Happy Friday. Here’s what we’ve got today…

• A look at a dispute over excessive adjustments at former Lindsay Goldberg portfolio company

• Plus, Sycamore Partners’ latest plan for Walgreens

Excessive adjustments:

Lindsay Goldberg is facing scrutiny from Austrian authorities over allegations that the firm artificially inflated EBITDA figures leading up to the 2021 exit of Austrian packaging company Schur Flexibles.

A previous attempt to sell Schur in 2019 fell flat: internal documents from sell-side adviser Goldman Sachs described skepticism from potential buyers Platinum Equity and Cinven, who raised concerns about Schur's rapid EBITDA growth, lack of supporting financial data, and excessive adjustments to EBITDA. But, after temporarily pausing the process, Lindsay Goldberg eventually reached a deal to sell Schur to Austria-based investment firm B&C Group in 2021 for more than €900 million.

Shortly after the deal closed, B&C uncovered what it says were substantial financial irregularities. The firm accused Schur’s management of deliberately inflating EBITDA by improperly capitalizing a range of expenses, including bonus payments, consultant fees, machinery maintenance, and new hire relocation. Filings also claim that certain unrelated losses had been added back as part of an adjustment for discontinued operations.

A subsequent forensic accounting investigation led by KPMG agreed with B&C's initial read and revised downward Schur's 2020 EBITDA by two-thirds. KPMG also recommended similar revisions for 2018 and 2019 financials.

B&C alerted lenders to its concerns, which led banks to promptly pull Schur's lines of credit. The resulting liquidity crises forced B&C to hand over the keys to a creditor group led by Apollo Global Management, wiping out its $300 million equity investment within a year.

B&C has since managed to recover around half of its losses through insurance claims and is pursuing additional compensation from Lindsay Goldberg.

Lindsay Goldberg denies any wrongdoing and says B&C was fully aware of Schur's financial position when it bought the business. Schur Flexibles’ “financial statements were audited and signed off by PwC, one of the ‘Big Four’ accounting firms,” a spokesman for Lindsay Goldberg told Bloomberg. “B&C conducted extensive due diligence before taking control of Schur, knew and understood how the company calculated and reported EBITDA, and proposed an above-market valuation of Schur in anticipation of a large windfall through an expedited IPO process.”

When asked in his deposition about market concern with Schur financials from the failed 2019 sale process, Lindsay Goldberg managing partner Michael Dees said the situation was simple: "Potential buyers had one view of adjusted EBITDA, we had a different view of adjusted EBITDA."

• Blackstone Infrastructure agreed to acquire Safe Harbor Marinas, the largest U.S. marina and superyacht servicing business, for $5.65 billion from Sun Communities (NYSE: SUI).

• Bain Capital is exploring the sale of Rocket Software, a Waltham-based automation software provider, in a deal that could value the company at up to $10 billion, per Reuters.

• Sycamore Partners is considering an acquisition of Walgreens Boots Alliance (Nasdaq: WBA), currently trading at a market value above $9 billion, with plans to split the company into three independent units, per the FT.

• Genstar Capital is in talks to acquire a controlling stake in First Eagle Investment Management, a $149 billion asset manager, from Blackstone and Corsair Capital at a valuation of more than $4 billion, per Bloomberg.

• EXA Capital acquired PrecisionCare, a New York-based provider of electronic health records software.

• Gallant Capital Partners acquired Navient's Government Services business, a provider of outsourced business processing services to government clients, from Navient Corporation (Nasdaq: NAVI).

• Nordic Capital acquired Anaqua, a Boston-based intellectual property management technology provider, from Astorg.

• Eurazeo acquired a majority stake in Mapal, a Madrid-based hospitality software provider, from PSG Equity, which will retain a minority stake.

• Argonaut Private Equity acquired Pryer Aerospace, a Tulsa-based manufacturer of complex aerospace components.

• Rotunda Capital Partners acquired AirPro Diagnostics, a provider of ADAS diagnostics and calibration solutions for the automotive repair industry.

• Centric Software, a subsidiary of Dassault Systèmes, agreed to acquire a majority stake in Contentserv, a product information management solutions provider, from Investcorp.

• LongRange Capital agreed to acquire US Synthetic, an Orem, Utah-based provider of polycrystalline diamond technologies, from ChampionX (Nasdaq: CHX).

• Lone Star agreed to acquire RadiciGroup's specialty chemicals and high-performance polymers businesses.

• New Mountain Capital agreed to acquire NSM Insurance Group's U.S. commercial insurance division from Carlyle.

• Copenhagen Infrastructure Partners agreed to acquire Morecambe, a 480MW offshore wind project in the Irish Sea, from COBRA Group and Flotation Energy.

• Ping An Insurance is in advanced talks to acquire three logistics projects in China's Greater Bay Area from Blackstone for $372 million, with Blackstone expected to continue managing the assets post-sale.

• Seacoast Capital invested in Superior Fruit Equipment, a Wenatchee-based manufacturer of pruning tools and harvest equipment, alongside Bochi Investments.

• PSG Equity invested in Checkmk, a German IT infrastructure monitoring platform.

• Apax Partners increased its equity stake in ECI Software Solutions, becoming a co-control owner alongside Leonard Green & Partners.

• Boathouse Capital invested in Analytics8, a Chicago-based data analytics consulting firm.

• Axis Insurance Managers, a Canadian portfolio company of Lee Equity Partners, acquired Fuse Insurance, a Calgary-based commercial insurance brokerage.

• IDHL, a Bridgepoint portfolio company, acquired The MTM Agency, a Southampton-based influencer marketing specialist.

• TMF Group, a Dutch portfolio company of CVC Capital Partners, acquired EWM Global, a Swiss provider of executive compensation administration services for financial services firms.

• DuraServ, a portfolio company of Leonard Green & Partners, acquired AE Door & Window, a Cincinnati-based residential garage door and window service provider.

• Amplix, a portfolio company of Gemspring Capital, acquired GlobalNet Communications, a Fort Myers-based technology advisory firm.

• CHG Healthcare, a Utah-based medical staffing agency backed by Ares and Leonard Green, acquired CareerMD, a New York-based physician career events company.

• AYA Medical Spa, a portfolio company of Eagle Merchant Partners, acquired Tribeca MedSpa, a New York-based medical aesthetics provider.

• UpSwell, a Marietta-based portfolio company of Clearview Capital, acquired Taradel, a Virginia provider of direct mail and digital marketing solutions.

• TELEO Capital acquired revenue management software provider SOFTRAX from TELUS Corporation.

• Alterra Capital Partners acquired a majority stake in ARP Africa Travel, an East African tour operator.

• Seven Point Equity Partners acquired Frazier Aviation, a San Fernando, California-based provider of sustainment solutions for the military aircraft aftermarket.

• HGGC acquired a majority stake in Centralis Group, an alternative asset and corporate services provider.

• CDPQ agreed to acquire Innergex Renewable Energy (TSX: INE), a Canadian renewable energy company, for around C$10 billion in cash.

• Aquiline agreed to acquire SEI's (Nasdaq: SEIC) Family Office Services business, a technology and outsourced services provider for family offices, for $120 million.

• Thermo Fisher Scientific (NYSE: TMO) agreed to acquire Solventum's (NYSE: SOLV) Purification & Filtration business for $4.1 billion in cash.

• Ardian agreed to acquire an additional 10 percent stake in Heathrow Airport, increasing its ownership to 32.6 percent.

• Boeing (NYSE: BA) is exploring the sale of Insitu, its military drone subsidiary, in a deal that could be valued at around $500 million, per Bloomberg.

• BP (LSE: BP) is preparing to sell its lubricants business, which operates under the Castrol brand, per Bloomberg.

• PAG is exploring options for its majority stake in Nuvama Wealth Management, an Indian wealth manager with a market value of $2.3 billion, per Bloomberg.

• China International Capital Corp is in advanced talks to merge with China Galaxy Securities in a deal that would create China's third-largest brokerage firm, per Reuters.

• GIC and LGT Capital Partners are in talks to finance a continuation fund for JLL Partners to extend its ownership in law-enforcement protection goods supplier Valeron.

• Kestra Medical Technologies, a Bain Capital-backed maker of wearable cardioverter defibrillators, set IPO terms to 10 million shares at $14-$16, implying a $716 million fully diluted valuation at the midpoint for its planned Nasdaq listing.

• Apax Partners agreed to acquire a stake in accounting firm CohnReznick.

• SymBiosis invested $10 million in Paradox Immunotherapeutics, a preclinical-stage biotech developing antibody therapies for protein misfolding diseases.

• Kharis Capital invested in KoRo, a German maker of plant-based snacks.

• Boyne Capital invested in Blue Monkey Beverages, a producer of sparkling juices and plant-based beverages.

• Argentum invested in JessCo Solutions, a San Angelo, Texas-based provider of vapor recovery and emissions control solutions for the oil and gas industry.

• Seven & i Holdings announced its founding family has abandoned plans to acquire the company for $58 billion after failing to secure financing, potentially reviving interest in Alimentation Couche-Tard's previous takeover offer.

• B&R Auto, a portfolio company of Highview Capital, acquired Highway 64 Truck & Auto Salvage, a Farmington, New Mexico-based auto salvage business.

• Imperial Dade, a portfolio company of Advent International and Bain Capital, acquired Athens Janitor Supply, a Georgia-based janitorial supplies distributor.

• Amerit Fleet Solutions, a portfolio company of Brightstar Capital Partners and New Mountain Capital, acquired Vector Fleet Management, a provider of fleet maintenance services for government and heavy industrial fleets.

• Lubrication Engineers, a Wichita-based portfolio company of Aurora Capital Partners, agreed to acquire Royal Purple, a Texas-based provider of specialty synthetic performance lubricants and greases for industrial applications.

• Cosette Pharmaceuticals, a South Plainfield-based portfolio company of Avista Healthcare Partners, acquired Mayne Pharma, an Australian generic drugmaker.

Tech, Vertical SaaS, & Misc. Enterprise

• Quantum Machines, an Israeli provider of quantum control solutions, raised $170 million in Series C funding led by PSG Equity, with participation from Intel Capital, Red Dot Capital Partners, and existing investors.

• Shop Circle, a London-based provider of AI-powered B2B e-commerce software solutions, raised $60 million in Series B funding led by Nextalia Ventures, with participation from Endeavor Catalyst, NFX, QED Investors, 645 Ventures, 3VC, and i80 Group.

• Mimic, a Palo Alto-based enterprise ransomware defense company, raised $50 million in Series A funding co-led by GV (Google Ventures) and Menlo Ventures, with participation from Ballistic Ventures, Team8, Wing Ventures, and Shield Capital.

• Metronome, a San Francisco-based usage-based billing platform, raised $50 million in Series C funding led by NEA, with participation from a16z, Greyhound Capital, General Catalyst, Workday Ventures, Truebridge Capital Partners, Activant Capital, SineWave Ventures, and Megalith Ventures.

• Auditoria.AI, a provider of agentic AI solutions for CFOs and finance teams, raised $38 million in Series B funding led by Innovius Capital, with participation from Dell Technologies Capital, Sentinel Global, Venrock, NeoTribe Ventures, Engineering Capital, and KPMG Ventures.

• Relay, a London-based AI-powered e-commerce delivery platform, raised $35 million in Series A funding led by Plural, with participation from Project A and Prologis Ventures.

• Skylo, a direct-to-device satellite connectivity provider, raised $30 million in new funding led by NGP Capital, with participation from Westly Group, Intel Capital, BMW i Ventures, Samsung Catalyst Fund, and Next47.

• Perfect, an Israeli AI recruitment platform, raised $23 million in seed funding led by Hanaco Ventures, with participation from Joule Ventures, Target Global, RTP Global, and Pitango.

• Workhelix, a Palo Alto-based startup that helps enterprises identify and measure AI investment impact, raised $15 million in Series A funding led by AIX Ventures, with participation from Andrew Ng's AI Fund, Accenture Ventures, BGV, Bloomberg Beta, Future of Work Partners, Telesoft, and Zetta Ventures.

• Lovable, a Swedish AI platform enabling non-technical users to build production-ready software, raised $15 million in pre-Series A funding led by Creandum, with participation from Visionaries Club.

• Subscript, an AI-powered revenue management platform for B2B SaaS, raised $15 million in Series A funding led by Pelion Venture Partners, with participation from First Round Capital, Kapor Capital, Forum Ventures, and Fresco Capital.

• Edera, a Seattle-based workload isolation technology company, raised $15 million in Series A funding led by M12, with participation from Mantis VC, In-Q-Tel, Eniac Ventures, 645 Ventures, FPV Ventures, Precursor Ventures, and Rosecliff Ventures.

• Goose, a developer of operating system software for pet care providers, raised $13.4 million in seed funding from B Capital, First Round Capital, The 81 Collection, Imaginary Ventures, and BoxGroup.

• Anagram, a New York-based human-driven security platform, raised $10 million in Series A funding led by Madrona, with participation from General Catalyst, Bloomberg Beta, Operator Partners, and Secure Octane.

Fintech

• Ethena, developer of the synthetic stablecoin USDe, raised $100 million in private token sale funding from Franklin Templeton, F-Prime Capital, Dragonfly Capital Partners, Polychain Capital, and Pantera Capital.

• Raise, a blockchain-powered gift card and loyalty platform, raised $63 million in strategic funding led by Haun Ventures, with participation from Amber Group, Anagram, Blackpine, Borderless Capital, GSR, Karatage, Paper Ventures, Pharsalus Capital, Selini Capital, Sonic Boom Ventures, and Web3 Foundation.

• Taktile, a decision automation platform for financial institutions, raised $54 million in Series B funding led by Balderton Capital, with participation from Index Ventures, Tiger Global, Y Combinator, Prosus Ventures, and Visionaries Club.

• Sparta, a provider of real-time intelligence for commodity traders, raised $42 million in Series B funding led by One Peak, with participation from Singular and FirstMark.

• Unique, a Swiss agentic AI platform for AML/KYC, raised $30 million in Series A funding co-led by CommerzVentures and DN Capital, with participation from VI Partners and Pictet Group.

• Flanks, a Barcelona-based wealth management platform, raised €14 million in new funding led by Motive Ventures, with participation from Battery Ventures, Earlybird, JME Ventures, and 4Founders Capital.

• Bitwise Asset Management, a crypto-specialist asset manager with $12 billion in client assets, raised $70 million in Series B funding led by Electric Capital, with participation from MassMutual, MIT Investment Management Company, Highland Capital, Haun Ventures, ParaFi Capital, Khosla Ventures, General Catalyst, and Blockchain Coinvestors.

• Napo, a London-based pet insurance platform offering comprehensive coverage including dental care and behavioral treatment, raised £12 million in Series B funding led by Mercia Ventures, with participation from DN Capital, Companion Fund, MTech Capital, and Helvetia Venture Fund.

• COVU, an AI-powered insurance customer management platform, raised $10 million in Series A extension funding led by Benhamou Global Ventures, with participation from True Global Ventures, bringing its total Series A to $22 million and overall funding to $32 million.

Consumer & Media

• Actual Veggies, a New York-based maker of vegetable-forward frozen burgers and fries, raised $7 million in Series A funding led by Relentless Consumer Partners, with participation from New Fare Partners.

• MrBeast, YouTube creator Jimmy Donaldson's media and consumer goods company, is hoping to raise several hundred million dollars in new funding at a $5 billion valuation.

Industrials, Greentech, & Other

• STAX Engineering, a maritime emissions capture and control company, raised $70 million in funding led by Firstime Credit and Deutsche Bank Private Credit & Infrastructure, consisting of $60 million in debt financing and $10 million through a Simple Agreement for Future Equity.

• Nomagic, a Warsaw-based provider of AI-powered robotic arms for warehouse automation, raised $44 million in Series B funding led by EBRD Venture Capital, with participation from Khosla Ventures and Almaz Capital, and venture debt from the European Investment Bank.

• Vivici, a Dutch precision fermentation startup developing dairy proteins without animals, raised €32.5 million in Series A funding co-led by APG (on behalf of ABP) and Invest-NL, with participation from InnovationQuarter, dsm-firmenich, and Fonterra.

• VerAI Discoveries, an AI-driven mineral asset company, raised $24 million in Series B funding led by Insight Partners, with participation from Blumberg Capital, Chrysalix Venture Capital, and Orion Industrial Ventures.

• CarbonQuest, a distributed carbon capture technology provider, raised $20 million in funding led by Riverbend Energy Group, with participation from Energy Capital Ventures and Aligned Climate Capital.

• Cambium, a supply chain technology company transforming waste wood into sustainable building materials, raised $18.5 million in Series A funding led by VoLo Earth Ventures, with participation from NEA, Dangerous Ventures, Tunitas Ventures, Woven Earth, Understorey, Groundswell, Ulu Ventures, MaC Venture Capital, Rise of the Rest, 81 Collection, Alumni Ventures, and Soma Capital.

• Turing, a Boston-based AI-driven water management solutions provider, raised $14 million in funding led by Safar Partners to enhance its TOP Clear and SmartOps AI platforms for water treatment optimization and expand operations across North America, Europe, and the Middle East.

• Magdrive, a UK-based satellite propulsion startup developing high-thrust electric plasma thrusters using solid metal propellant, raised $10.5 million in seed funding led by Redalpine, with participation from Balerion, Founders Fund, Alumni Ventures, Outsized Ventures, 7percent, and Entrepreneur First.

• Arsenale Bioyards, an Italian neo-industrial startup developing AI-driven precision fermentation technology for scalable biomanufacturing, raised $10 million in seed funding co-led by Planet A and byFounders, with participation from CDP Ventures, Acequia Capital, Plug N Play, and Grey Silo Ventures.

• Claros, a McLean-based power management platform optimizing energy delivery and consumption at data centers, raised $9.75 million in initial funding from Red Cell Partners, General Catalyst, Virginia Innovation Partnership Corporation's Virginia Venture Partners, and Composite Capital Partners.

• Jord BioScience, a St. Paul-based agricultural microbial solutions provider developing customizable microbe formulations to enhance crop productivity, raised $7 million in Series B funding led by Silver Blue, with participation from Discovery Capital Funding, Minnesota's Small Business Credit Initiative Direct Investment, and existing investors.

• HPS Investment Partners is targeting more than $10 billion for its sixth junior credit fund, per Bloomberg.

• Brookfield Asset Management is targeting at least $7 billion for its fourth infrastructure debt fund, per Bloomberg.

• Blackstone raised $5.6 billion for its fourth energy transition fund, closing at its hard cap and exceeding its predecessor vehicle by 33 percent.

• Khosla Ventures is hoping to raise $3.5 billion across three new seed, venture, and growth funds.

• Thoma Bravo raised $1.9 billion for its first European software buyout fund.

• Neuberger Berman raised $1.05 billion for its second real estate private equity secondary fund, exceeding its $800 million target.

• JLL Partners formed a $1.1 billion continuation fund for Solvias, a Swiss contract pharma research and manufacturing company.

• Base10 Partners is raising $450 million for its fourth seed and early-stage fund.

• Camber Partners raised $210 million for its second software-focused growth equity fund.

• IDC Ventures, the VC arm of asset manager IDC Network, launched a $156 million fund of funds focused on venture capital investments.

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