Good Morning! KKR renegotiated terms with LPs to give wealthy individuals a bigger share of its PE deals, showing how new capital is reshaping the industry. Crypto exchange Bullish soared more than 80% in its IPO, ending with a ~$10 billion market cap.

Fast-casual chains like Cava and Chipotle are facing a “salad bowl recession.” PwC is monitoring UK office attendance with a “traffic light” dashboard that turns red if you’re not in the office at least 40% of the time.

The Trump-family crypto venture has pulled in $4.5 billion since the election, New York is suing Zelle, and PE-backed IPOs are struggling as traders flock to riskier bets.

Plus: US alcohol consumption hits a 90-year low, Trump says the search for Powell’s replacement is down to three or four candidates, and Taylor Swift does her first podcast with the Kelce brothers.

Build your crypto investing foundation with a complimentary copy of Crypto Revolution from the Crypto 101 team, just cover shipping.

SQUEEZ OF THE DAY

OpenAI vs. Citadel

Wall Street and AI startups have been competing for quant talent recently. And it seems like some of the top quantitative researchers, who would typically pursue roles at hedge funds like Jane Street and Citadel, are now choosing to work for AI companies like OpenAI and Perplexity. 

The pitch from Silicon Valley is straightforward: help build the future of AI instead of designing algorithms that only optimize trading profits. With base salaries reaching $200,000–$300,000 and equity packages in place of cash bonuses, the economics now rival (and in some cases match) hedge fund offers.

For quants seeking to leave finance’s high-pressure, profit-driven culture, the opportunity to work on cutting-edge AI models can feel more meaningful.

According to tech recruiter Mike Doonan, requests from AI-native and software companies for quant finance backgrounds have jumped 40–50% in the past 12–18 months. Unlike in finance, non-compete agreements rarely apply, making it easier for quants to jump to tech.

LinkedIn data shows Jane Street and Citadel Securities have lost talent to Anthropic, with former traders Aron Thomas and Charles Guo citing AI’s long-term impact as their motivation.

The skill overlap is significant. Both industries require minimizing latency, processing vast datasets, and applying rigorous empirical research methods. Anthropic, which is actively hosting “quant social hours” in New York and London, says quants’ analytical rigor directly translates to developing safer and more capable AI systems.

Perplexity’s co-founder Johnny Ho, a Tower Research alum, stresses that the real draw is “new and more exciting challenges,” not just pay.

Takeaway: While some warn the reality could involve optimizing ad algorithms rather than “building the machine god,” the trend is clear: AI firms are a credible alternative for top-tier quant talent. With AI players also exploring financial services applications, Wall Street may eventually be forced to adjust compensation structures, and perhaps even rethink non-competes to keep its best quants from leaving.

HEADLINES

Top Reads

• KKR recut terms with big backers to hand rich investors larger share of deals (FT)

• NYC adds 45,000 jobs in July, unemployment falls to 4.7% (NYT)

• Cava, Chipotle, and Sweetgreen report slower sales growth (CNBC)

• PwC tracks UK office attendance with “traffic light” dashboard (Guardian)

• Trump‑family crypto venture has generated $4.5B since election (WSJ)

• IBM and Google claim breakthroughs in push for quantum computing (NYP)

• Traders embrace risk, leaving private equity IPOs in the dust (BB)

• Trump says search for Powell replacement down to 3 or 4 candidates (YF)

• Credit card debt and spending hit record highs (Axios)

• Apollo in talks to revive $2 billion debt sale tied to auto deal (BB)

• Coffee and tea prices surge due to tariffs (CNBC)

• Private equity continuation vehicles evolve into “CV squared” after growth boom (BB)

• Tech startups shift hiring to U.S. after Congress revives key tax deduction (WSJ)

• Bullish crypto exchange soars in public debut, nearly triples its IPO price (YF)

• Bessent says interest rates should likely be 150–175 basis points lower (BB)

• KKR leads $3 billion private debt deal for Thoma Bravo’s Flexera (BB)

• Private credit PIK usage nears four-year high, says Lincoln (BB)

• Wall Street eyes September liquidity pinch points (BB)

PRESENTED BY CRYPTO 101

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The digital asset experts at Crypto 101 have published a new guide, Crypto Revolution, that outlines three research-backed strategies for building long-term wealth in the digital asset market, starting with modest investments.

You’ll also receive an exclusive briefing on the coin their analysts consider the most promising in today’s market. The book is complimentary; readers simply cover the cost of shipping.

CAPITAL PULSE

Markets Rundown

Market Update

• S&P 500 and Nasdaq hit record highs ahead of today’s PPI release

• Materials and health care led gains, while communication and consumer staples lagged

• Small- and mid-cap stocks outperformed large caps on Fed rate-cut optimism

• 10-year Treasury yield fell to 4.23%, well below its July peak near 4.50%

• U.S. dollar declined vs. major currencies; WTI oil fell on IEA supply forecast increase and demand downgrade

Economic Data Highlights

• PPI for July expected at 2.4% y/y, up from 2.3% in June

• Core PPI forecast at 2.9%, up from 2.6% prior

• Likely reflects early tariff impact, but seen as mostly near-term pricing pressure

• Long-term inflation expectations stable at ~2.38% over 10 years

Reported Earnings

• Cisco Systems (CSCO) – Beat on earnings and revenue; demand for AI networking and enterprise IT spend exceeded guidance

• Global-e Online (GLBE) – Revenue growth above expectations on strong cross-border volumes; expanded merchant base

• DLocal (DLO) – Reported strong TPV growth, especially in LatAm; FX headwinds moderated margins slightly

Earnings Today

• JD.com (JD) – Focus on Chinese e-commerce demand, logistics expansion, and margin trends

• Deere & Co. (DE) – Key metrics: agriculture equipment demand, pricing power, and guidance

• Nu Holdings (NU) – Watch customer growth, loan book expansion, and NIM trends

Movers & Shakers

• (+) Paramount Skydance ($PSKY) +37% after retail meme traders piled into the entertainment company.

• (–) Cava ($CAVA) -17% because same-store sales growth was lower than expected.

• (–) CoreWeave ($CRWV) -21% after higher-than-expected building costs.

Private Dealmaking

• Capacity, a support automation platform for contact centers, raised $92 million

• Titan, an IT services company, raised $74 million

• Appcharge, a games distribution startup, raised $58 million

• 1Kosmoss, an authentication password, raised $57 million

• Positive Development, an autism therapy startup, raised $51.5 million

• Sparrow, an employee leave management platform, raised $35 million

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

BOOK OF THE DAY

The New Science of Momentum

Description:
A breakthrough guide for leaders looking to harness the hidden power of momentum. Blending insights from eight years of research, over 250 interviews, and thousands of survey responses, Don Yaeger and Brig. Gen. Bernie Banks explore how to recognize the early spark of momentum, sustain it, and reignite it when it fades. With examples drawn from sports, business, politics, and the military, the authors offer a proven, research-backed model to help any leader—team, organization, or campaign—turn small moments into unstoppable motion.

Rating: 5 / 5 (Amazon)

Book Length: 288 pages
Audiobook Length: 7 hours 18 minutes

Ideal For:
Coaches, executives, team leaders, managers, and anyone looking to build positive momentum—whether in high-stakes environments or everyday leadership.

“If you can find momentum, you can be unstoppable.” — Simon Sinek

DAILY VISUAL

On is Running Away

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The $10.75B Fintech Turning Rent Into Rewards

Most rewards programs give you points for spending anywhere but where your money actually goes: your rent.

Bilt is flipping that model. Backed by a fresh $10.75 billion valuation, Bilt now lets over 5 million renters earn points on rent and spending around their neighborhood. Those points can be redeemed for flights, hotels, workouts, Lyft rides, even student loans.

Read how Bilt is building the future of payments and rewards.

DAILY ACUMEN

Second Order

The market prices the first-order effect instantly. Rates down? Bonds rally.

The edge is in the second-order: how those rates ripple through housing, bank margins, risk appetite, and eventually… IPO windows.

In careers, first-order is the promotion.

Second-order is the skill stack, network, and leverage you gain en route.

Train your mind to ask “and then what?” three times before you act.

ENLIGHTENMENT

Short Squeez Picks

• Taylor Swift does her first podcast with Kelce brothers

• NYC lost its crown as the U.S.’s most walkable city

• 5 simple steps to boost memory

• What to pay for stylish, quality menswear

• Making the structure of the present moment work for you 

• A screenless future

MEME-A-PALOOZA

Memes of the Day

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