Family Office & RIA Weekly Roundup

Take a Lap Around the Industry

• Crypto Bros Aren’t Flipping Watches. That Is an Issue for Luxury Brands. (WSJ)
• IBM Shuts China R&D Operations in Latest Retreat by U.S. Companies (WSJ)
• NFL Owners Vote in Favor of Private Equity Investment; Select Firms Commit $12 billion (CNBC)
  
• Traders Dump China, Load Up on EM Bond ETFs as Fed Cuts Near (Bloomberg)

Chile’s reputation as a prime destination for renewable energy investment is under threat as President Gabriel Boric's administration proposes changes to a pricing mechanism that has attracted billions of dollars from global investors, including BlackRock and JPMorgan Chase. The proposed legislative change targets the Pequeños Medios de Generación Distribuida (PMGDs) program, which incentivizes small-scale electricity generation, primarily from solar power. The government aims to raise $150 million annually through this change to fund electricity subsidies and assist lower-income families as power tariffs rise. However, critics argue that the move could undermine investor confidence and destabilize a market that has consistently ranked among the top for renewables. Investors warn that altering the pricing mechanism could lead to defaults on financial covenants, potentially stalling further investments in Chile’s energy sector. As the bill heads to Congress, the outcome could have significant implications for the country’s clean energy future and its appeal to foreign investors.

"If this type of policy is enacted, we and our investors will be forced to target a different geography.”

David Crouch (Aediles Capital Inc.)

Private Funding Pulse Check

• Arch Lending, a crypto-backed loan provider, announced it has raised $75M in funding, including an oversubscribed $5M Equity Seed round supported by Morgan Creek Capital Management
• Backed by Esther Dyson's family office, EDventure Holdings, Openwater, a pioneer in revolutionary healthcare devices using advanced technology, has secured a total of $100M in total funding
• PreciseDx raises $20.7M in Series B funding backed by Michael Hennessy's family office, GenHenn Capital, to further develop AI-powered cancer risk assessment technology
• Redo, a Utah-based e-commerce platform, has received  $24M in a Series A funding round backed by Bernard Arnault's family office, Aglaé Ventures 

Source: FINTRX Data

Rep Activity Tracker 🚨

• Ampersand Partners, a hybrid firm, has recruited a UBS  group from Chesterfield, Missouri, which managed $446M in client assets and produced $4.5M in annual revenue
• The team, now known as One Private Wealth, is led by David W. Simons and Thomas M. Cordes, both seasoned advisors with decades of experience
• Ampersand Partners continues its growth by hiring teams from Edward Jones and Wells Fargo Advisors, with recent additions managing over $2.5B in assets
• As of December, Ampersand had $2.8B in advisory AUM and offers advisors equity-laden recruiting deals with a higher revenue share
  (AdvisorHub)

Venture capital investment in climate-tech startups has faced a significant downturn in recent years, with overall funding declining by about 18% in the first half of 2024 compared to the previous six months. Factors such as higher interest rates, challenges in the IPO market, and uncertainty surrounding government climate policies, particularly in the U.S., have made investors more cautious. Despite this, certain sectors within climate tech, like battery storage and grid infrastructure, continue to attract substantial investment due to the growing demand for reliable energy solutions. For instance, battery storage startups raised $2.73 billion globally in the first half of 2024, reflecting the critical role of energy storage in supporting the expanding use of electric vehicles and AI-powered data centers. These focused investments highlight the areas where venture capitalists see the most promise, even amid broader market challenges.

"The opportunities that lie ahead in grid optimization and battery storage are enormous—both globally and in the U.S."

Po Bronson (SOSV)

Walmart Challenges Amazon with Expanded Online Marketplace Offerings

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