Good day! Last week, the governments of California, Pennsylvania and New York took dramatic steps in their quest to curb the spread of the coronavirus. All three state governments imposed restrictions on residents designed to prevent them from leaving their homes for nonessential purposes. The impact on the nation’s economy is sure to be significant, albeit, hopefully, relatively short-lived. It’s hard to predict how far the ripples will flow across the global economy but private-equity firms and their backers have been frantically triaging their portfolios and encouraging portfolio companies to conserve cash and draw down existing credit lines. The recent market carnage has already hit shares of one class of lenders hard, as Will Louch reports. Shares of a number of business development companies, or BDCs, have plunged in the rout and as the economic effects from business shutdowns start to flow through, some of them may not recover. Meanwhile, Preeti Singh spoke with Meketa Investment Group’s John Haggerty about how LPs are coping and Luis Garcia looks at the potential opportunities that may lurk in the oil-and-gas industry carnage.

Now on to today's news...

Lenders that raise money from investors and loan it to small, fledgling U.S. businesses that need capital to grow have been among the hardest hit in this month’s stock market rout, William Louch reports for WSJ Pro. The market losses seen by these business development companies, or BDCs, many of which are managed by well-known private-equity firms, reflect broader concerns about whether the highly levered companies they serve can survive an economic downturn.

Centerbridge Partners-backed Craftworks Holdings Inc. furloughed most of its 18,000 employees and is shuttering its restaurants and brewpubs as the coronavirus derails the casual-dining company’s planned chapter 11 sale, people familiar with the matter said. The Nashville, Tenn.-based restaurant operator has idled its restaurant locations after a devastating collapse in consumer activity and restrictions from state and local authorities on business operations and public gatherings, these people said. Fortress Investment Group had offered $138 million for assets, including more than 260 of its best-performing locations.

Stock markets plunged again on Friday, capping off a tumultuous week. As a result, backers of private-equity funds are suddenly confronted with the prospect of winding up overweight to illiquid private markets, a phenomenon commonly referred to as the denominator effect. John Haggerty, managing principal and director of private market investments at investment advisory firm Meketa Investment Group shares his insights on the phenomenon and the turmoil of the last week. 

The plunge in oil prices this month is scaring investors away from the industry and threatening many producers with bankruptcy. But for some energy-focused firms, coronavirus or not, it’s bargain-hunting time. Read more in Garcia's Take.

Jordan Co. has acquired Transportation Impact Partners LLC, investing alongside a team of company executives in the technology-based provider of back-office and route-optimization services for shippers. Jordan said company co-founder and Chairman Keith Byrd will join the new board of directors being set up to oversee the Emerald Isle, N.C.-based enterprise.

Energy investor Copenhagen Infrastructure Partners has agreed to acquire a Texas solar energy project from Plus Renewable Technologies Ltd. in Hong Kong and affiliate AP Solar Holdings LLC. The 350-megawatt solar photovoltaic site is in the Lone Star State’s Fort Bend County near Houston. Construction work is expected to begin after June 30 on the Fighting Jays Solar project, with the plant projected to be online by the summer of 2022.

Main Street Capital Corp. has recapitalized packaging and consumer products producer Classic H&G Holdings LLC, contributing $31.8 million in senior secured term debt and a minority direct equity investment. The Houston-based firm invested alongside company management and a co-investor. Monroe, Conn.-based Classic H&G makes home decor items such as planters and fountains as well as fragrance products and packaging.

Growth Catalyst Partners has acquired a majority stake in Government Executive Media Group from Atlantic Media Inc., investing in a majority stake alongside the business’s former chief executive, Hanley Wood, and publishing veteran Peter Goldstone. Acquired brands include Government Executive, Nextgov, Defense One and Route Fifty.

Charter Growth Capital Fund joined Colfax Creek Capital to invest in Traverse City Products LLC, a maker of metal parts used in conjunction with glass, such as window frames for the furniture, automotive and other industries. The Traverse City, Mich.-based company’s management remains in place. Charter Growth is raising a $100 million fund to make investments of $1 million to $5 million in lower middle-market companies in the Great Lakes region.

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

EQT AB set a €15 billion ($15.99 billion) hard cap on its ninth flagship fund. The Stockholm-based private-equity firm is currently raising EQT IX with a target of collecting €14.75 billion. The firm said the new vehicle’s commercial terms and investment strategy would follow those of its eighth flagship fund’s investment strategy and commercial terms.

KKR & Co. has appointed Lucian Schoenefelder head of technology in Asia Pacific as the firm expands its presence in the region, Selin Bucak writes for sister publication Private Equity News in London. Mr. Schoenefelder has been part of the firm's European technology, media and telecommunications team, focusing on growth equity and tech private-equity investments in Europe and Israel.

Australia's AMP Capital has promoted four professionals, including three as new partners, in offices around the world. Promoted to partner from principal were Spencer Ivey in New York and Roopa Murthy in London, while Greg Gill, the firm’s chief financial officer and chief operating officer added the partner title in Sydney. Finally, James Fox moved up to director in London from associate director.

TPG-backed Cirque du Soleil canceled its famed shows in Las Vegas and around the world last week, leaving fans disappointed. Over 100 investment funds suffered too, as the value of the circus’s loans tumbled. The company is among thousands of businesses whose loans have been packaged with similarly risky, junk-rated debts into funds, which were then sold to investors globally.

Lower-mid market focused private equity firm, MiddleGround Capital said it would compensate hourly wage employees across its five portfolio companies if they test positive for coronavirus throughout their recovery period. The move has earned the firm praise from its investors, according to Partner John Stewart. “It is the right thing to do, and those employees are going to remember all these things. They're going to remember the companies that put them on unemployment,” Mr Stewart said.

Before the coronavirus pandemic, Joseph Puma’s best day as a gig worker was a $344 haul he notched last year. Last Friday, he nearly doubled that tally and followed up with another $602 over the weekend. Mr. Puma, 38, delivers for Shipt, a Target Corp.-owned startup that contracts people to buy products at retail stores and take them to customers’ homes. He started in November of 2018 and gets paid per delivery—varying rates, plus tips.

Colony Capital Inc. has come to terms with activist investor Blackwells Capital over issues including management oversight and bolstering the price of the firm’s publicly traded shares. Under a “cooperation agreement” with Blackwells, Colony agreed to nominate a fourth Blackwells pick for a seat on the corporation's board, naming consultant Jeannie Diefenderfer to the position. Colony also agreed to set up a joint venture with Blackwells capitalized with $14.7 million to buy the company’s shares on the open market, including $13.2 million from Colony and $1.5 million from Blackwells. The hedge fund agreed to cease its campaign to oust Colony’s longtime leader, Tom Barrack.

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