Good Morning! United Airlines gave two earnings estimates, calling economy ‘impossible’ to predict. OpenAI is considering its own social network to compete with Elon Musk’s X.

SEC is backing a new 'green' stock exchange. Ryan Cohen took out a margin loan for his $1 billion GameStop bet. Marjorie Taylor Greene bought the dip in Tesla, Amazon, and Blackstone the day before Trump paused tariffs for 90 days.

Plus: Jamie Dimon sold ~$32 million in JPMorgan stock, and 8 foods that boost brain health.

Specialized AI tools are emerging as the leaders for alternative investments workflows which is why BlueFlame AI is ahead of the curve. Check out their platform and how BlueFlame AI can serve your firm's specific needs.

_{SQUEEZ OF THE DAY}

Barbarians at the Dip

Warren Buffett famously said, “Be greedy when others are fearful.” Few private equity firms embody that mindset quite like KKR, the legendary buyout firm at the center of the book Barbarians at the Gate.

In one of the most volatile weeks for markets this year, set off by Trump’s flip-flopping tariffs and recession fears, KKR went full contrarian. While most of Wall Street paused, the firm splashed over $8 billion in acquisitions, channeling its pandemic-era playbook of buying through turbulence.

Among the buys:

• A $2.1 billion bid for UK-listed healthcare REIT Assura (in partnership with Stonepeak)

• A $2.8 billion acquisition of Sweden-based Karo Healthcare

• A win in the hotly contested auction for OSTTRA, a high-margin post-trade infrastructure provider, valued at over $3 billion

While other sponsors remain sidelined amid macro uncertainty and rising cost of capital, KKR has remained aggressive. They’ve also capitalized on a competitive edge few PE firms can match: their ability to self-finance.

When committed debt financing for Karo fell apart, KKR structured and underwrote the deal internally, helping them secure the asset in a contested process against bidders like PAI Partners.

This contrarian approach is nothing new. In 2020, KKR outpaced peers with $29 billion in deployed capital, while others de-risked. With over $600 billion in AUM, including substantial dry powder and permanent capital vehicles, KKR is once again proving that market dislocations are buying opportunities, not red flags.

Takeaway: KKR missed the boat by playing it safe in 2008. They’re not making that mistake again. If history is any guide, they may just be buying the bottom… again. Just don’t try this at home, unless you’ve got a few billion lying around.

_HEADLINES

Top Reads

• United Airlines unsure about the economy it offered two profit scenarios (CNBC)

• OpenAI considering its own social network to compete with Elon Musk’s X (CNBC)

• SEC gives nod for first green stock exchange to begin trading next year (BB)

• Blackstone moves to extend its reach into everyday investors’ portfolios (WSJ)

• Tariff upheaval threatens private equity’s exit recovery hopes (WSJ)

• American Airlines becomes last major airline to offer free WiFi (CNN)

• Ryan Cohen ramps up $1B GameStop bet with margin loan (BB)

• Trump ally Marjorie Taylor Greene bought Tesla, Amazon, Blackstone before rally (BB)

• Many IRS workers interested in resignation offer (CNBC)

• China hasn’t weaponized Treasuries despite bond market volatility (YF)

• Morgan Stanley collects $2.3 billion for private equity co-investments (WSJ)

• Bank of America tops analysts’ estimates on better-than-expected income (CNBC)

• Zuckerberg faces off with the FTC (YF)

• Jamie Dimon sells $31.5M of JPMorgan shares (YF)

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_{CAPITAL PULSE}

Markets Rundown

Market Update

• U.S. markets closed slightly lower due to ongoing tariff news.

• Tariffs on electronics (smartphones, semiconductors) paused, but new sector tariffs are coming soon.

• China stopped Boeing jet purchases, escalating tensions.

• Potential auto tariff pause lifted the sector briefly, yet uncertainty persists.

• S&P 500 down 8% YTD, Nasdaq down 13%; volatility expected until tariffs stabilize.

• S&P 500 forward P/E now at 18x, down from 22.7x.

• Nasdaq forward P/E at 21x, down from 30x—both at or below 10-year averages.

• Lower valuations suggest stocks may find a bottom; recession not certain, downside priced in.

• JPMorgan, Goldman Sachs, Morgan Stanley, and Citibank beat expectations, driven by trading revenue in equities and fixed income.

• Consumer resilience and credit quality strong, but tariff uncertainty, inflation, and slower growth loom.

Movers & Shakers

• (+) Rocket Lab ($RKLB) +10% after signing new deals with the U.S. Air Force.

• (+) Bank of America ($BAC) +3% because the bank announced record trading profit.

• (–) Coty ($COTY) -8% after Bank of America double-downgraded the beauty company.

Private Dealmaking

• Lowe’s acquired Artisan Design Group for $1.33 billion

• Marshmallow, an insurance startup, raised $90 million

• Solu Therapeutics, a blood cancer immunotherapies developer, raised $41 million 

• Optilogic, a supply chain design startup, raised $40 million

• Portnox, a trust access control solutions provider, raised $37.5 million

• Groundcover, an observability platform, raised $35 million

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

_{BOOK OF THE DAY}

The Mysterious Mr. Nakamoto

In October 2008, someone going by the name Satoshi Nakamoto posted a white paper outlining “a peer-to-peer electronic cash system” called Bitcoin to an arcane listserv populated by Cypherpunks.

No one in the community had heard of Nakamoto, and just as people were starting to wonder who he was, he vanished.

As the years passed, and the scope of Nakamoto’s achievement became clear, the truth of his identity grew into the greatest unsolved mystery of our time.

The Mysterious Mr. Nakamoto traces Benjamin Wallace’s attempt to unmask the figure behind the currency and the world it wrought.

Nakamoto’s Bitcoin at first seemed destined to fulfill the dreams of fringe 1990s utopians for a currency set free from governments and big banks.

Yet after he disappeared, his creation took on a strange new life in the financial markets, where rampant speculation fueled a vision of crypto as a potential windfall, inviting charlatans and scammers and opening a vast gulf between Bitcoin’s idealistic origins and its troubled reputation.

But who was Nakamoto?

Whoever he was could rightly claim to have invented one of the most important technologies of the new century.

And Nakamoto was a billionaire—his Bitcoin wallet held an untouched eleven-figure fortune waiting to be claimed.

With the same propulsive-narrative flair that made his New York Times bestseller The Billionaire’s Vinegar an instant success, Benjamin Wallace presents a page-turning work of investigative journalism.

“The Mysterious Mr. Nakamoto will leave you amazed, enlightened, and utterly breathless.”

_{DAILY VISUAL}

Craft Beer Market Declines 4% in 2024

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_{DAILY ACUMEN}

Brain Health

Neglecting brain health makes physical goals harder to achieve.

Most people focus on physical health—exercise, weight loss, saving money—but only 5% prioritize mental health in resolutions.

Yet, cognition and mental wellbeing are key for a good life and tackling challenges.

In the UK, happiness is felt by just 45%, while 40% feel stressed and 35% frustrated, with optimism low at 23% for young and old.

Brain health drives happiness, reduces stress, and boosts longevity.

Seven lifestyle factors help: exercise, diet, sleep, social connections, kindness, mindfulness, and learning.

Exercise grows the hippocampus, aiding memory.

Sleeping 7-8 hours nightly improves brain structure and mental health.

Social ties cut dementia risk by 26% in older adults, while having five close friends in adolescence boosts cognition.

Learning—like a new language or instrument—keeps neural circuits active, building resilience.

Small, enjoyable habit changes ensure lasting impact, setting you up to crush physical goals while staying mentally sharp.

_{ENLIGHTENMENT}

Short Squeez Picks

• The science behind the ick

• How to control your inner voice

• The best employees share these emotional skills

• Are pinto beans or black beans better for you?

• 8 foods a neurologist eats for better brain health 

_{MEME-A-PALOOZA}

Memes of the Day