Judge Orders Tether to Prove Stablecoin Backing (WSJ)
Existing Home Sales Drop 0.4% in August, Lowest since 2020 (FoxBiz)
U.K. Begins Move Towards Simpler Tax System (Bloomberg)
Federal Reserve Announces Another 75 Point Hike and Signals More
In the most recent attempt by the Federal Reserve to curb inflation, the central bank announced another 75 basis-point hike and reinforced its mission to bring inflation rates down to its target level of 2%. In addition to the hike, the Federal Reserve provided guidance on its year-end federal funds rate target, forecasting a 4.6% rate by December. Many criticize Jerome Powell for a slow response to initial inflationary signals, which forced the central bank to sharply change its stance in order to combat the highest rate of inflation in 40 years. On the contrary, the labor market remains robust, with unemployment hovering at 3.7%, which many Fed officials believe is unsustainable in the long-run.
Private Funding Pulse Check
Prewave, a data analytics company, has closed on a $11M Series A round that included Austria-based Single-Family Office Segnalita Ventures
Joel Peterson's Family Office, Peterson Partners has participated in a Series A round that totaled $20M for Zartico, a software development company combining art and science
Thirty Five Ventures engaged in a Series A investment with Immortal Game, the world's first play-and-earn chess platform, totaling $12M
Hillspire took part in a $51.5M Series B deal with Sardine, a fraud prevention and compliance infrastructure service
Since the beginning of the Covid-19 pandemic, the city of Hong Kong has largely been shut off to the tourism industry. Mandatory hotel quarantines and self-monitoring rules have curbed nearly all travel to the city. In the first half of this year, the total number of visitors to Hong Kong was down 99.7% compared to the same period in 2019. In addition, the majority of cities outside of China have fully reopened travel, causing China-based companies to feel the pressure of regional competitors, particularly those located throughout Singapore, Japan and India. Should officials ease restrictions throughout Hong Kong, visitor numbers may still take some time to recover to pre-pandemic levels, as roughly 80% of arrivals prior to the pandemic were from mainland China.
“It would be manifestly self-destructive for a business hub like Hong Kong to stay closed to the outside world forever. But ending mandatory hotel quarantine is only the first step in what will be a long, uncertain campaign to try to recapture the city’s international status."
Jacky Wong, The Wall Street Journal
Wall Street CEOs Go Before Congress with Layoffs Looming
Over the past few days, the heads of seven of the largest U.S. banks met with Congress' Bank-Oversight Committee to discuss a number of topics that included inflation, the economy, money-transfer scams, climate change and more. The meeting marks the third time Wall Street CEOs have sat before Congress since 2019. Early signals of an oncoming volatile labor market have concerned many economists, following the likes of Google, Peloton, Snapchat, Microsoft, Twitter and Tesla all trimming their workforces. According to the Bureau of Labor Statistics, job openings have come off recent highs, pointing to a weakening labor market heading into the fourth quarter.
“While these storm clouds build on the horizon, even the best and brightest economists are split as to whether these could evolve into a major economic storm or something much less severe..."
Jaime Dimon, JPMorgan Chase
Lukas Walton's Family Office Ramps up Impact-Investing
Chicago, IL-based Builders Vision, the investing and philanthropic platform of Wal-Mart's billionaire heir Lukas Walton, has strengthened the connection between the family's investing and giving ventures. The company, which manages a $1B endowment, shifted its investment philosophy to mandate that 90% of its capital be allocated towards "mission-related" investments that aim to target sustainability and equality initiatives. The latest move by Builders Vision highlights a larger trend, as inheritors and entrepreneurs in their younger years have become more driven to leverage their fortunes to make a social impact. According to a Credit Suisse survey of family offices, nearly half of the firms plan to increase their sustainable investing over the next 2-3 years.
“If we are going to make lasting change happen, we need our mission to show up in everything we do – especially in how we commit our resources...That’s why we are investing our endowment in companies, organizations and strategies that prioritize sustainable and equitable solutions."
Morristown, NJ-based Private Advisory Group has announced that $1B RIA AK Financial Group has joined the firm (WM)
Velocity Capital Management has announced the launch of its business, targeting global companies in the sports, media and entertainment industries (Cision)
Wealth Enhancement Group has announced an acquisition of Milwaukee-based RIA Sadoff Investment Management, managing $1.6B (FAIQ)
Written by:
Andrew Popp | Data Research Associate
FINTRX delivers an industry-leading suite of private wealth data and research solutions to the alternative investment space and private capital markets. Engineered to help clients identify and access family office and RIA capital intuitively, the FINTRX platform ensures accurate and updated data and research on 850,000+ private wealth records globally. To subscribe to our newsletter and see previous versions click below.