Good Morning and Happy Friday! JPMorgan wants to open 100 new locations in low-income areas. Spirit Airlines could be gearing up for a bankruptcy filing after the airline struggled to rebound from the failed JetBlue merger. Meanwhile, the port strike ended and workers agreed to a tentative deal. Today’s jobs report is expected to show a slowdown in hiring. Oil prices are soaring on global unrest and supply chain worries. Plus OpenAI’s next step could be to go public and tips to speak more confidently.

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_{SQUEEZ OF THE DAY}

Apollo’s $1.5T Plan

Apollo is already the second-largest private equity firm in the U.S., trailing Blackstone, which has over $1 trillion in assets under management (AUM).

But Apollo wants to challenge Blackstone, and CEO Marc Rowan unveiled an ambitious plan at the firm’s Investor Day to double its size within five years, aiming for $1.5 trillion in assets under management by 2029. Apollo believes it can achieve this by focusing on private markets, particularly in sectors where banks are stepping back, such as private credit, infrastructure, and annuities.

Rowan predicts that private markets will eventually outperform public markets, providing capital to sectors that need trillions—like utilities, data centers, and renewable energy. As part of Apollo’s strategy, the firm aims to originate as much in debt and equity deals over the next five years as market leader JPMorgan does now.

Many companies that need capital are increasingly bypassing traditional lenders like JPMorgan and Goldman Sachs and turning to firms like Apollo and Ares for financing. Apollo, once known as a scrappy private equity firm that punched above its weight, has now evolved into a major lender, providing loans to companies like Intel and Air France.

Apollo's insurance arm, Athene, plays a key role in its growth strategy. With $33 billion in capital reserves, Athene allows Apollo to fund loans at lower costs than many of its competitors. This gives Apollo a significant advantage in the private credit space.

Takeaway: Banks are still strategic partners to Apollo - and they’ve got deals with Citigroup and BNP Paribas to prove it. So, Apollo can’t just undercut everyone in their race to success. But as Apollo starts acting more like a bank, they’ll also face scrutiny from regulators. A firm like Apollo doubling their assets in five years is definitely aggressive. But as long as they can keep lending - Rowan thinks they’ll get there in no time.

_{PRESENTED BY ROGO}

Rogo Raises $18.5M to Transform Financial AI

Rogo has raised $18.5M in Series A funding, led by Keith Rabois at Khosla Ventures (one of OpenAI's first backers), with participation from top investors like Jack Altman and Eric Schmidt. This funding will accelerate team growth and further development of finance’s first trusted AI analyst.

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_HEADLINES

Top Reads

• JPMorgan Chase planning push in banking deserts (Axios)

• Spirit Airlines considering filing for bankruptcy (YF)

• OpenAI's next step: Consider going public via IPO (Axios)

• Port strike ends as workers agree to tentative deal (CNBC)

• Everything to expect from September’s jobs report (CNBC)

• Oil gains following Biden comments on Middle East tensions (YF)

• Why OpenAI burns through billions (Axios)

• HSBC scrapping internal events, restricting travel to curb costs (BB)

• Fed terminates 2013 money-laundering enforcement action against Citi (Reuters)

• QVC to add USA Pickleball to its home shopping experience (CNBC)

_{CAPITAL PULSE}

Markets Rundown

Market Commentary

Equity markets closed lower on Thursday, with investors keeping a watchful eye on geopolitical risks. Despite the overall downturn, the energy sector emerged as a bright spot, gaining over 1% on the back of surging oil prices.

Key Highlights:

1. Oil prices jumped more than 5% due to escalating tensions in the Middle East.

2. Asian markets showed mixed results, with Japan's Nikkei climbing nearly 2% while Hong Kong's Hang Seng Index fell about 1.5%.

3. The September ISM services PMI rose to 54.9, its highest level since February 2023, indicating strength in the services sector.

4. Bond yields edged higher, with the 10-year Treasury yield closing around 3.85%.

Recent data paints a picture of a healthy job market. August job openings increased to 8 million, while the ADP private-employment survey showed 143,000 jobs added in September, surpassing expectations. Initial jobless claims rose slightly to 225,000, still well below historical averages.

Market sentiment has been dampened by geopolitical risks in the Middle East. The situation has led to a significant spike in oil prices, up about 8% this week alone.

All eyes are now on Friday's nonfarm payrolls report, which is expected to show 140,000 new jobs added in September with the unemployment rate holding steady at 4.2%.

Movers & Shakers

• (+) Nvidia ($NVDA) +3% because of strong demand for its Blackwell AI chip.

• (–) Levi Strauss ($LEVI) -8% after the jeans maker lowered its outlook.

• (–) Hims & Hers Health ($HIMS) -10% because the company’s weight loss drug competitor Eli Lilly is no longer facing a shortage.

Private Dealmaking

• Poolside, an AI software developer, raised $500 million

• Triveni Bio, an eczema antibody developer, raised $115 million

• Dexory, a warehouse automation startup, raised $80 million

• Submer, a data center cooling solutions provider, raised $55.5 million

• Polarium, a battery developer, raised $49 milion

• DataPelago, a data processing startup, raised $47 million

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

_{NEIGHBORHOOD WATCH}

Real Estate Digest

Decline in mortgage rates has stalled due to a mix of escalating geopolitical tensions and a rebound in short term rates that indicate even further the rate cuts we saw a few weeks ago were already priced into the marketplace.

Over the last 12 months, interest rates have fallen one and a half percentage points while the leveling off of home prices and slight increases of inventory nationwide are providing a positive backdrop for buyers that should continue into the rest of the year.

Latest News

• Miami Housing is Expensive, Just Don’t Call It a Bubble

• What Do the Fed Rate Cuts Do to Housing Prices

• Inventory Will Be the Gating Factor For US Home Sales in 2025

• Manhattan Deals Dip in Q3, Tee Up Hopes For Fed Rate Cut Effects

• Buyers Snap Up Homes in Long Beach Faster Than Anywhere Else in LA County

• Mortgage Rates Increase in US for First Time in Seven Weeks

New Listings

• 50 Tuckahoe Lane, Southampton NY: 6 bed/8.5 bath - $8,995,000

• 270 Wendover Drive, Princeton, NJ: 5 bed/5 bath - $2,795,000

• União das freguesias de Charneca de Caparica e Sobreda, Almada Portugal: 4 bed/5 bath - $3,089,000

• Via Cesare Poggi, Torno, Italy: 3 bed/3 bath - $1,969,000

• 208 Delancey Street, New York, NY: 1 Bed/1 Bath - $1,220,000

Fill out this form if you're looking to buy, sell, rent or invest.

_{BOOK OF THE DAY}

The Power of Ambition

From America’s leading authority on success comes a book that will help you redefine ambition so that you can use your drive to serve others while creating the fulfilling life you desire.

In The Power of Ambition, Jim Rohn debunks the myths and misconceptions about ambition that cause it to hinder, rather than fuel, personal achievement. Genuine ambition is not a self-serving impulse.

Quite the opposite—it empowers us to better our lives and the lives of those around us. Rohn details six revolutionary strategies for cultivating legitimate ambition and harnessing it to transform what is going on within and around you.

Ambition is as much a mindset as it is a lifestyle. As Rohn defines it: “True ambition is disciplined, eager desire.” The Power of Ambition will help you live with intention every moment so that you can enjoy the change you envision for your life.

“Motivation can come from anywhere, but ambition is only drawn from within. Access your inner drive to achieve all the things you’ve been working for.”

_{DAILY VISUAL}

Share of the Population Using the Internet

_{PRESENTED BY MOSAIC}

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_{DAILY ACUMEN}

Power of Art

Engaging deeply with art can profoundly impact our sense of life's meaning.

When we experience awe or intense interest while interacting with artwork, or when we perceive something transcendent in artistic expressions, we often find our lives feeling more purposeful and significant.

This connection between art and meaning is particularly strong for those with extensive art backgrounds, suggesting that cultivating our artistic understanding and experiences may enrich our lives in unexpected ways.

Whether you're creating art or appreciating it, consider how these encounters might be shaping your perception of life's purpose and coherence.

By mindfully engaging with art, we may discover new pathways to a more meaningful existence.

_{ENLIGHTENMENT}

Short Squeez Picks

• The importance of storytelling in business success

• How I survived the NYC pizza run

• Tips to speak more confidently

• How to beat decision risk at each stage of your career

• 10 signs you’re not fit to lead people

_{MEME-A-PALOOZA}

Memes of the Day