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

The Journal's Jack Pitcher and Corinne Ramey report that federal investigators have launched a criminal probe into Bankim Brahmbhatt, the founder of Broadband Telecom whom BlackRock's HPS Investment Partners and other lenders have accused of fraud.

Meanwhile, the Journal also has news of an exit for Strategic Value Partners, which has agreed to sell OmniMax International for about $1.34 billion.

Now onto the news...

Federal investigators are probing the telecommunications executive facing fraud allegations from BlackRock’s HPS Investment Partners and other lenders, the Journal reports, citing people familiar with the matter. The criminal investigation, which is being led by the Federal Bureau of Investigation and the U.S. Attorney’s Office in Brooklyn, centers on Bankim Brahmbhatt and his business activities, the people said. It couldn’t be determined when the inquiry began, or if it would result in any charges. In August, BlackRock's private-credit investing arm and other lenders alleged a “breathtaking” fraud tied to companies owned by Brahmbhatt in lawsuits, allegations his lawyer disputed.

Strategic Value Partners is selling roofing-products manufacturer OmniMax International to strategic buyer Gibraltar Industries for about $1.34 billion in cash, Nicholas G. Miller reports for the Journal. Gibraltar said it would finance the transaction in the form of up to $1.3 billion in new term-loan facilities and an upsized $500 million revolving-credit facility. Strategic Value acquired the business about five years ago.

WSJ Pro is celebrating 10 years of publishing its annual "Women to Watch" list, a steadily growing list that highlights the accomplishments of outstanding women in the private-equity and private-credit fields. We're accepting nominations for the next class of senior deal professionals, rising star deal professionals, as well as limited-partner or fundraising professionals, and private-credit professionals, through Nov. 19, 2025. Submit your nominations here.

Clayton Dubilier & Rice is acquiring New York-listed packaging company Sealed Air at an enterprise value of about $10.3 billion, Colin Kellaher reports for the Journal. The firm is paying $42.15 a share, or about $6.2 billion, in cash to take the Charlotte, N.C., business private.

Buyout firm TPG and pension investor Caisse de dépôt et placement du Québec are acquiring a majority interest in infrastructure engineering and construction company Pike, based in ​​Charlotte, N.C. TPG is investing through its Rise Climate impact strategy. La Caisse, as the former CDPQ prefers to be known, is acquiring a minority stake alongside TPG, while company managers are also investing through the transaction.

Nuwa Capital led a strategic growth investment in advertising technology company GoWit, joined by existing investors including Formus Capital. The Newark, Del., company develops artificial intelligence technology to improve ad effectiveness and analyze related data.

Buyout firm GTCR target Surmodics said the Federal Trade Commission and state regulators have informed a federal court in Illinois that they don't intend to appeal the Nov. 10 denial of efforts to block GTCR's acquisition of the medical device materials maker. GTCR agreed to acquire the Eden Prairie, Minn., business for $43 a share in May.

Paine Schwartz Partners has acquired food-chain analytics services provider Crisp and drinks brand Lucky Energy through newly formed BetterCo Holdings as part of a new roll up strategy targeting better-for-you foods and beverages. The firm is investing through its Paine Schwartz Food Chain Fund VI.

Balderton Capital led a $50 million growth investment in software developer Voize, joined by others including HV Capital. The German company's applications employ artificial intelligence to help nurses who care for elderly patients, particularly assisting with administrative work.

SV Health Investors and RA Capital Management led a $115 million growth investment in Artios Pharma, a gene-focused developer focused on cancer therapeutics, joined byJanus Henderson Investors. The Cambridge, England-based company expects to use the fresh cash to advance its clinical research. 

The alternatives investment arm of BNP Paribas Group's AXA Investment Managers is joining other backers of Imbria Pharmaceuticals in an unspecified growth investment. Previous investors in the round included RA Capital Management, SV Health Investors, Deep Track Capital and Catalio Capital Management. The Boston-based company is developing cardiovascular disease therapeutics. BNP acquired AXA IM from insurer AXA earlier this year.

Shares of advertising company WPP rose Monday after the Sunday Times of London reported takeover interest from Apollo Global Management and KKR, citing unnamed sources. Peer company Havas was also in the mix. But Apollo said it wasn't in discussions or considering a bid for WPP, and Havas also denied being in talks with WPP, Bloomberg News reported. KKR declined to comment.

Prysm Capital and accounting and consulting firm Accenture led a $145 million growth investment in analytics provider Alembic Technologies, joined by Silver Lake Waterman among others. The San Francisco-based company uses artificial intelligence technology to help clients analyze their marketing and advertising efforts using what it calls causal AI.

Achieve Partners is backing education technology company Beanstack with a growth investment, according to an emailed news release. The Arlington, Va.-based company offers an online system designed to encourage and support early reading education.

KKR has agreed to an up to €6 billion replenishing loan commitment to payments services provider PayPal that calls for KKR to buy up to €65 billion, or roughly $76 billion, of buy now, pay later receivables originated by the company in France, Germany, Italy, Spain and the U.K. The new deal follows a 2023 agreement that gave KKR's credit strategies the opportunity to acquire similar debt. PayPal remains in charge of consumer-facing activities, including loan originations. 

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

Clearlake Capital Group has sold its stake in country club operator Concert Golf Partners to fellow private-equity investor Bain Capital. The Lake Mary, Fla.-based company has 39 locations across the U.S. Clearlake had backed the business since investing in March 2022.

Frazier Life Sciences-backed Halda Therapeutics has agreed to be acquired by strategic buyer Johnson & Johnson for about $3.05 billion in cash. Frazier and RA Capital Management, Boxer Capital and Deep Track Capital were among investors that participated in a $126 million growth investment in the clinical-stage biotechnology company in July 2024. The New Haven, Conn.-based company is developing oral cancer therapies.

Energy-focused Five Point Infrastructure in Houston is selling at least 2.5 million shares of Permian Basin property manager LandBridge for $71 each, or $177.5 million, reducing the firm's stake in the company to about 63%. Then named Five Point Energy, the firm formed Houston-based LandBridge in 2021. LandBridge shares fell 17% to close at $61.88 in New York after the sale was disclosed.

Growth investor LegalTech Fund has collected $110 million for its second fund dedicated to backing companies developing technology specifically for use in the legal industry. Law firm McDermott Will & Schulte, which backed the first LegalTech fund, served as anchor investor with a $10 million commitment.

Alternative assets investor Harbert Management in Birmingham, Ala., is promoting John Harbert to executive vice president and Kathryn O’Neal to senior vice president of operations while expanding Jack Bryant's duties by adding growth and credit strategies to his role as executive vice president and senior managing director. All the changes take effect at the start of next year.

StepStone Group in New York has named Guglielmo Russo Walti, the firm's Iberian regional lead, business development and client relations, to run a newly opened office in Madrid. He joined the firm in January 2023.

New York-based multi-family office investor Cresset has named Albert Leshinsky a managing director and head of corporate development at the firm. Leshinsky’s previous experience includes stints with J.P.Morgan, First Republic Wealth Management and UBS, according to his LinkedIn profile.

Tikehau Capital in Paris has appointed Daniele Germano co-head of Italy, focusing on fundraising. Before joining Tikehau, he was a sales and investor relations executive with BNP Paribas.

Alex Lubar will depart advertising agency Omnicom Group to become chief executive officer at Fundamentalco, a brand-consulting firm for private-equity firms and their portfolio companies, the Journal reported.

The $589.34 billion California Public Employees’ Retirement System is ditching asset allocations in favor of a “total portfolio approach” starting next July. So instead of fixing a set amount as a target for specific types of assets including private equity, the pension system will switch to periodic assessments of which asset classes contribute best to meeting the system's goals. The decision to make the move came after a study of other pensions that followed the total portfolio approach showed they outperformed the traditional asset allocation model by 1.3% annually over a decade.

Barings parent Massachusetts Mutual Life Insurance is selling an 18% stake in the Charlotte, N.C., private-equity firm to Mitsui Sumitomo Insurance, a unit of MS&AD Insurance Group Holdings, for about $1.44 billion in cash. MassMutual will remain Barings’ majority owner. Barings will also continue to manage the majority of MassMutual’s general investment account. MS&AD is supplying growth capital to Barings as part of the deal. The private-equity firm managed over $470 billion at the end of September. 

Brookfield Asset Management, Cerberus Capital Management and Ashmore Investment Advisors have signed agreements with the National Bank of Kazakhstan's National Investment Corp. totaling nearly $1 billion to improve the Central Asia nation's infrastructure as well as its private equity and debt markets development.

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