Good Morning! Hope y’all had a wonderful Labor Day Weekend. While most of us were relaxing, Intel has investment bankers back on the grind, exploring strategic options. Meta scored a big win in the AI race with its Llama models now used by banks and tech firms. Lululemon missed Wall Street estimates for the first time in 2 years. Big Tech is sneakily acquiring AI unicorns without actually buying the startups themselves. Plus, the peak interest era is over and why Patrick Bateman’s business card was not that impressive.

High returns, recurring monthly income, diversification–private credit is a $1.9 trillion asset class, and everyday investors can invest today with Percent.

_{SQUEEZ OF THE DAY}

Goldman’s Annual Axe

Tis’ the season at Goldman… when CEO David Solomon trades in his DJ turntables for an axe.

Goldman Sachs is planning to cut more than 1,300 employees as part of its annual "strategic resource assessment" (SRA), a routine process to eliminate low performers. This move will affect 3% to 4% of its 45,300-strong workforce, impacting between 1,300 and 1,800 employees.

The bank typically trims 2% to 7% of its workforce each year, with fluctuations based on market conditions. Goldman had paused its SRA program during the pandemic but resumed it in 2022.

Layoffs have already begun and will continue through the fall, with the cuts expected across various divisions.

Despite the layoffs, a Goldman spokesperson noted that overall headcount could be higher by the end of 2024 compared to 2023. 

The firm is reportedly shifting its focus, reducing its footprint in New York and New Jersey while increasing hiring for middle- and back-office roles in southern cities. (y’all street anyone?)

Goldman’s investment banking revenue rose 21% in Q2 2024, with Solomon indicating the bank is in the "early innings" of a market recovery. Despite this optimism, the bank's annual job cuts underscore the competitive and high-stakes nature of working at Goldman Sachs.

Takeaway: In-office attendance has become a key performance metric, with CEO David Solomon, a critic of remote work, pushing for more in-office presence. Goldman, along with JPMorgan Chase and other major banks, is tightening its requirements for employees to work from the office regularly. So if you want to keep your job, it may be time to start clocking in—and not just on Zoom.

_{PRESENTED BY PERCENT}

Investing in Private Credit Could Help Hedge Your Portfolio Against the Next Downturn

The stock market is burning red hot these days, which has many investors wondering: If a market correction happens, where can we ride out the storm? 

A Bloomberg survey¹ reveals that many institutions now prefer private credit over bonds to hedge against economic downturns. 

Why? T. Rowe Price data² suggests that allocating 10% to private credit historically reduces volatility and improves risk-adjusted returns. 

But this ‘safe haven’ asset class isn’t just for Blackstone, KKR, and Morgan Stanley–now, everyday investors can diversify with private credit using Percent. 

• Low minimums: Start with $500

• Shorter durations: Maturity in 6-36 months (average ~9 months)

• Monthly cash flow: Most deals offer cash flow through monthly interest payments.

• Return potential: Percent boasts a net return over 14% in the last 12 months as of July 2024

Sign up with Percent and get a bonus of up to $500 with your first investment.

_HEADLINES

Top Reads

• Why Patrick Bateman’s business card was not that impressive (Thread)

• The peak interest rate era is over (CNBC)

• Intel working with bankers to present board with strategic options (CNBC)

• Lululemon missed Wall Street estimates for first time in 2 years (CNBC)

• Here are the private equity investors that can invest in the NFL (FOS)

• Meta says its Llama AI models being used by banks, tech companies (MSN)

• The sneaky way Big Tech is acquiring AI unicorns without buying the companies (CNBC)

• Fed's preferred inflation in line with Wall Street's expectations (YF)

• How data centers became a billion-dollar real estate investment (CNBC)

• Big banks are taking heat for paying low rates on idle cash (YF)

• Private equity’s hot deal summer (WSJ)

• The thrill of AI is fading — and Wall Street is getting clear about its value (CNN)

_{CAPITAL PULSE}

Markets Rundown

Stocks closed higher thanks to rate-cut optimism.

Movers & Shakers

• (+) MongoDB ($MDB) +18% after the developer data platform beat earnings.

• (+) Intel ($INTC) +9% because the company is working with bankers to explore strategic alternatives.

• (–) Ulta ($ULTA) -4% after its first earnings miss in four years.

Private Dealmaking

• Getinge bought Paragonix, an organ preservation company, for $477 million

• Magic, a generative AI coding company, raised $320 million

• Codeium, a code acceleration platform, raised $150 million

• Bridge, a money movement startup, raised $40 million

• Last Energy, a micro-nuclear power plants developer, raised $40 million

• Amigo Tech, a health care clinic software, raised $30 million

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

_{BOOK OF THE DAY}

It Ends With Us

Lily hasn’t always had it easy, but that’s never stopped her from working hard for the life she wants. She’s come a long way from the small town where she grew up—she graduated from college, moved to Boston, and started her own business. And when she feels a spark with a gorgeous neurosurgeon named Ryle Kincaid, everything in Lily’s life seems too good to be true.

Ryle is assertive, stubborn, maybe even a little arrogant. He’s also sensitive, brilliant, and has a total soft spot for Lily. And the way he looks in scrubs certainly doesn’t hurt. Lily can’t get him out of her head.

But Ryle’s complete aversion to relationships is disturbing. Even as Lily finds herself becoming the exception to his “no dating” rule, she can’t help but wonder what made him that way in the first place.

As questions about her new relationship overwhelm her, so do thoughts of Atlas Corrigan—her first love and a link to the past she left behind. He was her kindred spirit, her protector. When Atlas suddenly reappears, everything Lily has built with Ryle is threatened.

“Brave and heartbreaking novel that digs its claws into you and doesn’t let go, long after you’ve finished it.”

_{DAILY VISUAL}

Pinching Fewer Pennies

_{PRESENTED BY BILL}

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_{DAILY ACUMEN}

EQ

IQ might get you hired, but EQ gets you promoted.

Emotional intelligence - the ability to understand and manage your own emotions and those of others - is crucial for success in work and life.

How emotionally intelligent are you?

Leaders with high EQ are more effective, and companies that value EQ outperform those that don't.

Develop self-awareness.

Practice empathy.

Manage your emotions.

Remember, emotions are data, not directives.

_{ENLIGHTENMENT}

Short Squeez Picks

• 5 warning signs that your boss is becoming toxic

• Are your presentations too emotional or too analytical?

• Delta’s CEO’s top advice for getting ahead in your career

• 10 things that scream “I’m pretending to be upper class”

• 8 key job interview questions to ask

_{MEME-A-PALOOZA}

Memes of the Day