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First, Laura Kreutzer scoops that Point 41 Capital Partners, a midmarket firm founded by two Sun Capital Partners veterans in Greenwich’s Cos Cob, amassed $400 million for its debut fund, beating a $300 million target.

And WSJ Pro's Yusuf Khan writes about British renewable-energy startup Octopus Energy spinning off its AI arm, Kraken, giving Octopus’s investors ownership stakes in the stand-alone business that analysts say could be worth some $15 billion in an IPO.

And last but not least, a group of investors including billionaire Larry Ellison’s Oracle, Silver Lake and Andreessen Horowitz would own a U.S. entity that would operate TikTok’s U.S. business, according to a framework agreement U.S. and Chinese negotiators discussed in Madrid this week.

British renewable-energy startup Octopus Energy is spinning off its artificial-intelligence arm, Kraken, in what could create a stand-alone entity worth $15 billion, Yusuf Khan reports. Kraken Chief Executive Amir Orad said the demerger will give the company the option to go public within 12 months, with New York or London the most likely listing destination. In the spinoff, Octopus’s current investors will receive ownership stakes in the stand-alone Kraken. Octopus’s investors include former U.S. Vice President Al Gore’s investment fund, Generation Investment Management; the California Public Employees' Retirement System; and the Canada Pension Plan Investment Board. 

Point 41 Capital Partners, a lower-midmarket firm founded by two former professionals from Sun Capital Partners, is betting on small industrial and services deals with its $400 million debut fund, WSJ Pro’s Laura Kreutzer reports. Point 41 Capital Partners I closed above its $300 million target at a particularly challenging time for first-time funds.

TikTok’s U.S. business would be controlled by an investor consortium that includes U.S. software giant Oracle, private-equity firm Silver Lake and venture-capital firm Andreessen Horowitz under a framework the U.S. and China are finalizing as talks shift into high gear, The Wall Street Journal reports, citing people familiar with the matter. The arrangement, discussed by U.S. and Chinese negotiators in Madrid this week, would create a new U.S. entity to operate the app, with U.S. investors holding a roughly 80% stake and Chinese shareholders owning the rest, the people said. The new company would also have an American-dominated board with one member designated by the U.S. government.

Battery-part maker Entek Technology has agreed to sell a majority stake to investment-firm I Squared Capital, which intends to invest in the company’s planned factory in Indiana, Ben Glickman reports for The Wall Street Journal. I Squared’s $800 million investment values the Lebanon, Ore.-based company at more than $1 billion, according to people familiar with the transaction. 

An investor consortium that includes Carlyle and is led by Abu Dhabi National Oil Co. withdrew its $18.7 billion bid for Australian oil and natural gas producer Santos, Najat Kantouar reports for The Journal. Adnoc's unit XRG, which led a consortium with Abu Dhabi Development Holding Co. and private-equity firm Carlyle as partners, said Wednesday that it wouldn't proceed with the offer, citing terms demanded by Santos's board.

Arbor Investments, a midmarket firm focused on food and beverage companies and related businesses, has acquired food services sales and marketing platform Acxion Foodservice from fellow private investment firm Prospect Hill Growth Partners. Acxion marks the second main investment from Arbor Investments VI, which closed with more than $1.2 billion.

General Atlantic made a growth investment in OSEA Malibu, a Malibu, Calif.-based skincare brand known for its seaweed-infused skin products. Jenefer and Melissa Palmer, the company’s mother-daughter founders, will retain a significant ownership stake and continue to lead the company.

Fengate Asset Management’s private-equity unit Fengate Private Equity is backing Canadian vegan bakery Sweets from the Earth, marking the unit’s second main portfolio company investment in the food and beverage industry. Fengate is managing the investment on behalf of the LiUNA Pension Fund of Central and Eastern Canada.

Baird Capital led a $53 million minority growth investment in AI-powered technology company EvoluteIQ.

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

Thompson Street Capital Partners has agreed to sell a majority stake in medical technology company Isto Biologics to fellow private-equity firm Keensight Capital. Thompson Street initially backed Isto Biologics in 2016.

Hellman & Friedman-backed security-services provider Verisure plans to raise around $3.7 billion through an initial public offering and list its shares on Nasdaq Stockholm, in what could be the biggest European IPO in three years, Dominic Chopping reports for The Journal.

WaterBridge Infrastructure, a provider of water infrastructure and services whose backers include energy infrastructure investor Five Point Infrastructure, has raised $634 million in its upsized initial public offering, with shares pricing at $20 each.

GreenPoint Partners has raised more than $1 billion for its debut real-assets fund and related parallel vehicles. Investors that have backed the fund include Canadian pension manager Caisse de dépôt et placement du Québec, or La Caisse, U.S. pension manager Teacher Retirement System of Texas and funds managed by GCM Grosvenor. So far, GreenPoint has invested in the new fund in transactions that include partnerships with energy transition infrastructure company Lysara and Outpost.

Pennybacker Capital Management has amassed more than $700 million for its debut infrastructure fund and related co-investment capital. The firm raised more than $430 million for Pennybacker Critical Infrastructure Partners I and gathered $285 million for co-investments alongside the fund, which so far it has already deployed into three investments.

EY’s former chair and managing partner for the U.K. and Ireland Steve Varley has joined private-equity giant Warburg Pincus as a senior adviser, Justin Cash reports for sister publication Financial News. Varley stepped down from his leadership role at the Big Four consultant in 2020 and set up a professional services business, Unity Advisory, this year with backing from Warburg Pincus.

Oaktree Capital Management said in an emailed announcement that it has hired Michael Lawton as a managing director on its sourcing and origination team focusing on private-credit deals in North America. Lawton previously served as a managing director at BlackRock where he led the firm’s U.S. private sourcing and leveraged finance capital markets team.

Law firm Paul Hastings has hired Benjamin Stein as a partner in Boston. Stein joins from Morgan, Lewis & Bockius's Boston office, where he led the corporate and business transactions practice. His clients included venture-capital companies in the life sciences and professional sports.

Centerbridge Partners has added Tim van Biesen as a senior managing director focused on healthcare and life sciences, according to his LinkedIn account. Van Biesen previously spent more than two decades with Bain & Co.

Advisory firm Alvarez & Marsal has hired Pierre de Raismes as a managing director to lead its private-equity financial services team in Europe. He joins from Bain & Co.

Investment bank William Blair has hired Daniel Nilsson as managing director in Stockholm as it expands its private-equity coverage in Europe. Nilsson has held senior roles at Morgan Stanley in Stockholm and Goldman Sachs in London and most recently was a partner at ABG Sundal Collier.
 

Cinven-backed True Potential’s wealth-management business fell to an operating loss of £243 million, or about $280 million, last year after it was forced to set aside £100 million to refund to clients who were transferred into nonadvised investments, Kristen McGachey reports for sister publication Financial News.

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