Good Morning! The Fed held interest rates steady at a 23-year high, but Powell says the next move is unlikely to be a hike. Jefferies ended up winning its breakup fee case against the banker who ditched his $10M job. PG&E is turning to private equity and tapped KKR to help fund wildfire prevention. Starbucks wants to turn a disappointing quarter around after crashing 16% yesterday, and Anthropic launched an iPhone app to try and compete with ChatGPT.

Looking for niche private market opportunities led by a Wall Street veteran with skin in the game? Check out today’s sponsor, 10 East.

_{SQUEEZ OF THE DAY}

McKinsey Rapping its Way Out of Troubles

It's been a rough few years for consultants, and consulting royalty, McKinsey especially just doesn't have the same luster the firm used to have. Between dwindling revenue, layoffs, scandal, and just a negative perception - it's safe to say morale is low at the firm.

But McKinsey's Global Managing Partner (essentially the CEO) is trying to pump up morale… literally. McKinsey had its annual partner conference in Copenhagen a few weeks ago. And the firm was blasting rock and rap music to perform and provide an upbeat tone.

Apparently, the music played included Eminem, Bob Marley, and even Chumbawamba with its "I get knocked down, but I get up again" verses.

It's definitely an interesting strategy - and some partners say they're frustrated with how the firm's trying to maintain everything's fine facade.

The rock concert and overall positive 'turn the page' message comes a few weeks after McKinsey reportedly told 3,000 of its consultants that their work was unsatisfactory and needs to improve. This message likely added to the strain felt by employees already concerned about the firm's handling of external perceptions and ongoing job cuts across various divisions.

Takeaway: You’d have to figure that McKinsey consultants are at least somewhat smart enough to not let Chumbawamba distract them from the fact that the firm is facing internal backlash as well as a slowdown in demand. McKinsey’s top brass will need more than just lyrical optimism to navigate through ongoing controversies and restore stability. For their sake, let's hope they can find a strategic rhythm to dance out of these troubles.

_{PRESENTED BY 10 EAST}

Where Sophisticated Investors Access Private Markets

10 East is a co-investment platform where sophisticated investors access private market investments alongside a veteran team with a decade+ track record of strong performance. 

The firm is led by Michael Leffell, former Deputy Executive Managing Member of Davidson Kempner.

Members have the flexibility to participate on a deal-by-deal basis across private equity, credit, real estate, and venture capital.

Benefits of 10 East membership include:   

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Plus, there are no upfront costs or commitments associated with joining 10 East.

Short Squeez readers can join 10 East with complimentary access here.

_HEADLINES

Top Reads

• Fed holds interest rates, says future hikes are unlikely (YF)

• Jefferies wins breakup fee case against banker who ditched $10M job (BB)

• PG&E seeks KKR deal for California wildfire prevention (Axios)

• NYCB’s CEO provides two-year plan for clear path to profitability (CNBC)

• How Starbucks plans to turn a disappointing quarter around (CNN)

• Hedge funds going out of style for the ultra-rich (CNBC)

• Anthropic launches iPhone AI app to compete with OpenAI (CNBC) 

• Why the job market has stayed soft for so long (Axios)

• Private equity largely absent from U.S. IPO market’s recovery (BB)

• Why hundreds of U.S. banks may be at risk of failure (CNBC)

_{CAPITAL PULSE}

Markets Rundown

Stocks ended lower after a volatile session because of the Fed decision, Powell comments.

Movers & Shakers

• (+) New York Community Bancorp ($NYCB) +28% after the community bank announced a path to profitability within two years.

• (–) Super Micro Computers ($SMCI) -14% after the technology company missed revenue.

• (–) Starbucks ($SBUX) -16% after the coffee chain posted disappointing Q1 results.

Private Dealmaking

• Enlaza Therapeutics, a biological platform, raised $100 million 

• Arbol, a climate insurance startup, raised $60 million

• AiDash, a wildfire risk software provider, raised $58.5 million

• Securitize, a tokenization platform, raised $47 million

• PinkDx, a women’s health startup, raised $40 million

• Movement Labs, a blockchain development firm, raised $38 million

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

_{BOOK OF THE DAY}

The Code Of The Extraordinary Mind

The Code of the Extraordinary Mind is a blueprint of laws to break us free from the shackles of an ordinary life. It makes a case that everything we know about the world is shaped by conditioning and habit.

And thus, most people live their lives based on limiting rules and outdated beliefs about pretty much everything—love, work, money, parenting, sex, health, and more—which they inherit and pass on from generation to generation.

But what if you could remove these outdated ideas and start anew? What would your life look like if you could forget the rules of the past, and redefine what happiness, purpose, and success mean for you?

Blending computational thinking, integral theory, modern spirituality, evolutionary biology, and humor, personal growth entrepreneur Vishen Lakhiani provides a revolutionary 10-point framework for understanding and enhancing the human self. You will learn about bending reality. 

You will learn how to apply unique models like consciousness engineering to help you learn and grow at speeds like never before. You will learn to make a dent in the universe and discover your quest.

In a unique fusion of cutting-edge ideas, personal stories, irreverence, and a brilliant teaching style, Lakhiani reveals the 10 powerful laws that form a step-by-step process that you can apply to life to shed years of struggle and elevate yourself to exceptional new heights.

“If you can’t win, change the rules. If you can’t change the rules, ignore them.”

_{DAILY VISUAL}

The Job Switcher Premium

Median year-over-year change in annual pay for those who stayed in or switched jobs

_{DAILY ACUMEN}

Motivation

In the labyrinth of daily life, motivation often seems like a mysterious, fleeting companion—there one moment, vanished the next, leaving us stranded amidst our long-term commitments.

Yet, what if we viewed motivation not as a capricious ally but as a skill, one that could be cultivated and harnessed at will?

This perspective is at the heart of developing self-motivation, where the interplay between intrinsic desires—like curiosity and the pursuit of knowledge—and external incentives combine to propel us forward.

By embracing the three key ingredients of self-efficacy, curiosity, and competence, we unlock a more sustainable, resilient form of motivation.

This toolkit doesn’t just aid in achieving our goals but transforms the journey into one of continuous discovery and personal growth, ensuring that even on our lowest days, we have the tools to reignite our passion and drive.

Thus, self-motivation is not merely about pushing through; it’s about building a bridge between our current state and the infinite possibilities that await.

_{ENLIGHTENMENT}

Short Squeez Picks

• How to negotiate your salary, according to an ex-Google recruiter

• How building an intentional personal brand helps you develop executive presence

• How to address a resume gap when switching careers

• 3 ways to defend your mind against social media distortions

• Signs you are being quiet fired

_{MEME-A-PALOOZA}

Memes of the Day