Good morning and welcome to the WSJ Pro Private Equity newsletter.

Recently established software-investing firm Wingman Growth Partners hit the hard cap for its first fund, and is unafraid of the potential threat to the sector posed by artificial intelligence, Isaac Taylor reports for WSJ Pro.

Illinois just became the second state, after Colorado, to pass a law aiming to restrict private equity's ability to invest in law firms, as I write in today's newsletter.

Now on to these stories and many others...

Wingman Growth Partners has closed its first fund at the $215 million hard cap, Isaac Taylor reports for Pro. Set up last year in Greenwich, Conn., the firm invests in software, despite growing concerns over the sector's outlook as artificial-intelligence technology matures, and sees AI as an enabler of the companies it backs rather than a threat, according to founder Jeff Machlin. Wingman exceeded its $150 million target for the fund by more than 40%, and wrapped up fundraising for the vehicle in less than a year with about 20 limited-partner investors. 

Illinois lawmakers approved a bill to prevent private-equity firms from influencing law firms, as more states consider limits on buyout deals in the legal field, Chris Cumming reports for Pro. The state’s Senate on Saturday approved a bill to strengthen the state’s prohibition on nonlawyers’ having control over law firms, sending it to Governor JB Pritzker to sign or veto. Illinois is the second state this year to pass such a bill, after Colorado’s legislature last month approved a similar measure, though the state governor has not yet acted on it.

Investment firm Castlelake said any offer for London-listed airline easyJet would value the company at least at $4.12 billion, slightly above the last closing price of its shares, which have slumped since the U.S. and Israel attacked Iran, Nina Kienle reports for The Wall Street Journal. Minneapolis-based Castlelake said Friday that it was considering an offer for the U.K. budget carrier at a 1.3% premium to easyJet's closing price of 398 pence on Friday. The company's shares had fallen 22% this year through Friday but rose on Monday.

Josh Harris's 26North Partners is acquiring life insurer Independent Insurance Group through its 26North Reinsurance Holding business. Dallas-based Independent operates structured settlement annuities provider Independent Life Insurance, which specializes in working with personal injury claimants and their families. The deal marks 26North Re's entry into the U.S. market. Apollo Global Management co-founder Harris set up asset manager 26North in 2022, and by the end of last year, it managed around $35.33 billion, according to a regulatory filing in March.

Software growth investor JMI Equity led a "major strategic investment" in underground infrastructure software developer SewerAI, joined by existing backers including Innovius Capital and Epic Ventures, according to an emailed news release. The Walnut Creek, Calif.-based company provides applications used in designing, building and maintaining municipal wastewater systems used in communities such as Houston and Phoenix.

The Abu Dhabi Investment Authority is joining Advent International as a backer of software developer Sapiens International, becoming a significant minority investor in the business. London-based Sapiens specializes in applications used in the insurance industry and has about 600 clients. Boston technology investor Advent backed Sapiens in December, according to the firm's website.

Atreides Management and Bessemer Venture Partners led a $410 million growth investment in networking systems provider DriveNets, joined by Red Dot Capital and existing backers Pitango and D1 Capital Partners, among others. The Israeli company's products are used by telecommunications services providers as well as large enterprises.

One Equity Partners has acquired construction and industrial engineering company Leviat, a business formed in 2020 by building materials provider CRH. The Amsterdam-based company has locations including manufacturing plants that support commercial, residential and industrial projects worldwide.

European buyout firm Mutares has acquired the natural gas systems business of Wärtsilä in Finland through a corporate carve-out transaction. The unit provides onshore and offshore equipment used in production and transport of the fuel, mainly in Europe and Asia. The business generated revenue of about €394 million, or $458.3 million, last year.

Solar power infrastructure investor Fairtide Partners is increasing its commitment to residential solar and battery storage systems financing provider Maxwell Power, which has renamed itself from HDM Renewable Finance. Fairtide is adding a $750 million commitment to its support for the Salt Lake City-based company, to finance battery storage and solar power projects. The fresh capital raises Fairtide's total support for the business to more than $1 billion.

Lower midmarket buyout firm Reichmann Segal Capital Partners in Toronto announced it formed Metatron Private Equity, which focuses on North American investments. Metatron has also made its first acquisition: buying electronics manufacturer Green Circuits from Evolve Capital in Wallace, Texas. The Silicon Valley-based contract manufacturer works with clients in industries including aerospace, medical devices and advanced technology. Metatron is led by Reichmann Segal co-founders Charles Reichmann and Jarrad Segal.

Los Angeles-based Shamrock Capital is backing a growth investment in the merger of sports trading card companies CardsHQ and Sports Card Investor under the CardsHQ name. The firm is backing the company alongside EnOne Ventures, a newly formed early-to-growth-stage investment firm co-founded by OneTeam Partners and EnTrust Global.

Private-credit investor WhiteHawk Capital Partners in Los Angeles has provided $390 million in financing to resort operator Star Entertainment Group to refinance debt and give the company more liquidity. Star has properties in Sydney, the Gold Coast and Brisbane, Australia.

Bridgepoint Group in London is buying the Obagi Medical dermatological skincare and aesthetics business of Waldencast through a transaction valued at as much as $460 million. Waldencast founders Michel Brousset and Hind Sebti, along with certain other managers, will lead the carved-out business once Bridgepoint takes control. The deal calls for $366 million in cash to be paid at closing, subject to adjustments, earnouts of up to $64 million through 2027, as well as $30 million in debt.

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

Anthropic, the artificial-intelligence lab recently valued at nearly $1 trillion, said Monday it has filed confidentially for an initial public offering, setting the stage for an IPO in the fall, the Journal reports. Anthropic’s chief rival, OpenAI, was preparing to submit its own IPO filing imminently, the Journal reported earlier. In May, Anthropic raised $65 billion in new funding from investors including Greenoaks, Dragoneer, Altimeter Capital and Sequoia Capital, in a round that valued the company at $965 billion.

Wynnchurch Capital is selling Canadian garbage truck maker Labrie Environmental Group to strategic buyer Hiab in an all-cash deal valued at about $1.04 billion, Kelly Cloonan reports for Dow Jones Newswires. Wynnchurch first backed the business in 2020, and with minority investors expanded its manufacturing capacity and dealer network. The company generated $491 million in sales during the 12 months through March, Hiab said

Investors including Tiger Global Management and Light Street Capital Management are among the firms listed by research provider PitchBook that have backed digital design company Contentful, which strategic buyer Salesforce is acquiring. The Berlin company's products will be integrated with Salesforce's Customer 360. Tiger Global led a $175 million growth investment in the company in 2021, joined by Tidemark and Base10 Partners. Light Street has backed the company since at least 2020, PitchBook data indicate. Salesforce also invested in the company through its venture arm in 2020, Katherine Hamilton reports for Dow Jones Newswires.

Energy Impact Partners-backed distributed power systems company ERock plans an initial public offering of about 27.9 million shares priced from $20 to $23 each, Colin Kellaher reports for Dow Jones Newswires. The New York-based specialist investor holds about 55% of the company's shares, a regulatory filing shows. The deal would give the company a market value of over $5 billion. EIP first backed the business in 2017 with a $10 million investment, becoming its first institutional sponsor.

Bain Capital in Boston has acquired Asian personal-care and beauty products company FineToday Holdings from CVC Capital Partners and others. Amsterdam-listed CVC held a majority interest in the company through its CVC Asia Fund V after a carve-out in 2021 separated it from Shiseido.

Buyout firm GI Partners in Scottsdale, Ariz., has acquired a majority interest in building maintenance services provider HES Facilities Management from Nautic Partners, investing alongside company leaders and managers. Knoxville, Tenn.-based HES, started by Nautic in 2020, serves schools nationwide.

Post Oak Energy Capital in Houston is selling Switchgrass E&P Holdco, which mainly operates oil-and-gas assets in Oklahoma, to an unnamed buyer. The firm first invested in the operator last year, according to its website.

Bessemer Investors-backed Mas Restaurant Group, which runs Taco Bells in the Houston and Columbus, Ohio, areas, has sold 44 of its Houston locations to strategic buyer Ghai Restaurant Group. New York-based Bessemer first backed Mas in 2018, the year the firm was formed.

Bain Capital has raised just over $1 billion so far for Bain Capital Insurance Fund II, according to a regulatory filing. The amount raised to date is nearly equal to the $1.15 billion that Bain raised in 2023 for its first insurance fund to back midmarket deals across the insurance sector in North America and Europe. Investors that have disclosed commitments to the newest vehicle include California Public Employees’ Retirement System and New Mexico State Investment Council, according to WSJ Pro’s LP Commitments database.

Specialist investment firm Gigascale Capital in Palo Alto, Calif., has collected $250 million for its first institutional fund to invest in clean energy, advanced manufacturing and power grid infrastructure. The firm founded in 2023 began raising Gigascale Capital Fund I late last year, a securities filing indicates.

Permira in London has hired Thoma Bravo's Mike Hoffmann as a partner based in Silicon Valley to expand the firm's technology investing. Hoffmann was with tech-focused Thoma Bravo for more than a decade and was a partner with its flagship buyout fund.

European private-equity firm Aurelius has hired Eiji Shibata as managing director to lead the firm’s business in Japan. He will be based in Aurelius’ new Tokyo office. Shibata, a Permira, Barclays and Goldman Sachs veteran, joined Aurelius from Japan Post Investment.

May River Capital has promoted four professionals on its team, including Phil Ramsbottom who it has elevated to managing-director level. Ramsbottom joined the Chicago-based lower midmarket firm in 2018. Other promotions included Clayton Weirather and Alex Brown to vice president and Danny Nemirovskiy to senior associate.

Investment research provider Morningstar is pushing back against the Labor Department's proposed rule to accelerate the inclusion of private-equity funds and other alternative investments in 401(k) retirement accounts, Matt Wirz reports for the Journal, citing a letter commenting on the proposal. "Morningstar questions whether this initiative is necessary and whether it will meaningfully benefit the retirement plan participants it is intended to serve," the letter says. The Labor Department's proposed rule could lower the fiduciary standard of retirement plan sponsors—usually employers—to their members and "allows fiduciaries to rely on claims from parties with the strongest commercial interest in the investment's selection," Morningstar said.

Oridian Capital Partners, which changed its name from HCI Equity Partners in April, has formed AnchorPoint Foundations from a collection of businesses such as Champion Waterproofing in Pennsylvania and Foundation Repair Services in North Carolina. The Washington-based firm aims to expand the business including through acquisitions. In November, the firm raised an unspecified amount of capital for a special-purpose vehicle to finance the strategy.

Rithm Capital's opportunistic investment arm, Sculptor Capital Management, has wrapped up an asset-backed security, Eclipse 2026-1, with $415.5 million. The vehicle is tied to 23 Boeing and Airbus aircraft leased by SMBC Aviation Capital to 16 airlines.

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