Here's how private equity has worked for the past couple decades:

• One firm buys a company and tries to increase its value. It then sells the company within a few years at a profit to another private equity firm, which seeks to repeat the process. Rinse and repeat.
• Sometimes a strategic buyer or IPO sneaks in, but sponsor-to-sponsor deals have been the norm, particularly in the middle markets.

Here's how private equity is beginning to change, and may work for the next couple decades:

• One firm buys a company and tries to increase its value. It then holds onto that company for a lot longer, while still providing liquidity to investors who want out (e.g., public pensions and endowments).
• And a lot of the new money will come from rival firms, including those that would have been majority buyers in the old era.

Caveat: We're talking here about the winners, not the losers.

State of play: The siren song of so-called "single-asset continuation vehicles" is getting louder, as LPs clamor for liquidity.

• Its new verse is the part about direct investors participating on the buyside — supplementing secondaries funds for now, but maybe supplanting them in the future.
• At least half a dozen firms are raising dedicated funds to do just this, arguing that they have superior diligencing experience when it comes to individual companies. Among them are Leonard Green and TPG.

Behind the scenes: Limited partners tend to loathe single-asset CVs, particularly if they reset fee schedules, but they've meekly played along.

• And probably won't ever revolt, given that there hasn't been successful LP coordination since shortly after the dotcom crash, when they got VC funds to return dry powder.

Look ahead: This isn't just about leveraged buyouts. Expect to also see single-asset CVs in areas like private credit and infrastructure, and for secondaries funds to be disintermediated by direct investors.

Cerebras Systems, a Sunnyvale, Calif.-based AI chipmaker that wants to challenge Nvidia, filed for an IPO that could raise an estimated $600 million.

Why it's the BFD: A venture-backed tech unicorn wants to go public.

• Sure, it's in the scorching AI sector — with revenue up 6,400% year-over-year — that that shouldn't detract from the anomaly.

By the numbers: Cerebras plans to list on the Nasdaq (CBRS) with Citigroup and Barclays leading a group of 11 underwriters.

• It reports a $66 million net loss on $104 million in revenue for the first half of 2024, compared to a $77 million net loss on just $1.6 million in revenue for the year-earlier period.
• Cerebras has raised over $400 million in VC funding, most recently in 2021 at a $4.25 billion valuation, from firms like Foundation Capital, Benchmark, Eclipse Ventures, Alpha Wave, Coatue, Sam Altman, and Andy Bechtolsheim.

The bottom line: "For two years, stock investors wanting in on the frenzy around AI have had only a few tech industry options: big companies like Microsoft and Nvidia. But that is set to change." — Erin Griffith & Cade Metz, NYT

🚑 Kailera Therapeutics, a Boston-based developer of injectable and oral therapies for treating chronic weight management, launched with $400m in Series A funding from Atlas Venture, Bain Capital Life Sciences, RTW Investments, and Lyra Capital. axios.link/3Y5r1X1

• Eon, a New York-based cloud infrastructure backup company, raised $77m in Series C funding led by Greenoaks at a $700m post-money valuation. axios.link/3ZH6qtq

• 11x AI, a developer of AI sales reps, raised $50m in Series B funding led by a16z at around a $350m valuation, per TechCrunch. axios.link/3TRmkhf

• Nym, an autonomous medical coding startup, raised $47m. PSG led, and was joined by Google Ventures, Addition, Samsung Next, and Dynamic Loop Capital. nym.health

• Series Entertainment, a Rocklin, Calif., game studio startup, raised $28m in Series A funding from Netflix, Dell Technologies Capital, a16z, Bitkraft, and F4 Fund. axios.link/3Y5k6Nx

🚑 StrataPT, an Osprey, Fla., physician practice management software provider, raised $25m from Council Capital, per Axios Pro. axios.link/4ds6ctu

🚑 Air Doctor, an Israeli travel health startup, raised $20m in Series B funding. aMoon led, and was joined by Tokio Marine Holdings, Samsung Ventures and insiders Lightspeed Venture Partners, Vintage Investment Partners, Phoenix Insurance, and Munich Re Ventures. axios.link/3Y6z8CT

• Rogo, a generative AI startup focused on financial services, raised $18.5m in Series A funding, per Fortune. Khosla Ventures led, and was joined by AltCapital, Original Capital, Mantis VC and insiders AlleyCorp, BoxGroup, and ScOp VC. axios.link/3BoAdgl

• Neeve, a cloud platform-as-a-service for smart buildings, raised $15m co-led by Cantor Fitzgerald and RXR. neeva.ai

⚡ Anaphite, a British battery electrode tech developer, raised $13.7m in Series A funding. World Fund and Maniv co-led, and were joined by EEI, Nesta, Elbow Beach Capital, and Wealth Club. axios.link/4dr5jBs

• Lucky Energy, a better-for-you energy drink maker, raised nearly $12m in Series A funding. Brand Foundry Ventures led, and was joined by Imaginary Ventures, Sapphire Sport, and Sugar Capital. luckybevco.com

• Lanai AI, an enterprise AI enablement platform, raised $10m in seed funding from Juxtapose, Lux Capital, F7Ventures, and BAG Ventures. withlanai.com

• RD Technologies, a crypto payments startup founded by the ex-CEO of Hong Kong's de facto central bank, raised $7.8m from HongShan, Hivemind Capital Partners, and Aptos Labs. axios.link/47V0Wxd

• Thread AI, a composable AI infrastructure platform, raised $6m in seed funding. Index Ventures led, and was joined by Greycroft. threadai.com

• Suma Wealth, a Latino-focused financial education and wellness platform, has raised $3.8m in seed funding led by Radicle Impact, per Axios Pro. It also bought financial wellness app Mooch. axios.link/3TTHUBI

🌎 Foodforecast, a German developer of prediction software to reduce food waste, raised over €3m. Scalehouse Capital and Future Food Fund II co-led, and were joined by Blue Horizon Ventures and Aeronaut Invest. axios.link/3N81s1u

• Indiegraf, a software platform for local news and other publishers, raised $2.2m in seed funding, per Axios Pro. StandUp Ventures led, and was joined by Coralus and Mucker Capital. axios.link/3Y4s0Xo

• Enlaye, a Boston provider of "built world" risk lifecycle management solutions, raised $1.7m in pre-seed funding co-led by Glasswing VC and Hannah Grey VC. enlaye.com

• AZ NGA, an Australian professional advisory firm, from A$240m from Oaktree Capital Management at a A$690m valuation. axios.link/3TR2UJj

• Clearlake Capital and Francisco Partners completed their purchase of the software integrity unit of Synopsys (Nasdaq: SNPS) for up to $2.1b. axios.link/3Wup7yK

• EducationDynamics, a Lenexa, Kan.-based portfolio company of Renovus Capital Partners, acquired communications firm RW Jones Agency and campus climate research firm Rankin Climate. axios.link/3XENdpq

• Levine Leichtman Capital Partners bought Expert Institute, a New York-based provider of outsourced legal services to attorneys, from Spectrum Equity. expertinstitute.com

• Mavik Capital and Axar Capital completed their take-private buyout of XS Financial, an LA-based provider of CapEx and equipment financing to midmarket companies. xsfinancial.com

• OCI, a portfolio company of Grand Valley Holdings and Gemspring Capital, acquired DrillTools, a maker of rotary drilling tools and excavation products. axios.link/3BrLpsH

⚡ Partners Group acquired a control stake in Gateway Fleets, an SF-based provider of electrification solutions for logistics fleet operators. axios.link/47JqBch

• Teamfront, a San Clemente, Calif.-based portfolio company of Mainsail Partners, acquired Xcelerate, a provider of job management software for the restoration industry. teamfront.com

• Thoma Bravo agreed to buy a 75% stake in German tech services firm USU Product from USU Software, which went private earlier this year. axios.link/4enJAvf

⚡ TPG and GIC agreed to buy German energy metering firm Techem from Partners Group for €6.7b. axios.link/3zvQHmr

• Boeing (NYSE: BA) may seek to raise at least $10b by selling new stock, per Bloomberg. axios.link/3TP7Zlc

• Ingram Micro, an Irvine, Calif., IT company owned by Platinum Equity, filed for an IPO. It plans to list on the NYSE (INGM) and reports $104m of net income on $23b in revenue for the 26 weeks ending June 29, 2024. axios.link/4encVpz

• Moove Lubricants, a Brazilian auto lubricants business owned by Cosan, set IPO terms to 25m shares at $14.50-$17.50. It would have a $1.8b fully diluted market value, were it to price in the middle, and plans to list on the NYSE (MOOV). Moove reports $43m of net income on $904m in revenue for the first half of 2024. axios.link/3N8gnZf

• Zabka, a Polish convenience store chain owned by CVC Capital Partners, will seek to raise up to $1.67b in what would be Warsaw's largest IPO in four years. axios.link/3TSnd91

• A SPAC III Acquisition, an ESG and materials tech SPAC, filed for a $55m IPO. axios.link/3N6B480

• PepsiCo (Nasdaq: PEP) is in talks to buy Austin, Texas-based tortilla-chip maker Siete Foods for more than $1b, per the WSJ. Siete had raised over $90m from firms like Stripes, AF Ventures, Bee Cave Capital, and Chaucer Global. axios.link/4dBH7wk

• SS&C Technologies (Nasdaq: SSNC) bought Battea, a Stamford, Conn., provider of securities claims management services. Sellers include TowerBrook Capital Partners and Cohesive Capital Partners. battea.com

• Thoma Bravo completed its sale of Venafi, a Salt Lake City-based machine identity management company, to Israeli cybersecurity company CyberArk (Nasdaq: CYBR) for $1.54b in cash and stock. axios.link/4aIi0qd

• Viessmann Generations Group bought KPS Global, a Fort Worth, Texas, provider of custom insulated panel systems, from D Cubed Group. kpsglobal.com

Look ahead: We're expecting a ruling this week in the FTC's antitrust case against the Albertsons-Kroger merger.

⚡ Abu Dhabi National Oil Co. (ADNOC) agreed to buy listed German chemicals company Covestro for around €15.9b (including assumed debt). It's ADNOC's largest ever acquisition. axios.link/4eLlryM

• Basic-Fit, an Amsterdam-listed discount gym operator, is being pressured by shareholder Buckley Capital Management to explore a sale. axios.link/4eAlsFA

• Fairfax Financial (TSX: FFH) agreed to take control of hockey and lacrosse equipment maker Peak Achievement Athletics, whose brands include Bauer, from Sagard Holdings. axios.link/3N769IE

🏈 Tom Gores, founder of Platinum Equity and owner of the Detroit Pistons, reportedly agreed to acquire 27% of the NFL's Los Angeles Chargers. axios.link/4el9OyD

• LVMH (Paris: MC) agreed to sell fashion label Off-White to brand management firm Bluestar Alliance. axios.link/3zJf28d

• MAI Capital Management, a Cleveland-based RIA, acquired Cincinnati-based Bolan Capital Management. mai.capital

• Mizuho Financial of Japan bought a small minority stake in New York-based private lender Golub Capital. axios.link/3BA9Kwe

• Mulberry (LSE: MUL), a British handbag maker, rejected an £83m takeover offer from Frasers Group (LSE: FRAS). axios.link/4eOobeN

• Gallant Capital Partners, an LA-based PE firm, raised $406m for its second fund. gallantcapital.com

• Prospect Partners, a Chicago-based lower midmarket PE firm, raised $225m for its fifth fund. prospect-partners.com

• Restive Ventures is raising up to $70m for its third fintech-focused fund, per an SEC filing. restive.com

🌎 Voyager Ventures, a climate-focused VC firm, is raising up to $300m for its second fund, per an SEC filing. voyagervc.com

• Leonard 'Butch' Dollaga, a retired U.S. Navy Rear Admiral, joined AE Industrial Partners as a managing director. axios.link/4eqc33N

• Matthew Dubbioso (ex-New Mountain Capital) and Michael Nutting (Marlin Equity Partners) joined Revelstoke Capital Partners as partners of investing and capital markets, respectively. revelstokecapital.com

• Josephine Healy joined Highland Europe as general counsel. She previously was with Osborne Clarke. axios.link/4ds1CeM

• Ralph Hora joined Nuveen Private Capital as a partner and head o DACH business development. He previously was with Pemberton Asset Management. nuveen.com

• Jean de Pracomtal rejoined Bryan, Garnier & Co. from Barclays, as director of equity capital markets. axios.link/3Y4hxeH

CVS Health is weighing various strategic options, including a possible breakup of the company, as first reported by Reuters.

Why it matters: CVS is America's largest pharmacy operator and one of its top health care companies, but is being hammered by increased costs at its Aetna insurance unit.

State of play: The company last month slashed its financial forecast and announced $2 billion in cost cuts.

• It also was scheduled yesterday to meet with hedge fund Glenview Capital, which owns around 1% of CVS outstanding stock and wants changes.
• As of May, CVS was looking for a private equity partner to back new Medicare Advantage-focused Oak Street Health clinics, Axios Pro's Claire Rychlewski notes.

The bottom line: CVS may be waiting to see how the Medicare Advantage market shakes out next year, which could be impacted by who controls with White House and Congress.