Good Morning! Nvidia bounced back 7% yesterday after a 3-day rout. Amazon is quietly planning a ChatGPT competitor called Metis. Cheap steakhouses are booming as Americans pull back on spending, and Cava and Sweetgreen are beefing up their menus. Harvard dropouts raised $120 million to take on Nvidia’s chips. The clock is ticking on Jane Fraser’s Citi turnaround. Plus why researchers can’t agree on how much happiness your salary can buy.

Attention private equity professionals: You can go from CIM to an LBO model in less than 5 mins with Mosaic. It’s already used by funds like CVC and Warburg Pincus, get a demo here.

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Private Equity's Hunger Games

Each year private equity funds compete aggressively for the newly minted investment banking analyst class, and each year “on-cycle recruiting” gets pushed a little bit earlier.

On-cycle interviews, primarily conducted by large PE firms—often referred to as megafunds like KKR and Apollo—can span from a few hours to several days. For instance, an interview at KKR could begin at 9am and culminate in a job offer for two years later by that evening.

This year, on-cycle recruiting kicked off on Monday evening, targeting 2024 college graduates who have yet to start their banking positions for roles beginning in 2026.

Apollo, KKR, and Clayton, Dubilier & Rice were the culprits that commenced the annual hunger games event for banking analysts. It only takes a few PE firms to start the frenzy, leading others to quickly join in - firms like Carlyle, Bain Capital, TPG, and more swiftly followed suit.

The recruiting race timeline used to be a post-Labor Day affair but has crept up every year, with last year's late July start already disgruntling many. 

This year’s timeline also caught many junior bankers off guard - many were out of town and scrambled to make it back to NYC to juggle hastily scheduled interviews (and most graduated college last month and are trying to enjoy their summer). 

Takeaway: Starting salaries for PE associates at megafunds can exceed $300,000 in total compensation (latest comp deck here) - so it makes sense why some junior talent are ditching Europe trips with college buddies to come back and interview. It also guarantees stability for four years, a major advantage in the early stages of one's career.

But it begs the question - if these associates haven’t even begun their banking jobs yet, on what basis are these private equity firms hiring? Without any real deal experience, it seems that factors like slight GPA differences or the prestige of their college or bank play a disproportionate role in hiring decisions, which may not necessarily predict future success as well as actual job performance and deal experience would.

P.S. If you're currently recruiting, we offer a comprehensive suite of resources tailored for private equity recruiting, including:

1. Free Private Equity Recruiting Guide

2. Private Equity Recruiting Course

3. Exclusive premium resources available to our Insiders members.

_{PRESENTED BY MOSAIC}

CIM to LBO Model in < 5 Minutes

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Ready to see Mosaic in action? Request a demo today.

_HEADLINES

Top Reads

• Nvidia stock pops to snap 3-day rout (YF)

• Amazon is working on ChatGPT killer called Metis (Quartz)

• Volkswagen's $5B investment in Rivian boosts shares (YF)

• As Americans pull back spending, these cheap steakhouses are booming (CNN)

• Why Cava, Sweetgreen are beefing up their menus (Axios)

• Harvard dropouts raise $120 million to take on Nvidia’s AI chips (CNBC)

• The most important stock market chart of 2024 (YF)

• The clock is ticking on Jane Fraser’s Citi turnaround (WSJ)

• Visa-Mastercard credit card settlement fees rejected (Axios)

• How Delta made itself America’s luxury airline (CNBC)

• U.K. elections could mean a big tax bill for private equity (Axios)

_{CAPITAL PULSE}

Markets Rundown

Stocks closed higher as Nvidia rebounded from correction territory.

Movers & Shakers

• (+) Enovix ($ENVX) +35% because the company will deliver silicon batteries for mixed reality headset.

• (+) Rivian ($RIVN) +9% after Guggenheim initiated coverage with a buy.

• (–) Penn Entertainment ($PENN) -6% after a downgrade by Raymond James.

Private Dealmaking

• Brookfield will take over France’s Neoen for $6.5 billion 

• Cerberus Capital Management invested $315.5 million into Eos Energy

• EvolutionaryScale, a protein-building AI models developer, raised $142 million

• Etched, a specialized chips maker, raised $120 million

• Exsilio Therapeutics, a genome medicines startup, raised $82 million

• Benchmark Mineral Intelligence bought Rho Motion for $50 million

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

_{BOOK OF THE DAY}

Calm In The Chaos

Stacy Igel, founder of the global fashion line BOY MEETS GIRL®, walks you through the highs and lows of creating a business: how to establish a brand and attract customers, hire and fire employees, collaborate with business partners, rise up from the midst of discouragement, and not just survive the rollercoaster of entrepreneurship—but thrive.

Stacy shares her twenty-year journey of growing her company from the ground up while powering through life’s challenges. Today, with her clothing sold in Saks Fifth Avenue, Bloomingdale’s, and other stores worldwide, Stacy has climbed to the top of the ladder—but instead of pausing to look at the view, she’s pulling other women up with her.

Embracing the Calm in the Chaos shares a realistic look at how to successfully balance the chaos of being a businessperson, a woman, and a parent.

“Run your own business, raise a family, and make a difference—at your own pace.”

_{DAILY VISUAL}

Inside Out 2 Dethrones Dune 2

Domestic box office sales

_{PRESENTED BY DOLLAR FLIGHT CLUB}

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_{DAILY ACUMEN}

Kindness

Imagine a pebble tossed into a still pond. The ripples start small, but they expand, touching shores far beyond their origin. That's the magic of kindness - a simple act can set off waves of positivity that transform the world. 

Consider the story of Jadav Payeng, who, as a teenager, began planting trees on a barren sandbar in India. One tree at a time, day after day, year after year.

Today, 40 years later, his "Forest Man of India" has grown into a lush 1,360-acre forest, home to elephants, rhinos, and tigers. Or think of the "Pay It Forward" movement, sparked by a novel and a film, that's inspired countless acts of generosity worldwide.

Science backs this up too - researchers have found that kindness is contagious, spreading up to three degrees of separation.

Your smile can literally brighten someone's day, who then uplifts another, creating a domino effect of joy. So today, ask yourself: what ripple will you create? What small act of kindness can you perform that might just change someone's world?

Remember, in a world where you can be anything, be kind. Because in the end, it's not just about changing the world - it's about changing someone's world. And that someone might just be you.

_{ENLIGHTENMENT}

Short Squeez Picks

• How to harness emotional intelligence to reduce stress at work

• Why researchers can’t agree how much happiness your salary can buy 

• Anti-inflammatory foods to eat regularly

• If you answer ‘always’ to these 8 questions, you're mentally stronger than most

• The psychotherapist delving into our deep anxiety about finances

_{MEME-A-PALOOZA}

Memes of the Day

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