Happy Monday. We’re back today after an unplanned Covid-induced hiatus. We’ll be off again through the remainder of the holiday week but will return to the regular schedule starting next Monday.

No private equity fund for Andreessen Horowitz just yet:

Andreessen Horowitz recently disclosed in an SEC filing its intention to manage a new fund focused on "investing in the private equity asset class." The filing was quickly picked up by various news outlets (first published by Fortune) that reported the firm was kicking off efforts to expand beyond its venture capital roots into traditional buyout investing. Taking a closer look, such speculation appears to have been premature.

The filing in question was made through a16z Perennial, a relatively new unit originally formed to manage the personal wealth of Andreessen Horowitz's own general partners. Since its 2022 launch, a16z Perennial has expanded its mandate beyond the core firm leadership to also manage capital for a select group of tech founders and executives—effectively operating as a firm-specific multi-family office, per Axios.

The filing in question is likely only related to the roll-out of an additional investment option for a16z Perennial's existing clientele rather than any later-stage fund launch for Andreessen Horowitz as a whole. The SEC disclosure states the planned vehicle will be named "a16z Perennial Private Equity Fund," though it did not indicate a target size for the fund or an expected first close date.

That said, the firm has been gradually expanding its reach and capabilities over the past decade. In addition to its traditional venture focus, the firm now invests across multiple stages, including growth equity, and has launched sector-specific funds focused on areas like biotech and crypto.

Other venture firms have also been testing the waters in adjacent asset classes. NEA and Bessemer Venture Partners, for example, have launched growth-stage funds, while General Catalyst raised money for a firm-sponsored SPAC.

In many ways, an expansion into later-stage investments makes sense for more established venture capital firms. Early-stage exit difficulties and the generally rocky venture environment in recent years (barring AI-related deals) may make buyout seem relatively more attractive.

That's not to mention the natural push for firms to expand into new areas as they push to grow assets under management (and subsequent fee revenue). Just look at later-stage firms’ rush into private credit, real estate, and infrastructure—asset classes with lower relative returns but with a greater available pool of assets up for grabs.

Even so, those same exit difficulties have plagued late-stage investors as well, and it seems likely to be an uphill battle to convince overstretched limited partners to back a new private equity launch from firms with no track record and without any particularly relevant expertise. It’s a shift that’s still likely to happen, but perhaps not until the next cycle comes around.

• BlackRock agreed to buy Preqin, a private markets data provider, for £2.55 billion.

• Atlas Investissement, Xavier Niel's investment fund, submitted a $4.1 billion takeover offer for Millicom International Cellular (Nasdaq: TIGO), a Latin America-focused telecom provider operating under the Tigo brand.

• Clearlake Capital Group invested in Aptean, a provider of ERP and supply chain software for manufacturers and distributors, joining existing backers Insight Partners, TA Associates, and Charlesbank Capital Partners.

• KKR acquired a controlling stake in Baby Memorial Hospital, a multi-specialty hospital chain in Kerala, India.

• Astorg is working with Evercore to explore various financing options as the firm prepares for a generational leadership transition, per Bloomberg.

• TDR Capital has hired Houlihan Lokey and Morgan Stanley to advise on the sale of BPP, a British provider of professional training courses, which could be valued at more than £2.5 billion, per The Sunday Times.

• Levine Leichtman Capital Partners acquired NSL Analytical Services, a materials testing provider serving aerospace & defense clients, from May River Capital.

• TPG acquired a majority stake in Untitled Entertainment, a Hollywood talent management firm, from Boat Rocker Media for $51.6 million CAD.

• GrowthCurve Capital acquired Duetto, a provider of revenue management software for the hospitality industry, from Warburg Pincus.

• Transom Capital Group acquired Virginia Tile Company, a Midwest-based specialty distributor of decorative tile, which it plans to merge with portfolio company Galleher to create a new flooring products platform.

• ToxStrategies, a portfolio company of Renovus Capital Partners, acquired Clintrex Research Corporation, a provider of CNS-focused CRO services for pharma and biotech.

• Acuity Knowledge Partners, a portfolio company of Permira and Equistone Partners Europe, acquired PPA Group, a technology-enabled data provider for commercial lending and ESG analysis.

• Google acquired a stake in New Green Power, a Taiwan-based solar developer and operator, from BlackRock's Climate Infrastructure unit.

• Robinhood Markets (Nasdaq: HOOD) agreed to acquire Pluto Capital, an investment research platform backed by Switch Ventures and Caffeinated Capital.

• OneStream, a KKR-backed corporate performance management platform, filed for a Nasdaq IPO under the ticker OS, with Morgan Stanley, J.P. Morgan, and KKR acting as lead bookrunners.

• Europastry, an MCH Private Equity-backed frozen bakery business, postponed its planned Madrid IPO, citing unfavorable market conditions and heightened volatility amid elections in Europe.

• Bicara Therapeutics, a clinical-stage biotech developing dual-action biologics for cancer, has hired Morgan Stanley to advise on an upcoming IPO, per Bloomberg.

Tech, Vertical SaaS, & Misc. Enterprise

• Lambda, a GPU cloud computing provider, is in talks to raise $900 million, per The Financial Times.

• Vaire Computing, a Seattle-based startup developing near-zero energy chips, raised $4 million in seed funding led by 7percent Ventures, with participation from Seedcamp, and Clim8.

• SmartHR, an HR management platform, raised $140 million in Series E funding co-led by KKR and Teachers' Ventures Growth.

Healthcare

• K Health, an AI-driven primary care platform, raised $50 million in new funding led by Claure Group, with participation from Pablo Legorreta, Mangrove Capital Partners, Valor Equity Partners, and Atreides Management.

Industrials, Greentech, & Other

• Vytal, a Cologne, Germany-based developer of reusable packaging solutions, raised €6.2 million in new funding led by Emerald Technology through its Sustainable Packaging Innovation Fund, with participation from Ventis, Kiko Ventures, Grazia Equity, and Rubio.

• New Mountain Capital $15.4 billion for its seventh buyout fund.

• Ardian raised $3.2 billion for its sixth co-investment fund.

• Kleiner Perkins raised over $2 billion across two new funds: $825 million for early-stage KP21 and $1.2 billion for growth-stage fund KP Select III.

• Lee Equity Partners raised $1.3 billion for its fourth middle market buyout fund.

• KLAR Partners raised €870 million for its second middle market buyout fund focused on business services and industrial technology companies in the Nordic, DACH, and Benelux regions.

• Elsewhere Partners raised $285 million for its third growth-stage fund focused on B2B software investments.

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