🍋 Chief Analyst Officer

JPMorgan appointed Ryland McClendon, a 14-year veteran, as the Global Investment Banking Associate and Analyst Leader

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"Don't bother starting the 10,000th restaurant in Manhattan. Find something to do that if you don't do it, it won't get done." – Peter Thiel

Good Morning and Happy Friday! Nike has a new CEO who started at the company as an intern. Meanwhile, the Fed is expecting another rate cut before the end of the year, sending stocks soaring to record highs. KKR, Axel Springer reached a deal to break up the media giant. Britain’s ultra-wealthy are threatening to exit en masse ahead of proposed tax changes. Trump says the rate cut was a ‘political move’ and Tucker Carlson is taking aim at Zyn and planning a new nicotine-pouch brand. Plus how some New Yorkers are making $6k/month gaming Citi Bikes.

Access exclusive private credit deals with today’s sponsor, Percent.

SQUEEZ OF THE DAY

Chief Analyst Officer

This year, we've been examining how investment banks are addressing employee well-being, particularly after the tragic deaths of two Bank of America associates. In response, JPMorgan has not only capped junior bankers' work weeks at 80 hours when they're not on live deals but also created a new executive role to oversee their well-being.

The firm appointed Ryland McClendon, a 14-year veteran, as the Global Investment Banking Associate and Analyst Leader. Her job? Ensuring the analysts and associates don’t work themselves into exhaustion.

According to an internal memo, McLendon’s focus will be the “well-being and success” of junior staff. So it sounds like JPMorgan is putting its money where its mouth is and looking to address its intense work culture.

In 2024, Wall Street's grueling hours and burnout culture have faced increased scrutiny. Our detailed working conditions report in May, followed by an Open Letter calling for change on Wall Street, gained traction, with major outlets like Bloomberg and The Wall Street Journal also reporting on 100-hour weeks and the toxic work environment.

It's encouraging to see firms beginning to implement these much-needed structural changes.

Takeaway: JPMorgan's new role is a positive step toward improving its work culture, ensuring someone is now officially looking out for junior bankers. Whether this move will truly address burnout or serve as a temporary fix remains to be seen. It’s a commendable start, and hopefully, other banks will follow JPMorgan's lead.

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HEADLINES

Top Reads

  • Nike CEO John Donahoe is out, replaced by company veteran Elliott Hill (CNBC)

  • China's venture capital collapse (Axios)

  • Britain’s ultra-wealthy are threatening to exit en masse (CNBC)

  • The Fed forecasts lowering rates by another half point before the year is over (CNBC)

  • The hustlers making $6,000/month riding Citi Bikes (NYT)

  • KKR, Axel Springer reach deal to break up the media giant (Axios)

  • Tucker Carlson takes aim at Zyn, plans new nicotine-pouch brand (WSJ)

  • How to make the Fed rate cut work for you (CNN)

  • Trump said he'd keep Truth Social stock but technically he can sell (YF)

  • Private equity’s new mantra (FT)

  • The most important interest rate (Axios)

CAPITAL PULSE

Markets Rundown

Market Commentary

Stocks closed higher on Thursday, led by gains in the Nasdaq as the S&P 500 and Dow reached new record highs. Technology and consumer discretionary sectors performed the best, reflecting a shift toward riskier assets.

Global markets also saw gains, with Hong Kong's central bank cutting rates and the Bank of England holding steady, as expected. The U.S. dollar remained stable, while oil and gold prices moved higher.

Jobless claims dropped to 219,000, below the forecast of 230,000, indicating a resilient labor market that is cooling gradually without major layoffs. This supports the narrative of a "soft landing" for the U.S. economy, where wage growth slows, helping to moderate inflation.

Bond yields rose slightly, with the 10-year Treasury yield at 3.71%, as the Fed continues its easing cycle, cutting rates for the first time in four years. Markets expect further cuts, which could benefit economic growth and corporate profits through lower borrowing costs.

Movers & Shakers

  • (+) Coursera ($COUR) +10% after Bank of America initiated coverage with a buy.

  • (+) Tesla ($TSLA) +7% because rate cuts make it cheaper to buy a car.

  • (–) Progyny ($PGNY) -33% after the fertility benefits provider announced the loss of a significant client.

Private Dealmaking

  • Playtika bought SuperPlay, an Israeli game maker, for $1.95 billion

  • Air Company, an aviation fuel maker, raised $69 million

  • Cayena, a transaction platform for the food industry, raised $55 million

  • Pairwise, a plant-focused gene editing startup, raised $40 million

  • Mangomint, an LA-based provider of salon and spa software, raised $35 million

  • The Open Network, a blockchain platform, raised $30 million

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

NEIGHBORHOOD WATCH

Real Estate Digest

With the Fed cutting rates for the first time in four years, we can expect rental demand to drop as first-time homebuyers find it easier to purchase, shifting from renters to buyers and easing rent prices. Conversely, as rates continue to fall, home prices will likely rise due to increased demand in a tight market. It’s often smarter to buy in higher-rate environments with lower prices than in lower-rate environments with higher prices.

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BOOK OF THE DAY

How To Listen When Markets Speak

From Wall Street to the White House, the fantasy of an eventual “return to normal” is still alive and well, nurtured by dangerously outdated theories. But the economic world as we know it—and the rules that govern it—are over. In the coming decade, we’ll witness sustained inflation, a series of sovereign and corporate debt crises, and a thundering of capital out of financial assets into hard assets.

Few are prepared.

Lawrence G. McDonald, founder of the economic research platform The Bear Traps Report, got a real-world education in market risk when, as a Lehman Brothers VP, he watched the firm ignore flashing warning signs before its collapse. His analysis led him to identify twenty-one indicators for gauging the health of an economy and detecting early signals of opportunity and danger.

In How to Listen When Markets Speak, McDonald unveils his unique predictive models, connecting surprising dots between past, present, and future and outlining actionable trading ideas for staying a beat ahead of the markets.

“A New York Times bestselling author and leading expert on market risk argues that seismic shifts in the global economy will trigger a multi-trillion-dollar migration of wealth, outlining new rules of investing for the forward-thinking.”

DAILY VISUAL

S&P 500 Hits Record

Source: Axios

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DAILY ACUMEN

Focus

When J.K. Rowling was writing Harry Potter, she was a single mother living on welfare. Faced with constant distractions and the pressure of making ends meet, Rowling often wrote in cafés, finding moments of focus amidst chaos.

Her unwavering commitment to her story, even in the face of countless rejections from publishers, is a testament to the power of focus.

By shutting out distractions and dedicating herself to her vision, Rowling turned an idea into one of the most successful book series in history.

Her story illustrates that when we channel our energy into a singular, meaningful pursuit, we can create something extraordinary.

ENLIGHTENMENT

Short Squeez Picks

  • How to know if a job candidate will be a good leader

  • 8 habits of people who make consistent progress in life

  • How to use self-depreciation as a leadership tool

  • Rare principles of success from hedge fund Renaissance

  • How the rule of Saint Benedict is a blueprint for modern time management

MEME-A-PALOOZA

Memes of the Day

 

 

 

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