Good Morning! Capital Group and KKR launched their first private equity fund for everyday investors. Blackstone allowed record withdrawals of 7.9% from its BCRED fund amid pressure in private credit, but senior staff stepped in with $150 million to buy the private credit dip.

Ares CEO called UBS’s forecast of 15% private debt defaults “absolutely wrong.” Thoma Bravo agreed to buy logistics firm WWEX in a $5 billion bet on global supply chains. And Pinterest shares jumped 9% after activist Elliott Management disclosed a $1 billion stake.

Plus: Thrive Capital and Andreessen Horowitz are set to lead an investment in Anduril at a $60 billion valuation, and an entertainment lawyer shares his best negotiation secrets.

See how your net worth stacks up against your peers. Download the Coverd app today.

SQUEEZ OF THE DAY

$2.5M Private Credit Paydays

While fears of private market contagion ripple through public markets, compensation at the top of the private credit food chain remains firmly in boom-era territory.

Senior managing directors in private credit and structured finance are commanding $2.5 million-plus pay packages, often with meaningful carry attached, according to a new recruiting study from RCQ Associates. See below:

That's happening even as the broader financial press debates AI disruption, software risk, and whether the private credit cycle is finally turning. In the hiring market, the answer, for now, is not yet.

The real accelerant is insurance capital. Even as retail investors pull back, insurers continue funneling money into private credit, asset-based finance, and structured strategies run by the mega-managers.

The fit is near-perfect: long-duration assets, contractual cash flows, and yields that still outpace public investment-grade credit. That demand is sticky, and sticky demand means firms need bigger origination and structuring machines.

The hottest seat right now is asset-based finance. RCQ flagged ABF mandates jumping nearly 60% in 2025 from a year earlier, as private credit managers sit on roughly $543 billion in dry powder that still needs to be deployed.

On the sell side, structured finance hiring at investment banks is similarly heating up, with demand growing for professionals experienced in digital infrastructure financing, data centers, and providing leverage to private credit managers. A senior MD running a CLO origination or syndication desk at a bank can expect north of $2.25 million annually.

The private credit market now stands at roughly $1.8 trillion, yet hiring sentiment remains firmly expansionary: in a January survey of 1,320 private credit professionals, 56% expected headcount to grow over the next 12 months, while only 8% expected declines.

Takeaway: If you can originate asset-based finance, structure insurer-friendly deals, or run a securitization desk, you're getting paid like it's 2021. For firms deploying hundreds of billions, the bottleneck isn't capital, it's qualified humans.

PRESENTED BY COVERD

“Am I Rich?”

It’s a question people ponder but don’t typically have a tangible answer for.

Coverd gives you one.

It breaks down all of your spending, estimates your net worth, and shows how you stack up against your peers. The best part? It does this while also offering the ability to win-back past purchases by playing mini games like flappy bird or blackjack. It’s like if Rocket Money, Robinhood, and your favorite gaming app had a baby.

The Coverd credit card (anticipated to launch by the end of Q2) is the first to ever offer up to 100% cash back on every purchase. Users of the Coverd Card will be able to play in-app games using their points.

Until then, you can start seeing your money clearly now.

Check your net worth today.

HEADLINES

Top Reads

• Capital Group, KKR launch first PE fund for everyday investors (BB)

• Blackstone allows investors to pull record 7.9% from BCRED fund (BB)

• Blackstone senior staff pitched in $150M with BCRED under pressure (BB)

• Ares CEO says 15% private debt default call ‘absolutely wrong’ (BB)

• Pinterest shares pop 9% as activist Elliott Management takes $1 billion stake (CNBC)

• Thoma Bravo nears deal for WWEX to create $12 billion shipping tech firm (BB)

• Thrive Capital, a16z to lead Anduril investment at $60 billion valuation (WSJ)

• Blackstone is among suitors for aerospace supplier Senior (BB)

• SpaceX IPO at $1.75 trillion is pricey, not irrational, PitchBook says (BB)

• Oil prices surge as analysts say Iran conflict may be different from previous flare-ups (YF)

• Unflappable Wall Street bulls stick to calls for 2026 rally (YF)

• Japanese homebuilders go on a US shopping spree (CNBC)

• Ares closes $850 million continuation fund for Convergint (BB)

• JPMorgan tests ‘art of the possible’ in leveraged buyouts (BB)

• Big lenders’ risky loans are rattling Wall Street (NYT)

• Goldman private credit co-head says gating is a feature, not a bug (BB)

• Private credit is probably not the place for democracy (Axios)

• Blackstone’s Gray: market ‘noise’ fueled record redemptions from world’s largest private credit fund (CNBC)

CAPITAL PULSE

Markets Rundown

Market Update

• U.S. equities finished lower after recovering from a deeper intraday selloff

• Asian and European markets also ended the day lower as investors monitored energy markets and geopolitical developments

• U.S. dollar strengthened against major currencies as investors sought safety in the world’s reserve currency

• Treasury yields rose for the second consecutive day

Oil Prices Rise on Supply Disruptions

• WTI crude has risen roughly 10% since late last week amid supply disruptions tied to the Middle East conflict

• Attacks on energy infrastructure are affecting oil and natural gas production

• Oil and LNG tankers are being delayed or rerouted due to disruptions in the Strait of Hormuz, through which about 20% of global oil supply passes

• President Trump announced risk insurance support for ships traveling through the region and indicated the U.S. Navy may escort vessels if necessary

• While prices could move higher in the near term, similar geopolitical shocks historically have not produced sustained oil price spikes

Economic Data Highlights

• Treasury yields continued to climb, with the 10-year yield at 4.06%

• The rise appears driven primarily by higher inflation expectations linked to rising energy prices

• Market-implied 10-year inflation expectations (TIPS) have increased about 10 bps to ~2.3% since late last week

• Markets currently price two Fed rate cuts later this year, bringing the policy rate toward 3.0%–3.25%, with one additional cut next year

• This remains faster than the Fed’s own projections, which call for one cut this year and one next year

Movers & Shakers

• (+) Plug Power ($PLUG) +23% after the hydrogen energy company beat earnings.

• (+) Pinterest ($PINS) +9% because Elliott Management took a $1B stake.

• (–) MongoDB ($MDB) -22% after the database software company provided mixed guidance.

Prediction Markets

• Will we see the Indiana Bears?

• Trade on real-world events with Kalshi. Use code OWS to get a $10 bonus when you trade $10.

Private Dealmaking

• Thoma Bravo will acquire WWEX Group for around $5 billion

• Ayar Labs, a provider of optical interconnect solutions for AI workloads, raised $500 million

• Grow Therapy, a mental health startup, raised $150 million

• Flink, a German quick-commerce startup, raised $100 million

• Encord, a physical AI data infrastructure company, raised $60 million

• Temple, an Indian wearables startup, raised $54 million

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

BOOK OF THE DAY

Super Nintendo

Description: A vibrant history of Nintendo and the creative philosophy that reshaped the global video game industry. MacDonald traces how the company’s designers and leaders built worlds that prioritized imagination, joy, and playful experimentation over raw technical power. From iconic franchises to the cultural impact of the Super Nintendo era, the book explores how Nintendo transformed gaming into a creative medium that reached far beyond the arcade.

Book Length: 304 pages
Release Date: February 3, 2026

Ideal For: Gamers, designers, tech historians, and anyone interested in how creative culture can reshape an entire industry.

“The most powerful technology in gaming was never the hardware. It was the imagination behind it.”

DAILY VISUAL

Oil League Tables

PRESENTED BY F2

The New Verb on the Street

“I F2’d it.”

Historically, F2 - the key - has been the shortcut to reveal the formula behind a number. That key shows you exactly what’s driving the output.

Now, F2 - the company - embodies that same ideology in the tools it builds. With its new Audit Mode, every number within a report is not only cited, but fully traceable in real time. AI-generated analysis is written into a live, Excel-native Databook complete with real formulas, linked sources, and full traceability.

Trace any value to the exact file, sheet, and cell. Inspect precedents and dependents. Update assumptions with citations preserved in context. From any report or chat output, click into a number and see precisely how it was produced.

F2 merges speed with defensibility, delivering analysis you can confidently take into IC.

When your boss asks, “Where did you get these numbers?”, the answer is simple:

“I F2’d it.”

Book a demo to see Audit Mode in action.

DAILY ACUMEN

Envy

Envy is the only emotion with no upside. Anger can motivate. Fear can protect. Even grief can deepen you. But envy just sits there, quietly convincing you that someone else's win diminishes yours. It doesn't.

The pie isn't fixed. Someone getting the promotion, the deal, the recognition you wanted doesn't move your odds in any direction. It just feels like it does.

The most useful reframe for envy isn't gratitude, though that helps. It's information. What you envy tells you exactly what you want. Instead of resenting the signal, follow it.

Envy is a compass pointing at your own unlived ambitions. The question isn't why they have it. It's what you're going to do now that you know you want it.

ENLIGHTENMENT

Short Squeez Picks

• A tool to create your edge*

• Why many leaders enable toxic behavior without realizing it

• How to solve the motivation puzzle

• An entertainment lawyer on his best negotiation secrets

• Why it’s becoming so expensive to buy a new car in America

• Golfers live longer, and not because they have more money 

MEME-A-PALOOZA

Memes of the Day

📣 Partner With Us: Get in front of an audience of over 1 million finance professionals, business leaders, and policy influencers. Submit a partnership inquiry.

📈 Grow With Us: Work directly with the Overheard on Wall Street team to scale your finance brand. Schedule your free consult.

🔒 Short Squeez Premium – Insiders: Access exclusive content, including investment analysis, wellness features, career tools, and our full recruiting resource library. Upgrade to Premium. 

🧢 Wall Street Shop: Explore our collection of finance-themed apparel and merchandise. Visit the shop.

📬 Deals Newsletter – Buysiders: A curated roundup of major M&A, private equity, and VC activity. Plus access to private deal flow. Subscribe here.