Good morning! Inflation (+3%) came in hotter than expected, prompting Trump to declare: “BIDEN INFLATION UP.” Meanwhile, beef is now cheaper than eggs for the first time since the 1980s. Ray Dalio warned the Trump admin: Cut debt now or risk an ‘economic heart attack.’

Elon uncovered a limestone mine storing federal workers' retirement papers, and claimed some Social Security recipients are 150 years old. McKinsey is defying federal DEI orders, and JPMorgan is cutting jobs despite a record year.

Plus: Why the Dow Index is more broken than ever, soda startup Olipop valued at $1.85 billion, and how cardio can boost strength training.

Minimize tax liabilities with AI-powered strategies—partner with Gelt today.

_{SQUEEZ OF THE DAY}

BlackRock Wall Street’s ATM?

BlackRock, the world's largest asset manager, has spent decades dominating public markets. Private equity? That’s been trickier. Past attempts, like its Long Term Private Capital fund, ended with bruises (and a $600 million loss).

But now, BlackRock is trying a different play: instead of competing with private equity giants like Blackstone, KKR, and Apollo, why not become their bank?

At this week's Bank of America Financial Services Conference, BlackRock CFO Martin Small unveiled a plan to turn private equity firms into clients. Historically, BlackRock has focused on managing money for institutional investors. This shift means it will start directly financing private equity firms and alternative asset managers, essentially becoming their lender, funder, and strategic partner.

BlackRock has already been quietly expanding into private markets. In 2023, it poured $30 billion into private credit and infrastructure, including a $12.5 billion acquisition of Global Infrastructure Partners. Now, it's rolling out a GP Solutions business aimed at general partners (GPs), the private equity guys who manage billions for pension funds, endowments, and sovereign wealth funds.

Owning HPS ($150 billion AUM) also boosts BlackRock’s financing capabilities, offering private equity firms direct lending, structured credit, and fund financing solutions—all in one place.

This move isn’t just about expansion, it’s also a full-circle moment for BlackRock. The firm originally spun out of Blackstone in 1988, when co-founders Larry Fink and Stephen Schwarzman parted ways.

While BlackRock built a $10 trillion empire in public markets, Blackstone became the king of private equity. Now, decades later, BlackRock is re-entering the private equity space, not as a competitor, but as the industry’s financial engine.

Takeaway: BlackRock is playing to its strengths: less deal-making, more financing. Rather than fight Blackstone, KKR, and Apollo for control of the private equity world, it’s looking to fund their deals instead. It’s classic Wall Street: if you can’t own the business, at least own the debt.

_{PRESENTED BY GELT}

Tax Solutions for Savvy Investors

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Join the ranks of savvy investors who trust Gelt to reduce tax burdens and increase profitability—so you can focus on growing your investments.

_HEADLINES

Top Reads

• Inflation rose more than expected in January (CNBC)

• Beef is cheaper than egg prices for the first time since the 1980s (Axios)

• Musk spotlights old limestone mine that still processes retirements by hand (NYP)

• Musk claims there are 150-year-olds receiving Social Security benefits (Fox)

• Dalio to Trump: Cut debt now or face an ‘economic heart attack’ (CNBC)

• How DOGE took over the Education Dept, one office at a time (CNBC)

• Dave's Hot Chicken reportedly seeks a buyer (Axios)

• McKinsey defies federal DEI orders (BB)

• JPMorgan starts first round of layoffs with more cuts later this year (Fox)

• January 2025 inflation breakdown in one chart (CNBC)

• Bain Capital eyes $340 million loan for Blackstone’s Avery Lodge (YF)

• Trump says interest rates should be lowered to go hand in hand with tariffs (CNBC)

• Reddit shares plunge after Google algorithm change contributes to miss in user numbers (CNBC)

• Carlyle profit misses estimates as private equity business weighs (YF)

• Why the Dow Index is more broken than usual (WSJ)

• Bank of America CEO says interest rates will stay where they are (CNBC)

_{CAPITAL PULSE}

Markets Rundown

Stocks Drop as Inflation Beats Expectations

U.S. stocks closed lower on Wednesday after January's CPI showed inflation rising more than expected. Energy and real estate sectors led declines, with small- and mid-cap stocks underperforming as bond yields moved higher. The 10-year Treasury yield rose to 4.64% amid revised expectations for slower Fed rate cuts.

The CPI increased to 3.0% annualized, above forecasts of 2.9%, driven by higher energy prices. Core CPI, excluding food and energy, climbed to 3.3% year-over-year. Despite elevated shelter costs, moderating trends in housing prices and rents could help ease inflation pressures in the coming months.

Fed Chair Jerome Powell emphasized patience in cutting rates, as inflation remains above the 2% target. Markets now expect a single Fed rate cut later in the year, likely in October or December, signaling a cautious outlook for monetary policy.

Movers & Shakers

• (+) CVS ($CVS) +15% after the chain posted a quarterly profit beat thanks to lower medical costs.

• (–) Lyft ($LYFT) -8% because the rideshare company announced mixed financial reports.

• (–) Zillow ($Z) -9% after the real-estate marketplace lowered its guidance.

Private Dealmaking

• Olipop valued at $1.85 billion in $50 million funding round

• Archer Aviation, an eVTOL developer, raised $300 million

• Tabby, a BNPL company, raised $160 million

• Klook, a Chinese travel platform, raised $100 million

• Zeta, a banking software provider, raised $50 million

• Olipop, a soda startup, raised $50 million

• Fal, a generative media platform, raised $49 million 

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

_{BOOK OF THE DAY}

Technology and the Rise of Great Powers

When scholars and policymakers consider how technological advances affect the rise and fall of great powers, they draw on theories that center the moment of innovation—the eureka moment that sparks astonishing technological feats.

In this book, Jeffrey Ding offers a different explanation of how technological revolutions affect competition among great powers. Rather than focusing on which state first introduced major innovations, he investigates why some states were more successful than others at adapting and embracing new technologies at scale.

Drawing on historical case studies of past industrial revolutions as well as statistical analysis, Ding develops a theory that emphasizes institutional adaptations oriented around diffusing technological advances throughout the entire economy.

“A novel theory of how technological revolutions affect the rise and fall of great powers.”

_{DAILY VISUAL}

Public Markets Becoming Less Liquid and Less Transparent

_{PRESENTED BY MACABACUS}

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_{DAILY ACUMEN}

Fear

Fear is often perceived as a weakness, especially among leaders who feel the pressure to appear unwavering.

Yet, fear is a natural survival mechanism, designed to keep us alert and safe.

Instead of suppressing it, embracing fear can transform it into a powerful ally for growth and innovation.

The F.E.A.R. Framework—Feel your fear, Examine its source, Articulate your needs, and Reflect on the experience—encourages a mindful approach.

By recognizing fear as useful information rather than an obstacle, you can harness it to make thoughtful decisions, enhance communication, and foster resilience.

_{ENLIGHTENMENT}

Short Squeez Picks

• How to use cardio to boost strength training

• Untuckit-style shirts for work and weekend

• 5 ways highly-effective leaders delegate

• How validating people touches their sense of self

• 10 best home gym equipment to upgrade fitness

_{MEME-A-PALOOZA}

Memes of the Day