Unlocking the Secrets of the Ultimate All-In VC Fund!

November 26, 2024

0 4 minutes read

Unlocking the Secrets of the Ultimate All-In VC Fund!

Buckle Up: Northvolt Files for Chapter 11! In a shocking turn of events, Northvolt, once hailed as Europe’s shining star in the electric vehicle battery race, has thrown in the towel and filed for Chapter 11 bankruptcy. The startup, which attracted heavy investment in hopes of breaking Asia’s grip on the battery market, was unable to secure a last-minute rescue package with investors. This is a reality check for the industry – where innovation meets harsh economic truths.

Republican Billionaire Sounds the Alarm! Ken Griffin, the billionaire investor known for his influential voice in the Republican party, isn’t holding back. He has criticized Donald Trump’s proposed tariff increases, labeling them a “slippery slope to crony capitalism.” In a surprising twist from a prominent Republican donor, Griffin’s candid critiques could signal significant shifts in political and economic strategy as the new administration takes shape.

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In Today’s Newsletter:

The bold venture capital moves by Josh Kushner
Big banks and the risk transfer trade: What you need to know
A $6 million banana… Yes, you read that right!

Thrive Capital: Playing to Win

In the fast-paced world of venture capital, OpenAI has just set the stage ablaze with a $7 billion funding round, and the players are big – really big! SoftBank threw in $500 million, Tiger Global added $350 million, and Coatue Management followed up with $250 million. But stepping into the limelight was Josh Kushner and his Thrive Capital, who made the boldest move of all, pouring in a staggering $1.3 billion. They even secured the option to invest another $1 billion by next year!

This eye-popping investment showcases Thrive’s unique strategy: focus on a select few companies, build strong relationships with founders, and ride out any storm. “Diversification is for amateurs,” declared Vince Hankes, Thrive’s partner on the OpenAI deal. They are on a mission to show that you can run a $5 billion fund and still operate like a boutique.

Thrive’s big bets don’t stop at OpenAI. They’re also banking on the likes of payments giant Stripe and defense tech innovator Anduril. If any of these ventures go public, it could yield monumental returns for Thrive and its investors. But with great risk comes great reward – or does it? Rivals are already questioning whether Thrive can deliver “venture-style returns” with such concentrated investments.

As for Kushner, he maintains a cool demeanor, asserting, “The only competition is within myself.”

The Surge of Synthetic Risk Transfers (SRTs)

Let’s talk about the latest buzz on Wall Street: synthetic risk transfers (SRTs). These financial instruments are becoming the hottest ticket in town, allowing banks to offload risk and bolster returns without tying up too much capital on loans.

Recent reports show lenders are gearing up to unleash a record amount of SRTs this year, with a whopping $16.6 billion already in the books for the first nine months of 2024, according to Chorus Capital.

Bank of America is leading the charge with innovative new structures for these deals, targeting smaller lenders to explode the market potential. And the mastermind behind this initiative is none other than David Sklar, whose reputation for brilliance precedes him.

However, this booming market raises eyebrows. Experts are warning that if it develops too quickly, it could leave inexperienced investors holding riskier assets than they bargained for. Last month, the IMF cautioned that the leverage extended by banks to SRT investors could inadvertently create troubling “negative feedback loops.”

While Bank of America’s plans are still in development, the financial world is watching closely. For more in-depth insights, check out the detailed coverage by DD’s Ortenca Aliaj and Eric Platt.

Sotheby’s: The Night of the $6 Million Banana

What can only be described as a surreal spectacle, Sotheby’s New York was packed last Wednesday for the auction of a banana taped to a wall. Yes, you heard that right! The artwork, titled “Comedian” by Maurizio Cattelan, fetched an astonishing $5.2 million, or $6.2 million with fees, in just over six minutes. The winning bid came from Justin Sun, a cryptocurrency mogul.

Sun’s winning bid dramatically exceeded the pre-sale estimate of $1 million to $1.5 million and included the banana, duct tape, mounting instructions, and a signed certificate of authenticity from the artist.

David Galperin, Sotheby’s head of contemporary art for the Americas, explained, “This piece challenges our very conception of art and value.” And indeed, it has ignited conversations about the boundaries of creativity. Sun even mentioned plans to eat the banana, turning this unique purchase into a further artistic experience!

Job Moves

Gary Gensler is set to step down as chair of the US Securities and Exchange Commission in January, marking the end of a bold chapter filled with regulatory challenges.
Latham & Watkins has brought on board four restructuring partners in New York, including noteworthy names like Ray Schrock and Candace Arthur.
Linklaters has appointed Elena Rubinov as head of infrastructure and private capital M&A in New York, reinforcing their commitment to the sector.

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