When private equity becomes more available to retail investors, it's likely to feature the same sorts of redemption limitations that are bedeviling retail investors in private credit.

Why it matters: This is a predictable car crash, but no one is even checking the brakes.

The big picture: Retail investors will gain new access to private equity via two Trump administration initiatives:

• The first is a lowering of accreditation standards. These are designed to ensure that individual investors are "sophisticated" enough to invest in high-risk asset classes, but in practice are more about ensuring that the investors are rich enough to afford losses.
• The second is allowing 401(k) plans and other defined contribution plans to invest in alternative assets.

Zoom in: Retail investors, in general, expect liquidity-on-demand. Even from their retirement funds (albeit with a major tax penalty).

• Private equity, however, is an illiquid asset class. Sure, you can tell retail investors that their money is locked up for years and years, but most haven't been conditioned to fully grasp it.
• To prevent pitchforks, private equity execs have discussed creating semi-liquid options for individual retail investors and 401(k) plans. Maybe with some private credit or public equities mixed in so there could be quicker cash-flows.

Zoom out: As we're seeing right now with private credit, redemption demand can quickly outpace supply. Both Apollo and Ares enforced redemption limits this week, following similar moves by firms like Blue Owl and Cliffwater.

• Redemption limits are a feature, not a bug, designed to stop funds from collapsing from the equivalent of a bank run.
• But that will be cold comfort to retail investors who are sure to be inundated with advertisements for private equity investments, or pushed into them by financial advisors who covet new products with big promises.
• One can hope that 401(k) managers will be more circumspect, but few current ones have requisite private equity experience.

The bottom line: Invest in your local pitchfork sharpener.

Merck (NYSE: MRK) has agreed to acquire cancer biotech Terns Pharmaceuticals (Nasdaq: TERN) for around $6.7 billion in cash.

Why it's the BFD: The path to patent cliffs is paved with deals.

• Merck now has announced three large acquisitions in the past year, all in preparation of Keytruda coming off patent in 2028.
• The others were Verona Pharma ($10 billion) and Cidara Therapeutics ($9.2 billion).

By the numbers: Merck will pay $53 per Terns share, representing 6% premium on yesterday's closing price and a 42% premium to the 90-day volume-weighted average.

The bottom line: Terns is developing oral treatments for blood and bone cancers. Its lead candidate is a Phase 1/2 pill for chronic myeloid leukemia.

🐮 Halter, a New Zealand-based developer of smart cow collars, raised $220m in Series E funding at a $2b post-money valuation. Founders Fund led, joined by Bessemer Venture Partners, DCVC, Bond, NewView, Ubiquity, Promus, and Icehouse Ventures. axios.link/3O1cGbU

• Dash0, a NYC-based observability startup, raised $110m at a $1b valuation. Balderton Capital led, joined by DTCP, Accel, Cherry Ventures, and Dig Ventures. axios.link/4bI4uFo

• Mirage, maker of the Captions video editing app, raised $75m in growth funding from General Catalyst. axios.link/4d8S63B

• Rocketlane, a customer onboarding and project delivery platform for professional service firms, raised $60m in Series C funding led by Insight Partners, per Axios Pro. axios.link/40PrOMz

• Doss, a provider of inventory management software, raised $55m in Series B funding. Madrona and Premji Invest led, joined by Intuit Ventures and insiders Greyhound Capital, Commerce Ventures, Theory, General Catalyst, Contrary Capital, Mintaka, and Pathlight VC. axios.link/4t1jMMn

• Normal Computing, an NYC-based maker of software for chip design and thermodynamic computing chips, raised $50m. Samsung Catalyst Fund led, joined by Galvanize, Brevan Howard Macro Venture Fund, ArcTern Ventures, Celesta Capital, Drive Capital, First Spark Ventures, and Micron Ventures. axios.link/4bxADRi

🚑 Stedi, a health-care transactions clearinghouse, raised $50m in Series C funding. Addition led, joined by Stripe, Ribbit Capital, USV, First Round Capital, and Bloomberg Beta. axios.link/41qlICo

• Sift, an "intelligence layer" for complex mahcine, raised $42m in Series B funding. StepStone led, joined by GV, Riot Ventures, Fika Ventures, and CIV. axios.link/41qs8RV

• Keynes, an Austin, Texas-based connected TV analytics platform, raised $40m from Volition Capital, per Axios Pro. axios.link/3PmH5lw

🚑 Centivax, developer of a universal flu vaccine, raised $37m, per Axios Pro. Structure Fund led, joined by Meiji Seika Pharma, Sigmas Group, Kendall Capital Partners, and Patrick and John Collison. axios.link/4lLpwHG

• Notch, an Israeli developer of customer experience agents, raised $30m in Series A funding. Headline led, joined by Lightspeed, Jibe Ventures, Illuminate Financial, and Phoenix Insurance. axios.link/3PmIAAa

• Origin, a global employee benefits management platform, raised $30m in Series A funding led by Notion Capital, with Felix Capital and Acadian Ventures participating. axios.link/4lTeCQm

• Glimpse, an AI platform for CPG and retail operations, raised $35m in Series A funding. A16z led, joined by insiders 8VC and YC. tryglimpse.com

• Epic Microsystems, a Morgan Hill, Calif.-based developer of power delivery solutions for AI infrastructure, raised $21m in Series A funding. Seligman Ventures led, joined by Intel Capital, AIconic Ventures, and Cambium Capital. axios.link/3NoQokj

• Lucid Bots, a Charlotte, N.C.-based maker of window-washing drones, raised $20m in Series B funding led by Cubit Capital and Idea Fund Partners. axios.link/4sxtzdd

🚑 Jaaq, a London-based behavioral health platform, raised $17 million from Meridian Health Ventures, Fuel Ventures, Bolt Angels, and Guinness Ventures. axios.link/4uQ939s

🌎 Cauldron Ferm, an Australian biomanufacturing startup, raised A$13.3m in Series A2 funding. Main Sequence Ventures led, joined by Horizons Ventures, SOSV, and NGS Super. axios.link/4busqNH

🌎 Epoch Biodesign, a London-based enzymatic recycling tech startup, raised $12m from Kompas VC, Happiness Capital, Extantia, and Leitmotif. axios.link/4dJvPcN

• Onit Security, an Israeli vulnerability management startup, raised $11m in seed funding led by Hetz Ventures and Brightmind Partners. axios.link/4uPpUZS

🌎 Renasens, a Swedish developer of textile recycling tech, raised €10m in seed funding. Extantia led, joined by Course Corrected VC and Norrsken Launcher. axios.link/4rWYIps

🚑 Cellbricks, a developer of biofabricated human tissue implants with offices in Boston and Berlin, raised €7m in seed funding. Silicon Roundabout Ventures led, joined by Germany's SPRIND, and ACT Venture Partners. axios.link/47lMfEv

🌎 Zevero, a British carbon management platform, raised $7m from Spiral Capital, Gazelle Capital, and Deep 30. axios.link/4bJImu6

• Airbase, an RF spectrum management startup, raised $5m from Founders You Should Know, Squadra Ventures, and a16z, per Axios. axios.link/4dJ5prH

• BrainGrid, an SF-based product planning tool, raised $1m in pre-seed funding led by Menlo Ventures. axios.link/40VeqX9

• Accel-KKR acquired a stake in Tamigo, a Danish workforce management software provider, from Viking Growth. axios.link/3PyuE64

• Advent International agreed to acquire Salt and Stone, a Castaic, Calif.-based body care and fragrance company, from backers like Humble Growth. axios.link/4bQ0OBH

• Amlon, a Heartwood Partners portfolio company, acquired the assets of Lion Industrial Resources, a Texas-based industrial waste management firm. axios.link/4d57uOx

🚑 Bansk agreed to acquire So Good So You, a Minneapolis-based maker of wellness shots, from backers like Prelude Growth Partners. axios.link/3PWHISQ

⚡ Brookfield Asset Management and La Caisse agreed to acquire Boralex (TSX: BLX), a Canadian renewables company, for C$9b. axios.link/486vc9w

• Chimney Rock acquired United Electronics, a Charleston, S.C.-based electronics design and manufacturing company. axios.link/4tdsUhj

• Empowering ​People Group, owned by Limerston Capital, agreed to buy British HR consultancy Mentor from Natwest (LSE: NWG), per Sky News. axios.link/3PXvM3c

• Etna Capital acquired CodeRoad, a provider of digital engineering and software development to enterprise customers. axios.link/4m9Gv73

• Goldner Hawn acquired Lone Star Environmental Cos., a provider of underground infrastructure services in Texas. axios.link/4tbEOrX

• HGGC and Wealth Partners Capital Group agreed to buy a majority stake in Verdence Capital Advisors, a Hunt Valley, Md.-based RIA. Sellers include Emigrant Partners. axios.link/4uQj1HE

🚑 Hopper OS, backed by GPI Capital, acquired Efferent, a healthcare informatics company based in The Woodlands, Texas. axios.link/4stHh0L

• Investissement Québec invested C$125m for a minority stake in Canadian cloud marketplace distributor Sherweb, which will look for acquisitions, per Axios Pro. axios.link/4bMlUkf

🥨 Main Post acquired a minority stake in Stellar Snacks, a Carson City, Nev.-based pretzel maker. axios.link/485ZFVf

🏀 Monarch Collective joined the investor group for Cleveland's WNBA franchise, which is majority owned by Dan Gilbert and expects to begin play in 2028. axios.link/4c3WrUD

• Towerbrook acquired a majority stake in ID Unlimited, a French provider of equipment personalization for sports clubs, from Dentressangle. axios.link/47iF7sr

• Victory Capital (Nasdaq: VCTR) withdrew its $8.6b takeover offer forJanus Henderson Group (NYSE: JHG), clearing the path for a rival bid from General Catalyst and Trian Fund Management. axios.link/41r4Lro

🚀 SpaceX may file for an IPO as early as this week, per The Information.

• Arxis, a Connecticut-based defense electronics maker owned by Arcline, filed for an IPO that Renaissance Capital estimates could raise $400m. It reports $46m of net income on $1.59b of revenue for 2025, and plans to list on the Nasdaq (ARXS). axios.link/4sAGf3g

• RAC Group, a British roadside assistance firm backed by CVC Capital Partners and Silver Lake, is prepping a London IPO that could value the company at around £5b, per Bloomberg. axios.link/4sYh8am

• Amazon (Nasdaq: AMZN) acquired Fauna Robotics, an NYC-based humanoid robotics developer that raised over $16m in seed funding from Kleiner Perkins, Bluebirds Capital, and Quiet Capital. axios.link/4t5h1tu

• Ares Management plans to launch an auction for pharma consulting firm The Lockwood Group, per Axios Pro. axios.link/4rRlLSE

⚡ Capricorn Energy (LSE: CNE) confirmed that it's received offers for its Western Desert assets from Dubai's Dragon Oil. axios.link/4t3sCt3

• United Spirits, the Indian arm of Diageo (LSE: DGE), sold Indian pro cricket franchise Royal ​Challengers Bengaluru for $1.78b to a group that includes Blackstone, Aditya Birla Group, Times of India ​Group, and Bolt Ventures. axios.link/4bJJn5o

🌎 Climate Investment raised $450m for a decarbonization-focused growth fund, per Axios Pro. axios.link/3NAqEBv

• Futurepresent, a new pre-seed and seed-stage firm, raised $300m for its debut fund, per Axios Pro. Its founding team includes former General Catalyst and Cherry Ventures partners. axios.link/3PwOmPF

• Kleiner Perkins raised $1b for its 22nd early-stage fund and $2.5b for a growth fund. axios.link/4c4FzNB

• Overmatch Ventures, an Austin, Texas-based early-stage firm focused on deep-tech, space, and defense, raised $250m for its second fund. axios.link/4bxO6Ze

• Pritzker Alternative Strategies raised $385m for its debut fund-of-funds for family offices. axios.link/4892JzY

• Charlie Kelly joined Western Alliance Bank as a market director of innovation banking. He previously was with Stifel. axios.link/4d3lZSV

• Multicoin Capital promoted Spencer Applebaum and Shayon Sengupta to general partners and co-heads of venture. axios.link/4dGBPTC

• Norwest Venture Partners promoted Gal Amran to vice president. axios.link/4uQiOEA

Jefferies shares spiked yesterday morning on an FT report that Japan's Sumitomo Mitsui Financial Group was weighing a takeover offer for the U.S. lender, in which it already holds a 20% stake.

• But those gains dissipated after Bloomberg reported that talks aren't active.

Jefferies has been central to investor concerns over private credit, due to its exposure to the First Brands bankruptcy, driving down its share price to two year lows.