>>> US Gapping down

Gapping down
( Due to US futures trading down 3-5%, most stocks are trading lower. The following are down due to known catalysts)
In reaction to earnings/guidance
:
  • AMC -8.5%, CG -5%, UUUU -4.5%, BRK.B -4.1%, BNTX -4%, KOS -3.5%, AMR -3.3%, INST -1.3%, INFN -1%
Select ETFs showing weakness:
  • SMH -7.5%, SLV -6.3%, XLK -5.8%, QQQ -4.7%, IWM -4.3%, IGV -4%, SPY -3.2%, USO -2.6%, DIA -2.1%, GLD -2%
Other news:
  • COIN -15.7% (weakness in cryptos)
  • ALTM -7.3% (acquires the lithium metal business of Li-Metal Corp in an all-cash US$11 million acquisition includes the intellectual property and physical assets related to lithium metal production)
  • AAPL -7% (Berkshire Hathaway cut its stake in AAPL by ~50%)
  • GMAB -6.5% (takes full control of Acasunlimab development program)
  • TRML -5% (Presents Phase 2 TRANQUILITY Study Design at American Society of Preventive Cardiology (ASPC) Congress 2024)
  • MDWD -5% (announced the positive results of the NEXT—an Expanded Access Protocol)
  • RZLT -4.7% (FDA clearance for its Investigational New Drug application for RZ358 to treat hypoglycemia in patients with tumor hyperinsulinism)
  • RIGL -4.5% (files for $250 mln mixed securities shelf offering)
  • OXY -3.3% (files for 29,560,619 share common stock offering by selling shareholder)
  • BECN -2.8% (Announces Acquisition of SSR Roof Supply, Expands service for roofing contractors in Vancouver; completes acquisition of Passaic Metal and Building Supplies)
  • JPM -2.7% (provides update on litigation matters)
  • FNKO -2.7% (agrees on terms to resolve shareholder derivative litigation)
  • HE -2.4% (provides update following global settlement in Maui Wildfire Tort Litigation)
  • VIRT -2.3% (files mixed securities shelf offering)
  • AGEN -2.3% (provided Bristol Myers Squibb (BMY) License Agreement update)
  • PHG -2.2% (to repurchase shares for up to EUR 125 million to cover long-term incentive plans)
  • NEP -1.7% (files mixed securities shelf offering)
  • YOU -1.7% (announced the repurchase of 4,000,000 shares of Class A Common Stock in the third quarter of 2024 pursuant to a block share purchase agreement with Delta Air Lines (DAL))
  • ASTS -1.6% (U.S. Federal Communications Commission has granted an initial license for space-based operations in the United States)
  • OBE -1.3% (files for 668,933 share common stock offering by selling shareholders)
Analyst comments:
  • MBLY -8% (downgraded to Neutral from Outperform at Exane BNP Paribas)
  • KBH -6.6% (downgraded to Sell from Neutral at Seaport Research Partners)
  • TOL -6.3% (downgraded to Sell from Neutral at Seaport Research Partners)
  • MRNA -5.6% (downgraded to Sector Perform from Outperform at RBC Capital Mkts)
  • PHM -3% (downgraded to Neutral from Buy at Seaport Research Partners)
  • VRTX -2.2% (downgraded to Equal Weight from Overweight at Barclays)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance
:
  • SHC +5%, FRPT +2.3%, BCRX +1.7%, TSN +1.7%, THS +1.2%
Other news:
  • K +19.9% (Mars mulling acquisition of Kellanova (K))
  • ZVRA +16.5% (reports FDA Advisory Committee votes favorably that the data support Arimoclomol as effective treatment for patients with Niemann-Pick Disease Type C)
  • DOV +2.6% (increases quarterly cash dividend to $0.515/share from $0.51/share)
  • OCGN +1.2% (announces FDA approval of expanded access program for patients with retinitis pigmentosa)
  • TWKS +1.2% (to be taken private by Apax Funds for $4.40/share, also reported earnings)
Analyst comments:
  • LMT +1.5% (upgraded to Outperform from Sector Perform at RBC Capital Mkts)
  • CE +1.1% (upgraded to Neutral from Underweight at JP Morgan)

>>> US Research Calls I

Research Calls I
  • Upgrades:
    • Cboe Global Markets (CBOE) upgraded to Neutral from Underweight at JP Morgan; tgt raised to $195
    • Celanese (CE) upgraded to Neutral from Underweight at JP Morgan; tgt lowered to $130
    • Diamondrock Hospitality (DRH) upgraded to Buy from Neutral at Compass Point; tgt $10
    • EPR Properties (EPR) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $50
    • Essent Group (ESNT) upgraded to Outperform from Mkt Perform at Keefe Bruyette; tgt raised to $70
    • First Business Financial (FBIZ) upgraded to Buy from Neutral at DA Davidson; tgt raised to $50
    • Five9 (FIVN) upgraded to Buy from Underperform at BofA Securities; tgt $63
    • Gulfport Energy (GPOR) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $160
    • Kellanova (K) upgraded to Outperform from Neutral at Exane BNP Paribas; tgt $74
    • Lockheed Martin (LMT) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $600
    • Prosperity Bancshares (PB) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $86
    • Renasant (RNST) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $40
    • Robinhood Markets (HOOD) upgraded to Neutral from Sell at Citigroup; tgt $18
    • Valley National (VLY) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $9.50
  • Downgrades:
    • Academy Sports + Outdoors (ASO) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $53
    • Albemarle (ALB) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $85
    • CACI Intl (CACI) downgraded to Mkt Perform from Outperform at Raymond James
    • Cullen/Frost (CFR) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt raised to $121
    • Extra Space Storage (EXR) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $155
    • KB Home (KBH) downgraded to Sell from Neutral at Seaport Research Partners; tgt $65
    • Lennar (LEN) downgraded to Neutral from Buy at Seaport Research Partners
    • LGI Homes (LGIH) downgraded to Sell from Neutral at Seaport Research Partners; tgt $85
    • Lloyds Banking (LYG) downgraded to Neutral from Buy at Citigroup
    • Meritage (MTH) downgraded to Sell from Neutral at Seaport Research Partners; tgt $153
    • Middlesex Water (MSEX) downgraded to Neutral from Outperform at Robert W. Baird; tgt $58
    • Mobileye Global (MBLY) downgraded to Neutral from Outperform at Exane BNP Paribas; tgt $17
    • Moderna (MRNA) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $90
    • Prologis (PLD) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt raised to $127
    • Public Storage (PSA) downgraded to Neutral from Buy at BofA Securities; tgt $318
    • PulteGroup (PHM) downgraded to Neutral from Buy at Seaport Research Partners
    • RLJ Lodging Trust (RLJ) downgraded to Neutral from Buy at Compass Point; tgt lowered to $10
    • TELUS International (TIXT) downgraded to Underperform from Buy at BofA Securities; tgt lowered to $4
    • Toll Brothers (TOL) downgraded to Sell from Neutral at Seaport Research Partners; tgt $108
    • Vertex Pharma (VRTX) downgraded to Equal Weight from Overweight at Barclays; tgt raised to $509
    • Webster Financial (WBS) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt raised to $57
  • Others:
    • MKS Instruments (MKSI) initiated with an Overweight at Morgan Stanley; tgt $155
    • Praxis Precision Medicines (PRAX) initiated with an Outperform at Oppenheimer; tgt $134

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • ZVRA +23.3%, OCGN +2.9%, TRML +1.8%, FRPT +1.7%, TLT +0.6%, PKBK +0.5%
  • Gapping down:
    • COIN -14%, RIOT -12.4%, BITF -11.5%, AMC -8.9%, AGEN -6.4%, SMH -6.3%, ALTM -5.9%, CG -5.9%, GMAB -5.4%, XLK -5.3%, UUUU -5.1%, IWM -4.9%, QQQ -4.6%, IGV -4.4%, SLV -4.3%, OXY -3.9%, BNTX -3.7%, VIRT -3.6%, NEP -3.2%, SPY -3%, JPM -2.9%, FNKO -2.9%, PHG -2.8%, TLN -2.4%, USO -2.2%, INFN -2.2%, DIA -2%, BECN -1.6%, YOU -1.6%, INST -1.3%

>>> Woodside Energy Group to acquire 100% of OCI Clean Ammonia Holding B.V., (17

Woodside Energy Group to acquire 100% of OCI Clean Ammonia Holding B.V.,
  • Woodside has entered into a binding agreement to acquire 100% of OCI Clean Ammonia Holding B.V., and its lower carbon ammonia project in Beaumont, Texas (Project) for an all-cash consideration of approximately $2,350 million. The Project is under construction and targets production of first ammonia from 2025 and lower carbon ammonia from 2026. The consideration is inclusive of capital expenditure through completion of the first phase.
  • The Project is located on the US Gulf Coast (Beaumont, Texas) and can serve customers domestically and internationally. Phase 1 has a design capacity of 1.1 Mtpa and is under construction. First ammonia production, derived from natural gas, is targeted for 2025. Lower carbon ammonia production, derived from natural gas paired with carbon sequestration, is targeted for 2026 following commencement of CCS operations. The facility is designed to accommodate a second 1.1 Mtpa production train (Phase 2).
  • Phase 2 remains pre-final investment decision (FID). Woodside will target FIDreadiness for Phase 2 in 2026 with an expected gross capital expenditure range of $1.2 - 1.4 billion.
  • Under the transaction, Woodside will acquire 100% of the equity of OCI Clean Ammonia Holding B.V., which indirectly wholly owns the Project, from OCI N.V. (together with its affiliates: "OCI"). The Project is subject to cost, schedule and performance guarantees from OCI. This means that OCI will manage the construction of the Project through provisional acceptance, will fund Project costs through Project completion and has agreed to liquidated damages for certain delays, reducing cost and schedule risk. The transaction includes the transfer of experienced personnel with start-up, operational, maintenance and technical capabilities for the operation of the asse.

>>> Europe : Brokers Upgrades & Downgrades - 5th of August 2024 V3(++)

>>> Up
* Celanese Raised to Neutral at JPMorgan; PT $130
* Datalogic Raised to Accumulate at Banca Akros (++)
* Enersense Raised to Accumulate at Inderes; PT 3.40 euros
* Jardine Matheson Raised to Buy at Citi; PT $40.50
* Koskisen Raised to Buy at OP Corporate Bank; PT 8.30 euros (++)
* Lockheed Raised to Outperform at RBC; PT $600
* Maersk Raised to Hold at DNB Markets; PT 11,500 kroner (+)
* MARR SpA Cut to Hold at Kepler Cheuvreux; PT 11.50 euros (++)
* Meyer Burger Raised to Hold at Research Partners (++)
* Rolls-Royce PT Raised to 675 pence from 600 pence at BofA (++)
* VAT Raised to Equal-Weight at Barclays; PT 399 Swiss francs

>>> Down
* Albemarle Cut to Neutral at Baird; PT $85
* Almawave Cut to Accumulate at Banca Akros (++)
* Greggs Cut to Hold at HSBC; PT 3,350 pence
* Interroll Cut to Underperform at BNPP Exane
* Kempower Cut to Neutral at BNPP Exane; PT 17 euros
* Lloyds Cut to Neutral at Citi; PT 60 pence
* Mercialys Cut to Neutral at Kempen & Co; PT 12.50 euros (++)
* Mobileye Cut to Neutral at BNPP Exane; PT $17
* Pennon Cut to Equal-Weight at Barclays; PT 685 pence
* Prudential Cut to Hold at Deutsche Bank (+)
* Severn Trent Cut to Equal-Weight at Barclays; PT 2,500 pence
* Tenaris ADRs PT Cut to $34 from $36 at Morgan Stanley
* United Utilities Cut to Underweight at Barclays; PT 975 pence
* Volvo PT Cut to 255 kronor from 280 kronor at BofA (++)

>>> Initiation
* Daetwyler Rated New Buy at Kepler Cheuvreux; PT 210 Swiss francs (++)
* Haugesund Sparebank Rated New Hold at Norne Securities (+)
* Verbio SE Rated New Buy at mwb research AG; PT 30 euros (++)

>>> Call
* Lloyds Cut to Neutral at Citi, NatWest New UK Domestic Bank Pick

WSJ : Ecstasy Drug Trials Missed Suicidal Thoughts of Subjects

Ecstasy Drug Trials Missed Suicidal Thoughts of Subjects
Participants in studies of the psychedelic, which is up for U.S. approval, tell WSJ they felt pressure to report positive outcomes

Studies being used to decide whether the U.S. should authorize an ecstasy-based drug for traumatized patients missed serious side effects and were marked by bias.

The Food and Drug Administration is expected within days to decide whether to approve the drug, known as MDMA, for treatment of post-traumatic stress disorder. Approval would be a milestone in decades of efforts to decriminalize the use of psychedelics.

Three people who were subjects in the studies told The Wall Street Journal that their thoughts of suicide worsened during or after testing, but their downward slides weren’t captured in trial data and therefore not reflected in the final results.

The study subjects said they felt pressure to report positive outcomes, because that would lead to a history-making drug approval. They also said they could tell they had taken ecstasy during the studies, though gold-standard drug trials are supposed to mask whether a subject got the drug candidate or a placebo.

“I wanted the miracle cure,” said Sarah McNamee, one of the subjects. She said the therapists conducting the trial did, too. “My therapists made it really clear that they really really believed in this thing.”

Lykos Therapeutics, the company sponsoring the studies, recruited researchers conducting the testing from the ranks of therapists who had given ecstasy illicitly and advocated for the drug’s use, according to people familiar with the matter. Some researchers conducting the trials ran underground therapeutic ecstasy sessions on the side. MDMA is illegal to use outside of certain specific situations, mainly scientific research.

The company said any issues voiced by a small number of study subjects shouldn’t undermine the overall study results. Lykos said it planned the trials in collaboration with the FDA, and that boards of independent trial overseers approved the designs. The company said an independent committee of study experts monitored the ethics and safety of the trials.

Lykos also said it didn’t recruit therapists or patients from the ecstasy underground and wasn’t aware of any therapists who were giving ecstasy illegally while conducting the trials, which were evaluating whether a combination of Lykos’s drug and mental-health therapy safely treated PTSD.

“We really feel that they are sound,” said Lykos Chief Executive Amy Emerson. “The data is reliable.”

FDA staffers have questioned the quality of the study results. Experts advising the agency recommended against approval, saying more safety and effectiveness evidence was needed. The Institute for Clinical and Economic Review, a nonprofit that reviews drugs and their prices, said the evidence was incomplete.

The FDA told its advisers that it is looking into allegations of study misconduct and missing side effects. It told the Journal that it can’t comment on investigations until they are final, but its findings will be incorporated into its decision on the Lykos treatment.

Problems with the trials mean the FDA might not be able to assess whether the treatment is safe and effective for everyone, or just some people, said experts advising the agency and bioethicists who spoke to the Journal about its findings.

“We have to be able to rely on the data. That’s all we have,” said Holly Fernandez Lynch, an associate professor of medical ethics at the University of Pennsylvania. “We can’t approve drugs on the basis that people think they work.”

Lykos’s study of its drug-therapy combination has been troubled. One subject of an early trial alleged in a lawsuit and told FDA advisers that she was sexually assaulted and abused at the hands of married therapists overseeing her participation in the trial. Videos from her clinical trial sessions showed both her male and female therapists holding her closely while lying together on a bed. The parties agreed to dismiss the lawsuit, but the terms weren’t disclosed.

Lykos has said that what happened was malpractice and that it cut ties with the therapists.

Veterans urge approval
MDMA, or midomafetamine, is a synthetic drug that acts as both a psychedelic and a stimulant, affecting hormones in the brain. For decades, it has been used illegally, at parties and raves.

Supporters have long theorized the drug could be a helpful treatment for mental-health conditions such as post-traumatic stress disorder. They formed a movement pushing for legalization of psychedelics and have conducted underground therapy sessions or retreats with the drug.

An estimated 13 million Americans, including veterans and victims of sexual assault, suffer from PTSD. The few available medicines approved for treatment don’t work in many patients. Groups supporting veterans, who face high levels of suicide, have pressed the FDA to approve the MDMA drug.

To assess whether its drug-therapy combination worked safely, Lykos sponsored a number of trials. Among them were two final-stage studies, enrolling nearly 200 subjects with either severe or moderate PTSD, that the FDA agreed to review to decide whether to approve the treatment.

The studies evaluated subjects for 18 weeks of treatment with drugs—or a placebo—and psychotherapy. Some subjects completed a separate, follow-up study months afterward.

During the 18-week trials, Lykos said, most of the study subjects who received MDMA therapy improved significantly on an assessment of their PTSD symptoms. Some no longer qualified for their original diagnosis. The company said side effects were mostly mild to moderate, and transient.

In the long-term study, the positive effects from the initial MDMA treatments endured, for some patients as long as two years later, the company said.

“It was incredibly healing,” said Wade Kodrin, an Army veteran who was in one of the studies. He said the drug therapy helped far more than a decade of other therapies and treatments he had tried for his PTSD.

Suicidal thoughts
Other patients said the treatments made them feel worse overall. McNamee, from Montreal, said the drug therapy made her feel as if she was “cracked open” and resurfaced memories from various traumatic events in her life. For about a year after, she said, she spent her days trying not to attempt suicide.

To measure how McNamee and other subjects fared during testing, researchers asked a series of standardized questions. The Wall Street Journal reviewed the scores from McNamee’s interviews. The scores indicated McNamee got better.

That was partly because the scores measured, under the trial’s design, McNamee’s symptoms related to one traumatic experience only. Those symptoms, including nightmares related to the trauma, improved. Yet she said she spiraled downward while thinking of other traumatic events.

Pressure to report positive results also played a role, McNamee said. Therapists conducting the studies told her she was helping make history.

“It made me feel like I belonged to something bigger than me, and it also made me feel like I had a serious responsibility to make sure that other people could get access,” she said.

Two other study subjects, who declined to be named because talking about their MDMA use in the trials could hurt their employment or relationships, said they had suicidal thoughts after getting the drug therapy as part of the trials. They didn’t fully report that to researchers, they said, because they felt pressure to support the therapy’s approval.

They said they thought their negative symptoms could impede the drug’s progress toward legalization, which they felt was important.

Both of the subjects said their mental health worsened after the trial ended and researchers were no longer collecting data.

One of the subjects said she didn’t join the long-term study because she felt unable to function, was depressed and had suicidal thoughts.

The other subject, who participated in the long-term study, said she didn’t report that she had become more suicidal after the initial trial had ended. The study questions, she said, focused on the previous several months during which she felt better, and not on the full amount of time since the trial when she was at her lowest. Lykos said it asked about the worst suicidal points.

Bioethicists said studies should make sure all serious side effects are reported to determine whether a drug candidate is safe.

Pressuring study subjects to report positive results is “a serious problem to me. That’s not how you’re supposed to do science,” said Jonathan Kimmelman, a bioethicist at McGill University.

Lykos said it monitored suicidal thoughts and actions regularly throughout the trials to check on subjects’ safety. It said specially trained professionals, who looked out for subjects playing down or overplaying symptoms, conducted the interviews evaluating the effectiveness of the drug therapy.

Lykos also said it reported any significant increases in suicidality to the FDA and that most of the patients had a history of suicidal thoughts.

“An important thing to remember is that this is a very sick population of people that we’re taking care of,” said Dr. Alia Lilienstein, senior medical director for Lykos.

Studies of people taking experimental medicines are highly regulated to minimize bias and accurately assess whether a drug works safely. To reduce the risk that either researchers or subjects selectively report results, the FDA usually requires the random assignment of the study drug or placebo.

Most subjects could easily tell, given the drug’s hallucinogenic effects, whether or not they had received a placebo, according to a Lykos survey of study subjects.

The awareness could have affected the study’s findings, FDA staffers said in their review of the results: It “can introduce bias in clinical studies.”

Therapists who believe
The trials were run by therapists who spoke about the benefits of the MDMA drug, according to people familiar with the studies.

“You want to make sure that the therapists are very, very clear that they should not be implying to people that it’s globally important what the results of the trial are and encouraging people to have favorable outcomes,” said Dr. David Rind, ICER’s chief medical officer.

Lykos said any scientists conducting clinical trials have hope and optimism that their treatment will work, and its scientists had good reason to think the drug would help patients, given its use in therapy in the 1970s before it was made illegal.

Lykos also said the researchers who interviewed subjects didn’t know whether a subject took the MDMA drug or a placebo and never interviewed the same subject twice.

“The procedures that we use in our studies went beyond industry standard practices for reducing potential bias—well beyond,” Lilienstein said.

Some investigators on the Lykos trials offered “underground” psychedelic sessions while they oversaw the trials, people familiar with the situations said. One person said he hired a therapist on a Lykos trial to guide him in an underground MDMA session while the clinical trials were running.

The nonprofit Multidisciplinary Association for Psychedelic Studies, or MAPS, which spun off Lykos in 2014 and is the primary shareholder in the company, referred some callers seeking treatment to underground psychedelic therapy while Lykos sponsored FDA-regulated clinical trials, said former employee Ifetayo Harvey.

“It was like, ‘Yes, we’re doing this aboveboard, but we also know the treatment is effective, so we also have these underground folks doing it,’ ” said Harvey, an executive assistant at MAPS in 2015 who now runs a nonprofit urging more racial diversity in psychedelic clinical trials.

Bioethicists said companies sponsoring drug trials shouldn’t separately direct people to use an illegal product, though it wouldn’t necessarily affect the quality of the study results.

A spokeswoman for MAPS said the organization doesn’t refer people to treatment.

Rick Doblin, founder of MAPS and a board member of Lykos, said there was no overlap between the trials and the underground. He said therapists were recruited based on their experience helping patients.

WSJ : Thrive Capital Raises $5 Billion for Venture Funds on Heels of OpenAI Bet

Thrive Capital Raises $5 Billion for Venture Funds on Heels of OpenAI Bet
The fundraising reflects optimism over artificial intelligence despite the startup sector’s broader struggles

Thrive Capital raised $5 billion for its largest-ever pair of venture-capital funds, a sign of how the AI boom is encouraging some startup investors to go big again after a period of retrenchment.

On Sunday, Thrive told its investors that it had received commitments for the full amount, which marks its biggest-ever fundraising and is among the largest completed this year by a venture firm. The New York-based firm last raised $3 billion two years ago.

Thrive, founded 15 years ago by Josh Kushner, has gained greater prominence in Silicon Valley startup circles thanks to its close relationship with OpenAI, the ChatGPT maker helmed by CEO Sam Altman that kicked off the AI boom. Thrive first backed OpenAI in April 2023 and has invested hundreds of millions of dollars into the startup. Thrive also has invested in other AI startups recently, including Scale AI, and non-AI firms such as the movie studio A24.

The venture firm’s new fundraising haul is a bet on the future of the venture-capital industry, which is still reeling from the tech crash of two years ago. At the time, interest rate increases dried up the funding that had propelled a long bull run in startup valuations, which caused many startups to scale back or close shop.

Few companies in the past two years have managed the kind of successful exits that deliver returns to venture investors, because of a sluggish IPO market and antitrust scrutiny that has dampened acquisitions. Some venture firms scaled back the size of their funds after struggling to garner interest from investors.

Venture capitalists lately have been focusing their attention on AI, a technology that they overwhelmingly say will produce a transformation at least as important as the internet. The excitement fueled an investment frenzy, with AI startups often getting funding before they had a business plan or formal name. Earlier this year, top venture firms including Andreessen Horowitz and Benchmark rebranded some of their funds to signal a renewed focus on the technology.

So far, the costs required to train generative AI models have vastly exceeded the revenue coming from the technology. Once-leading AI startups, including Inflection and Adept, have also resorted to bailouts from big tech firms after struggling to find a market for their products.

Led by Kushner, Thrive made AI a focus of its fundraising pitch. The firm touted its close relationship with OpenAI to investors and said the company helped it win a recent investment into the robotics startup Physical Intelligence.

Since Kushner, now 39 years old, founded Thrive, the firm has backed technology companies including Instagram, GitHub, and Spotify. Thrive was the first investor in Oscar Health, a health insurance firm co-founded by Kushner that went public in 2021. Oscar’s stock is up sharply this year but is still less than half its peak value soon after its debut.

In 2023, Thrive raised around $1.8 billion to invest into Stripe at a $50 billion valuation—the largest check the firm has ever written. The payments provider is the third-most valuable U.S. startup after Elon Musk’s SpaceX and OpenAI. Thrive first backed Stripe in 2014.

Beyond technology, Kushner has close connections to the entertainment and finance industries. He led the firm’s 2020 investment in Skims, Kim Kardashian’s shapewear brand. In January 2023, a group of investors including Walt Disney CEO Bob Iger and KKR co-founder Henry Kravis bought a minority stake in Thrive in a deal valuing the venture firm at $5.3 billion, The Wall Street Journal reported.

Kushner is married to model Karlie Kloss and is the younger brother of Jared Kushner, the private-equity investor who previously served as a senior White House adviser under former President Donald Trump. Josh Kushner and Kloss purchased Life magazine in March and intend to release its first issue next year.

Thrive’s newest fundraising will be split between a $1 billion early-stage venture fund and a $4 billion fund dedicated to later-stage investments. The firm is a generalist investor, meaning it doesn’t limit itself to backing specific industries. Thrive’s investors have credited the approach for helping the firm steer clear of the crypto startup boom that eventually came crashing down a few years later.

“The technological breakthroughs that will occur over the next years will be unlike anything we have ever experienced before,” Kushner wrote in a letter to announce the funds to Thrive’s investors.