Good Morning! The U.S. Mint produced its final penny yesterday in Philadelphia, ending 232 years of production. Kim Kardashian’s Skims hit a $5 billion valuation after a $225 million round led by Goldman Sachs. And Vista Equity Partners says it can eventually cut a third of its staff thanks to AI.

The White House warned that the October jobs and inflation data may never be released due to the shutdown. A former Blackstone exec launched an Hermès bag hedge fund backed by Christie’s, the first of its kind, raising $1 million in May and netting a 34% ROI in just 43 days.

Plus: Clearlake is doubling its $95 billion in AUM with a $1 billion deal for Pathway Capital, and why people are now treating marathons like weddings.

Don’t let “Pls fix” ruin anymore evenings. Let Macabacus perfect your deck.

SQUEEZ OF THE DAY

Blackstone Burned by Boomers

Blackstone is unwinding one of its worst real estate deals in years. The private equity firm is beginning to liquidate its $1.8 billion senior-housing portfolio. The investment has racked up more than $600 million in losses. The portfolio spans about 90 properties and 9,000 units across the U.S., many trading at over 70% below what Blackstone paid.

When Blackstone began making the investments in 2017, the thesis seemed simple and bulletproof: buy aging assets, improve operations, and ride the “silver tsunami” of baby boomers entering retirement.

But senior housing proved far tougher than warehouses or apartments. The business model depends on full occupancy, healthcare oversight, and round-the-clock staff. And when COVID hit, occupancy cratered, costs spiked, and the turnaround thesis collapsed.

Blackstone’s facilities in places like South Florida, Denver, and Chicago have sold for pennies on the dollar. One Aventura property that cost $49 million in 2017 sold this fall for 75% less.

Others were hit with one-star ratings and regulatory fines for poor resident care. The firm spent more than $100 million on upgrades, but with most of its $1.2 billion in financing tied to floating-rate loans, rising interest costs squeezed cash flow and pushed several mortgages into special servicing.

Blackstone’s senior-living investment sat inside a $33.5 billion real estate fund that nearly doubled investor capital overall, so it’s not a total disaster. But this sub-portfolio became a textbook case of how operational intensity and leverage can break even the best playbook. In the senior living space, “you’re buying an apartment inside a hotel, inside a restaurant, inside a medical clinic,” said one buyer who picked up a property from Blackstone this spring.

The irony is that demographics have finally caught up. Occupancy in the sector is rising as more boomers age into assisted living. But for Blackstone, the recovery came too late. The firm has already exited roughly 70 of its properties and is now closing out the rest at steep discounts.

Takeaway: Senior housing looked like an easy demographic trade, but it became a lesson in leverage and execution risk. Demand is finally turning, yet Blackstone is walking away bruised. The “buy it, fix it, sell it” model works great until the tenants need nurses, not renovations.

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HEADLINES

Top Reads

• Last-ever penny minted yesterday in Philadelphia (Axios)

• Kim Kardashian’s Skims worth $5 billion after latest fundraising round (NYP) 

• Private equity group Vista to cut staff in favor of AI (FT)

• White House says October jobs and inflation report may never be released (CNBC)

• Clearlake to double assets with nearly $1 billion deal (WSJ)

• Former Blackstone exec launches Hermés bag hedge fund (Forbes)

• Anthropic to spend $50 billion on U.S. AI infrastructure, starting with Texas, New York data centers (CNBC)

• The hottest new AI stock could be Walmart (Axios) 

• Shares of Swiss sneaker company On soar 18% as it raises guidance again (CNBC)

• BofA says AI excitement is eclipsing other investing opportunities (YF)

• KKR distances insurer Global Atlantic from Egan-Jones ratings (BB)

• Whoop CEO says company is considering going public within two years (BB)

• Why companies like Microsoft look safer than governments (BB)

• Private companies are being taken over by lenders at a brisk pace (BB)

• Hedge-fund giants muscle into private markets (BB)

CAPITAL PULSE

Markets Rundown

Market Update

• Stocks finished mostly higher as investors anticipated an end to the record-long government shutdown.

• Value sectors outperformed, led by health care and financials, while growth sectors such as communication services and consumer discretionary lagged.

• Asian markets rose on reports of stronger consumer spending in China, while Europe also traded higher.

• Bond yields declined, with the 10-year U.S. Treasury yield closing at 4.07%.

Economic Data Highlights

• The Senate passed a spending bill earlier this week to end the government shutdown and extend funding until January 30, 2026.

• The shutdown’s economic drag could reduce fourth-quarter GDP growth by 1.5 percentage points, according to the CBO, though these effects should reverse in Q1 2026.

• While disruptions have delayed data releases, the return of BLS and Census reports should soon provide greater clarity on economic trends.

• In our view, the end of the shutdown should ease near-term uncertainty and help restore normal government operations.

Market Sentiment

• The University of Michigan Consumer Sentiment Index fell to 50.3, the second-lowest reading on record.

• Despite weak sentiment, consumer spending and labor conditions remain resilient.

• Historically, low sentiment periods (1980, 2008, 2009, 2011, 2022, 2023) have coincided with strong equity gains, averaging +15% over six months and +25% over 12 months.

• This underscores that markets are forward-looking and can perform well even amid negative headlines.

Earnings Today

• DIS (Disney) – Focus on streaming profitability and theme-park trends.

• JD (JD.com) – Watch for e-commerce growth and China consumer momentum.

• NU (Nubank) – Key to monitor customer growth and fintech adoption in Latin America.

Movers & Shakers

• (+) On Holding ($ONON) +18% after the shoemaker raised its guidance 

• (+) Advanced Micro Devices ($AMD) +9% because of strong growth projections.

• (–) Circle Internet ($CRCL) -12% after falling interest rates overshadow earnings growth.

Prediction Markets

• How are the chances at 7%?!

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

Private Dealmaking

• Parker-Hannifin agreed to acquire Filtration Group for $9.25 billion

• Macquarie agreed to acquire Potters Industries for $1.1 billion

• Clearlake Capital will buy Pathway Capital for $1 billion

• Clio, a legal practice management platform, raised $500 million 

• D-Matrix, an AI chipmaker, raised $275 million

• Skims, the apparel brand, raised $225 million

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

BOOK OF THE DAY

Lucky by Design

Description: Wharton economist and market designer Judd Kessler reveals how many of the struggles we attribute to “luck” are really the result of us playing by hidden rules in unseen markets. These are spaces where price isn’t the key mechanism—reservations, school admissions, organ donations, job offers, tickets—and where small strategic shifts can massively boost your odds. Instead of resigning yourself to chance, the book shows you how to identify the rules in these markets and move with more agency.

Book Length: 288 pages
Release Date: October 14, 2025

Ideal For: Anyone who feels like life is unpredictable—professionals, parents, job-seekers, creators—who want more control over outcomes that feel stacked against them.

“The world is filled with hidden markets—get smart about their rules, and you don’t just hope for luck. You engineer it.”

DAILY VISUAL

Bitcoin ETF Booming

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Built by former traders Albert Wang and Eric Xu, Coverd flips the traditional rewards model. Instead of earning fixed percentages that accumulate slowly, users get variable returns through gameplay; up to 100% of purchase amounts back.

The Coverd Card launches early 2026 with the same interactive reward structure built into every transaction.

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DAILY ACUMEN

Rational Optimism

The best investors are neither cynics nor dreamers — they’re rational optimists.

They understand that things break, but progress still wins over time.

Markets crash, companies fail, yet humanity always finds a way to rebuild better.

Cynicism sounds smart but pays poorly.

Optimism sounds naïve but funds every great fortune.

Rational optimism is the belief that despite chaos, the upward slope of history remains intact.

ENLIGHTENMENT

Short Squeez Picks

• A 6-step morning routine that boosts mood and productivity

• Why people are treating marathons like weddings

• Why you should ditch the scale and focus on fitness

• The nonprofit doing the AI industry’s dirty work

• Hybrid work is not the problem; poor leadership is

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