Good Morning! Wealth manager stocks tumbled as traders searched for the next AI casualty. Chipotle’s CEO allegedly said in leaked audio that the company would keep raising prices and focus on customers making over $100k. Blackstone joined Anthropic’s latest round, bringing its stake to $1 billion at a $350 billion valuation.

McKinsey is handing control of its $20 billion investment arm to Neuberger Berman. The Vatican Bank launched two equity indexes built around Catholic investing principles. And Alphabet plans to issue a rare 100-year bond.

Plus: Steve Schwarzman wants to build a top-10 private foundation, PwC is limiting entry-level roles to just 13 U.S. offices, and U.S. consumers spend more on OnlyFans than the NYT and ChatGPT combined.

Automate LBOs with complex multi-shareholder structures on Mosaic. Connect with their team today.

SQUEEZ OF THE DAY

Bonus Szn Hits the Beach

Wall Street had another record year. And real estate in the Hamptons is collecting the dividend. Home prices in the Hamptons just hit an all-time median high last quarter, and agents say it’s thanks to a strong year for Wall Street bonuses.

While the rest of the real estate market across the country is shaky, Hamptons demand is stronger than ever, and brokers say summer 2026 rentals are already getting locked up in February.

According to Douglas Elliman and Miller Samuel, the median Hamptons home price reached $2.34 million in the fourth quarter, up 34% year over year. The average sale price climbed to $3.76 million, and 82 homes traded above $5 million, which is an all-time record. 

Higher mortgage rates are still pressuring activity in the lower and middle tiers of the market, so this isn’t broad-based price appreciation. Instead, fewer smaller deals and a higher concentration of large, often all-cash transactions are pulling the median higher. After several years of double-digit gains in equities and strong performance in private markets and hedge funds, liquidity at the top end is driving the numbers.

And it’s not just traditional bankers anymore. Brokers say hedge funders, private equity execs, and VCs are piling in alongside legacy Wall Street buyers. Pandemic-era Florida transplants are returning to the Hamptons as summer escapes from the heat, and California tech money is showing up again as well.

The rental market is moving even faster. Brokers report that much of the prime summer inventory is already spoken for. One waterfront home rented from July through Labor Day for close to $1 million. A nine-bedroom, 11,000-square-foot oceanfront estate in Bridgehampton is asking $700,000 for just two weeks this summer.

And the old strategy of waiting until May for discounts may no longer work. Brokers warn that buyers and renters who delay could face slimmer options and little pricing relief. With inventory still tight at the top, sellers know exactly what kind of year their target buyer just had.

Takeaway: With bonuses near record levels and liquidity concentrated at the top, Hamptons pricing isn’t being driven by mortgage rates or broad demand. It’s being driven by the sales mix shifting toward the biggest homes, bought by the people who just got paid. Out East, comps don’t set prices. Bonus szn does.

PRESENTED BY MOSAIC

M&A Term of the Day: Sources and Uses

Every major transaction answers two questions: What are you buying, and how are you paying for it? The Sources and Uses table lays out both sides in one clean schedule.

The "Uses" side lists what you're paying for: purchase price, transaction fees, and financing costs. The "Sources" side shows where the capital comes from, ranked by seniority. Senior debt sits at the top, followed by junior debt, mezzanine debt, preferred equity, and common equity at the bottom.

Common equity serves as the "plug," automatically solving to make both sides balance. In LBOs, this equity often splits between sponsor funds, management rollovers, and seller stakes.

If you want your LBO modeling made simpler, Mosaic automates the entire Sources and Uses build and handles complex multi-shareholder structures so you can model faster.

Try Mosaic’s LBO modeling platform today.

HEADLINES

Top Reads

• Wealth manager stocks sink as traders flee next AI casualty (BB)

• Chipotle CEO allegedly suggested the company would keep raising prices for customers making over $100,000 (Fox)

• Blackstone joins Anthropic round, raising stake to $1 billion (BB)

• McKinsey hands over its $20 billion investment arm to Neuberger (BB)

• Vatican bank launches stock indexes based on Catholic values (BB)

• Alphabet plans tech’s first 100-year bond since dot-com era (YF)

• Blackstone founder Steve Schwarzman aims to build a top 10 private foundation (WSJ)

• PwC limits entry-level roles to 13 US offices (LI)

• California wealth tax fears have billionaires snapping up Florida real estate (BB)

• Private equity gets a liquidity lecture from Hannibal Lecter at IPEM (BB)

• Google and Big Tech are on a borrowing spree to fund AI ambitions (Axios)

• Gucci-owner Kering jumps 12% as new CEO maps revival, sales beat estimates (CNBC)

• Paramount sweetens WBD bid, but stops short of raising its per-share value (CNBC)

• U.S. consumers spend more on OnlyFans than the NYT and ChatGPT combined (a16z)

CAPITAL PULSE

Markets Rundown

Market Update

• U.S. equities traded mostly lower after weaker-than-expected December retail sales

• Treasury yields fell as bonds rallied, with the 10-year at ~4.14% and 2-year at ~3.45%

• Rate-sensitive sectors such as real estate and utilities outperformed

• Technology, communication services, and financials lagged, with brokerage stocks under pressure

• Asian markets finished higher overnight, while European equities closed mostly lower

Economic Data Highlights

• Retail sales (Dec) were flat, missing expectations for +0.4%

• Control group sales fell –0.1%, versus expectations for +0.4%

• Weakness was broad-based, led by furniture, miscellaneous retailers, and apparel, while building materials rose +1.2%

• 2026 GDP base case remains around ~2%

Sector Trends

• Real estate and utilities benefited from falling yields

• Financials underperformed amid concerns about AI-driven competitive pressures

• Consumer-facing categories reflected softer spending momentum at year-end

Looking Ahead

• January employment report; consensus +75K payrolls, unemployment 4.4%

• Friday: CPI inflation; expectations 2.5% YoY for both headline and core

• Job growth slowed to ~49K/month in 2025, but layoffs remain limited

Movers & Shakers

• (+) Spotify ($SPOT) +15% after the streaming company announced strong user growth.

• (+) Ferrari ($RACE) +8% after the luxury car maker announced strong Q4 earnings.

• (–) S&P Global ($SPGI) -10% after the capital markets company announced weak earnings, AI concerns.

Prediction Markets

• OpenAI versus Anthropic; or who wants to play second fiddle to Elon’s SpaceX?

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

Private Dealmaking

• Runway, an AI video generation startup, raised $315 million

• Oxide Computer, a private cloud computing company, raised $200 million

• Overland AI, a developer of autonomous military land robots, raised $100 million

• Newcleo, a developer of nuclear reactors and fuel systems, raised $85 million

• Accrual, an accounting software platform, raised $75 million

• TRM Labs, a blockchain intelligence and compliance platform, raised $70 million

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

BOOK OF THE DAY

Guru, Inc.

Description: A practical, step-by-step guide to building authority, audience, and income in the creator economy. Welsh breaks down how to define your niche, develop a clear message, create content that resonates, and turn influence into a sustainable business without sacrificing authenticity. He blends personal experience with actionable frameworks that help creators go from obscurity to trusted authority.

Book Length: 256 pages
Release Date: February 24, 2026

Ideal For: Creators, solopreneurs, founders, marketers, and anyone ready to turn expertise into a brand with legs.

“Authority compounds when trust is earned one useful insight at a time.”

DAILY VISUAL

Gold and Rates Correlation Breakdown

PRESENTED BY PARADIGM PRESS

A Little-Known Law That Could Change the Economic Playbook

Most market narratives focus on rates, earnings, or AI. Far fewer examine the legal infrastructure that governs how the U.S. mobilizes resources during periods of strategic urgency.

There exists a long-standing federal statute that gives the executive branch broad authority to coordinate industrial production, supply chains, and resource allocation when national priorities are at stake. Historically, this framework has only been used during moments of extreme economic or geopolitical pressure; and when activated, it has materially altered demand patterns across energy, materials, and manufacturing.

Understanding how government-directed industrial policy works (and where it concentrates capital) helps explain why certain sectors experience outsized, multi-year tailwinds while others stagnate. This isn’t about predictions. It’s about understanding structure, incentives, and historical precedent.

Watch the full video here.*

DAILY ACUMEN

Planting Seeds

Keith Ferrazzi wrote "Never Eat Alone" after realizing his network was his net worth.

But not from taking. From giving. He helped people constantly. Made introductions. Shared opportunities. Offered advice.

Years later, those small acts compounded. People remembered. They reciprocated when he needed help. Not because of obligation, but because he'd built genuine relationships through generosity.

Helping costs little but compounds enormously. Introduce two people who should know each other. Share a useful article. Offer genuine praise. These micro-investments pay massive dividends over decades.

Remember, givers gain more than takers in the long run. Plant seeds everywhere.

ENLIGHTENMENT

Short Squeez Picks

• 3 habits undermining your executive presence

• 5 habits Warren Buffett says separate the successful

• 4 criteria for choosing a lifelong partner

• 5 ways to reframe desperation during a job interview

• How to meditate

MEME-A-PALOOZA

Memes of the Day

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