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The Fed on Wednesday cut interest rates by a quarter percentage point, but it was the first time in six years that three officials cast dissents as they remain divided over whether inflation or the labor market should be its biggest worry, the Journal’s Nick Timiraos reports.

“While the cut won’t dramatically change lending conditions—given how anticipated it was—it should help boost deal activity and investor confidence, potentially opening the market further in early 2026,” Jeremy Swan, a managing partner in the financial sponsors and financial services group at advisory firm CohnReznick, said in a statement.

Journal colleagues Matt Wirz and Ben Glickman focused on how megadeals, those valued at at least $10 billion, hit a record amount this year—with debt accounting for the bulk of the price tag.

Finally, WSJ Pro colleagues Alicia McElhaney and Jodi Xu Klein report that distressed funds are buying up bankrupt First Brands Group’s top-ranking loans after an unexpected and sharp selloff, joining the core creditor group driving the auto-parts seller’s bankruptcy.

We have these and more. Read on…

The Federal Reserve cut interest rates by a quarter percentage point, but signaled it might wait for another cut amid internal divisions over whether inflation or the labor market should be its bigger worry, Nick Timiraos reports for the Journal. The Fed voted 9-3 for the reduction on Wednesday, the first time in six years that three officials cast dissents.

The megadeal is back and so is Wall Street’s immense appetite for debt, Matt Wirz and Ben Glickman write for the Journal. Paramount’s hostile bid for Warner Bros. Discovery, the leveraged buyout of gaming company Electronic Arts and other recent debt-laden transactions have all been possible thanks to a spike in lending by banks and even some private-credit funds. Big-ticket mergers and acquisitions, or those valued at $10 billion or more, hit a record dollar amount this year, according to Dealogic. Much of the price tag on those deals gets paid for with debt.

Distressed funds are buying up bankrupt First Brands Group’s top-ranking loans after an unexpected and sharp selloff, joining the core creditor group driving the auto-parts seller’s bankruptcy, Alicia McElhaney and Jodi Xu Klein report for WSJ Pro Bankruptcy. King Street Capital Management and Mudrick Capital Management are among the investors that bought into First Brands’ debtor-in-possession loans recently after the debt dropped precipitously because of lender concerns over the lack of financial information about the business, according to people with knowledge of the matter.

Media executive Peter Chernin’s private-equity firm Chernin Group is taking a minority stake in Entangled Publishing, a popular publisher of romance-fantasy books, according to executives from the companies, Ben Glickman and Jeffrey A. Trachtenberg report for the Journal. The deal values Entangled at roughly $400 million, people familiar with the matter said.

Kingswood Capital Management has agreed to acquire Safran Passenger Innovations, the in-flight entertainment and connection services subsidiary of French aerospace company Safran. Safran said the unit generates around $460 million in revenue and employs roughly 740 people across the U.S. and Germany.

European software-focused firm Bregal Milestone is taking a majority stake in Beyond Now, a supply chain software provider for AI-enabled digital commerce serving telecommunication providers, technology companies, and private enterprises.

Healthcare-focused Great Point Partners has acquired a majority stake in Lenis Group, a Slovenian pharmaceutical commercialization and distribution company focused on Central and Eastern Europe.

Nautic Partners is making a growth investment in Dallas-based SenderraRx, a specialty pharmacy provider for patients with chronic or complex conditions.

Macquarie Capital’s principal finance arm is providing up to $150 million to Enterprise Risk Associates, an insurance platform focusing on acquisitions of independent insurance agencies. 

Paine Schwartz Partners led a $26 million investment in retail data company Crisp. The money will help the company grow, including through investments in the Crisp AI Agent flagship product.

Software investor Insight Partners has led an investment in marketing analytics provider Marketing Evolution. The investment will be used to accelerate product development and go-to-market expansion for the company.

Advent International, Corvex Private Equity and other strategic investors have closed their $1.3 billion acquisition of publicly traded talent advisory business Heidrick & Struggles International. Strategic investors that also backed the deal include Salem Capital Management, Mousse Partners, TF Cornerstone, HighSage Ventures, and Barcliff Partners.

Our add-on deal interactive tool allows you to sort and analyze volumes of add-on deal data compiled by WSJ Pro. View more.

Sverica Capital Management is selling Sverica Capital Partners V portfolio company Coastal Cloud Holdings to Tata Consultancy Services for $700 million. Sverica initially invested in the company in 2020.

The Riverside Co. has agreed to sell commercial fire protection and life safety company CertaSite to publicly traded Api Group. Riverside initially backed CertaSite seven years ago and under its ownership the company completed 27 add-on acquisitions.

Infrastructure investment firm Grain Management has agreed to sell regional fiber-optic internet provider Hunter Communications to fellow private investor Oak Hill Capital. The Medford, Oregon-based company provides network availability to more than 25,000 customers across the Pacific Northwest. Grain initially backed the company in 2020.

Ardian has launched Ardian Access Infrastructure SICAV-RAIF, an evergreen vehicle that will be globally available to professional investors only. Ardian Access Infrastructure is part of the broader Ardian Access platform offering a range of strategies to access Ardian deal flow for institutional and private investors.

Lower midmarket firm RFE Investment Partners has raised more than $55 million so far of the $250 million it is seeking for RFE Investment Partners X, according to a regulatory filing. Westport, Conn.-based RFE backs control investments in U.S. companies with $3 million to $15 million of earnings before interest, tax, depreciation and amortization, or Ebitda, according to the firm’s website.

Venture capital-focused TrueBridge Capital Partners is seeking $350 million for TrueBridge Secondaries II, according to a regulatory filing. The new secondary fund’s goal is a little more than 50% higher than the $230 million that TrueBridge raised for its first dedicated secondary fund.

Stonepeak’s Stonepeak-Plus INFRA1 Note floating rate debt security has started trading on the Australian Securities Exchange, the firm said. The note offers Australian investors access to a portfolio of infrastructure debt investments. The note, Stonepeak’s first such offering in Australia, received demand beyond its 300 million Australian dollars, or $199.3 million, target for cornerstone commitments.

Lower midmarket firm Mosaic Capital Partners has hired Mark Weadon as vice president of finance. Weadon previously held senior finance positions at Sterling Capital Management and Fidelity Investments.

Oakley Capital has hired a dealmaker from EQT as it looks to ramp up its deal activity on mainland Europe, Sebastian McCarthy reports for sister publication Private Equity News. Pierre-Henri Vacher-Lavenu is joining the London-based private equity firm for a pan-European role focused on technology, according to people familiar with the situation. The appointment comes as Oakley mulls plans to open an office in Paris next year as part of its expansion strategy, people added.

Venture debt investor Runway Growth Capital has added Ryan McCarthy as a managing director. McCarthy previously was a managing director at Capital Advisors Group, where he advised technology and life sciences companies on debt financings.

U.S. investors are plowing money into Chinese companies involved in artificial intelligence, despite growing competition between Washington and Beijing over the technology, Rory Jones and Tracy Qu report for The Journal.

Warburg Pincus is breaking up its business services team in Europe to bring its structure in line with its U.S. and Asia offices, Sebastian McCarthy reports for sister publication Private Equity News. The private-equity giant previously had an industrial and business services (IBS) sector team. The industrials group in Europe will now operate as a standalone team like its counterparts in the U.S. and Asia, while the business services sector will be divided into two, according to people familiar with the matter.

Strategic Value Partners co-led a €600 million, or roughly $698.7 million, debt restructuring investment for European low emissions steel producer Celsa. SVP took a minority stake in the company following a financial restructuring in 2022.

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