Welcome back. This morning's newsletter kicks off with a report from our own Luis Garcia looking at the billions of dollars private equity is pouring into natural gas-fired plants, while WSJ Pro Venture Capital's Yuliya Chernova explores venture investors’ worries that the epic war for AI talent could prove more lucrative for the founders than the early shareholders who footed the bills and shouldered the risk.

Finally, The Wall Street Journal's Ben Glickman reports on healthcare-software company Waystar’s roughly $1.25 billion deal for Iodine Software, whose backers include Advent International, Bain Capital’s venture division and Silversmith Capital Partners. Advent, the company’s largest shareholder, is expected to receive only stock and agree to an 18-month lockup on selling the shares.

We have these stories and more. Read on …

Private-equity firms that invest in power assets are pouring billions of dollars into natural gas-fired plants, betting that surging demand for electricity and a shortage of equipment to build new gas-fired plants will boost the value of existing ones, Luis Garcia reports. “There’s a recognition that natural gas-power assets are going to be critical to the long-term supply in the U.S.,” said Brent Burnett, head of infrastructure and real assets at private-markets investor Hamilton Lane. “Investors are saying, ‘Yes, I want to put money into data centers, but I also want to put money into the necessary infrastructure to power those data centers.’”

Venture investors are getting nervous that their portfolio companies' founders could become targets of recruitment offers in the intense competition for artificial intelligence talent. Even if shareholders end up making money, it is sometimes less than they bargained for or the exit comes earlier than expected, WSJ Pro Venture Capital's Yuliya Chernova writes. In short, the deals might be more lucrative for the founders than the shareholders. 

Healthcare-software company Waystar is acquiring private-equity backed Iodine Software in a cash-and-stock deal that values the company at about $1.25 billion, including debt, Ben Glickman reports. Iodine’s backers include Advent International, Bain Capital’s venture division, and Silversmith Capital Partners.

Brookfield Asset Management and Deutsche Bank led an $835 million investment in AI digital infrastructure provider 5C Group. Brookfield invested equity in the deal through its Brookfield Infrastructure Structured Solutions strategy, while Deutsche Bank led the debt financing for the deal.

Space startup iRocket is going public through a $400 million merger with Wilbur Ross-backed special purpose acquisition company BPGC Acquisition. The reusable rocket developer, whose legal name is Innovative Rocket Technologies, would operate as iRocket Technologies.

TA Associates has taken private FD Technologies, parent company of artificial intelligence-driven analytics company KX. Existing shareholders in the company retain minority stakes. TA had said its majority stake bid valued the company at £570 million, or $772.6 million.

Goldman Sachs Alternatives has taken a majority stake in Mace Consult through a carveout from Mace Group. Mace Consult offers consulting services for infrastructure and environmental projects. The company generated £687 million, or $932.7 million, of revenue in 2024.

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

Audax Group’s private-equity strategy agreed to sell Liquid Environmental Solutions to the alternative investment unit of Goldman Sachs. Audax acquired the Irving, Texas-based non-hazardous liquid waste management company in 2017.

Advent International-backed NIQ Global Intelligence's stock closed at $19.01, down 9.5% on its first trading day, after raising about $1 billion in an initial public offering. Advent retains voting control and KKR remains a minority investor. Proceeds from the IPO are largely earmarked to pay down debt. The consumer insights firm had about $4.3 billion in debt as of March 31, according to regulatory filings.

K1 Investment Management has agreed to sell Subsplash to publicly traded Roper Technologies for $800 million, marking the investment firm’s third sale of a portfolio company to a publicly traded buyer in the past year. K1 initially invested in Subsplash, which provides enterprise management software and technology for churches and ministries, in 2019.

Software focused investment firm Luminate Capital has rounded up at least $739 million so far for Luminate Capital Partners IV and related funds, putting the offering more than three quarters of the way toward a $1 billion goal, according to a regulatory filing. Luminate closed the fund’s predecessor in 2021 with $1 billion.

High River Resources Management has closed High River Resources II with $205 million to back producing oil and gas assets across the U.S. The firm typically targets deals with up to $200 million in equity, but can do larger transactions through co-investments.

Australian pension manager AustralianSuper, which manages more than $230 billion in assets, is expanding its U.S. presence and hired Eneasz Kądziela as a senior portfolio manager in its New York office. Kądziela previously worked as deputy chief investment officer and head of private equity at the New York City Retirement Systems.

Barclays hired Alex Ham as global chairman of investment banking in a dealmaking push, Paul Clarke reports for sister publication Financial News. Ham previously worked at Deutsche Bank as co-CEO of Deutsche Numis and head of global private growth capital.

Ares Management has hired Jon Plavnick as a partner in its infrastructure debt team. Plavnick was previously a partner at Global Infrastructure Partners. Meanwhile, Spencer Ivey, head of Americas and Asia-Pacific on the infrastructure debt team, is relocating to Sydney, Australia, to help accelerate the strategy’s expansion in the Asia-Pacific region.

Omers Ventures, the venture arm of Canadian pension fund OMERS, plans to increase its investment activities in Canada, while continuing to invest in the U.S. on a selective basis, WSJ Pro Venture Capital confirmed. Michael Yang, formerly senior managing partner at Omers Ventures, based in the San Francisco Bay Area, has left Omers, the company said in a statement. Saar Pikar will lead the new strategy as managing director, head of ventures and growth. Laura Lenz has been promoted to managing director. Omers Ventures’ U.S. investments include DuckDuckGo, Crunchbase and Octaura. Omers Ventures continues to have investors based in New York and Palo Alto, Calif.

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Maria Armental; Ted Bunker; Chris Cumming; Luis Garcia; Rod James; Laura Kreutzer; Isaac Taylor; Chitra Vemuri.

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