Alternative Investing Report - June 20, 2025

*as of 6/19; Sources: S&P, BTC, FTSE, DJRE, GOLD

The investment management fund Coatue recently released projections for the market caps of the 40 of the top tech firms in 2030 as part of its East Meets West conference. The firm sees steady growth for top companies such as Microsoft and Nvidia, but even more expansion is projected to come from private companies, especially in the AI sector. OpenAI, Databricks and Anthropic are all expected to increase more than 5x in value, as is the payments company Stripe.

➨ TAKEAWAY: These forecasts should all be taken with a grain of salt, but it is interesting to see what companies Coatue is particularly bullish on. It expects some of the biggest names in the pre-IPO world to see significantly faster growth than public companies, highlighting the opportunities available in private markets. Not coincidentally, the firm recently launched a new innovation fund (CTEK) that is available to individual investors with a $50,000 minimum investment.

Julien’s auction of items from the legendary director David Lynch’s personal estate brought in more than $4.5 million, smashing expectations. Highlights included an unfinished “Ronnie Rocket” script and Lynch’s “Lost Highway” script, both of which sold for $195,000 - almost 1000x the pre-sale estimates of $200-$300. Many items went for way above their their estimates, including everyday items like an espresso machine ($45,500 vs. an estimate of $2,000-$3,000) and an apron ($13,000 vs. an estimate of $400-$600).

➨ TAKEAWAY: The auction results showed both the growing market for movie memorabilia as well as the importance of provenance and celebrity ownership. Sure, it might just be an apron, but it’s David Lynch’s apron or dinner plates or paperback books. This passion is especially evident for an artist with a rabid fanbase, and who just recently passed away.

🤖 xAI debt raise: The Elon Musk-led AI startup is raising $5 billion in new debt and is reportedly also raising $4.3 billion in equity, amid reports that the company is burning through $1 billion per month with only $500 million in annual revenue.

⚾ Fanatics Fest guide: The sports and collectibles convention kicks off today at the Javits Center in Manhattan, with dozens of panels, a number of notable athletes signing autographs, a $200 million collectibles display, and the Fanatics Games, where fans can compete for $2 million in prizes.

🚀 Self-driving fundraise: Applied Intuition raised a $600 million round at a $15 billion valuation, more than doubling its valuation from a year ago, as the self-driving sector stays hot.

🏀 Lakers sale: In a surprise move, a majority stake of the Los Angeles Lakers is being sold at a $10 billion valuation, the highest ever for a sports franchise. The new owner, Mark Walter, also owns the Los Angeles Dodgers and has minority stakes in the WNBA’s Los Angeles Sparks, the MLS team LAFC and the NFL’s Washington Commanders.

🏢 CRE warning: The global watchdog Financial Stability Board warned that the global commercial property market is more vulnerable to a downturn than other assets due to falling demand for office and retail properties, high levels of debt, and a lack of transparency.

💵 PE sitting on assets: Private equity firms are holding approximately $1 trillion in assets that would usually have been sold off in a normal market cycle, but high interest rates and economic uncertainty have contributed to a slowdown in exit activity.

Monday: 💵 Private fund performance
Tuesday: 🪙 Tron IPO, 🏀 Caitlin Clark cards
Wednesday: 🪙 Stablecoin bill, 🏡 Rental market
Thursday: 📊 Fed rate decision, 🎨 Art Basel

Have a great weekend!