🍋 Private Credit Chaos

How a raid at Barings unleashed chaos in the private credit industry, plus new Chick-Fil-A sandwich.

Together With

"It's easier to get a smart person to do something hard than to get them to do something easy that doesn't matter." — Shane Parrish

Good Morning! Goldman thinks we’re gearing up for a record year for stock purchasing. Thanks to Reddit the global IPO market hit an inflection point. Trump’s Truth Social is set to go public, too, after winning the DWAC merger vote. Chick-fil-A is stirring up controversy by switching from antibiotic-free chicken. Plus Lululemon sales are starting to slow. Plus the top 10 richest cities in America.


Private Credit Chaos

What’s going on with Barings, the MassMutual asset management arm at the center of one of the largest corporate raids in Wall Street history?

It all started earlier this month when more than 20 of Barings' senior executives all resigned - all to go to a new startup fund manager, Corinthia Global Management. Apparently, Corinthia’s founder Paul Weightman looked up Barings’ executives’ personal email addresses and then sent them unsolicited job offers.

Barings is one of the most active private credit lenders in Europe. And the mass exodus of its senior employees is proving to be problematic. 

As a result, Barings is currently pausing investment on some private credit funds. The firm says it needs to focus on the new leadership transition first.

But it’s not just Corinthia causing a headache for Barings. Other firms like Ares and KKR are trying to capitalize on Barings’ fallout and capture its share of the private credit market.

Takeaway: Barings sued Corinthia, which isn’t entirely shocking. The private credit industry is valued at $1.7 trillion. With leading funds such as Ares and KKR hot on Barings' heels, they could deliver a significant blow to the lender currently embroiled in chaos. This situation highlights a common truth in finance: often, a firm's greatest asset is its people. We're now seeing how the departure of even just a dozen or so senior individuals can be disastrous.


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Top Reads

  • U.S. companies' stock purchases via buybacks, M&A to hit 6-year high in 2024 (Reuters)

  • The global IPO market just hit its inflection point (Axios)

  • Trump's Truth Social is going public after winning DWAC merger vote (Axios)

  • Chick-fil-A set to switch from antibiotic-free chicken (Fox)

  • Lululemon sales are slowing (CNBC)

  • The top 10 richest cities in America (CNBC)

  • KKR’s $1.7 billion bike crash is a cautionary tale (BB)

  • New York City sees millionaire population soar 48 percent in 10 years (Hill)

  • The folly of Reddit’s AI bargain (YF)

  • Goldman Sachs Asset Management raises over $700 million for new fund (YF)


Markets Rundown

Stocks closed lower but still posted the strongest week of the year.

Movers & Shakers

  • (+) FedEx ($FDX) +7% after announcing a profit beat, $5B stock buyback.

  • (–) Nike ($NKE) -7% after the company gave a soft outlook for the entire year.

  • (–) Lululemon ($LULU) -16% after announcing a soft revenue forecast.

Private Dealmaking

  • Form Energy, a battery developer, is raising up to $500 million

  • Foundry, an AI computing startup, raised $80 million

  • Greenly, a carbon emissions tracking provider, raised $52 million

  • Loyal, a longevity drug developer for drugs, raised $45 million 

  • IO Research, a physical infrastructure network, raised $30 million

  • Cureskin, a dermatology startup, raised $20 million

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


A Truck Full Of Money

Tracy Kidder, the “master of the nonfiction narrative” and author of the bestselling classic The Soul of a New Machine, now tells the story of Paul English, a kinetic and unconventional inventor and entrepreneur, who as a boy rebelled against authority.

Growing up in working-class Boston, English discovers a medium for his talents the first time he sees a computer. As a young man, despite suffering from what would eventually be diagnosed as bipolar disorder, he begins his pilgrim’s journey through the ups and downs in the brave new world of computers. Relating to the Internet as if it’s an extension of his own mind, he discovers that he has a talent for conceiving innovative enterprises and building teams that can develop them, becoming “a Pied Piper” of geeks.

His innovative management style, success, and innate sense of fair play inspire intense loyalty. Early on, one colleague observes: “Someday this boy’s going to get hit by a truck full of money, and I’m going to be standing beside him.” Yet when English does indeed make a fortune, when the travel website Kayak is sold for almost two billion dollars—the first thing he thinks about is how to give the money away: “What else would you do with it?” The second thing he thinks is, What’s next?

With the power of a consummate storyteller, Tracy Kidder casts a fresh, critical, and often humorous eye on the way new ideas and new money are reshaping our culture and the world. A Truck Full of Money is a mesmerizing portrait of an irresistibly endearing man who is indefatigable, original, and as unpredictable as America itself.

“A perfectly executed, exquisitely reported parable of the Internet age and the wild, mad adventure that is start-up culture.”


Comparing Public and Private Markets

Source: Apollo


Well Being

Reducing anxiety and worry is essential for mental well-being and can enhance overall life satisfaction. A useful approach involves acknowledging the habitual nature of worry and utilizing practical strategies to mitigate it.

First, writing down worries can help to clarify and define them, making them more manageable. This process of externalizing our fears can be remarkably therapeutic. Next, it's important to focus on potential outcomes of worrisome situations, outlining the best, worst, and most probable scenarios. This not only helps to demystify anxieties but also assists in creating actionable plans for each possible outcome.

Combatting the superstition that worry is somehow protective or useful is another crucial step. Recognizing that anxiety does not control the outcome of events can alleviate the burden of constant worry. Additionally, setting a daily intention to focus on the present can reinforce the commitment to avoid unnecessary stress over uncontrollable factors.

Integrating these methods with other established techniques, such as breathing exercises, physical activity, and time management for worry, can provide a comprehensive toolkit for those looking to find more tranquility and less anxiety in their day-to-day lives. It's important to remember that while worry is a common experience, with deliberate action and mindfulness, we can gain a greater sense of calm and control.


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