Key Events

👉 Microsoft invests $1.5B minority stake in G42

Microsoft’s investment is seen as a move to strengthen US interests in the global AI sector, potentially countering China’s growing influence.

G42 is an Emirati AI company that provides digital infrastructure and cloud computing services. Previously, the company used Chinese hardware to operate their systems.

Following the deal, G42 will remove the Chinese hardware, divest their investments in China, and operate under a security arrangement structured by the US government.

👉 US Treasury auctions $13B of 20-year notes

Yields across the Treasury market were spurred to their highest levels of the year (4.8%) by stronger-than-expected March retail sales data, suggesting that US consumers are coping with elevated interest rates.

High yields led to high demand in the auction. Domestic bidders accounted for 25% of the auction, which was above the 20% average over the last 6 auctions.

👉 Investment Banks Rebound in First Quarter

The investment banking divisions within America’s largest banks reported stronger-than-expected earnings in the first quarter. Investment-banking fees increased 30% across GS, Citi, and BofA.

The rebound in banking was led by higher underwriting fees, which came from near-record levels of investment-grade debt issuances and increased IPO activity in equity markets.

Mergers & Acquisitions

Tapestry structured an $8.5B acquisition of their rival Capri Holdings. The merger aims to bring together top luxury brands, including Kate Spade, Coach, Versace, and Michael Kors.

The FTC is reportedly meeting in the next week to discuss monopoly concerns, which is not common in the fashion industry given high levels of competition and frequency of new labels.

Tapestry previously raised $4.5B in US investment-grade debt and 1.5B euros in bonds, which may have to be returned to investors if the deal is blocked.

Private Equity

All Seas Capital announces minority investment in Reducate EdTech Group, an online continuing professional education platform in Europe.

Foss Recycling acquired the scrap metal recycling unit of Wall Recycling, a waste and recycling company backed by Allied Industrial Partners.

Initial Public Offerings

Loar Holdings, an aerospace and defense components maker, seeks to raise $268M.

Venture Capital

Rippling, a late-stage HR tech startup that provides software solutions to automate various HR tasks, raises $200M in series F funding at a ~$13.4B post-money valuation.