Family Office & RIA Weekly Roundup

Take a Lap Around the Industry

• Google Talks to Acquire Cybersecurity Startup Wiz Fall Apart (WSJ)
• Delta Flight Disruptions Probed by US After Deluge of Complaints (Bloomberg)
• T-Mobile Invests $4.9 Billion in JV With KKR to Buy Metronet (Bloomberg)
  
• Gold firms as dollar loses footing following Biden withdrawal (CNBC)

The U.S. economy continues to defy expectations, presenting a complex picture that puzzles both investors and the Federal Reserve. A notable disparity in the financial fortunes of upper and lower-income Americans contributes to this ambiguity. While companies like Campbell Soup report reduced consumer spending on everyday items, indicating belt-tightening among lower-income households, sectors catering to wealthier consumers, such as cruise lines, are thriving. For instance, Norwegian Cruise Line Holdings has reported resilient demand from affluent customers, reflecting a stark contrast in spending behavior. The May jobs report adds to the confusion, with the leisure and hospitality sector adding 42,000 jobs, significantly higher than the 25,000 jobs added in the entire goods-producing sector. Additionally, unemployment among 20 to 24-year-olds rose to 7.9%, compared to the overall unemployment rate of 4.0%. This economic duality is influenced by wealthier Americans who benefit from low mortgage rates, a buoyant stock market, and high investment returns, while lower-income households face financial strain. This dynamic complicates the Federal Reserve's efforts to stabilize the economy and determine appropriate interest rate policies.

"Consumers are strong, our consumers that we chase are especially resilient and strong."

Mark Kempa (Norwegian Cruise Line Holdings)

Private Funding Pulse Check

• CultureAI, a London-based platform that helps organizations measure and mitigate employee cyber risks through intelligent, data-driven security awareness programs, has raised $10M in Series A funding backed by Smedvig Capital Family Office
• Backed by Knollwood Investment, Linx Security, a trailblazer in identity security and governance has received a substantial $33M in funding 
• New York-based Coast, which provides a streamlined solution for managing fuel and fleet spending for US companies, has raised $40M in Series B financing led by ICONIQ Capital Family Office
• Etherfuse, a California-based platform pioneering the issuance of tokenized real-world assets, has announced it successfully raised $3M in a seed funding round backed by Glenn Hutchins' family office, North Island Ventures

Source: FINTRX Data

Rep Activity Tracker 🚨

• Alpha Capital Family Office has recruited Alexandra Romeo Boyles and Will Coughlin, former Citi Private Bank advisors who managed over $3 billion in assets
• Boyles, who joins Alpha Capital as partner and senior wealth strategist, and Coughlin, who joins as partner and senior investment strategist, bring extensive experience managing assets for endowments, foundations, non-profits, family offices, and ultra-high net worth individuals
• The firm’s strategy focuses on serving fewer than 50 families to provide dedicated outsourced family office services
• The addition of Boyles and Coughlin follows the hire of Tom Riley, a former senior portfolio manager at Northern Trust, further strengthening Alpha Capital’s team with over 250 years of collective experience
  (Citywire)

In May, the national median price for existing homes surged to a new high of $419,300, a 5.8% increase from the previous year and the highest on record since 1999. This price spike is occurring despite a decrease in home sales, which fell by 0.7% from April and 2.8% year-over-year. The rise in prices is driven by a combination of low housing inventory and elevated mortgage rates, which have more than doubled since early 2020. Many potential sellers are holding off due to the high cost of borrowing, while cash buyers continue to drive up prices. This market dynamic has created a paradox where high prices persist despite reduced sales activity. Economists suggest that unless buyer sentiment improves, the pace of price increases may slow in the coming months as affordability challenges become more pronounced.

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