Family Office & RIA Weekly Roundup

Take a Lap Around the Industry

• New Argentine Currency Launched to Offset Milei’s Shock Therapy (Bloomberg)
• Asia Manufacturing PMIs Show Some Weak Spots But Keep Signaling Growth (WSJ)
• Rise of the Pint-Size Startup Is Reshaping the U.S. Economy (WSJ)
  
• Nvidia, DuckDuckGo Back AI Search Startup You.com in New Round (Bloomberg)

Nvidia is rapidly expanding its role in the artificial intelligence (AI) landscape, moving beyond its dominance in AI chips to become a comprehensive provider of AI infrastructure. Under CEO Jensen Huang's leadership, Nvidia is positioning itself as a one-stop shop for AI data centers, or "AI factories," by offering not just powerful chips, but also software, data-center design services, and networking technology. This strategic shift aims to solidify Nvidia's competitive edge, particularly as rivals like AMD make moves to challenge its market share. By integrating various components crucial for AI development, Nvidia is creating a more "sticky" ecosystem for customers, ensuring that its solutions are indispensable. However, this aggressive expansion comes with risks, including potential regulatory scrutiny and the possibility that customers may seek alternatives as the AI market matures. Nvidia's ability to navigate these challenges will determine its continued leadership in the AI revolution.

"We have the ability fairly uniquely to integrate to design an AI factory because we have all the parts.”

Jensen Huang (Nvidia)

Private Funding Pulse Check

• CirclePharma secures $90M in Series D funding to advance pioneering oral macrocycle therapies backed by James Simons' family office, Euclidean Capital
• Backed by Eric Schmidt's family office, Hillspire LLC, Magic, a San Francisco-based AI startup focused on automating software development, has secured $320M in funding
• Blue Tokai, India's leading specialty coffee brand, has secured $35M from Belgian family office, Verlinvest, to fuel its expansion into Tier 1 and Tier 2 cities over the next three years
• Zepto, India's fastest grocery delivery service, has raised $340M in a follow-on round backed by EPIQ Capital Group, snagging $1B in 90 days
  Source: FINTRX Data

Rep Activity Tracker 🚨

• Mercer Advisors, a $63 billion Denver-based RIA, has acquired Benchmark Wealth Management, a Connecticut-based firm with $412 million in assets under advisement
• Benchmark Wealth, formed in 2007 by Richard Stout III and Thomas Britt, primarily serves high-net-worth retirees and emphasizes financial planning as a core service
• The acquisition is Mercer’s first publicly announced RIA deal of the summer and its fourth in 2024, following a relatively quiet period after its March acquisition of MDK Private Wealth Management
• Mercer Advisors, backed by private equity firms Oak Hill Capital, Genstar Capital, and Altas Partners, is expanding its expertise in serving high-net-worth clients and increasing its presence in key markets through this acquisition
  (Citywire)

ETFs experienced a surge in activity this August, with investors pouring $75 billion into US exchange-traded funds, marking a fivefold increase compared to the same period last year. This trend, fueled by significant market movements and investor optimism, could lead to a record-breaking annual cash inflow, building on July’s $122 billion intake, the second-largest monthly total ever recorded. The continued volatility expected in the months ahead—driven by the potential start of the Federal Reserve’s easing cycle, the upcoming US presidential election, and year-end portfolio rebalancing—suggests that ETFs will remain a favored vehicle for both institutional and retail investors. The ETF market, now approaching $10 trillion, reflects a growing appetite for diverse investment strategies, with active management and fixed-income products driving substantial inflows. As ETFs continue to capture a larger share of total fund assets, their role in shaping investment landscapes is increasingly pivotal.

"You had investors piling into bonds, buying the dip on stocks, rotating into small caps — it’s a recipe for strong flows."

Athanasios Psarofagis (Bloomberg)

Brazil Takes a Stand: Supreme Court Upholds Ban on Elon Musk's X

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