Good morning. Like many other investors last year, state pension systems got a lift as rising asset values easily outstripped growing liabilities, according to Wilshire. The firm said pensions' funding ratio, which measures their ability to cover promises to beneficiaries, climbed to 88% based on aggregate assets and liabilities. The usual rule of thumb is that to be considered healthy, a pension has to have a funding ratio of at least 80%.

In other state pension news today, our Preeti Singh breaks down a report on the management of the Pennsylvania Public School Employees’ Retirement System, which faces federal probes over several issues. And in private-equity news, our Luis Garcia reports on a reverse merger of sorts involving publicly traded Falcon Minerals Corp. and Kimmeridge Energy Management-owned Desert Peak Minerals Inc. Once the deal closes, the combined company would be run by Desert Peak executives. 

Finally, Luis also offers news on newly formed Reactivate LLC, which plans to invest up to $550 million to develop roughly 60 community solar projects tied to low- to moderate-income U.S. communities. The joint venture was set up by Impact investor Lafayette Square Holding Co. and project developer Invenergy Renewables Holdings. 

We have those stories and what has become a daily deluge of deal news summarized and linked for you below, so please jump in...

Kimmeridge Energy Management-owned Desert Peak Minerals Inc. plans to combine with Blackstone Inc.-backed Falcon Minerals Corp. to form a nearly $2 billion investor in oil-and-gas royalties and mineral rights, Luis Garacia reports for WSJ Pro Private Equity. The deal is expected to strengthen the resulting publicly traded enterprise’s ability to expand through acquisitions while replacing Falcon’s leadership with Desert Peak Minerals executives.

The Pennsylvania Public School Employees’ Retirement System, which is grappling with the exits of senior professionals and federal investigations by the Securities and Exchange Commission and Federal Bureau of Investigation, now faces another challenge: overhauling its governance practices, Preeti Singh reports for WSJ Pro Private Equity. A governance review commissioned by the $72.5 billion pension system said the board lacked a “cohesive strategic plan” and that mistrust among its members and executives was contributing to “system dysfunctions.”

Impact investor Lafayette Square Holding Co. and project developer Invenergy Renewables Holdings LLC have started a joint venture to build solar-power installations in communities left behind by the shift to clean energy, Luis Garcia reports for WSJ Pro Private Equity. The new business, Reactivate LLC, aims to acquire, develop and finance projects across the U.S., with a focus on low- to moderate-income communities and areas with less access to renewable resources, according to a news release.

Sprints Capital led a $510 million investment in Back Market, an online marketplace that sells refurbished iPhones and other electronic devices, boosting its valuation to $5.7 billion and leapfrogging what it was worth less than a year ago, Ben Dummett reports for The Wall Street Journal, citing the company and its investors. Existing investors General Atlantic, Eurazeo, Aglaé Ventures and Generation Investment Management also participated. The French company was valued at $3.2 billion in a May investment round.

Apollo Asset Management Inc. and Motive Partners led a $225 million investment in Capital Integration Systems LLC in a deal that values the alternative markets company at more than $1 billion, Miriam Gottfried writes for The Wall Street Journal. Franklin Resources Inc. also participated in the transaction through its Franklin Templeton group. New York-based Capital Integration provides an online investment system used by private banking firms and financial advisers to wealthy clients.

Thoma Bravo, TPG Capital and Goldman Sachs Group Inc.’s asset management arm led a $420 million investment in supply-chain analytics software developer project44, Marc Vartabedian reports for WSJ Pro Venture Capital. Insight Partners and several other firms also participated in the round, which valued the Chicago-based company at $2.2 billion.

Tiger Global Management and TCV have led an investment of €486 million, the equivalent of $530.1 million, in Qonto, a French financial technology startup whose legal name is Olinda SAS that caters to freelancers as well as small- and medium-size enterprises. The latest financing values Qonto at €4.4 billion, according to a press release. Other new investors that contributed to the latest financing include private-equity firms KKR & Co., Insight Partners and Eurazeo.

Providence Strategic Growth Capital Partners, or PSG,  is investing more than $100 million to combine its Meal Ticket portfolio business in Boise, Idaho, with Marketman Inc. in New York, according to an emailed news release. Meal Ticket, whose legal name is DB3 Mobile Inc., provides food-services businesses with management software while Marketman offers applications used to manage restaurants. PSG first backed Meal Ticket in 2020.

Leonard Green & Partners has acquired a majority stake in Pace Analytical Services LLC from fellow private-equity firm Aurora Capital Partners. Aurora backed the Minneapolis-based provider of analytical testing and lab services back in 2016.

Vista Equity Partners said in an email that it is making a strategic growth investment in StarRez Inc., a family-owned provider of student housing and residential community management software. StarRez, which was founded in Melbourne, Australia, in 1992, has over 800 customers across more than 20 countries. The software-focused private-equity firm also backed a strategic investment in TigerConnect Inc., making a growth investment in the Santa Monica, Calif.-based provider of collaboration applications used in healthcare, according to a news release.

Global Infrastructure Partners, or GIP, and co-investors have invested $500 million in renewable power producer BrightNight LLC, receiving preferred equity and including a letter of credit. New York-based GIP is investing through its credit strategy, according to an emailed news release. Separately, the firm and its co-investors are lending $175 million to Group Energy Gas Panama S de RL to finance the construction of a 670 megawatt power plant in Colón, Panama.

Charlesbank Capital Partners in Boston is backing information-technology strategy company Bridgepointe Technologies LLC in San Mateo, Calif., as part of a more than $100 million transaction.

Battery Ventures has acquired a majority stake in MadCap Software Inc., a San Diego, Calif.-based writing and publishing software aimed at producers of technical content.

Audax Group in Boston has invested in telecommunications infrastructure design and operating company Centerline Communications LLC in West Bridgewater, Mass. Audax backed the business through its private-equity strategy in a deal that provided an exit for Stone-Goff Partners in New York, according to news releases. Stone-Goff initially backed the company in 2017.

Eurazeo said it has invested $75 million for a minority stake in Jaanuu, Inc., a direct-to-consumer designer and manufacturer of medical apparel and accessories. The investment brings the company’s total funding to date to $100 million, according to a press release.

Pine Tree Equity in Miami has recapitalized Summit Health Pharmacy LLC, according to an emailed news release. The Brookhaven, Pa.-based company provides pharmacy compounding services mainly focused on pediatric medicines for specific patients.

Cathay Capital Group is backing sleep apnea treatment device distributor US Expediters Inc., which does business as CPAP.com, according to an emailed news release. The Houston company mainly supplies equipment through its online store.

GHO Capital Partners in London is backing contract manufacturer Roslin Cell Therapies Ltd. The Edinburgh-based spinout from the Roslin Institute provides cell therapy development and production services. GHO is making a growth investment in the company alongside management.

Susquehanna Private Capital in Bala Cynwyd, Pa., is backing pharmaceutical market analysis company Spherix Global Insights US Inc., a founder-led business in Exton, Pa., that focuses on dermatology, gastroenterology, nephrology, neurology, ophthalmology and rheumatology specialties.

Topspin Consumer Partners in Mamaroneck, N.Y., is backing apparel and consumer-products brand Mission, which was started by star athletes including Serena Williams, Dwyane Wade and Drew Brees, according to a news release.

VSS Capital Partners said it has made a growth investment in Globo Language Solutions LLC, according to a news release. The Wyncote, Pa.-based company provides technology-enabled on-demand language interpretation services.

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

TPG Capital has agreed to sell Wind River Systems Inc. to publicly traded Aptiv PLC for $4.3 billion in cash. The Alameda, Calif.-based company makes intelligent systems software used in a variety of industries, including aerospace and defense, telecommunications, industrial and automotive, according to a regulatory filing. Dublin-based Aptiv specializes in supplying technology to makers of software-defined electric vehicles.

TSG Consumer Partners is selling gym operator Sunshine Fitness Growth Holdings LLC to strategic buyer Planet Fitness Inc. in a deal valued at $800 million that restores TSG as a Planet Fitness investor. Sunshine runs 114 Planet Fitness locations. TSG initially backed Sunshine in 2017, the same year it fully exited its Planet Fitness stake. The firm had acquired a majority interest in Planet Fitness in 2012 and took it public in 2015.

Windjammer Capital has sold Engineered Controls International LLC, or RegO, to strategic buyer Dover Corp. for $631 million in cash, subject to adjustments, according to an emailed news release. The Elon, N.C.-based company makes flow-control products used in the liquefied natural gas and other industries. Windjammer acquired RegO in 2013.

Trinity Hunt Partners in Dallas and its co-investors have sold a stake in vehicle wholesaler America’s Auto Auction Inc. and affiliated lender Auction Credit Enterprises LLC to strategic buyer XLerate Group, which is owned by Brightstar Capital Partners, according to an emailed news release. The sellers first invested in the businesses in March 2015.

TA Associates in Boston and LEA Partners in Karlsruhe, Germany, are backing the combination of digital-rendering company Chaos Software OOD in Sofia, Bulgaria, with three-dimensional modeling company Enscape GmbH in Karlsruhe. The combined business will operate under the Chaos name, backed by TA and LEA, and serve industries that include architecture, engineering and construction, product design and visual effects.

Levine Leichtman Capital Partners in Los Angeles has sold realty investment company HomeVestors of America Inc. in Dallas to credit specialist Bayview Asset Management in Coral Gables, Fla., according to a news release. Levine first backed the company in April 2017, according to its website.

Ridgewood Infrastructure has closed Ridgewood Water & Strategic Infrastructure Fund LP at the fund’s $600 million cap. The firm has already invested or committed to invest 45% of the fund’s commitments to four transactions, including one that it expects to close before the end of the first quarter, according to a press release. The investments include a fresh water pipeline for the city of San Antonio, Texas, a consolidator of regulated water & wastewater utilities, and a regional regulated natural gas utility, the release stated.

Bonaccord Capital Partners, which was acquired in September by multi-strategy investment firm P10 Inc. in Dallas, has closed its debut fund with about $740 million in commitments, according to placement agent Eaton Partners, which noted that Bonaccord also garnered $500 million in co-investment commitments for the strategy. Bonaccord Capital Partners I, which had a $1 billion goal according to a regulatory filing, is being invested in midsize fund sponsors such as $10 billion credit fund manager Park Square Capital, where Bonaccord has acquired a minority interest.

Crestline Investors Inc. said it has received at least $1 billion in commitments for its second fund family to back fund financing, including net asset value loans and preferred equity deals for investment funds.

Sun Capital Partners has hired healthcare executive Sami Abbasi as a managing director, operations on its healthcare team, according to an emailed news release. He was most recently president and chief executive of physician practice management company Unifeye Vision Partners.

Technology growth firm Sumeru Equity Partners announced it had promoted Mark Haller to managing director and Jack McCabe to principal. Mr. Haller joined Sumeru in 2012, while Mr. McCabe has been at the firm since 2017.

Investcorp’s Strategic Capital Group, which focuses on minority stakes in midmarket businesses, said it has added Kris Haber as a partner, chief operating officer and co-head of manager development. Mr. Haber previously served as chief operating officer and chairman of real-estate and private-equity investment firm Safanad Ltd.

Global credit investment firm Napier Park Global Capital said it has named Joe Lane in New York and Julia He in London as partners at the firm. Mr. Lane joined in 2015 and also serves as vice chairman of Napier Park and chairman of the firm’s management committee. Ms. He was a founding member of the firm’s European credit strategy where she has served in a senior investment capacity for more than 15 years.

Renewable-energy specialist True Green Capital Management has promoted Chris Kirkman to partner and Adam Rasken to managing director. Mr. Kirkman joined the firm in 2014 and Mr. Rasken came aboard in 2013.

State government pension plans ended last year in much better shape than when the year began, according to advisory firm Wilshire Advisors LLC. The Santa Monica, Calif.-based firm said the aggregate funding ratio, a measure of financial health, rose 9 percentage points to 88.3% by the end of 2021 as rising asset values outstripped increases in liabilities, according to an emailed report. The measure was the highest funded ratio reached since 2007, before the financial crisis.

The global wealth unit of Apollo Asset Management Inc. has launched a business development company Apollo Debt Solutions BDC with more than $1 billion in assets under management, according to a press release. The BDC will invest in directly originated assets, particularly debt securities.

Walgreens Boots Alliance Inc. is reviewing strategic options for its U.K. pharmacy chain Boots, Reuters reported, citing a statement by Walgreens Chief Financial Officer Rosalind Brewer at a healthcare investment conference. Boots has more than 2,200 stores. She said the company intends to move the process forward quickly.

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