Axios Pro Rata: PE politics
Illustration: Brendan Lynch/Axios
If Democrats gain full control of Congress next week, as many polls and prediction markets suggest they will, private equity could once again find itself in the political crosshairs.
The big picture: Private equity has become a rhetorical punching bag for more than a dozen Democratic House and Senate candidates, including in debates and on the stump, as an affordability bête noire.
- Most of this has related to housing, both single-family and mobile homes, but also has extended to health care.
What they're saying: "It's no doubt that housing is way out of control and a big part of that is because private equity has come into Maine," said Troy Jackson in an Oct. 6 debate with Sen. Susan Collins. "I do think we have to go after private equity, make it so that they can't buy these things and charge outrageous prices."
- Chris Pappas, running for an open Senate seat in New Hampshire, said during a campaign stop at a mobile home community: "We need to... address the housing crisis that we're seeing, including addressing the corporate private equity influence that we're seeing in housing that's making it less affordable and is causing a lot of consternation here at this park."
- Rep. Marcy Kaptur (D-Ohio) decried PE ownership of residential care facilities during a public event, saying: "Those people know nothing about health care."
State of play: Congress passed a bipartisan bill this past summer to restrict PE ownership of single-family homes, with the Treasury Department last week issuing related regulations.
- The legislation became law despite not being signed by President Trump, who supported it but was in a snit over the Senate not passing his voter identification bill.
Zoom in: A Democratic sweep would likely result in Sen. Elizabeth Warren (D-Mass.) taking the Banking, Housing and Urban Affairs Committee gavel, which means she'd go from writing strongly worded letters to holding hearings and guiding legislation.
- "Americans are sick and tired of private equity's playbook of rolling through industry after industry, jacking up prices and leaving local businesses and workers in the dust," she tells Axios. "After we passed a bipartisan law this year to ban private equity from buying up homes, candidates everywhere are campaigning on reining in private equity in the next Congress, whether in hospitals, mobile home communities, residential care facilities, or other industries."
- It's also worth noting that Warren has Republican allies when it comes to some of these issues, having worked with Sen. Josh Hawley (R-Mo.) on a stalled health bill that has been more endorsed by Senate candidate James Talarico.
The bottom line: Private equity has a very successful track record in beating back federal legislation that could hurt its bottom line. What to watch is if past proves to be precedent.
Illustration: Sarah Grillo/Axios
Jio Platforms, India's largest telecom and digital services provider, raised $3.2 billion in its IPO at around a $106 billion valuation.
Why it's the BFD: This was India's largest IPO ever, topping prior record-holder Hyundai Motor India.
Cap table: Jio Platforms is a carveout of Mukesh Ambani's Reliance Industries, and had raised billions of private market dollars from Alphabet, Meta, KKR, Silver Lake, Vista Equity Partners, TPG, Qualcomm Ventures, Intel Capital, ADIA, and Mubadala.
Investor reax: Jio shares surged 27% during their first trading day, helping Reliance leapfrog Tata Group to become India's largest conglomerate by market cap.
The bottom line: "Investors had to weigh the Ambanis' digital dreams against risks including the potential disruption from satellite-based connectivity: Elon Musk's Starlink has been waiting since 2022 to operate commercially in India and, if granted access, would be a direct competitor." — Ujjaini Dutta, Reuters BreakingViews
Upwind, an Israeli cloud security company, raised $400m in Series C funding at a $3.8b valuation, per Axios Pro. Bessemer Venture Partners led, joined by Canapi Ventures and insiders Cyberstarts, Greylock Partners, Craft Ventures, Salesforce Ventures, and Picture Capital. axios.link/4zdZ1k3
Lumaril, an NYC-based factory optimization startup, raised $66m in Series A funding at a $400m valuation. Elad Gil led, joined by Felicis, Koch Disruptive Technologies, Pax Ventures, and insiders Lux Capital and General Catalyst. axios.link/47G2YlF
🚑 Intake Breathing, a Santa Barbara, Calif., maker of a magnetic nasal dilator, raised $62m from Camino Partners, per Axios Pro. axios.link/4jMkxYr
Fragment, an NYC-based procurement startup, raised $56m in seed and Series A funding, per Axios Pro. 8VC led the A, joined by General Catalyst, A*, and Roelof Botha. axios.link/4sqA3eO
Infisical, an SF-based cybersecurity startup, raised $40m in Series B funding at a $600m valuation. Elad Gil led, joined by Gradient and YC. axios.link/3Uq5jy2
Maxinsights, a Santa Clara, Calif.-based robot training data startup, raised $30m in seed funding. Peak XV led, joined by Tola Capital, South Park Commons, INCE Capital, and Alumni Ventures. axios.link/4iJd7nI
🚑 Vera Health, an SF-based clinical AI search engine, raised $28.5m in Series A funding. Threshold Ventures led, joined by Optum Ventures, Mantis VC, SV Angel, YC, and Gradient. axios.link/4e3Q84l
Circuit Mind, a London-based electronic design intelligence startup, raised $18.5m in Series A funding. Norwest led, joined by Third Prime, Differential, Blackhorn, and Lightscape VC. axios.link/4sxp4QT
Luxor Technology, a Seattle-based bitcoin mining services provider, raised $16m. CMT Digital led, joined by Canaan and MicroBT. axios.link/4inS09a
Plato, a provider of simulated workplaces for AI training, raised $16m in Series A funding, per Axios Pro. Nava Ventures led, joined by insider Gradient Ventures. axios.link/47FR0bI
Sava, an SF-based trust administration startup, raised $10m in seed funding, per Axios Pro. Gradient Ventures led, joined by YC, SV Angel, Orange Collective, and SurgePoint Capital. axios.link/3UWxcxT
FluxCap, an AI tool for litigators led by former DOJ antitrust officials Jonathan Kanter and Doha Mekki, raised $6.4m in seed funding from Bloomberg Beta and YC. axios.link/4szDxfi
Mostest, a NYC-based event-booking platform, raised a $4m seed round from Capital Q Ventures, Nexus Luxury Collection, T-Squared Social, Wildwood Ventures, Locker Room Capital, and Newbond. axios.link/4iJEZbq
🚑 Parasol Med Tech,a Chicago-based stroke prevention startup, raised a $2.75m pre-seed round from Harper Court Ventures, UChicago Medicine Ventures, and Cardiovascular Innovation Ventures. axios.link/3Wbvfhp
Edge Sound Research, a Riverside, Calif.-based audio infrastructure startup, raised $2m led by Stormbreaker Ventures. axios.link/3U53R46
A MESSAGE FROM J.P. MORGAN
Unpredictability is part of a startup founder’s journey, as Grant Lee knows. With the stability and support J.P. Morgan provides, Grant and his team at Gamma have had the confidence to dream, build, and grow as they reimagine how people present and share their ideas.
Illustration: Sarah Grillo/Axios
🍔 Trian Fund Management, led by Nelson Peltz, offered to acquire Wendy's (Nasdaq: WEN) for around $1.4b, or $7.35 per share (20% premium to yesterday's closing price). axios.link/4eE2lgb
⚡ Burns Engineering, backed by OceanSound Partners, acquired PRVN Consultants, an Iowa City, Iowa-based energy engineering firm. axios.link/4eXaGvs
CVC, Cinven, and Spanish beauty company Puig are among those circling Parfums de Marly, a French luxury fragrance brand owned by Advent International, per Reuters. axios.link/47PYlFF
Edge Industrial Technologies, backed by Falfurrias Capital Partners, acquired Harvest Blade, a Salinas, Calif.-based industrial blade resharpening and supply company. axios.link/4jK6R0c
Ferranti, a Belgian utilities sector software provider owned by Main Capital Partners, acquired Belgian peer Cogenius. axios.link/4yOZ30J
I Squared Capital agreed to buy Kansas City-based Orizon Aerostructures for around $2b from backers like American Industrial Partners. axios.link/4svenyi
🚑 Leonard Green & Partners acquired Radon Medical Imaging, a Charleston, W.Va.-based medical equipment repair and maintenance company, from 5th Century Partners. axios.link/4yMBWUH
Maccaferri, an Ambienta portfolio company, acquired Metallurgica Irpina, an Italian maker of wire-based solutions for infrastructure, perimeter protection, and agriculture. axios.link/4zefuoz
Oddball, a Falfurrias portfolio company, acquired the Salesforce tech and services business of Synaptic Era. axios.link/4sNa9lT
Shrieve Chemical, backed by Gemspring Capital, acquired Clear Solutions, a U.K. maker of water-based drilling fluid systems. axios.link/4jKpnWi
TempusDirect, a Tempe, Ariz.-based provider of third-party claims cost containment solutions for P&C insurers, raised growth equity from Aldrich Capital Partners. axios.link/48jX1ee
TPG is in talks to buy U.K. data center group Ark from Elliott Investment Management for around $5b, per the FT. axios.link/3WQR99S
Truelink Capital agreed to acquire the global intrusion products business of Johnson Controls (NYSE: JCI). axios.link/4e0uWvX
Virent Capital invested in Kanahoma, a San Diego-based higher-ed marketing agency. axios.link/4yIMcgM
Heroic Empire Acquisition, a SPAC led by William Ip (Amasse Capital), filed for a $100m IPO. axios.link/4yGGJXH
Syngenta, a Swiss seeds and pesticides giant owned by China National Chemical, could seek to raise around $10b at a $66b valuation in a Hong Kong IPO early next year, per Reuters. axios.link/4yOfZoj
CoStar (Nasdaq: CSGP) agreed to acquire Vexcel, an aerial imagery group,for $730m. Sellers include Riverwood Capital. axios.link/4yK6ari
⚡ GE Vernova (NYSE: GEV) agreed to acquire Trench Group, a German maker of high-voltage products, for $9b from Triton Partners. axios.link/4eyrTeA
Guidewire (NYSE: GWRE) agreed to buy Hyperexponential, a London-based provider of mathematical modeling software for commercial insurers, for $1.7b in cash and up to $400m in earnouts. Hyperexponential has raised $88m from firms like Battery Ventures, a16z, and Highland Europe. axios.link/3Wf3lRC
Intel (Nasdaq: INTC) agreed to acquire Classiq, an Israeli quantum software startup, for $2.3b. Classiq had raised over $200m from AMD Ventures, CDP Venture Capital, GlenRock Israel, Lane Hamilton, LIP Ventures, NightDragon, Norwest, Qualcomm Ventures, SoftBank, Vertex Ventures, Alumni Ventures, HSBC Ventures, Samsung NEXT, Team8, IonQ, Mirae Asset Capital, LeumiTech77, and Quantum Eretz. axios.link/4iLoMS7
🚑 RadNet (Nasdaq: RDNT) agreed to acquire Onrad, a Phoenix-based teleradiology and radiology staffing firm, from Housatonic Partners for around $717m in cash and stock upfront (plus $210m of earnouts). axios.link/4zX4aNE
🚑 US WorldMeds bought Orbus, a Menlo Park, Calif.-based brain tumor biotech that had raised $67m from firms like Abingworth, Agent Capital, Adams Street Partners, H.I.G. HealthBridge, and Longitude Capital. axios.link/3WzUkmh
The FTC will seek to block Cintas (Nasdaq: CTAS) from buying rival workplace uniform maker UniFirst (NYSE: UNF) for $5.5b, per Semafor.
🚀 Amazon (Nasdaq: AMZN)received FCC approval for its $11.57b acquisition of satellite-based telco Globalstar (Nasdaq: GSAT). axios.link/4yOfEC3
Ares Capital agreed to acquire MidCap Financial Investment (Nasdaq: MFIC) for $2.6b in cash and stock. axios.link/4Br8ciR
Hummingbird, a VC-backed orchestration platform for financial crime compliance, acquired Quantimon, a machine learning platform for AML risk detection. hummingbird.co
Andrew Dean and Christopher Mulligan, both former SEC attorneys, are leaving Weil, Gotshal & Manges to join Skadden. axios.link/3TX0s7q
Dragonfly, a crypto-focused VC firm, promoted Rob Hadick and Tom Schmidt to managing partners. axios.link/4yRlClD
Karin Geldfeld joined Cerity Partners as a principal of private markets. She previously was managing partner of Marinta Investments. axios.link/4jK3VRd
Chris Holzshu joined Franchise Equity Partners as an operating partner focused on the auto industry. He previously was with Lithia & Driveway. axios.link/3UNWjTy
Manoj Kothiyal joined Boston-based PE firm Astira Capital Partners as a partner and head of AI. He previously was chief business officer and global head of AI at LTM. axios.link/3WdQ8IK
Peter Larsen joined HarbourVest Partners as a managing director and head of infrastructure distribution. He previously spent over 17 years at Hamilton Lane. axios.link/4i8eJaz
David Pett joined Moelis as a managing director. He previously was with Bridgepoint Financial Technology. axios.link/48kWp8e
Standard Investments promoted Peter Marturano to chief investment officer. axios.link/4ic4eTy
Ron Sylvestri joined HighPost Capital as managing director of marketing. He previously founded and led Quail Ridge Asset Management. axios.link/3VZg7nl
Andrew Symons joined Threadmark as a managing director. He previously was with Sustainable Development Capital. axios.link/4BLlBm2
Instacart shares hit an all-time high on Monday, before a slight Tuesday pullback, following reports that the grocery delivery company is nearing a sale to DoorDash.
- Both WSJ and Reuters put around a $17 billion price on the prospective deal, which would work out to over $70 per Instacart share, although neither said if DoorDash would pay all cash or cash and stock.
A MESSAGE FROM J.P. MORGAN
Sid Sheth, co-founder of tech company d-Matrix, knew he needed a banking team that could keep up with the demands of the rapidly evolving AI landscape. J.P. Morgan was the right choice because of its speed and scale, which helped the company expand internationally.
📬 Thanks for reading Axios Pro Rata, and to copy editor Bryan McBournie! Please ask your friends, colleagues, and congressional candidates to sign up.
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