AI needs a lot of energy, and the grid is struggling to keep up. Blackstone’s answer: a billion-dollar investment in a gas plant.

The firm is buying the Hill Top Energy Center, a 620-megawatt facility in western Pennsylvania built in 2021. On the surface, it’s a plain utility deal. In practice, it’s a bid to control the grid…and the most critical input to the AI economy: reliable electricity.

Blackstone has already invested over $25 billion in Pennsylvania’s digital and energy sectors. Hill Top is central to this plan, not just a side project, but the backbone that keeps AI data centers running during peak demand.

The Playbook:

Investor takeaway: The new “picks and shovels” of AI aren’t semiconductors; they’re megawatts. Control the power supply chain, and you don’t just follow the boom… you strategically set its pace.

Arch just secured $52 million from Menlo Ventures and Craft to expand its platform for tracking private funds. The move underscores the demand for tools that make alts easier to access and manage, a space once dominated by opaque spreadsheets.

The angle: As wealth managers shift client money into private markets, the real contest isn't over products, it’s over infrastructure. Whoever owns the pipes will capture the flow.

Carlyle and EQT in final round for Starbucks China  

Two private equity giants are bidding for a stake in Starbucks’ China business. The deal could reach $5 billion in value. The outcome will show if investors still want Chinese consumer assets despite regulatory and political pressure. 

The stakes: If the deal closes, it will prove that brand strength can outweigh risk. For investors, China’s coffee habit may still be worth the bet.

Netley Capital launches $315M “tertiaries” fund

Netley has raised $315 million for a fund targeting “tertiary” deals — older investor positions in private funds that are changing hands yet again. The move adds more liquidity to private markets and gives buyers a chance to step in at a discount.

The signal: Secondaries have matured into a full market of their own. With tertiaries now in play, capital is recycling faster and every layer of private equity is finding a buyer.

U.S. and China outline TikTok deal

Washington and Beijing have agreed on a framework that could keep TikTok running in the U.S. A final deal would lower the risk of a ban that hung over investors, advertisers, and millions of users.

What’s next: The fine print still matters, but the larger point is clear. When hundreds of millions of people use an app, even rivals struggle to pull the plug.

Biotech investors prep for pharma’s patent cliffBy 2030

Big Pharma could lose $180 billion as key drug patents run out. Biotech backers see an opening. Money is flowing into cancer treatments, rare diseases, and new AI tools for drug discovery. 

Investor takeaway: Patent losses may hurt the giants, but they set off buying sprees in biotech. Breakthroughs often come from the outside.

Payment-in-kind (PIK) loans are popping up more often in private credit. Instead of paying interest in cash, borrowers can pay with more debt. The appeal is obvious. For borrowers, it frees up cash when liquidity is tight. For lenders, it keeps the deal alive and interest compounding.

But the risks are just as clear. Strong companies may use PIK as a smart cushion. Weaker ones use it because they have no choice. That line matters. Too much PIK can hide stress until it becomes a crisis.

Investor takeaway:PIK can be a tool or a trap. Used with discipline, it protects cash. Used too much, it signals deeper trouble.

Macro hedge funds are piling into bullish bets on the Australian dollar. Options positions are building as funds wager the rally has more room to run.

Why it matters: The Aussie is more than a currency play. It’s tied to global trade, commodities, and risk appetite. A stronger AUD can lift reported earnings for companies with Australian exposure once profits are converted back into U.S. dollars. A weaker one can cut the other way.

Investor takeaway: Moves in the Aussie ripple far beyond forex desks. For global portfolios, it’s a reminder that currency swings often decide who outperforms on the margins.

- The PMD Team