The Problem of Too Much Money

It's like that scene in Silicon Valley -- "Why the f*** didn't anyone tell me I could take LESS??" WeWork raised a lot of money at a $47 billion valuation early this year and now they face a market value that may be less than half of that in an IPO, which would be the second biggest of the year. SoftBank has more at stake than WeWork's own CEO, Bloomberg's Gillian Tan broke yesterday. Meanwhile Phil Haslett, the co-founder of EquityZen, considers what this means for fundraising for the next Vision Fund. He joins Alix Steel & me on BTV to run through predictions for the IPO market through the rest of the year. More behind the story:

• Our venture capital team breaks down more about what this means for SoftBank. "Because the Vision Fund is so exposed to WeWork, it will play a substantial role in compensation for employees of the fund," they report.
• CNBC reports on whether scrapping the IPO entirely would be the best option.
• Adam Neumann says if Wells Fargo is willing to bet on WeWork, everyone should.
• Analysts are already weighing in, saying the $20 billion valuation is a stretch.

Everybody's Changing Jobs

Speaking of whiplash, over at Deutsche Bank, a senior executive told his staff just two months ago that they would keep their jobs. Now the fixed-income division is seeing dozens being dismissed and at least one desk being cut entirely. Here's the scoop.

Every time I turn around I find a new change in strategy. We also broke a sweeping shake up near the top of UBS, and we explain the change for BTV. After Andrea Orcel left the bank late last year, two men were named to fill his post at the top of the investment bank. Now Rob Karofsky and Piero Novelli are making their mark. They've named Ros Stephenson -- one of the highest ranking women in dealmaking -- and Javier Oficialdegui in charge of investment banking while also combining fixed income and equities trading under Jason Barron and George Athanasopoulos. Stephenson and Oficialdegui were hired by Orcel. There may be job cuts pending, people familiar with the matter have said.

Big hat tip to Liz Hoffman at the WSJ this week with her story here on an impending departure of potentially 15% of Goldman Sachs partners this year. We've been reporting all year that CEO David Solomon is looking to make the elusive partnership more... elusive. After all there were the fewest partners named last year than any time in the last two decades. Marty Chavez is among the biggest names to be stepping down. We will be watching closely for his next act. For now, as Bloomberg's Sridhar Natarajan reports, he will be teaching a class at Stanford business school on "How Software Ate Finance."

Replacing Chavez as co-head of securities will be Marc Nachmann, shockingly, another investment banker. We discuss his role and the challenge ahead of him for BTV. A most read story yesterday, analyst Dick Bove is lowering his rating for Goldman Sachs shares because he believes the turnover represents turmoil and an inability to keep up with the "Fourth Industrial Revolution." By the way, I think there's still a debate on whether in fact we are experiencing another industrial revolution at all.

More to catch you up:

• The NBA is looking for a way to get more investors to take stakes in teams, which are facing soaring valuations, Bloomberg's Scott Soshnick reports. (Here's more for BTV).
• Guggenheim shakes up its top ranks -- adding a prosecutor on the Michael Cohen case as a top lawyer and renowned economist Daniel Kahneman to the board of its $260 billion asset manager. Jerry Donini, the co-head of its securities division, becomes chief operating officer as well. (Terminal clients only)
• Perella Weinberg's asset manager is spinning off a $1 billion energy fund business overseen by Dan Pickering as it gets closer to finishing a revamp. A fund run by Maria Vassalou spun off earlier this summer, and with about $700 million under management, it's looking to expand beyond $2 billion in the next two years. Pickering will also be seeking to expand his new firm, people familiar with the matter said.
• Facebook is hiring thousands of engineers in NYC and banks should be aware: It's "quite common" for them to be poaching from the financial industry, Bloomberg's Olivia Carville and Jenny Surane report.
• Speaking of tech: It's like Tinder for the bond market. We explain more here on BTV on algorithms changing the FICC trading game.
• With interest rates crazy low, there's a serious, $150 billion binge in how much debt companies are raising across the world.
• Bill Ackman is making some real money, betting on himself. More on hedge funds, Ray Dalio sees a 25% chance of a recession this year, he tells David Rubenstein on the Rubenstein show.
• The M&A market is seeing a chilling effect from political tensions across the globe. UBS's Charles Otton joins us for BTV.

Welcome back from the holiday. Excited to see what the rest of the year brings you. We have some great magazine pieces pending, and I'll separately be seeking fresh tips, so please do keep the flow coming! -- Sonali