Good Morning! Stocks closed at fresh records yesterday - even though Minneapolis’ Fed President Kashkari sees a slower pace of rate cuts ahead. Diddy is in legal limbo… but his music streams are jumping after his arrest. KKR raised $4.6 billion for mid-market private equity deals. Southwest is hinting at layoffs to boost profits, and California will ban all plastic shopping bags. Plus, Japan is pushing a 4-day working week and what do Wall Street quants actually do.

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_{SQUEEZ OF THE DAY}

Living at Goldman’s Office

Goldman Sachs' former headquarters at 55 Broad Street, once a symbol of Wall Street's power, has been transformed into FiDi’s latest luxury apartment complex. Starting at $4,000 a month for a studio, residents can now live where Goldman bankers once ruled, enjoying 10-foot ceilings, water views, and custom Italian kitchens.

The Financial District, long the epicenter of finance, is evolving into a residential hub. With banks migrating to Midtown and Hudson Yards, old office buildings are being repurposed into homes complete with rooftop pools and yoga centers. Sleek restaurants have replaced suit stores, and young families are moving in.

The conversion of 55 Broad, which will offer 571 units, is set to wrap up next year. Developers are also considering making a quarter of the apartments affordable in exchange for tax benefits.

Pfizer's vacant, former headquarters on 42nd street and 2nd Ave could also be converted into 1,500 apartments. If that's the case, the former Pfizer HQ would be the largest office-to-residential conversion in NYC history.

Takeaway: It used to be that, back in the day, the only people spending the night at 55 Broad were the burned-out analysts at Goldman Sachs pulling all-nighters. But thanks to the pandemic, there’s just fewer occupied office space in Manhattan, and it turns out residential conversions can create beautiful luxury apartments. One thing is for sure - 55 Broad still might be giving former Goldman analysts nightmares!

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_HEADLINES

Top Reads

• Minneapolis Fed President Kashkari sees a slower pace of rate cuts ahead (CNBC)

• Diddy’s music streams jump after arrest and indictment (YF)

• KKR raises $4.6 billion for debut North America mid-market deals fund (Reuters)

• Southwest Airlines tells staff ‘difficult decisions’ ahead in push to boost profits (CNBC)

• California to ban all plastic shopping bags at grocery stores (Axios)

• Japan is pushing a 4-day working week — even with its workaholic culture (CNBC)

• Bank investors betting 2024 could be the start of another 1995 (YF)

• Johnson & Johnson tries bankruptcy a third time for talc liabilities (Axios)

• SoftBank’s Masayoshi Son has been planning his comeback (TC)

• Private equity roll-ups of accounting firms could run into trouble (FT)

_{CAPITAL PULSE}

Markets Rundown

Market Commentary

On Monday, U.S. stocks closed higher, with the Dow Jones hitting a new record high.

Energy and consumer discretionary sectors led the gains, while global markets in Asia and Europe also posted mostly positive results.

The U.S. dollar strengthened against major currencies, and in commodities, WTI oil declined while gold prices rose.

The S&P Flash Composite PMI for September came in at 54.4, below expectations, indicating slower but still expanding business activity. The services sector grew slightly above estimates, while the manufacturing sector contracted further.

Bond yields edged up, with the 10-year Treasury yield around 3.75%.

Markets are pricing in expectations for Fed rate cuts over the next 12 months, supporting the narrative of a soft landing for the U.S. economy.

Movers & Shakers

• (+) Biohaven ($BHVN) +14% after positive clinical data for its rare, neurological disease drug.

• (+) Tesla ($TSLA) +5% after a bullish sales report; upcoming robotaxi event.

• (–) Trump Media ($DJT) -10% after the lockup period expired.

Private Dealmaking

• Affinity Equity Partners bought Lumus, a medical imaging group, for $657 million

• Arcapita and Dgpays bought a majority stake in NEOPAY for $385 million

• Datamaran, an ESG risk management software provider, raised $33 million

• Motion, an ad-tech startup, raised $30 million

• MetOx, an ultra-efficient grid wires maker, raised $25 million

• Hunch, a social polling startup, raised $23 million

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

_{BOOK OF THE DAY}

The Venture Alchemists

We once idolized tech entrepreneurs for creating innovations that seemed like modern miracles. Yet our faith has been shattered. We now blame them for spreading lies, breaking laws, and causing chaos. Yesterday’s Silicon Valley darlings have become today’s Big Tech villains. Which is it? Are they superheroes or scoundrels? Or is it more complicated, some blend of both?

In The Venture Alchemists, Rob Lalka demystifies how tech entrepreneurs built empires that made trillions. Meta started as a cruel Halloween prank, Alphabet began as a master’s thesis that warned against corporate deception, and Palantir came from a campus controversy over hateful speech.

These largely forgotten origin stories show how ordinary fears and youthful ambitions shaped their ventures―making each tech tale relatable, both wonderfully and tragically human.

Readers learn about the adversities tech entrepreneurs overcame, the troubling tradeoffs they made, and the tremendous power they now wield. Using leaked documents and previously unpublished archival material, Lalka takes readers inside Big Tech’s worst exploitations and abuses, alongside many good intentions and moral compromises.

But this story remains unfinished, and The Venture Alchemists ultimately offers hope from the people who, decades ago, warned about the risks of the emerging Internet. Their insights illuminate a path toward more responsible innovations, so that technologies aren’t dangerous weapons but valuable tools that ensure progress, improve society, and enhance our daily lives.

“How venture capital changed capitalism.”

_{DAILY VISUAL}

BlackRock Leads the Pack

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_{DAILY ACUMEN}

Antifragility

Nassim Nicholas Taleb introduced the concept of "antifragility" in 2012, describing systems that improve from disorder.

Unlike merely resilient systems, antifragile ones grow stronger when faced with stressors, shocks, or failures.

This principle applies to various domains, from personal development to business and education.

The human body exemplifies antifragility: muscles grow stronger from stress, and the immune system improves after fighting infections.

To become antifragile, start by embracing minor challenges and learning from them.

As Taleb says, "Wind extinguishes a candle and energizes fire" – in our complex world, the ability to harness adversity could be a significant advantage.

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Short Squeez Picks

• How to develop leadership the right way

• What do Wall Street quants actually do?

• 9 body language signs they’re into you

• Why a 4-day workweek sets up an uneven playing field for workers

• A workaholic’s guide to reclaiming your life

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Memes of the Day