Welcome back. Arcline-backed Arxis is testing the public markets with an IPO that could value the company at more than $11 billion and set the stage for other companies in the booming aerospace and defense market to follow suit.

“The question for other companies in this pipeline is not whether the market wants these assets—it is whether they are ready to meet the bar," said Mike Bellin, U.S. IPO leader at consulting firm PricewaterhouseCoopers.

And Chris Cumming scoops how Court Square Capital Partners, the Citigroup spinout, raised roughly $3.8 billion for its latest and so far largest fund.

We have these and more. Read on …

Arcline Investment Management-backed Arxis plans to raise roughly $1 billion in an initial public offering that could value the maker of electronic and mechanical components for aerospace and defense at more than $11 billion, Maria Armental and Colin Kellaher write for WSJ Pro Private Equity. Arxis—Arcline’s first portfolio company to file for an IPO—is one of several aerospace and defense companies expected to hit the public markets this year as investors move to capitalize on heightened interest in the sector amid conflicts in the Middle East and Ukraine. 

Court Square Capital Partners, a midmarket firm that originated as Citigroup’s in-house private-equity arm, closed its fifth flagship vehicle significantly above its fundraising target, Chris Cumming writes for WSJ Pro. Court Square Capital Partners Fund V closed with about $3.8 billion, exceeding the $3 billion fundraising target, the New York firm said Thursday. It is the largest fund in the firm’s history, Court Square said. The predecessor vehicle closed with $2.7 billion in 2019.

Canadian pension manager Caisse de dépôt et placement du Québec, or La Caisse, has invested $150 million in Innovair Solutions, a manufacturer and distributor of heating, ventilation and air conditioning (HVAC) services. Additionally, Fonds de solidarité FTQ has also provided $80 million in financing to the company.

Healthcare-focused firm Avista Healthcare Partners has acquired Bentec Medical from Greyrock Capital Group and Hermitage Equity Partners. Bentec Medical of Woodland, Calif., manufactures silicon components for medical device manufacturers as well as medical devices for healthcare providers. Hermitage and Greyrock acquired Bentec in 2016, according to the company’s website.

Lime Rock New Energy, a Lime Rock Management strategy focused on investments in companies that facilitate the transition to a lower carbon economy, has backed Boulder Imaging, a provider of AI-powered high speed vision technology for its wind energy and manufacturing customers.

Centergate Capital is backing Spartaco Tool Group, a Clover, S.C.-based provider of professional-grade tools for the utility and telecom sectors. The  company is parent to brands that include Jameson Tools and Huskie Tools.

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

Littlejohn Capital, the family office of Littlejohn & Co. co-founder Angus Littlejohn, has sold metal enclosure producer Maysteel Industries to a portfolio company of fellow private-equity investor Revelar Capital. Littlejohn Capital initially backed Maysteel in 2017.

Jeito Capital, a European private investment firm focused on biopharma deals, has wrapped up its second fund with around €1 billion, or roughly $1.2 billion. The firm's debut fund closed in 2021 with €534 million. Jeito said that the larger fund will allow the firm to increase the average size of future investments in portfolio companies to €150 million.

154 Partners, a private-equity firm founded by former Blackstone colleagues Isaac Harrouche and Mike Berlin, closed its debut fund at the fund’s $400 million upper limit. David Blitzer, former chairman of Blackstone’s Tactical Opportunities platform, joins as the third member of the new firm’s investment committee. The firm plans to deploy $40 million to $100 million of equity for each platform investment.

Neuberger Berman’s secondary team has partnered with Tailwind Capital to form a continuation fund to recapitalize Axis Portable Air, a Tailwind portfolio company that offers temporary climate control and restoration equipment rentals for commercial and industrial customers.

Lower midmarket firm Woodson Equity has hired Eugene Kim as co-head of originations and Tom Cleary as general counsel. Kim previously served as vice president of business development at Pacific Avenue Capital, while Clearly most recently worked at law firm Dykema Gossett.

Cornerstone Building Brands has hired turnaround consulting firm AlixPartners to negotiate with creditors to restructure its nearly $5 billion balance sheet, Alicia McElhaney and Jodi Xu Klein report for WSJ Pro Bankruptcy, citing people familiar with the matter. The North Carolina-based company, backed by private-equity firm Clayton Dubilier & Rice, is in discussions with a group of lenders to change the terms of its loans, push out debt maturities and raise new capital, the people said.

The Treasury Department wants to talk to state insurance commissioners about the private loans piling up in insurers’ portfolios, Heather Gillers writes for the Journal. Of the about $6 trillion in invested assets held by life and annuity companies, nearly $1 trillion is now in private-credit investments, according to A.M. Best, a credit-rating firm that rates insurers.

The Securities and Exchange Commission penalized venture-capital firm Vestech Partners, for making misleading statements to investors from 2019 to 2023. The regulator alleged that the Ocala, Fla.-based firm marketed to investors that prominent institutions participated in co-investments with the firm, when these investments had not taken place.

Send us your tips, suggestions and feedback. Write to:

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