). EV/EBITDA was 6.66x and EV/Net Income was 13.6x. | Senevita, provider of healthcare services, has entered into a definitive agreement to be acquired for EUR 270.0M by Tertianum. Alantra advised on the sale. | Merus (NAS: MRUS), a clinical-stage immuno-oncology company, was acquired for $8.0B by Genmab (CES: GMAB). EV/Revenue was 141.33x. Jefferies advised on the sale. | GoCardless, developer of an account-to-account payments platform, was acquired for $1.3B by Mollie. | Terianum has entered into a definitive agreement to acquire The Nursing Home Business Unit of Emeis for CHF 250.0M. | Private Placement Transactions💭 | Port.io, developer of an internal developer platform, raised $100.0M of Series C venture funding led by General Atlantic at a pre-money valuation of $700.0M. | K2 Space, developer of aerospace hardware products, raised $250.0M of Series C venture funding led by Redpoint Ventures at a pre-money valuation of $2.775B. | Harness, developer of a software delivery platform, raised $200.0M of Series E venture funding led by The Goldman Sachs Group at a pre-money valuation of $5.3B. | Chengyuan Technology, developer of synthetic peptide drugs, raised $100.0M of Series A+ venture funding led by AstraZeneca and Wuxi AstraZeneca CICC Venture Capital Partnership. | | Odds of the Day 🍒 | Kalshi traders are pricing in a 50% chance of Kevin Hassett becoming the next Fed Chair and a 40% chance of Kevin Warsh being the Fed Chair instead. | | | Meme Cleanser 😆 | | Until next time! | | Housekeeping Items: | Our Weekly Poll: | How are we doing?Tell us how we're doing and any feedback you have | | Finance Jobs: Looking for a job in Finance? 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