Inside $50 billion hedge fund D.E. Shaw ahead of a key deadline; A chat with Industrious' CEO

Learn more about BI Prime View online       Wall Street Insider         Hi everyone!  I can't believe it is Labor Day weekend already. While this week was relatively quiet in New York with so many people on vacation, the finance team still had a number of important stories (and many more coming next week!).  We took you inside the talent war brewing at hedge fund D.E. Shaw, we dug into the Peloton S-1 to reveal the streaming fitness services' major risks, and we gave you a look at how Amazon is getting creative (think race cars) to introduce its cloud clients to machine-learning technology.  If you aren't yet a subscriber to Wall Street Insider, you can sign up here. In one of the more unusual stories from this week (and a great example of the work we're doing with our new real estate beat), we reported on fundraising for a startup called Salaryo which provides financing for small businesses and startups to pay their security deposits on coworking spaces. While the amount Salaryo raised was small ($5.5 million), the company is trying to build on some of the momentum in the coworking space that saw Industrious raise $80 million and Knotel secure $400 million in financing in the last week alone. And that's on top of WeWork's $47 billion valuation.  So if Salaryo is lending money to small companies to get fancy office space, does that mean we wont have any more multi-billion companies like Apple and HP that were founded out of garages? Are founders now going to be prioritizing securing swanky digs over putting that funding back into building their business?  Separately, don't forget to register for our Prime webinar with marijuana-analytics company Headset. Earlier this year, Headset raised $12 million and signed deals with market-research firm Nielsen and the accounting firm Deloitte. You can join Headset CEO Cy Scott for a BI Prime webinar on September 5 at 2 p.m. ET as he takes readers through his pitch deck and explains how he convinced VCs, including early Juul investor Poseidon Asset Management, to buy in. Poseidon partner Emily Paxhia will also weigh in on the unique challenges of investing in cannabis — and how she picks winners in a crowded market. You can sign up here. Have a great long weekend!  Olivia D.E. Shaw asked staff to sign a take-it-or-leave noncompete, and the deadline is weeks away. Insiders say some people could walk even after management improved the payout. D.E. Shaw has relaxed terms of its deferred-compensation structure ahead of a mid-September deadline on the firm's new noncompete contract for all investment staff to either sign the agreement or get fired, insiders said. The move spotlights uncertainty inside D.E. Shaw as it prepares to enforce wide noncompetes, which are fairly common in the hedge-fund industry, for the first time in its 30-year history. At stake is the $50 billion hedge-fund manager's investment talent — sources told Business Insider how longtime employees were assessing the terms and weighing if it makes sense to get pushed out and join a competitor. READ MORE HERE » UBS's Americas private-wealth head says he thinks losing a 'few hundred' advisers would not be a bad thing, and is looking at how robos can help keep the bank's richest clients The UBS wealth-management executive John Mathews is so encouraged by a collaboration with SigFig on a digital-wealth tool for smaller accounts that he's looking at what can be done for wealthier clients, particularly when it comes to the next generation. Mathews, who leads UBS's private-wealth management and ultra high-net-worth business for the Americas, spoke about digital capabilities and adviser head count with Business Insider. READ MORE HERE>> Alternative data provider Quandl is changing its strategy as industry giants like Bloomberg and S&P push into the $7 billion market The alternative-data provider Quandl is making a push toward creating more proprietary data feeds as large traditional data providers like Bloomberg and S&P push further into their space. Tammer Kamel, Quandl's CEO and cofounder, told Business Insider it's gotten very difficult to obtain exclusive rights to alt-data feeds because of the increase in competition from larger players. READ MORE HERE>> How Morningstar is using machine-learning race cars from Amazon to train employees Pop into Morningstar's Chicago headquarters and you might see something unexpected: A group of employees cheering on what appears to be a remote-controlled toy car racing around a track. It's not all fun and games, though. Morningstar, one of the world's biggest investment-research companies, is turning to machine-learning-guided cars to learn about ways to better pull and analyze data. Amazon Web Services has been using the DeepRacer cars to introduce clients on its public-cloud services to machine-learning technology. Wall Street firms, meanwhile, are talking more about wading into the public cloud and uses for artificial intelligence. READ MORE HERE » Industrious' CEO tells us why the coworking startup is ditching leases and managing property instead. Bigger rival WeWork is eyeing a similar pivot to help erase losses. Industrious, which just nabbed $80 million in fresh funding, is moving away from signing traditional leases and doing more partnerships with landlords instead. The latest funding round for Industrious came little more than a week after coworking giant WeWork unveiled its detailed financials — a key step towards an IPO that also revealed $47 billion in future lease obligations and a nearly $2 billion loss in 2018. We spoke with the coworking company's CEO and co-founder, Jamie Hodari, who explained how that approach works and why he thinks it can help Industrious become profitable. READ MORE HERE » In markets: Herding cows and hiring private investigators: Wealth advisers told us their stories about next-level requests from uber-rich clients JPMorgan says these 4 'limited-loss' trades will make you a killing regardless of what happens next in the unpredictable trade war Blackstone's Tony James just joined Sequoia Capital and NerdWallet's cofounder in backing a startup hoping to disrupt the $28 trillion retirement market In tech news: Facebook is reviewing hundreds of its official 'Facebook Marketing Partners' over Instagram data-scraping issues The CEO of a $600 million startup blasted Silicon Valley's culture of delaying IPOs, likening it to a college victory lap paid for by VCs JPMorgan, Goldman Sachs, and Citi are Wall Street's most active fintech investors. Here are the 22 startups they poured money into this year. Peloton's margins on its $2,000 bikes and treadmills are better than Apple's legendary margins Other good stories from around the newsroom: Here's exactly what it takes to get into Wharton's MBA program, according to 6 grads and a Wharton admissions expert A startup working with 200 pharmacies is trying to break into the hypercompetitive drug-delivery business and give elderly Americans cheaper medications 'It's the art of the possible': How Walmart and Target are harnessing AI to rocket past the competition           Was this email forwarded to you? SUBSCRIBE NOW     Share this     You received this email because you signed up to this Business Insider newsletter using the email: ipat39@gmail.com   Email preferences Unsubscribe TERMS OF SERVICE PRIVACY POLICY 1 Liberty Plaza, 8th Floor. New York, NY 10006