Good Morning! Warren Buffett donated a record $6B in Berkshire stock. Meta’s seeking $29B from private credit giants to build its AI data centers. OpenAI is rolling out customized AI models for users willing to drop at least $10 million.

Gen Z is diving into 401(k)s sooner than millennials, turning to podcasts, finfluencers, and AI chatbots for financial advice. And Florida’s real estate boom is fueled by Wall Street execs fleeing New York.

Plus: How much Americans have in their 401(k)s by income, and what counts as a comfortable salary?

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SQUEEZ OF THE DAY

$5.6B Continuation Fund

Vista Equity Partners just raised one the largest single-asset continuation funds: a $5.6 billion fund to keep hold of Cloud Software Group, the enterprise software company created from Citrix and Tibco’s $16.5 billion merger in 2022.

The deal includes $2.7 billion of fresh investor cash and $2.2 billion from Vista’s older buyout funds. Investors in the original fund could cash out at a 4.1x return or roll into the new vehicle, with Cloud Software moving over at a roughly 5% discount to its early 2024 valuation.

While massive, Vista’s deal isn’t the biggest on record. That title goes to Hellman & Friedman, which raised a $10.2 billion single-asset continuation fund in 2022 to hold Ultimate Kronos Group (UKG). Still, Vista’s transaction shows how continuation funds have become a core tool for private equity firms facing a frozen exit market, where traditional sales or IPOs remain elusive.

GP-led secondaries, including continuation funds, hit $72 billion in volume last year, up from the previous peak of $63 billion in 2021. In Q1 of this year alone, sponsor-led secondaries totaled $25 billion and could exceed $75 billion by year-end, per PJT Partners.

Yet the momentum faces new headwinds. Tariffs and market volatility are forcing secondary buyers to demand steeper discounts, widening the gap between private valuations and what buyers are willing to pay.

Many private equity firms, like Vista, are sitting on assets they believe still have runway for growth but they’re also under pressure to generate liquidity for investors. Roughly 29,000 unsold portfolio companies, valued at $3.6 trillion, remain stuck on private equity books.

Continuation funds have become an increasingly attractive way for sponsors to buy more time with high-conviction assets while offering investors either a cash-out or a path to ride the asset’s next chapter.

Takeaway: Vista’s move to hang onto Cloud Software Group is a vote of confidence in the asset’s long-term value. It’s also a sign that, despite market headwinds, continuation funds are evolving from a niche strategy to industry staple. And remember, next time you can’t find a buyer for your business, just sell it to yourself for 4.1x!

HEADLINES

Top Reads

• Warren Buffett donates record $6 billion in Berkshire shares (YF)

• Meta seeks $29 billion from private capital firms for AI data centers (YF)

• How much Americans have in their 401(k)s at every income level (CNBC)

• OpenAI takes a page from Palantir, doubles down on consulting services (TI)

• Gen Z is great at saving for retirement (NYT)

• Stuck private equity deals saddle investors with endless fees (WSJ)

• Wall Street’s AI embrace leaves plenty of work for junior bankers (TI)

• Big banks all pass the Federal Reserve's stress tests (CNBC)

• Florida commercial real estate boom fueled by Wall Street industry (NYP)

• Trump says he is terminating trade talks with Canada (YF)

• Private equity wants to get into your 401(k). Trump might let them (MBC)

• Why a weak dollar is bullish for the tech industry (Axios)

• Americans beef up savings accounts (CNBC)

• Starbucks urges customers to linger (CNN)

• U.S. could be done with trade deals by Labor Day, Bessent says (Axios)

• Wealthfront confidentially files to go public in US (Pymnts)

• Platinum Equity-backed McGraw Hill files for US IPO (YF)

• With ‘F1’, Apple finally has a theatrical hit (TC)

• What's a comfortable salary? (LI)

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CAPITAL PULSE

Markets Rundown

Market Update

• U.S. stocks rose modestly Friday, pushing the S&P 500 to a new all-time high, now up 23% since its April 8 low.

• Gains were broad-based, led by strong guidance from Nike, which surged 15% after signaling a sales recovery.

• Intraday volatility followed news that President Trump is ending trade talks with Canada over its digital services tax.

• Crude oil was flat on the day, but down 12% for the week, marking its largest weekly drop in two years.

Economic Data Highlights

• Core PCE inflation (the Fed’s preferred measure) rose 0.2% in May, slightly above expectations of 0.1%.

• On an annualized basis, core PCE rose to 2.7% from 2.6%, reflecting early signs of tariff-driven price pressures.

• The Fed raised its 2025 inflation forecast last week from 2.8% to 3.1%, while maintaining its view that inflation will normalize in 2026.

•  Looking ahead, June jobs data will be the main focus next week, with payroll gains expected to remain solid and unemployment steady at 4.2%.

Reported Earnings

• Nike (NKE) – Beat expectations and surged 15% after issuing strong forward guidance and signaling a sales recovery.

• Walgreens Boots Alliance (WBA) – Missed expectations due to continued margin pressures and weaker retail performance.

Earnings Today

• Quantum Corp (QMCO) – Reporting June 30 (After Market Close); investors watching storage demand trends and margin expansion.

Movers & Shakers

• (+) Nike ($NKE) +15% after the company’s CEO says recovery is on the horizon.

• (+) EchoStar ($SATS) +13% because the company says bankruptcy concerns are subsiding.

• (–) Palantir ($PLTR) -11% after easing tensions in the Middle East.

Private Dealmaking

• DNOW bought MRC Global for $1.5 billion

• Summit Partners sold Dr. Squatch for $1.5 billion

• Comcast agreed to sell Sky Deutschland for $176 million

• Tacta Systems, a robotics intelligence developer, raised $75 million

• Centific, an AI data foundry, raised $60 million

• Mandolin, an AI automation platform, raised $40 million

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

NEIGHBORHOOD WATCH

Real Estate Digest

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Mortgage rates have remained remarkably stable, fluctuating within just a 15-basis-point range since mid-April. Although national home sales have been flat in recent data, the steady rates have contributed to a larger pool of available inventory, giving buyers more options to choose from when entering the market.

Latest News

• A momentum shift in the housing market is causing a rebalancing

• US home resales stay sluggish

• Home-price gains in US slow

• Nepo-buyers are America’s newest class of homeowners

New Listings

• 21 W 17th St Apt: 11 New York, NY: 3 Bed / 2 Bath - $3.7M

• 207 Halsey St, Southampton, NY: 3 Bed / 2.5 Bath - $3.0M

• 177 SE 25th Rd, Miami, FL: 3 Bed / 3.5 Bath - $3.9M

• Saint-Tropez, Grimaud, Var, France: 5 Bed / 3 Bath - $9.1M

• Carrer Rocs de Sant Magí, Spain: 6 Bed / 9 Bath - $9.2M

BOOK OF THE DAY

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Rating:
• Amazon: 4.6 / 5
• Goodreads: 4.7 / 5

Book Length: 240 pages

Ideal For: Thoughtful investors, long-term strategists, and quality-minded leaders who see compounding not just as math, but as a mindset.

“An insightful and engaging read… delivering sensible, hard‑earned investing wisdom with an accessible tone.”

DAILY VISUAL

We’re So Back

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DAILY ACUMEN

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Great negotiators don’t dominate; they tune in.

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Flow isn’t luck.

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ENLIGHTENMENT

Short Squeez Picks

• 7 tricks to be more confident when talking in public

• How being in nature is good for your health

• 5 simple ways to make your house use less energy

• Trader Joe’s salmon, ranked

• The viral 12-3-30 workout routine 

MEME-A-PALOOZA

Memes of the Day

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