Family Office & RIA Weekly Roundup

Take a Lap Around the Industry

• Starbucks Surges After Ousting CEO for Chipotle’s Brian Niccol (Bloomberg)
• German Economic Expectations Nosedive as Global Slowdown Fears Bite (WSJ)
• China’s Oil-Demand Growth Slowdown Weighs on Global Outlook, IEA Says (WSJ)
  
• Bank of Nova Scotia to Pay $2.8 Billion for Stake in KeyCorp (WSJ)

As the financial landscape becomes increasingly cutthroat, hedge funds are capitalizing on a wave of "creditor-on-creditor violence," where lenders aggressively vie for favorable terms from distressed companies. A striking example is the ongoing restructuring of iHeartMedia Inc., where select creditors, led by Pacific Investment Management Co., are engaged in confidential talks to secure their interests while sidelining others. This trend of pitting creditors against each other is becoming more rampant as businesses seek to refinance under crushing debt loads. Hedge funds like Oaktree Capital Management and Sona Asset Management are amassing significant capital to exploit these conflicts, leveraging the increasingly loose legal covenants in the debt market. As these funds maneuver to gain the upper hand, the broader implications for both lenders and struggling businesses are profound, with the potential for increased bankruptcies and significant losses among less-prepared creditors.

"Creditor violence is rife, and taking advantage of loose documentation is not the exception but becoming standard practice."

Michael Haynes (Beach Point)

Private Funding Pulse Check

• Neo Group, a leading Indian asset management and financial advisory firm known for providing transparent financial solutions to institutional and retail clients, has announced the successful raising of $48M in Series B funding backed by James Simons' family office, Euclidean Capital
• Backed by Suliman Saleh Olayan's family office, Olayan Group, CloudPay, a leading independent provider of global payroll and payment solutions based in the UK, has announced the closing of $120M in funding
• The startup Plonts, which recently opened a pilot plant in Oakland, CA, has raised $12M in Seed funding backed by  Peter Rahal's family office, Litani Ventures, and has launched its plant-based cheese in New York and San Francisco
• India-based Neuron Energy, an EV solutions company specializing in batteries for Electric 2 and 3 Wheelers, has secured $2.4M in Series A funding from Chona Family Office

Source: FINTRX Data

Rep Activity Tracker 🚨

• Crux Wealth Advisors officially launched as a hybrid Registered Investment Adviser (RIA) with over $1B in AUM and plans for further expansion in 2024, following a strategic split from Raymond James Financial Services
• Travis Alexander, the founder and CEO of Crux Wealth Advisors, led the firm’s growth from $70M to over $3B in AUM during its tenure with Raymond James, now steering the company into a new phase of autonomous operation
• Key strategic partnerships include Decerno Advisors for advisory services, Arete Wealth as the broker dealer, and BNY Pershing for clearing and custody, positioning Crux for continued growth and innovation in the wealth management sector
• Crux Wealth Advisors is actively seeking new advisors to join its rapidly expanding network across the United States, emphasizing a mission of ethical and personalized client service (Business Wire)

The rapid expansion of AI-driven data centers is placing unprecedented demands on America's largest wholesale power market, PJM Interconnection, which spans 13 states across the U.S.. As AI technology accelerates, the energy-intensive data centers needed to support it are driving up power consumption significantly. This surge in demand, combined with the retirement of older power plants, has led to skyrocketing capacity prices—recently reaching $269.92 per megawatt-day, nearly nine times higher than the previous year. Power plant owners like Constellation Energy Group and Vistra are enjoying a windfall, with Constellation's shares up 12% and Vistra revising its 2025 earnings forecast upwards by $200 million. However, the sharp price increases also pose significant risks, including potential political backlash and court challenges. Utilities such as Exelon and PPL Corp. have already indicated that consumers should brace for higher electricity bills, which could fuel debates over energy policy and the role of utilities in generation. This evolving scenario suggests that while power-plant owners may benefit in the short term, the landscape of energy production and regulation is likely to face substantial shifts.

Google Under Scrutiny Amidst Antitrust Crackdown