WSJ : Former Allianz Fund Manager Pleads Guilty to Defrauding Investors

Former Allianz Fund Manager Pleads Guilty to Defrauding Investors
Gregoire Tournant, the former chief investment officer at Allianz Global Investors U.S., pleaded guilty to two counts of investment adviser fraud


A former Allianz fund manager who ran the investment group responsible for steep losses the firm suffered during the 2020 market meltdown sparked by the Covid-19 pandemic pleaded guilty to fraud charges.

Gregoire Tournant, the former chief investment officer at Allianz Global Investors U.S., pleaded guilty Friday before Judge Laura Taylor Swain in the U.S. District Court for the Southern District of New York to two counts of investment adviser fraud. He also agreed to forfeit about $17 million as part of his plea. He faces up to 10 years in prison and will be sentenced on Oct. 16.

Tournant, 57, of Basalt, Colo., has faced conspiracy, securities fraud, investment adviser fraud and obstruction of justice charges since 2022.

Prosecutors in Manhattan alleged that the set of Allianz Global Investors’ private funds co-managed by Tournant suffered losses of more than $7 billion during the March 2020 market selloff. The funds were eventually shut down.

Tournant and his co-conspirators allegedly also misled investors, largely institutional investors such as large pension funds, by marketing the funds as protected from a sudden market crash with particular hedges. He also touted the protections the funds received within Allianz, one of the world’s largest financial and insurance companies.

Attorneys for Tournant and a spokeswoman for the federal prosecutors’ office in the Southern District of New York declined to comment.

Based on the findings the firm shared with U.S. authorities, the case against Tournant appeared strong, said a person with knowledge of Allianz’s thinking, adding that the firm is pleased that Tournant is “finally taking ownership for the deception he led.”

Friday’s guilty plea capped a contentious proceeding with Tournant as part of the investigation into one of the biggest early casualties of the stock market crash caused by the coronavirus. Investors, including pensions that managed the retirement plans of Arkansas teachers, Milwaukee city employees and New York City subway workers, lost billions on the funds.

Tournant last year accused federal prosecutors in the case of committing ethical breaches by turning his own lawyers against him. He said prosecutors encouraged lawyers that were acting both for the firm and for him personally to later switch sides and use his privileged communications to help build a false narrative against him. Judge Swain in August declined his request to throw out fraud charges against him, citing the terms of a joint defense agreement the executive entered into with the firm’s counsel.

Allianz Global Investors U.S. in May 2022 pleaded guilty to securities fraud and agreed to pay about $6 billion in penalties and restitution to investors of the funds, known as Structured Alpha funds. The firm also admitted it lacked internal controls and oversight for a series of private-investment funds and made false and misleading statements to investors, according to a plea agreement reached with the U.S. attorney’s office in Manhattan.

Two former Allianz Global Investors U.S. employees also pleaded guilty in March 2022 in connection with the scheme, according to the Justice Department.

>>> Weekly Market Update

Weekly Market Update: Major central banks start cutting rates; Fed lags behind as data remains inconclusive

Stocks and risk sentiment in general held onto positive momentum this week as the run of incoming weak US data renewed concerns about the growth outlook. Markets moved back to pricing in two Fed rate cuts by year end-2024, helped in some part by the Bank of Canada and ECB which each jumped into the pool by cutting rates for the first time in years. The ECB cut was portrayed in a hawkish light after reports suggested the hawks had their arms twisted by the forward guidance already priced into the market when they voted to support a rate cut on Thursday. Separately, oil prices after falling for 5 straight sessions, found some footing mid-week, moving up from the lowest prices since February in the wake of OPEC+ extending oil production cuts by 3 months through the end of 2025.

Nvidia served as the poster child for risk on sentiment, surpassing $3T in market cap ahead of the stock split set to take effect after the close of trade on Friday. GameStop, on the other hand, suggested some caution maybe warranted on exuberance. Shares surged back towards the meme stock highs from a few years ago after Keith Gill (aka Roaring Kitty) appeared to disclose a large options position on social media. Shares would whipsaw around on Friday after the company announced a large secondary offering ahead of a rambling YouTube presentation from Gill in which he reiterated his support for GameStop management but admitted "I could be wrong about stuff." For the week, the S&P gained 1.3%, the DJIA edge up 0.3%, and the Nasdaq added 2.4%.

US Treasury yields fell to the lowest levels in the last 2-months. Economic data supported the expanding narrative that higher rates have finally started to bite into growth. JOLTS job openings decelerated noticeably in April to the lowest level since early 2021. ADP employment data pointed to noticeable deceleration in wage gains for jobs changers, as well as, notable pockets of weakness tied to both producers and consumers. May ISM manufacturing data missed expectations and new orders fell to the lowest levels in nearly a year. ISM Services data was better than expected, as prices paid came in, offsetting some of the growing concerns around growth and sticky inflation. Nevertheless, softer economic readings were paired with additional corporate commentary which highlighted growing pockets of deflation that executives are being forced to deal with particularly when it comes to discretionary spend and low-income consumers.

The hints of softness in the secondary labor market indicators seen early in the week did not carry over to the May BLS employment report. The head scratching dichotomy between the establishment and household surveys remained patently evident with non-farm payrolls topping all analysts’ expectations at +272K, as the household survey saw a decline of 408K jobs. While the unemployment rate rounded up to 4.0%, average hourly earnings surprised on the high side. Treasury yields backtracked higher in the wake of the data alongside a move higher in the dollar. Futures markets saw the odds of a September Fed cut fall to 60% from 80%.


MON 6/3
(DE) GERMANY MAY FINAL MANUFACTURING PMI: 45.4 V 45.4E (confirms 23rd month of contraction); New Orders highest in 2 years
(IT) ITALY MAY MANUFACTURING PMI: 45.6 V 48.0E (2nd month of contraction and lowest since Dec 2023)
(US) Citi Early-June Economic Surprise Index -4.1 v -10.9 prior (continue to bounce from the lowest level since Sept 2022 reached in early May)
(US) MAY ISM MANUFACTURING: 48.7 V 49.6E; PRICES PAID: 57.0 V 59.5E
AIR.FR Reports May deliveries 50 v 61 m/m; May YTD deliveries 253 (Note: FY24 guidance of 800)
INTC Unveils flagship processor for the next generation of AI PCs, Lunar Lake, expected to ship in Q3 2024; Also unveils new Xeon 6 data center processors with more efficient cores and Intel Gaudi 3 accelerators, projected to offer up to 40% faster time-to-train versus the equivalent size Nvidia H100 GPU cluster
MAERSKB.DK Raises FY24 EBITDA $7-9B, EBIT $1-3B, FCF ~$1B (prior: EBITDA $4-6B, EBIT -$2B to $0B, FCF -$2.0B or higher); Seeing additonal increase in container freight rates
JBLU Raises lower-end Q2 ASMs -4.0% to -2.0% (prior -5.0% to -2.0%), Rev -9.5% to -6.5% (prior -10.5% to -6.5%); Continues to experience healthy overall demand trends, in-line with expectations
TSM *CEO/Chairman: Affirms Q2 and FY24 outlook; Weighs raising production fees for Nvidia; Reiterates 'healthy' growth year expected for 2024; Does not want to buy back stock or do stock split; Had conversions with customers about moving fabs due to China-Taiwan tensions - shareholders' meeting
TTF Recent strength in gas futures being attributed to Norwegian gas system operator Gassco increased planned gas outage due to some incident at the Sleipner Riser platform on June 2nd; It may be linked to a section of pipeline that needs to be replaced

TUES 6/4
(EU) ECB will demand more CRE loan provisions from some German banks – press
(DE) GERMANY MAY NET UNEMPLOYMENT CHANGE: +25.0K V +7.0KE; UNEMPLOYMENT CLAIMS RATE: 5.9% V 5.9%E
(DE) Parts of the river Rhine in south Germany remained closed to cargo shipping on June 4th after heavy rain in south Germany increased water levels; Shipping on northern sections of the river is operating normally – press
(IN) India SENSEX and Nifty 50 indices -5%; Adani falls -15%, Adani Power -17%, Adani Ports -20% on India election jitters
(IN) India SENSEX and Nifty 50 indices continue selloff, down -7% as updated election polls indicate closer result for Modi than initially thought
(JP) JAPAN APR LABOR CASH EARNINGS Y/Y: 2.1% V 1.8%E
(JP) BOJ REPORTEDLY TO CONSIDER CUTTING BOND PURCHASES AS EARLY AS JUNE 13-14TH'S MEETING; to watch markets until the last moment before deciding on bond purchases – press
(US) Atlanta Fed GDPNow: Cut Q2 GDP forecast to 1.8% from 2.7% prior and 4.2% month ago (update)
(US) APR FACTORY ORDERS: 0.7% V 0.6%E
(US) APR FINAL DURABLE GOODS ORDERS: 0.6% V 0.7%E; DURABLES (EX-TRANSPORTATION): 0.4% V 0.4%E
(US) US Pres Biden: Reiterates his stance will Not rule out using US forces to defend Taiwan; Peace looks like making sure Russia never, never, never, never occupies Ukraine - Time interview
(US) Tier1 analysts on call with Associated General Contractors of America to discuss construction outlook: Have been getting back to period where input costs have bene rising and bid costs have been declining over the past 12 months; Leading producers indicating prices to continue increasing in July
CRWD Reports Q1 $0.93 v $0.89e, Rev $921M v $905Me; Raises outlook
GTLB Exec: There weren't any major macro changes from Q4 to Q1. Sales cycles and discounting were consistent. The macro continues to be cautious - conf call (update)
NVDA CEO: My interest remains in using Intel fabs for Nvidia chips; Working on qualifying Samsung and Micron HMB; Refutes Samsung HBM has failed any Nvidia tests - Computex conf comments [***Note: Nvidia has so far exclusively sourced HBM3E chips from SK Hynix]
SON Raises prices for core board and paperboard in the rest of Europe citing input costs have continued to rise beyond its initial estimation; valid for all shipments after 1st July, 2024

WED 6/5
(CA) BANK OF CANADA (BOC) CUTS INTEREST RATES BY 25BPS TO 4.75%; AS EXPECTED
(EU) European Commission is expected to levy provisional duties on made-in-China electric vehicles from July 4th; Rate to be disclosed next week - SCMP [**Note: The legal deadline for introducing provisional measures such as tariffs or quotas is July 4th, nine months after EU Commission began its investigation]
(IT) ITALY MAY SERVICES PMI: 54.2 V 54.5E (5th month of expansion); Notes continued sharp rise in input prices
(RU) Russian Pres Putin: Reiterates Russia will not attack NATO; Russia could arm countries with a view to attacking Western targets; Also Russia could deploy conventional missiles within striking distance of the US and its European allies if they allowed Ukraine to strike deeper into Russia with long-range Western weapons - first face-to-face meeting with senior editors of international news agencies since the war in Ukraine began
(US) DOE CRUDE: +1.2M V -1.5ME; GASOLINE: +2.1M V +1ME; DISTILLATE: +3.2M V +1.5ME
(US) FBI Director Christopher Wray: Now, increasingly concerning is the potential for a coordinated attack here in the homeland, akin to the ISIS-K[horasan] attack we saw at the Russia Concert Hall in March
(US) MAY ADP EMPLOYMENT CHANGE: +152K V +175KE (lowest since Jan); Cites "notable pockets of weakness tied to both producers and consumers"; Says job gains and pay growth are slowing going into H2 2024
(US) MAY FINAL S&P SERVICES PMI: 54.8 V 54.8E (confirms 16th month of expansion)
(US) MAY ISM SERVICES INDEX 53.8 V 51.0E; PRICES PAID: 58.1 V 59.0E
COST Reports May Total SSS +6.5% y/y (ex-gas and FX) v +5.5% prior; US SSS +5.7% (ex-gas and FX) v +5.2% prior
FIVE Reports Q1 $0.60 v $0.62e, Rev $812M v $832Me; Guides Q2 well short and cuts FY24 outlook
ITX.ES Reports Q1 Net €1.29B v €1.17B y/y, EBIT €1.64B v €1.61Be, Rev €8.15B v €7.61B y/y; May 1st-June 3rd Rev (cc) +12% y/y v +7% during Q1
LRCX CFO: Saw early signs of NAND recovery - BoFA Tech Conf comments (update)
NVDA Tier1 analysts on meetings with CFO Colette Kress, VP IR Simona Jankowski and Dir IR Stewart Stecker; Overall tone very positive on demand and expanding customer interest, gated only by supply
ODFL May Revenue per day increased 5.6% y/y; LTL tons per day +1.5% y/y
THO Persistent macroeconomic headwinds continue to impact retail sales in the RV industry; As we look ahead to Q4, we believe dealers will remain hesitant to hold any excess inventory until a sustained positive inflection in retail demand takes hold - prepared remarks

THRS 6/6
(EU) ECB Chief Lagarde: Reiterates not pre-committing to any particular rate path - Prepared Remarks
(EU) ECB UPDATES STAFF PROJECTIONS: Now sees 2025 Inflation above 2% target
(EU) ECB CUTS KEY RATES BY 25BPS; AS EXPECTED; To stay data-dependent, follow meeting-by-meeting approach
(EU) ECB Chief Lagarde: ECB is not close to neutral rate; Not going to tell you until much later in summer if we do something now or at another point in time; Speed and timing is uncertain - Q&A
(JP) Bank of Japan (BOJ) Board Nakamura: Raising rates at next week's meeting would be too early, but hard to say whether it would be premature to taper bond buying at next week's policy meeting; To conduct appropriate policy for price target (2%), though the weak Yen is becoming a 'big issue' - Post speech Q&A
(UK) MAY CONSTRUCTION PMI: 54.7 V 52.5E (3rd month of expansion and 2-year high)
(US) Atlanta Fed GDPNow: Raises Q2 GDP forecast to 2.6% from 1.8% prior and 4.2% month ago (update)
(US) BOFA INSTITUTE: WEEK-TO-JUNE 1TH TOTAL CARD SPENDING -0.4% Y/Y V +0.3% AVERAGE IN APR; Y/y spending growth in many categories was likely impacted by the shift in Memorial Day observance (5/27/24 vs. 5/29/23)
(US) Q1 FINAL NONFARM PRODUCTIVITY: 0.2% V 0.0%E; UNIT LABOR COSTS: 4.0% V 4.9%E
BIG Reports Q1 -$4.51 v -$4.23e, Rev $1.01B v $1.04Be; Notes continued pullback in consumer spending by its core customers, particularly in high ticket discretionary items
DOCU Reports Q1 $0.82 v $0.79e, Rev $710M v $706Me; Affirms FY24 Guidance; Announces $1B share buyback program
FIVE *CEO: If it really was competition, the bifurcation we saw from the first half of the quarter to the second half would have never dropped off instantly because there wasn't an event that was competitive-driven that happened in the middle of the quarter - earnings call (update)
HOFT Reports Q1 -$0.39 v +$0.13 y/y, Rev $93.6M v $11.8M y/y; Notes ongoing weak demand that’s adversely impacting the furniture industry; Consumer sentiment index fell ~10% in May after holding steady for months; Expects a 10% reduction in overall fixed costs, the largest cut in its history
SMG Cuts FY24 adj EBITDA $530-540M (prior $575M) citing season not meeting operating plan for topline sales and adjusted EBITDA; Affirms FCF target of $1B over 2-years, gross margin improvement of 250bps
SON Sonoco-Alcore to raise prices by 7% on all tube and core grades sold in the company’s EMEA regions; "Forced to pass on cost increases to the market, as unable to absorb them any further"
Transpacific Eastbound Ocean Freight Bookings volumes expected to be +10% higher YoY – Flexport

FRI 6/7
(CA) CANADA MAY NET CHANGE IN EMPLOYMENT: +26.7K V +22.5KE; UNEMPLOYMENT RATE: 6.2% V 6.2%E
(CN) CHINA MAY FOREIGN RESERVES: $3.232T V $3.221TE; Essentially halts gold buying for reservesfor the 1st time in 19 months
(CN) China said to push forward a massive equipment upgrade program in the transportation sector with the aim to increase use of NEVs in public transport, improve the structure of shipping capacity and further reduce carbon emissions in the sector by 2028 – press
(CN) China reportedly asks banks to accelerate lending to developers – press
(IN) INDIA CENTRAL BANK (RBI) LEAVES REPURCHASE RATE UNCHANGED AT 6.50%
(UK) MAY HALIFAX HOUSE PRICE INDEX M/M: -0.1% V +0.1% PRIOR; Y/Y: 1.5% V 1.1% PRIOR
(US) APR FINAL WHOLESALE INVENTORIES M/M: 0.1% V 0.2% PRELIM
(US) Atlanta Fed GDPNow: Raises Q2 GDP forecast to 3.1% from 2.6% prior
(US) MAY AVERAGE HOURLY EARNINGS M/M: 0.4% V 0.3%E; Y/Y: 4.1% V 3.9%E
(US) MAY CHANGE IN NONFARM PAYROLLS: +272K V +180KE (above all estimates)
(US) May Manheim wholesale used vehicle Index: 197.3 v 198.4 prior; -1.2% m/m, -12.1% y/y (update)
(US) MAY UNEMPLOYMENT RATE: 4.0% V 3.9%E (highest since Jan 2022)
(US) Q1 FINANCIAL ACCOUNT HOUSEHOLD CHANGE IN NET WORTH: $5.12T V $4.839T PRIOR
2330.TW Reports May (NT$) Rev 229.6B, +30.1% y/y (v 236.0B m/m); YTD Rev 1.06T +27.2% y/y v +26.2% prior
CE Declares force majeure and sales control for acetic acid and vinyl acetate monomer (VAM) sold in the Western Hemisphere due to operational failures experienced by multiple suppliers of critical raw materials; Currently expect U.S. gulf coast production of acetic acid and VAM will be negatively impacted by 15-20%
GME Files to sell 75M of common A shares (~27% of total float)
JILL Reports Q1 $1.22 v $0.96 y/y, Rev $161.5M v $150.2M y/y; Raises outlook citing strong end to the period

>>> SpringWorks Therapeutics receives notice of termination of collaboration and

SpringWorks Therapeutics receives notice of termination of collaboration and license agreement with GSK
  • Co discloses in 8K that it received notice of termination of the Amended and Restated Collaboration and License Agreement, dated September 6, 2022, between SpringWorks and GlaxoSmithKline (GSK).
  • In connection with such termination, SpringWorks expects that GSK will continue the ongoing clinical trials under the License Agreement that include nirogacestat in combination with low-dose belamaf, an antibody-drug conjugate targeting BCMA B-cell maturation antigen in multiple myeloma until completed with respect to the 27 patients currently enrolled in such trials.
  • Once the termination becomes effective, the non-exclusive licenses granted by SpringWorks to GSK under the License Agreement will terminate. Termination does not trigger any payment obligations on the part of SpringWorks or any other material wind-down costs. This termination does not affect SpringWorks' rights to continue developing or commercializing its products or product candidates.

>>> US Close Dow -0.22% S&P -0.11% Nasdaq -0.23% Russell -1.12%

Closing Stock Market Summary
There wasn't a lot of conviction on either side of the tape in the final session of the week. There was an underlying negative bias driving today's movement despite the gains in the major indices through most of the session.

Market breadth favored decliners by a nearly 3-to-1 margin at the NYSE and by an 8-to-3 margin at the Nasdaq.

The downside bias was in response to a sharp jump in market rates. The 10-yr note yield settled 15 basis points higher today, and eight basis points lower this week, to 4.43%. The 2-yr note yield jumped 15 basis points today, which leaves it two basis points lower on the week, to 4.87%.

The price action in Treasuries followed the May Employment Situation Report, which showed higher than expected payroll and earnings growth.

Stocks held up well despite the report and the jump in market rates thanks to ongoing resilience to selling efforts. The equal-weighted S&P 500 closed 0.3% lower and the market-cap weighted S&P 500 fell 0.1%.

Four of the S&P 500 sectors closed higher led by financials (+0.4%) and information technology (+0.2%). The utilities (-1.1%) and materials (-1.0%) sectors logged the largest declines.

In other news, GameStop (GME 29.31, -17.29, -36.0%) shares plunged in response to a disappointing fiscal Q1 earnings report but mainly in response to the company filing to sell up to 75 million shares of Class A common stock. Selling increased after "Roaring Kitty" livestreamed on YouTube today.
  • Nasdaq Composite: +14.1% YTD
  • S&P 500:+12.1% YTD
  • S&P Midcap 400: +5.0% YTD
  • Dow Jones Industrial Average: +2.9% YTD
  • Russell 2000: UNCH YTD

Reviewing today's economic data:
  • May Nonfarm Payrolls 272K (consensus 185K); Prior was revised to 165K from 175K, May Nonfarm Private Payrolls 229K (consensus 168K); Prior was revised to 158K from 167K, May Avg. Hourly Earnings 0.4% (consensus 0.3%); Prior 0.2%, May Unemployment Rate 4.0% (consensus 3.9%); Prior 3.9%, May Average Workweek 34.3 (consensus 34.3); Prior 34.3
    • The key takeaway from the report is embedded in the Treasury market's knee-jerk selloff in the wake of the report: the Fed's inflation concerns won't be placated by this release.
  • April Wholesale Inventories 0.1% (consensus 0.2%); Prior was revised to -0.5% from -0.4%

Looking ahead, there is no US economic data of note on Monday.

FT : Global farmed fish production overtakes wild catch for first time

Global farmed fish production overtakes wild catch for first time
UN agency says aquaculture boom will boost food security but critics say it harms fragile marine ecosystems

The UN agency expects global aquaculture production to surge to 111mn tonnes by 2032 and the amount of caught fish to rise more moderately, reaching 94mn tonnes within the same period. 

The increase would be necessary to provide a growing world population with sufficient protein and ensure food security, said Barange.

Africans consumed only around 9kg of fish per person per year, he noted. Just to maintain that level between now and 2050 amid projected population growth, the aquaculture sector would need to expand by nearly 75 per cent, according to the FAO.

“If we are in the business of feeding people, we have to be able to provide that,” he said, adding that the industry was not only a tool for ending hunger but also provided employment.

Barange rejected claims that aquaculture damaged local ecosystems. “Is the growth in aquaculture putting more impact on the marine environment? The answer to that is fundamentally no,” he said.

Some 40 years ago, as much as 40 per cent of wild-caught fish was used for animal feed but this was now down to less than 20 per cent, he said. In the past, around 3kg to 4kg of fish meal was required to produce 1kg of a farmed fish such as salmon, he added. But different feed formulations meant this was now down to 1kg of fish meal to produce 1.2kg.

On average across all fed aquaculture species, 1kg of fishmeal produced 4kg of fish, and for prawns, shrimps and salmon around 90 per cent of feed was vegetable-based, Barange said. This evolution had allowed aquaculture “to grow without using more fish from the ocean”.

But critics say the industry’s practices for sourcing feed harm food security in poorer countries — hoovering up small species on which communities rely in order to manufacture fish meal for the farms. They also argue that overuse of antibiotics to treat disease in farmed fish is exacerbating the rise of drug-resistant pathogens and that waste from the farms pollutes and harms the environment.

“All food systems have challenges,” acknowledged Barange. But for the FAO, “sufficient, accessible and healthy foods are non-negotiable objectives”.

The UN agency has negotiated new guidelines for sustainable aquaculture, which will be approved by the FAO fisheries committee in Rome next month. These lay out “basic principles for aquaculture, including biosecurity, disease control and limiting environmental impacts”, said Barange.

CrunchBase : Most-Active US Investors In May: Andreessen Horowitz And General Ca

Most-Active US Investors In May: Andreessen Horowitz And General Catalyst Lead Month With A Lot Of Big Rounds

Similar to April, big-named investors dominated investing in U.S.-based startups last month.

Andreessen Horowitz, General Catalyst, Sequoia Capital, Khosla Ventures, Founders Fund and Alumni Ventures led the way in the number of deals, although only a16z hit double digits, with 10 investments.

Just a couple of years ago it was not uncommon for firms to need a dozen or more deals to head up this list. But as the venture market continues to plug along, a smaller amount of deal-making seems to be the preferred route for even the biggest VC firms.

Andreessen Horowitz, 10 deals
May’s total was the most deals for a16z since January — when it took part in 15 financings.

Of course, the biggest deal it took part in was the $6 billion round for xAI, Elon Musk’s generative AI startup. The round, which also included participation from Sequoia, Valor Equity Partners and Fidelity Management & Research Co., values the startup at $24 billion post-money — making it the second-most-valuable VC-backed generative AI company in the world behind only competitor OpenAI.

However, that was not the only big deal a16z completed last month. The firm also co-led cloud security startup Wiz’s massive $1 billion raise at a $12 billion valuation. The round, which also counted Lightspeed Venture Partners and Thrive Capital as co-lead investors, is the biggest cybersecurity round of the year thus far.

In addition, the firm led smaller rounds for AI cancer treatment startup Valar Labs, weapon targeting company ZeroMark, and Rollup, a collaborative platform for hardware.

General Catalyst, 8 deals
General Catalyst led the way in April, but dropped down a few deals in May.
Nevertheless, it did take part in a couple of pretty big rounds. The New York investment firm participated in Karius’ $100 million Series C. The startup helps give genomic insights into infectious diseases.

General Catalyst also co-led — along with 7wire Ventures — San Francisco-based personalized healthcare platform Transcarent’s $126 million Series D that valued the company at $2.2 billion.

Sequoia Capital, Khosla Ventures, Founders Fund and Alumni Ventures, 7 deals each
A quartet of well-known firms each deadlocked at seven deals. Sequoia, Khosla and Founders Fund all made fewer investments in May than they did the previous month, whereas Alumni’s number of deals jumped from April but was still its second-lowest deals amount since at least the beginning of 2023.

Similar to a16z, Sequoia Capital also took part in both xAI’s and Wiz’s huge rounds. It also led a $26.5 million Series B for quantum computing startup Quantum Circuits.

Khosla actually co-led Karius’ previously mentioned $100 million round, as well as Rad AI’s $50 million Series B. The San Francisco-based startup develops software that uses AI to automate radiology report writing.

The largest round Founders Fund participated in was Scale AI’s huge $1 billion round led by Accel that values the data labeling and evaluation startup at a stunning $13.8 billion. However, it also led a $45 million Series B for New York-based Polymarket, a prediction market platform where traders predict future outcomes based on news in real time.

Alumni usually invests in smaller earlier-stage rounds, and that was the model it followed in May with everything being pre-seed to Series A. The only exception was participating in Frore Systems’ big $80 million Series C led by Fidelity Management & Research Co. The San Jose, California-based startup has developed a solid-state active cooling chip — AirJet — that allows users to leverage AI even on the edge of networks or on edge devices without them getting too hot and losing performance.


Also notable:
  • Accel came in next on the list with six deals.
  • Khosla Ventures and Accel led the way in most led or co-led deals in May with four.
  • Accel also led the list for number of rounds led or co-led with the highest dollar amounts, leading or co-leading four rounds that in total were worth almost $1.3 billion.
  • Y Combinator once again was the top investing incubator and accelerator with 10 deals in May.

WWD : LVMH Appoints Deputy Finance Director, Signaling a Succession Plan

LVMH Appoints Deputy Finance Director, Signaling a Succession Plan
Cécile Cabanis is to eventually succeed Jean-Jacques Guiony, who has been the luxury group's straight-talking CFO for 20 years.


Signaling another planned succession at LVMH Moët Hennessy Louis Vuitton, Cécile Cabanis is joining the French luxury giant as deputy finance director, WWD has learned.

Cabanis joins LVMH from Paris-based asset management firm Tikehau Capital, where she has been deputy chief executive officer since 2021, and reports to Jean-Jacques Guiony, chief financial officer.

According to an internal announcement seen by WWD, Guiony “will prepare the progressive handover of his responsibilities to Cécile, ensuring a seamless transition in this essential role for our group. His new responsibilities will be announced in due time.”

The handover echoes Guiony’s history with LVMH. He joined the group in 2003 as deputy finance director and was named chief financial officer the next year.

A graduate of the HEC business school, Guiony started out in 1985 as a research analyst with Banque Nationale de Paris and then with Merrill Lynch in 1988 in London. He joined the mergers and acquisitions department of Lazard Frères in 1990, was named a partner in 1997 and then head of M&A in 2000.

At LVMH, he personally followed some of the group’s biggest acquisitions, including Bulgari in 2011, Loro Piana in 2013, hospitality firm Belmond Ltd. in 2019, and Tiffany & Co. in 2020.

One of the most admired CFOs in Europe, Guiony, 62, is prized for his straightforward and kind manner, steely command of both numbers and soft details, and smooth leadership style.

Behind the scenes, he helped digitalize and automate several processes that streamlined feedback from the group’s various houses, which span from fashion and leather goods to wines and spirits, yielding relevant management tables on a daily basis.

He is currently also chairman and CEO of Samaritaine Paris, a role he has held since 2010.

The Frenchman has been awarded the honorary title of Chevalier de la Légion d’Honneur.

It is understood Guiony was directly involved in the recruitment process to ensure a smooth succession.

An engineering graduate from the Institut National Agronomique Paris-Grignon, Cabanis started her career in 1995 as a logistics manager and financial controller at L’Oréal in South Africa. In 2000, she joined French telecoms giant Orange as deputy director of mergers and acquisitions.

But she is best known for her 18-year career at Danone Group where she held a number of positions in finance and M&A, eventually becoming CFO of the group in 2015.

Cabanis also becomes a member of the LVMH executive committee.