Good morning! Today our Rod James reports asset-management giant BlackRock is rebuilding its secondaries investment unit and to that end has hired Lisa Sun from Coller Capital, a buyer of secondhand private-markets assets.

Also, our Chris Cumming delves into the increasing challenges faced by newer sponsors as they try to raise investment capital. The difficulties of a tough market fall even more heavily on firms seeking to raise their debut funds.

Last but not least, our Journal colleagues Miriam Gottfried and Mark Maremont report that former Apollo CEO Leon Black won a court dismissal of a lawsuit accusing him of rape and defamation. The state judge in New York held the claims invalid.

We have these and many more deals and other news summarized and linked for you below, so please wade in...

BlackRock, one of the world’s largest asset managers, has expanded the leadership team of a unit that acquires secondhand stakes in private-market assets, Rod James reports for WSJ Pro Private Equity. The New York firm that manages more than $9 trillion has hired Lisa Sun as a managing director and co-head of its secondaries and liquidity solutions platform, according to an internal memo seen by The Wall Street Journal. Sun joins from the New York office of secondary buyer Coller Capital, where she spent more than 11 years.

Guzel Ganieva’s claims were invalid, largely because she signed a non-disclosure agreement with Black in 2015 under which she was paid about $9.5 million over the next six years. The judge said Ganieva received considerable financial benefits from the nondisclosure agreement, never tried to repudiate it or contest it, and couldn’t argue that she signed it under duress.

A pullback by private-equity investors is hitting younger firms harder than their longer-tenured peers, Chris Cumming reports for WSJ Pro Private Equity. Raising money has always been hard for fund managers with shorter track records, especially as investors have migrated toward larger managers in recent years. But since the private-equity fundraising slowdown began last year, these dynamics have intensified, with newer managers getting a significantly smaller piece of the overall fundraising pie than usual.

Matrix Capital Management’s AyurMaya fund led a $401 million growth investment in cell and gene-therapy developer ElevateBio, joined by new investors Woodline and the Lee Family Office (Asia) as well as existing backers of the company. Waltham, Mass.-based ElevateBio is using gene-editing technology to develop therapeutics, according to a news release.

Boston investor MPM BioImpact and F2 Ventures led a $300 million growth investment in development stage company ReNAgade Therapeutics, which was started by MPM BioImpact Managing Partner Ansbert Gadicke, according to a news release. The Cambridge, Mass.-based company said it is developing therapeutics delivered through RNA-based systems.

The Qatar Investment Authority, a sovereign wealth investor in Doha, and Esas Holding in Turkey are increasing their commitments to marketing software and services provider Insider through a $105 million investment dedicated to funding acquisitions by the company, according to news releases. Both investors previously participated in an early 2022 investment round that totaled $121 million. Other investors in earlier rounds include Sequoia Capital India Advisors and Riverwood Capital Management, according to S&P Global Market Intelligence data.

Israel investment manager FIMI Opportunity Funds plans to increase its commitment to publicly traded biopharmaceutical company Kamada by purchasing $60 million in stock through a private placement at $4.75 per share. The growth investment is expected to increase FIMI’s stake in the Israel-based company to about 38%, according to a news release. Kamada shares touched a 52-week high of $5.60 each in New York after the investment was disclosed, Colin Kellaher reports for Dow Jones Newswires.

Buyout firm KKR in New York said it has committed to an 819-bed student housing project being developed in England by apartments builder and manager Watkin Jones. KKR has agreed to pay around £25 million initially, equivalent to $31 million, and more as the project is built out, with completion expected in August 2024, according to a news release. The property will be leased to the University of Bristol and is within walking distance to the center of Bristol. KKR said it is investing through its European Core Plus Real Estate strategy.

Citadel’s Surveyor Capital led a $54 million growth investment in cancer therapeutics developer OnKure, joined by Deep Track Capital and several existing backers, according to a news release. The Boulder, Colo.-based clinical-stage biopharmaceutical company is developing medicines to treat tumors.

Growth investor Avenir Management in New York led a $48 million investment in digital payments company Episode Six, joined by existing backer Anthos Capital, according to a news release. The Austin, Texas-based company supplies its technology, including digital ledger infrastructure, to banks and companies that want to provide payment options to customers, according to the release.

Saudi Arabia sovereign wealth investor Public Investment Fund is backing a new partnership set up by data infrastructure company DigitalBridge Group in Boca Raton, Fla., according to a news release. The partnership plans to develop data centers in Saudi Arabia and other Gulf Cooperation Council countries, and could also develop telecommunications towers and other infrastructure, according to the release.

Digital infrastructure specialist M/C Partners in Boston said it is backing broadband services provider Celito with “a significant growth investment.” The Raleigh, N.C. company plans to use the fresh capital to expand its fiber optic network in the city and region, according to a news release.

Our add-on deal interactive tool allows you to sort and analyze volumes of add-on deal data compiled by WSJ Pro. View more.

Mubadala Investment-backed Virgin Orbit Holdings has agreed to sell its aerospace manufacturing assets in Long Beach, Calif. to Rocket Lab USA for about $16 million, including the bankrupt company’s headquarters, Stephen Nakrosis reports for Dow Jones Newswires. Once the deal closes through its chapter 11 reorganization, Virgin Orbit said it would shut down. Mubadala’s Mamoura Diversified Global Holding owned an 18% stake in Virgin Orbit last year and was listed in bankruptcy filings this year as an owner of 5% or more of the company. When it was taken public through a special purpose acquisition company, NextGen Acquisition Corp. II, at the end of 2021, Virgin Orbit carried an enterprise value of about $3.2 billion, according to data provider Boardroom Alpha.

Growth investor AXA Venture Partners said it aims to raise a €1.5 billion growth-investment fund, equivalent to about $1.61 billion, with half of the capital coming from its insurer parent AXA. If it succeeds, the firm would more than double its assets under management, which currently stand at €1.3 billion, according to a news release. AVP, as the operation is known, invests in startups and growth-stage companies in the U.S. and Europe and has backed some 60 so far. The new fund, with a first close expected by early next year, will be invested in late-stage technology businesses, according to the release.

Golding Capital Partners in Germany said it aims to raise a second co-investment fund after closing Golding Buyout Co-Investment 2020 in December with €273 million, equivalent to $294 million. The firm set a €350 million target for its Golding Buyout Co-Investment 2023 fund, which the firm plans to invest in around 30 deals being done through its small and mid-cap strategy in the U.S. and Europe. The firms said the 2020 fund is expected to be fully committed through 26 companies by the coming summer.

Partners Group Holding in Switzerland said Partner Marlis Morin will give up her day-to-day management duties as head of client services while remaining with the firm where she has worked for some 20 years and continuing to develop strategic relationships. The firm didn’t name a new head of client services. In addition, Partners said Hans Ploos van Amstel is ending his duties as chief financial officer while he remains as an advisory partner. A search for his permanent successor is at an advanced stage, according to a news release.

Professional sports-focused Arctos Partners in Dallas said it is opening an office in London to work with American sports franchise investors as they seek to extend their reach abroad. The firm tapped Managing Director Alastair Seaman in New York to relocate and lead the new office. The firm managed about $6.64 billion in regulatory assets at the end of last year, according to a March regulatory filing.

Lower middle market-focused Lateral Investment Management in San Mateo, Calif. said it has added Jeff Benjamin as an operating partner to work with its portfolio companies. He was previously a senior vice president of sales and client management with mortgage company Ellie Mae.

Multistrategy investment firm KKR said it has appointed Managing Director Julia Butler as chief investment officer of its KKR Real Estate Select Trust, a new position. The real estate investment trust fund seeks to attract qualified individual investors by providing access to property and debt investments managed by the firm, according to a news release. Butler, who joined KKR in 2017, formerly managed investments at publicly traded REIT iStar as an executive vice president.

Specialist firm Health Enterprise Partners in New York said it has added Kulmeet Singh as an operating partner to work with the healthcare companies it backs on products, marketing and technology. A serial entrepreneur, Singh most recently founded and led patient communications company Twistle, according to a news release.

StepStone Group in New York said its net management and advisory fee revenue rose 18% to $132.7 million in the just-ended quarter while fee-related earnings increased about 5.3% to $37.8 million, but its adjusted net income dropped 38% to $27.1 million, or 24 cents per share, as gross realized performance fees fell about 39% to $20.2 million. The firm said its assets under management inched up 2.9% to $138.4 billion at the end of March compared with a year earlier, while assets under advisement climbed nearly 11% to $482.2 billion. On a GAAP basis, the firm said its net income plunged 45% to $56.8 million, or 46 cents per share in its fiscal fourth quarter as revenue dove 53% to $172.4 million.

Blackstone is in discussions with lenders about a $309.8 million senior loan tied to property in Chicago’s River North section that the firm previously revalued, writing it down to zero, Joy Wiltermuth reports for sister publication MarketWatch. The New York firm is current on loan payments for the ​​350 N. Orleans St. property but the debt has been transferred to special servicing, signaling that it is at risk of default, according to the Kroll Bond Rating Agency. The loan comes due in July.

The Canada Pension Plan Investment Board said it ended its fiscal year in March with a net return of 1.3% for the period while assets rose about 5.8% to 570 billion Canadian dollars, equivalent to $422.14 billion, compared with C$539 billion a year earlier. The pension system investment manager said it had a 7.9% annualized net return over the five years through March, including 14.8% from its private-equity holdings, which made up about a third of the total fund at the end of March. Over the past 10 years, the return was 10%.

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Maria Armental; Ted Bunker; Chris Cumming; Luis Garcia; Rod James; Laura Kreutzer; Chitra Vemuri.

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