Good Morning! November inflation came in line with expectations, and the markets rallied—Nasdaq closed above 20,000 for the first time, up 32% YTD. Chances of a 25bps rate cut on December 18th shot up to 94%.

Hershey’s rejected Mondelez’s takeover offer. Macy's gave update on employee who hid $151 million. Luigi Mangione support fundraisers and merchandise were yanked by GoFundme and Etsy. And Zuck donated $1 million to Trump's inauguration fund.

Plus, David Bonderman co-founder of private equity firm TPG died, Saudi Arabia will host the 2034 World Cup, and Bill Belichick returned to football as UNC head coach.

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_{SQUEEZ OF THE DAY}

PE Makes First NFL Investment

It’s official—private equity has made its debut in the NFL. Following a special league meeting, the Buffalo Bills and Miami Dolphins announced they had sold minority stakes to private equity investors, marking the first such deals in league history.

The Miami Dolphins sold a 10% stake to Ares Management, while the Buffalo Bills sold a 10% stake to Arctos Partners.

For decades, private equity ownership was off-limits in the NFL, a rule that preserved its exclusivity but limited outside capital. In August, the league finally approved new rules allowing institutional investors to own up to 10% of a team, and the Dolphins and Bills wasted no time jumping on the opportunity.

The Bills, for example, are building a new stadium - and private equity ownership could provide the team with the capital to do so.

The NFL is proceeding cautiously, though. Only four private equity groups—Ares, Arctos, Sixth Street, and a consortium led by Blackstone, Carlyle, and CVC—are approved to make investments.

Even with these restrictions, the influence of private equity is already reshaping the game. The Dolphins' deal also includes stakes in Hard Rock Stadium and the Formula 1 Miami Grand Prix, while Arctos' group includes high-profile investors like former NBA stars Vince Carter and Tracy McGrady.

In a separate transaction, the Philadelphia Eagles sold an 8% minority stake at a valuation of $8.3 billion, making them the most valuable team in the NFL. However, private equity wasn’t involved in that deal. Owner Jeffrey Lurie remains firmly in control, with his initial $185 million investment in 1994 now reflecting an almost 4,500% return.

Takeaway: Private equity has officially entered the NFL chat, and existing owners are surely smiling at their soaring valuations. Currently, private equity investors are capped at 10% ownership with no governance rights—but with the right amount of money on the table, those rules could eventually shift. The question is: how long before we see an KKR vs. Blackstone Super Bowl?

_{PRESENTED BY OPTIFINO}

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_HEADLINES

Top Reads

• Nasdaq closes above 20,000 points for the first time (YF)

• Hershey’s owner rejects Mondelez’s offer as too low (YF)

• Inflation ticked up in November (Axios)

• Big banks find many 'reasons to be optimistic about 2025' (YF) 

• Private equity pioneer David Bonderman dies (Axios)

• Figs reportedly get a takeover bid from Story3 Capital (YF)

• Struggling Macy's cuts forecast (CNBC)

• Trump's inaugural fund receives $1 million donation from Zuck (Fox)

• Macy's gives update on employee who hid $151M (Fox)

• Marc Rowan sees even bigger private equity megadeals coming soon (YF)

• Lazard CEO sees 2025 as inflection point for asset managers (YF)

• Top accountant keeps close eye on firms’ private equity deals (WSJ)

• Citi made 'significant progress' in transforming its business (YF)

• Chances of 25bps rate cut in December are now 94% (Kalshi)

• These 'in-demand' musicians were top-sellers for tickets this year (Fox)

• Saudis get world cup 2034 crowning MBS bid for sport empire (BB)

• Bill Belichick reaches 5-year deal to coach North Carolina (ESPN)

_{CAPITAL PULSE}

Markets Rundown

Stocks Rise as Inflation Data Aligns with Forecasts

Equity markets moved higher Wednesday after CPI inflation data met expectations, lifting growth-oriented sectors. Technology, consumer discretionary, and communication services all gained more than 1.5%, while most other sectors were flat to lower.

Overseas, European markets ended higher, while Asian markets were mixed overnight. Bond yields ticked up, with the 10-year Treasury yield reaching 4.27% and the 2-year yield at 4.16%. In commodities, oil prices rose over 2%, and gold climbed more than 1%.

Inflation Data Aligns, Shelter Prices Ease

The November CPI report showed headline inflation rising 0.3% monthly and 2.7% annually, while core CPI increased 0.3% for the month and 3.3% annually, all in line with expectations. This marked the fourth straight month of 0.3% monthly increases in core CPI, with the three-month annualized change hitting 3.7%, the highest since April.

A notable positive was the shelter index, which rose only 0.3%, its smallest monthly increase since early 2022. While this data supports expectations for a 0.25% rate cut at next week's Fed meeting, the slower pace of disinflation and strong economic growth suggest the Fed may adopt a gradual approach to rate cuts in 2025.

Global Rate Cuts Gain Momentum

Global monetary policy took center stage, with the Bank of Canada announcing a 0.5% rate cut, reducing its policy rate to 3.25%. This marks the BoC’s fifth cut this year and its second consecutive larger-than-typical rate cut, reflecting Canada's sluggish economic growth.

Today, the European Central Bank is expected to lower its refinancing rate by 0.25%, to 3.15%, bringing its total 2024 rate cuts to 1.35%. With growth in Canada and the eurozone lagging behind the U.S., these central banks are adopting more aggressive easing measures. The Federal Reserve will meet next week, with another 0.25% rate cut widely anticipated, a move seen as consistent with current economic conditions.

Movers & Shakers

• (+) GameStop ($GME) +8% after posting a surprise Q3 profit.

• (–) Duolingo ($DUOL) -5% because of a downgrade by Bank of America.

• (–) Dave & Busters ($PLAY) -20% after Q3 earnings miss; CEO resignation.

Private Dealmaking

• Patient Square Capital acquired Patterson Cos. for $4.1 billion

• Angitia Biopharmaceuticals, a musculoskeletal diseases biotech, raised $120 million

• Veradermics, a dermatologic drugs developer, raised $75 million

• Players Health, a sports insurance provider, raised $60 million

• AstrixSecurity, an access management startup, raised $45 million

• Aqemia, a French biotech, raised $38 million

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

_{BOOK OF THE DAY}

The Nvidia Way

Nvidia is the darling of the age of artificial intelligence: its chips are powering the generative-AI revolution, and demand is insatiable. For all the current interest and attention, however, Nvidia is not of our time.

Founded more than three decades ago in a Denny’s in East San Jose, for years it was known primarily in the then-niche world of computer gaming. In fact, the company’s leather-jacketed leader, Jensen Huang, is the longest-serving CEO in an industry marked by near constant turmoil and failure.

In The Nvidia Way, acclaimed tech writer Tae Kim draws on more than one hundred interviews―including Jensen (as he is known) and his cofounders, the two original venture capital investors, early former employees, and current senior executives―to show how Nvidia played the longest of long games, repeatedly creating new markets and outmaneuvering competitors, including the original semiconductor giant, Intel, which now finds itself well behind the upstart.

"The definitive look at the most remarkable business story of this era."

_{DAILY VISUAL}

France: Stock Market Underperforming

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_{DAILY ACUMEN}

Extraordinary Leadership

Daniel Goleman, renowned for introducing the concept of emotional intelligence, argues that while IQ might land you the job, it’s emotional intelligence that sets apart extraordinary leaders.

In his seminal work, What Makes a Leader?, Goleman outlines the critical components of emotional intelligence that shape impactful leadership.

Self-awareness, the ability to understand and reflect on one’s emotions, serves as the cornerstone. Building on that is self-regulation, the capacity to manage emotions and respond thoughtfully rather than impulsively, especially in high-pressure situations.

Motivation rooted in purpose and vision inspires both leaders and their teams to excel, while empathy fosters genuine connection and understanding, strengthening relationships.

Tying it all together are social skills, the art of managing relationships, influencing others, and effectively communicating a vision.

Goleman underscores that unlike IQ, emotional intelligence is not static—it can be developed and refined.

Leaders who invest in cultivating these skills not only elevate their own performance but also nurture a culture of innovation, trust, and resilience within their organizations.

_{ENLIGHTENMENT}

Short Squeez Picks

• Harvard professor on how to ease into a satisfying retirement life

• Manage your energy not your time

• Common sense ways to get a promotion faster

• People who struggle to be assertive had these 10 childhood experiences

• Subtle things you’re doing that make people dislike you

_{MEME-A-PALOOZA}

Memes of the Day