Good Morning and Happy Friday! Morgan Stanley’s in some hot water over its wealth unit. Amazon CEO Andy Jassy said he’s committed to cost cutting while investing in AI in his shareholder letter. Meanwhile, Wall Street is busy reclaiming $16 billion worth of deals lost to private credit. Washington is targeting private equity health care deals, and Wall Street banks have helped push New York City’s return-to-office rate to almost 80% of its pre-pandemic levels.

We’re throwing the biggest party of the year on Saturday to celebrate the launch of Wall Street’s most exclusive shirt... and we’re nearly at capacity. RSVP while you still can.

SQUEEZ OF THE DAY

The Next $NVDA

Wall Street’s keeping its eyes out for the next big AI wave. And this time? Investors are looking outside the U.S. as they make their latest bets.

Investors looking towards emerging markets means Wall Street probably doesn’t think stocks like Nvidia have as much room to run as emerging markets do. After all, the global AI hype has led to a 50% jump in the semiconductor manufacturer index in less than a year.

So, if you’re a value investor, you’re probably looking overseas for your next bet. And it makes sense - while Nvidia is trading at around 35x its projected earnings, many of its Asian peers are trading at between 12-19x.

Analysts predict a 61% increase in emerging-market earnings, compared to just 20% for its U.S. peers.

Goldman Sachs says they’re especially looking at manufactures of AI supply-chain components like cooling systems makers. Morgan Stanley, on the other hand, is looking at players where AI is reshaping business models in non-tech sectors.

Emerging-market companies previously known for their tech are now leading the AI investment wave. For example, TSMC and Hon Hai Precision Industry are top holdings in significant emerging market funds and ETFs.

The investment enthusiasm is spreading to other regions as well, with companies like Vietnam's FPT Corp and South Korea's Hanmi Semiconductor seeing remarkable gains this year.

Takeaway: Emerging markets are not only presenting lucrative AI investment opportunities but also offering these at more attractive valuations than in the U.S. This shift suggests a broader, global approach to AI investment, but investing in emerging markets isn’t without risk. While the rise in stock prices can make investors feel like they're on top of the world, stocks in emerging markets can drop just as quickly, proving that what goes up might just take a scenic route down.

_{PRESENTED BY RAD AI}

Invest In The AI Disrupting A $633B Industry 

Most marketing strategies are little more than estimations and guesswork, resulting in billions of missed opportunities and wasted resources everyday. 

The solution? RAD AI. Dubbed “essential AI” for brands, RAD decodes trillions of internet interactions into highly-valuable, actionable insights. These findings then inform marketing strategies with hard data to deliver outsized ROI. 

The numbers speak for themselves: 

• $27M raised from 6,500+ investors–including VCs and execs at Google, Amazon and Meta–and is backed by the Adobe Fund for Design.

• ~3X revenue growth from 2022 to 2023, all while landing major clients like Hasbro, Skechers, MGM Resorts, Sweetgreen and more.

Don’t miss out–RAD AI’s investment round closes in 2 weeks.

_HEADLINES

_{Top Reads}

• Morgan Stanley’s wealth arm is being probed by multiple regulators (Reuters)

• Amazon CEO Andy Jassy in shareholder letter says he’s committed to cost cutting while investing in AI (CNBC)

• Wall Street reclaims $16B of deals lost to private credit (YF)

• Private equity in health care becomes a bigger Washington target (Axios)

• Private equity fundraising shows small signs of Q1 rebound (WSJ)

• Wall Street wants answers from big banks about the economy (CNN)

• McKinsey begins hundreds of job cuts with client demand muted (BB)

• As U.S. bank profits drop, focus shifts to interest income outlook (Reuters)

• NYC return-to-office rate nears 80%, driven by Wall Street banks (BB)

• Goldman promotes Carey Halio to Global Treasurer (CNBC)

_{CAPITAL PULSE}

Markets Rundown

Stocks rebounded on soft inflation data as investors eye softer earnings.

Movers & Shakers

• (+) Nike ($NKE) +3% after an upgrade by Bank of America.

• (–) Morgan Stanley ($MS) -5% after a probe into the bank’s wealth unit.

• (–) CarMax ($KMX) -9% after the used car dealer missed on earnings.

Private Dealmaking

• Vertex Pharmaceuticals bought Alpine Immune Sciences for $4.9 billion

• Peak Rock bought HuFriedyGroup, a dental business, for $787.5 million

• Nexamp, a solar company, raised $520 million

• Cyera, a cloud data security startup, raised $300 million 

• FloQast, a workflow automation software provider, raised $100 million 

• Elucent Medical, a surgical treatments tools provider, raised $42.5 million

_{For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.}

_{BOOK OF THE DAY}

_{The Wealth Money Can’t Buy}

Real wealth is so much more than cash in the bank, flashy cars in the driveway and luxury vacations on exotic islands. Too many financially prosperous people are surprisingly poor when it comes to the things that truly matter for a life of happiness, vitality, and serenity.

Society has sold us a version of success that has left too many people feeling empty, frustrated, and filled with regret. Fortunately, there is a much better way to live.

In The Wealth Money Can’t Buy, you will discover a life-altering system that will help you lead your richest life before it’s too late. You will learn a framework based on the eight hidden habits used by authentically rich people and gain a methodology to master your destiny. Open this book and allow a trusted mentor to offer you valuable insights.

“A book of stunning power. If you let it, it’ll completely transform your life.”

_{DAILY VISUAL}

_{M&A Activity Picking Up}

IG issuance rising after the Fed pivot in December

_{SATURDAY NIGHT LIVE}

Overheard On Wall St. Exclusive Party

We are excited to launch Wall Street's most exclusive shirt...

To celebrate the launch of our first ever luxury dress shirt with New York’s very own Le Alfre, come join us for day to remember...

Get ready experience the 80s like never before and howl at the moon.

A party so exclusive, Paul Allen couldn't get an invite...

Join us for free espresso martinis, dirty vodka martinis, beer & food.

We’re nearly at our capacity of 500 attendees. RSVP while you still can (all attendees must show their invite confirmation at the door).

_{DAILY ACUMEN}

_{When To Stop}

In a world that often glorifies the relentless pursuit of wealth and success, it's easy to lose sight of what truly matters. The insightful quote "The world is split between those who don't know how to start making money and those who don't know when to stop" highlights a crucial distinction.

While some struggle to gain financial traction, others face the equally important challenge of recognizing when they have achieved sufficiency. The danger of not knowing when to stop is that it can lead to a never-ending cycle of striving and dissatisfaction, sacrificing relationships, health, and overall well-being in the process.

True wisdom lies in cultivating a sense of enoughness - defining success on your own terms, aligning your goals with your values, and being intentional about how you spend your time and energy. It requires self-awareness, introspection, and the courage to challenge societal norms around money and success.

Ultimately, knowing when enough is enough is a mark of true wealth and contentment - a recognition that your worth isn't defined by your net worth, and that the richness of life extends far beyond material abundance.

_{ENLIGHTENMENT}

_{Short Squeez Picks}

• Investment Banking vs Private Equity - which is better?

• How baseball prepared Derek Jeter for business

• 3 smart money moves to make in your 20s to be more successful

• How to find joy in your life

• When playing it safe is the riskiest strategic choice

• Why you should concentrate on your reputation, not brand

• Learn from people who do - not people who preach

_{MEME-A-PALOOZA}

_{Memes of the Day}