We write a lot about litigation involving private equity. But today we're going to discuss private equity involving litigators — or, more to the point, investing in law firms.

Driving the news: McDermott Will & Schulte is working on a restructuring that would let it sell a stake to private equity, per the FT.

• The effort is being led by Zack Coleman, the son of firm chair Ira Coleman, who joined MWS in July after eight years with private equity firm Odyssey Investment Partners.
• Ira Coleman tells Axios: "While this is all very preliminary and we are fielding inbound interest, as one of the fastest growing, most successful modern law firms, we are constantly approached and we always listen to new ideas."

The big picture: The American Bar Association requires that legal practices be owned by lawyers, to reduce conflicts of interest, which is why we haven't seen these sorts of deals before.

• The workaround being contemplated by MWS and some peers is to convert into "management services organizations," which basically splits the firm into one that handles professional services and one that handles everything else.
• "Private equity firms are investing in the latter business, while reaping the rewards of the first," Axios Pro's Ryan Barwick wrote in July. "Private equity firms have used the MSO playbook in fields like health care and dental services."
• For the law firms it's a way for partners to generate brand liquidity, albeit by introducing the ethical risks that the ABA sought to eliminate.

Zoom out: Some states like Arizona and Utah have loosened law firm ownership restrictions, although that's separate from the MSO efforts.

The bottom line: Private equity won't rest until it owns a significant slice of every American industry. Law firms, some of which generate billions of dollars in revenue, may be next on the bucket list.

Source: Giphy

Clayton Dubilier & Rice is weighing a takeover bid for Sealed Air (NYSE: SEE), a Charlotte, North Carolina-based packaging company whose products include Bubble Wrap and Instapak, per multiple reports.

Why it's the BFD: Beyond the childish joy of popping the bubbles, or that I just learned "Bubble Wrap" is an actual brand?

• Okay, then it's because a Sealed Air auction could spark a series of transactions — since CD&R or another suitor may break up its food and protective packaging units.

By the numbers: Sealed Air closed trading yesterday with a $5.35 billion market cap, but shares jumped more than 20% at today's open.

• In 2017, the company sold several divisions to Bain Capital for $3.2 billion.

The bottom line: "The private-equity industry, after gorging on technology investments in the wake of the pandemic, is now coming back around to bread-and-butter companies such as industrial suppliers and service providers." — Lauren Thomas, WSJ

• Anysphere, the maker of coding assistant Cursor, raised $2.3b at a $29.3b post-money valuation. Accel and Coatue led, joined by Thrive Capital, DST Global, Nividia, and Google. axios.link/3K1kqZx

• Chaos Industries, an LA-based maker of counter-drone radar systems, raised $510m led by Valor Equity Partners at a $4.5 valuation, per Reuters. axios.link/3LDxW63

• Gopuff, a Philadelphia-based rapid-delivery company, raised $250m led by Eldridge Industries and Valor Equity Partners at an $8.5b valuation, per Bloomberg. It previously was valued at $15b and subsequently sold notes with a convert price of up to $40b. axios.link/47PFXME

• Forterra, a Clarksburg, Md.-based provider of autonomous commercial and military vehicles, raised $238m in Series C equity and debt funding. Moore Strategic Ventures led the equity tranche, joined by Salesforce Ventures, Franklin Templeton, Balyasny Asset Management, 645 Ventures, Hanwha Asset Management, 9Yards, XYZ Venture Capital, Enlightenment Capital, and Hedosophia. Debt came from Crescent Cove. axios.link/48bxx3u

• Zilch, a British consumer fintech, raised over $175m in equity and debt funding. KKCG led the equity, joined by BNF Capital, while Deutsche Bank expanded the company's credit facility. axios.link/4hXuAXN

• Harbinger, a maker of commercial EVs, raised $160m in Series C funding. FedEx, Capricorn, and THOR Industries led, joined by Ridgeline, Tiger Global, Leitmotif, Maniv Mobility, Schematic Ventures, Overture Climate, Ironspring Ventures, ArcTern Ventures, Litquidity Ventures, and The Coca-Cola System Sustainability Fund. axios.link/3LFnbQD

• Alembic Technologies, an SF-based causal AI startup, raised $145m. Prysm Capital and Accenture led, joined by Liquid 2 Ventures, NextEquity, Friends & Family Capital, WndrCo, and SLW. getalembic.com

• Majestic Labs, an SF-based AI server developer, launched with $100m in seed and Series A funding from Bow Wave Capital, Lux Capital, SBI, Upfront Ventures, Grove Ventures, and Hetz Ventures. axios.link/3LYu6V6

• Parallel Web Systems a "world wide web for AIs" led by ex-Twitter CEO Parag Agrawal, raised $100m in Series A funding at a $740m post-money valuation. Kleiner Perkins and Index Ventures led, joined by Spark Capital, Khosla Ventures, First Round Capital, and Terrain. axios.link/3JQAPzY

🚑 Beacon Biosignals, a Boston-based developer of neuro diagnostics and precision medicines, raised $86m in Series B funding from Innoviva, GV, Nexus NeuroTech Ventures, S32, Catalio Capital Management, General Catalyst, Logos Capital, Casdin Capital, and Indicator Ventures. axios.link/4qUxUqr

• Sweet Security, an Israeli runtime cloud and AI security startup, raised $75m in Series B funding. Evolution Equity Partners led, joined by Munich Re Ventures, Glilot Capital Partners, and Key1 Capital. axios.link/49lVbvr

🚑 Gate Bioscience, a Brisbane, Calif.-based protein elimination biotech, raised $65m in Series B funding, per Axios Pro. Forbion led, joined by Eli Lilly, Versant Ventures, a16z, GV, and Arch Venture Partners. axios.link/49R74cN

• Fabric8Labs, a San Diego-based electrochemical additive manufacturing startup, raised $50m led by NEA and Intel Capital, per Axios Pro. axios.link/49QAiIO

• WisdomAI, an AI data analytics startup led by Rubrik co-founder Soham Mazumdar, raised $50m in Series A funding. Kleiner Perkins led, joined by NVentures. axios.link/48aBXYr

🚑 myTomorrows, an Amsterdam platform that connects patients with clinical trials, raised $29m from Avego. axios.link/43nP3is

• Arrived, a Seattle-based fractional real estate investing platform, raised $27m. Neo led, joined by Forerunner Ventures, Bezos Expeditions, and Core. arrived.com

• BoomPop, an SF-based company events platform, raised $25m. Wing VC led, joined by Atomic, Acme, Four Rivers, Thayer Investment Partners, the Fund of Operators Guild, and Gaingels. It also secured $16m in debt from SVB. axios.link/4hUiJcN

• Rebel, a Kannapolis, N.C.-based recommerce marketplace for open-box and overstock goods, raised $25m in Series B funding led by MarcyPen. axios.link/4qXpWx0

• Agency, a customer success startup, raised $20m in Series A funding. Menlo Ventures led, joined by Sequoia Capital, Felicis Ventures, Snowflake Ventures, and Databricks Ventures. axios.link/4pawfM3

• Anzen, a commercial insurance workflow startup, raised $16m in Series A funding, per Axios Pro. Madrona led, joined by Sandbox Industries and a16z. axios.link/3JMks7y

🚑 Modulight Biotherapeutics, a Boston optogenetic platform for neurological disorders, raised $12.2m in seed funding. Jibe Ventures and LocalGlobe led, joined by Nexus Neurotech Ventures, RedSeed VC, Secret Chord Ventures, Fresh Fund, Saras Capital, SilverArc Capital, and Sha'ar Mivnim. axios.link/447itBv

• Milestone, an Israeli platform for ROI analytics on AI investment, raised $10m in seed funding led by Heavybit and Hanaco Ventures. axios.link/47VCJYc

• Seismic, a blockchain for fintechs, raised $10m led by a16z Crypto. seismic.systems

• District Cover, a Nashville, Tenn.-based insurer, raised $6m. IA Capital led, joined by insiders a16z, Mosaic, and Impact America Fund. districtcover.com

• Abacus, an AI infrastructure platform for regulated industries, raised $5m in Series A funding. GFT Ventures led, joined by BankTech Ventures and LAUNCH Fund. axios.link/3Xqzz9O

• Skycore Semiconductors, a Danish chip startup, raised €5m in seed funding. Amadeus APEX Technology Fund led, joined by First Momentum, Mätch VC, and Balnord. axios.link/4ozKkCB

• Forgis, a Swiss factory automation startup, raised $4.5m in pre-seed funding led by Redalpine. forgis.com.

🚑 Preveta, an LA-based chronic care navigation platform, raised $2.35m in Series A extension funding. Navigate Ventures and Sovereign Capital led, joined by Bullpen Capital and TrailMix Ventures. preveta.com

• Litmus, a San Jose, Calif.-based industrial edge data platform, raised funding from Insight Partners and Munich Re Ventures. axios.link/47OYuIT

• Activated Insights, backed by Cressey & Co., acquired CareAcademy, a Boston-based caregiver education and compliance automation provider that had raised over $30m from firms like Multiplier Capital, Seae Ventures, Rethink Capital Partners, and Impact America Fund. axios.link/49Q8BzP

• Blackstone is in talks to buy a majority stake in Indian cloud infrastructure firm Neysa Networks, while SoftBank is weighing a minority position, per Bloomberg. Neysa has raised around $50m in VC funding. axios.link/49c6I0a

• Clearlake Capital Group agreed to buy Irvine, Calif.-based investment manager Pathway Capital Management for nearly $1b, per the WSJ. axios.link/4pc5AhW

• Dayforce (NYSE: DAY) shareholders approved a $12.3b buyout by Thoma Bravo. BFD flashback

• Harbor Global, a Bay Pine portfolio company, acquired Encoretech, an NYC-based provider of tech training and user adoption services for law firms and corporate legal teams. axios.link/49N7Fft

• H.I.G. Capital invested in Rely Home, an Edison, N.J.-based home warranty provider. axios.link/49KZQXO

• HSG is in talks to buy luxury sneaker maker Golden Goose from Permira for around $3b, per Reuters. axios.link/48aRI1v

• Investcorp acquired Kanawha Scales & Systems, a provider of calibration, maintenance, and repair services for industrial weighing systems, from American Equipment Holdings, a portfolio company of Rotunda Capital Partners. axios.link/43vhZFf

• Permira acquired The Key Group, a British education software provider, from CBPE. axios.link/4p6lBG0

⚡ One Rock and Stonepeak both submitted offers for the Castrol lubricants unit of BP (NYSE: BP), per Reuters. axios.link/43ms2wk

⚡ Turnspire Capital Partners acquired and merged biofuels firms LifeLine Foods and ICM Biofuels. axios.link/4qVNFxn

• Grayscale, a crypto asset manager controlled by Digital Currency Group, filed for an IPO. It reports $35b in AUM and plans to list on the NYSE. axios.link/4oHinci

• Groww, an Indian retail investment platform, raised around $748m in its IPO and then saw shares climb nearly 30% in their first day of trading. It had raised nearly $600m from backers like Iconiq, GIC, Microsoft, Tiger Global, Ribbit Capital, and YC. axios.link/4hWWgvD

• Markerstudy, a British insurer owned by Pollen Street, is speaking with banks about an IPO, per Bloomberg. axios.link/47Us5kc

• Subversive Bitcoin Acquisition, a crypto asnd blockchain SPAC, filed for a $100m IPO. axios.link/4p2LHJW

• Iwoca, a British small biz lender whose backers include CommerzVentures and Augmentum Fintech, is weighing a sale, per Reuters. axios.link/4oBmUN8

• Stingray Group (TSX: RAY) is paying $175m to acquire SF-based streaming radio service TuneIn, which raised over $160m (including at a $500m valuation in 2017) from firms like Comcast Ventures, Market, IVP, GV, Causeway Media Partners, General Catalyst, Sequoia Capital, and Innovation Endeavors. axios.link/4p7fJML

• ABN Amro agreed to buy Dutch commercial lender NIBC Bank from Blackstone for €960m. axios.link/4pszSgz

• Citi (NYSE: C) received Russian government approval to sell its bank inside the country to Renaissance Capital. axios.link/3LxnhtL

• Edgewell Personal Care (NYSE: EOPC) agreed to sell its North American feminine care unit, including the Stayfree brand, to Sweden's Essity for $340m. axios.link/4owyMA4

🚑 Pfizer (NYSE: PFE) is seeking to sell its remaining 4.55m shares in listed German vaccine maker BioNTech, which could fetch over $500m, per Bloomberg. axios.link/4i3C3Vm

• Backed, a London-based VC firm, raised $100m for its third fund. axios.link/4qYWw1l

• Blackstone is raising its second senior direct lending fund, one year after raising $22b for its debut vehicle, per Bloomberg. axios.link/3LLok9n

• Lakehouse Ventures of Brooklyn is raising $30m for its fourth fund, per an SEC filing.

• Monomoy Capital Partners raised $500m for its third credit opportunities fund. mcpfunds.com

• Section Partners raised a combined $189m for its fifth flagship fund and second co-investment fund. axios.link/4oD8YT9

• Vistara Growth of Vancouver, Canada, raised US$321m for its fifth fund. axios.link/3LDrFHw

• Caitlin Carroll joined the American Investment Council as SVP of public affairs. She previously was with Weber Shandwick. axios.link/4hT8F3O

• Rav Chanana joined Vesper as a partner. He previously was a managing director with Gemspring Capital. axios.link/4oKD6vW

• Adam Heaysman joined Triple Point as head of fund finance. He previously was with Alpha Group. axios.link/3LFhPF2

• Ran Kurup joined MinIO as chief corporate development officer. He previously was with Intel Capital as a managing director and head of global portfolio development. axios.link/4oCiPIF

• SMBC promoted JC Kreutz to Americas head of structured finance solutions. axios.link/3WVlWzh

• Nicholas Smith Wang joined Partners Group as a partner and head of tech private equity. He previously spent 14 years with Warburg Pincus. axios.link/3WQE25B

Treasury Secretary Scott Bessent slammed the "Sell America" trade in a speech yesterday, Axios' Courtenay Brown reports.

What Bessent said: "Maintaining a robust Treasury market — and strengthening it even further — is essential to Making America Affordable Again ... my job is to be the nation's top bond salesman."

What Courtenay writes: "The Trump administration has put the bond market at the center of an affordability agenda in ways not seen under recent predecessors, using unconventional means to try to encourage demand for U.S. debt."