The K-shaped economy is rippling into the dealmaking world.

Why it matters: It's not a new strategy, but companies and investors are focused on seeking even wealthier clients.

By the numbers: High-income households (over $125,000 earned annually) — saw cumulative real spending grow some 7.6% between 2023 and March 2026, per the NY Fed, while low-income households (earning less than $40,000 annually) increased just over 1%.

What they're saying: "Demand is becoming more polarized, with some families seeking value while others trade up for superior quality. This is a must-win trend for us," Nestle CEO Philipp Navratil said earlier this year.

• Unilever inked a deal for gummy supplements company Grüns (which charges $54.40 for a 28-day supply) for $1.2 billion in the spring, and Pepsi acquired premium tortilla company Siete for $1.2 billion last year.
• Yet pizza chains, the symbol of the affordable quick dinner, have struggled, with several now set to sell.

Zoom out: The bifurcation has extended beyond consumers into logistics, fintech and infrastructure.

• Providence Equity Partners-backed Rock-it Company acquired four companies in January to boost its fine arts transportation operations.
• L Catterton last year led an $800 million investment in private jet provider Flexjet. Private jet departures hit an all-time high in 2025, according to WingX data, and major airliners are refitting planes to increase business class capacity.
• Credit card companies focused on the ultra-wealthy have emerged in fintech. Atlas, which offers white-glove services with a $1,000 annual fee, earlier this year hit a $420 million valuation, and Karta raised $15 million last week.
• The $800 million Capital One Arena renovation in Washington, led by Arctos Partners and QIA-backed Monumental Sports, plans to increase premium seating capacity from 15% to 35%.

Case in point: Quince, valued at $10 billion, appears to have hit a new trajectory by pitching consumers on products that have a similar look and quality to luxury retailers.

• "The middle is being squeezed and is trying to maintain the lifestyle at a lower cost," says Notable Capital's Hans Tung, an investor in Quince.

The bottom line: Even if no dealmaker is touting a "K-shaped" investing strategy, the theme is suffusing the investing world.

MGX, the Abu Dhabi-backed investor in OpenAI and xAI, has raised nearly $50 billion that it will plow into the AI sector, Bloomberg reports.

• The fund raised capital from both sovereign wealth funds and investors.

Why it matters: It cements MGX as one of the largest tech funders out there.

Context: Founded in 2024, MGX has written massive checks to the foundational AI models, including Anthropic. It also was part of ByteDance's deal to divest its U.S. operations.

The bottom line: It "marks the first time Abu Dhabi — historically an exporter of capital — has leaned on its vast network to raise money at this scale." — Dinesh Nair, Bloomberg

• AppsFlyer, an SF-based marketing measurement company, raised over $1b in Series E funding at a $2.7b post-money valuation. Moloco, Google, Meta and Unity invested. axios.link/4w4VLFP

• Meta invested $900m in Indian fintech CRED, valuing it at $4.5b post-money. CEO Kunal Shah will step down to join Meta as its head of WhatsApp. axios.link/43Mas4H

• Peregrine Technologies, an SF-based data connectivity company servicing state and local government, raised $250m in Series D funding at a $6.8b valuation. Fifth Down Capital, Sequoia Capital, OG Venture Partners, Goldcrest Capital, XYZ Ventures, and Godfrey Capital invested. peregrine.io

⚡️ Spiro, an African EV maker and battery-swapping network, raised $55m from NewTrails Capital. axios.link/3So18S0

• Probook, an NYC-based operating system for home service businesses, raised $34m in Series A funding led by Andreessen Horowitz and $6m in seed funding led by Sequoia Capital. probook.ai

• Ploy, an SF-based marketing platform, raised $27m in seed funding led by First Round Capital and Y Combinator. axios.link/3QEbP29

• Niural, an NYC-based global payroll and benefits company, raised $21m in additional Series A funding, per Axios Pro. FOG Ventures and NewView Capital joined the round. axios.link/43RlJkc

• VARM, a Berlin-based single-family home insulation company, raised €17.5m in Series A funding led by ABN AMRO Sustainable Impact Fund and GET Fund. Aurum Impact, Emerge, Pale blue dot, and noa joined. varm.earth

• Tetrix, an NYC-based maker of software for limited partners managing private-market fund data, raised $15m Series A funding, per Axios Pro. White Star Capital and Innovation Endeavors co-led the round. axios.link/4xLBUwX

🚑 Ladder Health, a NYC-based pediatric developmental care company, raised $7m in seed funding led by Nina Capital, per Axios Pro. Mairs & Power Venture Capital, South Dakota First Capital and 25Madison Health joined. axios.link/3SrT5Ua

🚑 ChemT, a Singapore-based startup focused on AI biomanufacturing, raised $4m in seed funding led by Wavemaker Ventures and Seeds. Wavemaker 360 Health, Draper University Ventures, and Temasek Life Sciences Accelerator joined. axios.link/4agHBsL

• H3 Zoom, a Singapore-based critical infrastructure inspection tech company, raised $3.6m in Series A funding led by JRE Ventures (East Japan Railway Company's CVC), with participation from SGInnovate and M7 Holdings. axios.link/4uP00UQ

• Tugboat Solutions, a Grand Forks, N.D.-based developer of a consumer insurance claims analysis platform, raised $3m in seed funding. ResilienceVC led, joined by Sure Ventures, South Dakota First, and Gener8tor. axios.link/44nFrUJ

• Brightstar Capital Partners acquired Erdman, a Madison, Wis.-based architecture and engineering firm focused on senior living facilities. axios.link/4fUzgi6

• DHCare, backed by Rhône, agreed to carve out and acquire the human mobility division of Ottobock, a maker of wheelchairs and specialist mobility solutions. axios.link/4w3UPRV

• Edgewell Personal Care, maker of Schick razors, has rejected a $30 a share takeover offer from private equity firm Yellow Wood Partners, per Bloomberg. axios.link/4eD4o3n

• Flexpoint Ford invested in Novel Financial Holdings, a Jersey City, N.J.-based underwriting and insurance services platform. axios.link/4gAZExD

• Great Hill Partners invested in Woof Gang Bakery & Grooming, a Boston-based pet grooming company, joining existing investor Garnett Station Partners. axios.link/4gBmmWo

• Greybull Stewardship acquired Genesys Industries, a manufacturer and supplier of aerospace, commercial aviation, and specialty industrial products. genesysindustries.com

• Moeris, backed by Caymus Equity Partners, acquired Stay Safe Traffic Control, a Raleigh, N.C.-based provider of work zone safety and traffic control services. axios.link/3QuB8Uv

• Noro-Moseley Partners led an investment in Eaigle, a Boston-based gate and yard automation company for logistics-intensive industries. In Revenue Capital and Boreal Ventures participated. eaigle.com

• Rise Baking Company, backed by Butterfly Equity and Platinum Equity, agreed to acquire Jimmy's Gourmet Bakery, a New Jersey-based manufacturer of premium cookies and baked goods. axios.link/3QU0mM8

• Reverence Capital Partners and co-investors will buy a majority stake in Minneapolis accounting firm Eide Bailly, valuing it at $1.8b per the WSJ. axios.link/4eGnvto

• Signal Hill Equity Partners-backed Aeterna Group launched. It's a combination of five architecture and engineering firms in New York, West Virginia, Illinois and Washington, D.C. axios.link/3QGu1Iq

• Tredence, backed by Advent International, acquired KMK Consulting, an analytics firm focused on life sciences and biopharma. Go deeper

• Verdantas, backed by Sterling, acquired Yu & Associates, an Elmwood, N.J.-based geotechnical, environmental, and civil engineering firm. axios.link/4emQGCS

• Bending Spoons, an Italian holding company that buys legacy tech brands, is seeking to offer $1.6b in an IPO of 58m shares (31% sold by insiders) priced between $26 to $28 apiece. Major shareholders include Baillie Gifford. axios.link/4xgSggK

• Carro, a used car marketplace backed by Softbank, is weighing a confidential IPO filing for this month, per Bloomberg. It may seek to raise as much as $500m. axios.link/4eDrLdc

• Momenta Global, a China-based autonomous driving tech company, could file for an IPO in Hong Kong as early as this week, per Bloomberg. Backers include GM and Tencent. axios.link/4uWhm2m

• Bristow Group (NYSE: VTOL) agreed to acquire Berry Aviation, a San Marcos, Texas, defense services company, from Acorn Capital Management for $105m. axios.link/4w3PxGb

• Nordic Climate Group acquired ebutec Group's HVAC unit from Ufenau Capital Partners. axios.link/3SlaKNn

• Holcim completed its acquisition of Xella, a German sustainable walling solutions company, from Lone Star. axios.link/44nxVZY

• Qualcomm is nearing a deal to acquire Modular, a GV and General Catalyst-backed chipmaker, for $4b, per Bloomberg. axios.link/4eM5QAG

• Backbase acquired Kasisto, a banking and financial services platform backed by Oak HC/FT and Naples Technology Ventures. backbase.com

• Booz Allen Hamilton (NYSE: BAH) agreed to acquire the Ultra I&C Mission Solutions business from Advent-backed Cobham Ultra Group for $720m. Ultra Mission Solutions focuses on defense software, encryption, and edge‑compute products. axios.link/4uUFthM

• Brewer Science agreed to acquire the semiconductor chemicals business line of Heraeus Epurio, a German semiconductors business. It includes a chemicals production site in Dayton, Ohio. axios.link/4oKdG28

• Affinity Partners, a private equity firm founded by Jared Kushner, is seeking to raise $5b or more for its next fund, per the NY Times. Flashback

• Annie Shapiro was promoted to partner at Inspired Capital. She was VP of platform. inspiredcapital.com

• Axel André, former Reinsurance Group of America (NYSE: RGA) CFO, will join TPG (Nasdaq: TPG) as CFO on July 27. He will succeed Jack Weingart, who will transition to CEO of TPG's Global Wealth Solutions business. axios.link/4eEhiOH

• Max Schechter joined Arsenal Capital Partners as managing director and head of business development for Arsenal's industrial growth team. axios.link/4eBGUvv

🌍 Nicola Kerslake joined Reservoir as general partner following its acquisition of Contain, an agriculture finance and data platform founded by Kerslake. reservoir.co

M&A used to drive the largest bond offerings. Today, it's AI.

Driving the news: SpaceX yesterday announced plans to raise at least $20 billion via bond sale.

• That comes as bond issuance is already set for a record year, with investment grade set to top prior years due to AI and data center needs.