Alternative Investing Report - October 16, 2025

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*as of 10/15; Sources: S&P, BTC, FTSE, DJRE, CL50

Ohio-based auto parts manufacturer First Brands filed for bankruptcy in late September, the type of event that normally wouldn’t register for private market investors, but the ramifications are spreading. The company has received more than $10 billion in private credit loans from firms such as UBS and BlackRock, and there are more than $2 billion of funds missing. Its CEO just resigned, and the Department of Justice is now investigating the firm for accounting irregularities and its dealings with creditors.

➨ TAKEAWAY: While it would have a relatively minor effect on the private credit market as a whole if First Brands defaults on all its obligations, it is an example of how the largely unregulated and opaque market can have hidden risks. Chasing higher returns on debt leads to riskier loans and opens up exposure to potential bad actors. It also highlights the need for robust due diligence on the part of lenders, but also on the part of investors to select the right lenders and fund managers.

Vincent's Slava Rubin and Sacra's Jan-Erik Asplund discuss the current state and future prospects of SpaceX, exploring its growth trajectory, revenue streams, and the impact of its Starlink internet service. The discussion also covers the technological advancements with Starship, the competitive landscape in the space industry, and the investment opportunities and risks associated with SpaceX.

📊 CPI report delay: The crucial inflation report was due to be released yesterday, but due to the government shutdown it’s scheduled to come out next Friday October 24, in advance of the Fed meeting at the end of the month.

🤖 Anysphere eyeing new raise: The startup behind the AI coding software Cursor is in talks to raise a $1 billion round at a valuation of $30 billion, more than triple its last valuation in June, which already made it one of the fastest growing startups in history.

🚀 Big biotech raise: The biotech startup Kailera Therapeutics, which is focused on obesity drugs, raised a $600 million Series B, tied for the largest biotech raise of the year.

🏡 Florida market struggling: The government shutdown is hitting the Sunshine State’s housing market particularly hard, as flood insurance policies, construction permits, and federal loans are all at a standstill.

🪙 Coinbase invests in Indian exchange: The U.S.-based crypto exchange increased its stake in CoinDCX, now valuing the latter at $2.45 billion, just months after CoinDCX was hacked and had $44 million in assets stolen.

🥃 Distillers one of one auction: The prestigious whiskey auction brought in $3.9 million, nearly double its pre-sale high estimate, with the biggest sale coming from a bottle of 60 year-old Glenlivet that went for $870,000.

It can feel like a dystopian science-fiction scenario, but like it or not, many people are turning to AI chatbots for companionship to battle loneliness. This trend has led to tragic outcomes in some situations involving children and teenagers. Now, California has become the first state to regulate AI chatbots, requiring companies to enact age verifications among other safety protocols. It’s something other states and the federal government are likely to address, especially as OpenAI just announced that it will allow X-rated chat for adult users, a controversial step that could negatively affect vulnerable users. It will be hard to police, and anyone who has ever used the Internet knows that age verification tools can be easily circumvented. Yes, it will increase engagement and user numbers, but this is a short-term gain with potential negative long-term ramifications.