Private equity has always been an apprenticeship business. But what happens if the apprentices are no longer needed?

The big picture: Many PE firms already have begun to experiment with GPT and other artificial intelligence technologies, seeking both efficiencies and competitive advantage.

• Given the rapid pace of AI innovation, it's only a matter of time before many PE analyst jobs are being done by algorithms. Modeling, diligence, etc. And then just a little more time before "many" becomes "most."
• PE firms are not in the habit of hiring people to sit on their hands.

The big question: If PE firms no longer hire young, inexperienced professionals, then who fills the future partnership pipelines?

• This question also implies to industries like investment banking, law and venture capital.

Zoom out: The counterargument is that old tech chestnut about tractors and farmers. Sure, current tasks will be automated. But they'll be replaced by different tasks that require flesh-and-blood participation.

• Maybe. We do still have accountants in the age of spreadsheets. But there's a counter-counterargument that AI is a more transformative than even tractors, with none of us really able to conceive how this all plays out.
• For context, a recent email from Alan Patricof, founder of both Apax Partners and Greycroft: "I have been in the VC business since 1970 — just at the major start of the chip revolution with Intel; then the biotech revolution with the discovery of gene splicing by Genentech in 1976; then the PC revolution in 1977 with Apple et al; then cellular in 1982; then the internet in 1980's; then cloud in the 90's. AI and Chat GPT is a bigger and more profound revolution than all of these in my opinion."

From the stage: I raised this topic on the two panels I moderated yesterday at Milken, one focused on M&A and one on private equity. It's obviously uncomfortable for anyone to contemplate their own professional irrelevance — as a journalist, I can relate — and the replies were a mix of avoidance and belief in the supremacy of personal relationships.

The bottom line: Private equity may change more in the next five years than it has in the past 50.

Carl Icahn yesterday became the target of short seller Hindenburg Research, which accused the famed activist investor's firm of being overvalued and of using "ponzi-like economic structures."

Why it's the BFD: Icahn is accustomed to being on offense, not defense.

By the numbers: Hindenburg's voluminous report dropped Icahn Enterprises shares by nearly 20%, wiping out around $10 billion of Carl Icahn's paper wealth.

What they're saying: Icahn Enterprises reaffirmed its disclosures, calling Hindenberg "self-serving" and only trying to profit off its short position.

The bottom line: Hindenburg is getting a rep for aiming at A-listers, whether that be Jack Dorsey, Gautam Adani, or, now, Icahn.

⚡ Redaptive, a Denver-based energy efficiency-as-a-service startup, raised $264m in Series E funding. Linse Capital led, and was joined by CPP Investments, Honeywell and CBRE. www.redaptive.com

• Cohere, a Toronto-based generative AI startup, raised US$250m at around a $2b valuation, per the NYT. Backers include Salesforce, Nvidia, Inovia Capital and Index Ventures. https://axios.link/3LrRfLV

• Mavenir, a Richardson, Texas-based provider of cloud-native software apps for mobile networks, raised $100m led by insider Siris Capital Group. https://axios.link/3NwigQU

🚑 Healthy.io, a smartphone-based kidney and wound testing startup, raised $50m in Series D funding, per Axios Pro. Schusterman Family Investments led, and Aleph joined. https://axios.link/3HA2VuP

• Foretellix, an Israeli developer of safety-focused vehicle verification services, raised $43m in a first close of its Series C round. 83North led, and was joined by Atrofin VC, Nvidia and Toyota's Woven Capital. https://axios.link/3AMDMtl

• Tarabut, a UAE-based open banking startup, raised $32m from Visa, Tiger Global, Pinnacle Capital and Aljazira Capital. https://axios.link/3AN7w9d

⚡ MayMaan Research, a Hollywood Fla.-based developer of a water-ethanol fuel, raised $30m in Series A funding from Wave Equity Partners. www.maymaan.com

🚑 Uwill, a Boston-based provider of mental health and wellness solutions for college students, raised $30m in Series A funding from Education Growth Partners. https://axios.link/420E4IU

• Hackajob, a London-based technical hiring platform, raised $25m in Series B funding. Volition Capital led, and was joined by AXA Venture Partners and Foresight. www.hackajob.co

🌎 Polymateria, a British biodegradable plastics manufacturer, raised £20m in Series B funding. ABC Impact and Indorama Ventures co-led, and were joined by Milltrust Ventures. https://axios.link/3LuRIwG

• Pietra, a New York-based e-commerce infrastructure startup, raised $16m in Series A expansion funding. M13 led, and was joined by Founders Fund, TQ Ventures and Abstract Ventures. https://axios.link/3njnHbt

🚑 Intrinsic, a New York-based women's health and wellness brand, raised $15m in equity and debt, per Axios Pro. FCA Venture Partners and MAP Investco co-led, and were joined by Define Ventures, Link Ventures and Redesign Health. https://axios.link/42bScPq

• Range, a McLean, Va.-based wealth management startup, raised $12m in Series A funding led by Gradient Ventures. https://axios.link/3NxiBTo

🚑 Thesis, a New York-based DTC supplements brand, has raised $8.4 in Series A funding from Unilever Ventures, MBX, Trust Ventures and Redo Ventures. https://axios.link/420JxzA

• Instock, a San Carlos, Calif.-based automated storage and retrieval solution for micro-fulfillment operators, raised $4m in seed funding. One Way Venture and Lux Capital co-led, and were joined by Commerce VC. www.instock.com

• InvestorHub (fka Fresh Equities), an Australian shareholder engagement platform, raised A$4m led by EVP. https://axios.link/3NvpvIR

🚑 Lasso MD, a San Diego-based developer of marketing tools for dental and medical spa practices, raised $2m led by Trestle Partners. https://axios.link/3VooGU0

• Apax Partners and CPP Investments are considering a joint takeover bid for Thoughtworks (Nasdaq: TWKS), a Chicago-based tech consultancy with a $2.3b market cap, per Bloomberg. Apax previously bought Thoughtworks in 2017, before taking it public in September 2021, and remains its controlling shareholder. https://axios.link/3p1vPxM

🌎 Blue Whale Materials, a lithium-ion battery recycler owned by Ara Partners, acquired Eclipse Energy, a Greenfield, Ind.-based battery testing and evaluation lab. www.bluewhalematerials.com

• Brightspeed, a Charlotte-based ILEC, secured a $500m investment from Mubadala. https://axios.link/412lkHH

• FreshEdge, an Indianapolis-based portfolio company of Wind Point Partners, acquired Testa Produce, a Chicago-based produce and specialty food distributor. www.freshedgefoods.com

• KKR agreed to buy CoolIT, a Canadian provider of liquid cooling solutions for computing environments. Sellers include nVent Electric, Bellnote Partners and BDC Capital. https://axios.link/3LNfZQc

🚑 Hildred Capital Management invested in AleraCare, a Phoenix-based provider of infusion and specialty pharmacy services. www.aleracare.com

• Trivest Partners invested in Lenworth Building Services, a Canadian seller and installer of commercial overhead doors and loading dock equipment. www.lenworth.ca

🚑 VMG Healthcare, a Dallas-based portfolio company of Northlane Capital Partners, acquires Reno, Nev.-based health care consulting firm BSM Consulting. www.vmghealth.com

🚑 Avertix Medical (fka Angel Medical Systems), an Eatontown, N.J.-based cardiac monitoring company that raised over $30m in VC funding, agreed to go public at an implied $195m enterprise value via BIOS Acquisition Corp. (Nasdaq: BIOS). https://axios.link/3NzUTWW

• Hyphen Group, a Hong Kong-based personal finance fintech, is in talks to go public via Bridgetown Holdings (Nasdaq: BTWN), a SPAC backed by Richard Li and Peter Thiel, per Bloomberg. Hyphen backers include Li's Pacific Century, Alibaba, Goldman Sachs, Experian and IFC. https://axios.link/40Y4z0q

🚑 AEA Investors agreed to sell Spectrum Plastics Group, an Alpharetta, Ga.-based medical device contract manufacturer, for $1.75b to DuPont de Nemours (NYSE: DD). https://axios.link/3APgLFT

• Greenwood, an VC-backed neobank focused on Black and Latino customers, acquired Kinly, an Overland Park, Kan.-based rival that raised around $20m from Forerunner Ventures, Point 72 Ventures, Anthemis, Kapor Capital and Maple VC. https://axios.link/44lYqxO

• Mozilla acquired Fakespot, a browser extension for identifying fake reviews that had raised around $8m from firms like Bullpen Capital. https://axios.link/3VmQDvL

🚑 Johnson & Johnson (NYSE: JNJ) is paying $245m in cash, plus possible earnouts, for two non-Hodgkin lymphoma therapy candidates from Rockville, Md.-based Cellular Biomedicine. https://axios.link/4223KVI

• Brightspark, a Canadian VC firm, held a C$75m first close on its second fund (targeting C$120m). https://axios.link/42250YM

• Gigascale Capital has launched to invest in early-stage climate startups. Its founders are Mike Schroepfer (ex-Meta CTO), Victoria Beasley (Prelude Ventures) and Evaline Tsai (Fine Structure Ventures). https://axios.link/3LQM0qI

🌎 OGCI Climate Investments is targeting $750m for its second fund, per Axios Pro. https://axios.link/3Hx8oTh

• Goldman Sachs promoted Troy Broderick to COO of its global M&A business, per Reuters. https://axios.link/3oYgi1z

• Waverley Capital promoted Deek Velagandula to principal. www.waverleycapital.com

Remember when the regional banking crisis was contained by the sale of SVB, and then again by the sale of First Republic? Well, maybe not.

• The S&P 500 regional banking subindex dropped another 6.5% yesterday, driven by double-digit declines for Zions Banc and PacWest.
• Not only might this eventually mean more regional bank failures and mergers, but it also means that business lending will tighten.
• Finally, an update to our ongoing FOIA efforts to learn who made takeover bids for Silicon Valley Bank during that first weekend. The FDIC now tells us that it will release that information "not later than" this coming Monday.