Good day, Pro readers! The go-go market for single-asset sponsor-led secondary deals, especially the large transactions that characterized last year and the beginning of this year, have slowed dramatically in recent months as buyers and sellers try to assess the impact of a slowing economy and market volatility on portfolio valuations. This morning, however, our newest reporter Rod James has the scoop on one single-asset deal involving a Rivean Capital-backed rooftop solar panel equipment company that has won over the wallets of investors. Meanwhile, Carlyle Group is the latest publicly traded private-markets giant to report a stronger hit to its net income than to its distributable earnings, and technology-focused Invictus Growth Partners has beat the odds with a final closing of its debut fund ahead of the fund’s target in a particularly challenging environment for newer firms.

Read on for more details …

Rivean Capital is nearing a deal that would give the Dutch firm more time and capital to support a portfolio company operating in the renewable energy sector, Rod James reports for WSJ Pro Private Equity. The Utrecht, Netherlands-based buyout firm has amassed around €1 billion, equivalent to $1 billion, for a continuation vehicle to recapitalize its stake in Esdec Solar Group BV out of one of its older flagship buyout funds, according to several people familiar with the matter. The deal, which includes a small amount of money to back follow-on investments in the Netherlands company, is expected to close before year end, the people said. Rivean initially backed Esdec, which specializes in solar-panel rooftop mounting systems, in 2018.

Invictus Growth Partners has raised $322 million to invest in software, cybersecurity and financial-technology companies, as the private-equity firm gets set to take advantage of reduced enterprise values in the technology sector, Luis Garcia reports for WSJ Pro Private Equity. The San Francisco-based firm said it collected $216 million for its debut commingled pool, Invictus Growth Fund I LP, and an additional $106 million for co-investments. The firm had set a $200 million target for the growth-equity fund.

Carlyle Group Inc. reported Tuesday that its third-quarter net income declined 47% as a slump in publicly traded stocks hit the value of its private-equity holdings, Chris Cumming reports for WSJ Pro Private Equity. The Washington-based asset manager took a smaller hit to its distributable earnings, which fell about 12% to $644.4 million. Carlyle said fees on assets it manages rose 32% to $535.9 million and assets under management climbed 23% during the first nine months of this year, including $25 billion brought in through fundraising.

At the WSJ Risk & Compliance Forum on Nov. 16, Melanie Sponholz, chief compliance officer with Waud Capital Partners Healthcare, will be discussing regulatory scrutiny of private equity. To join the conversation, register here with the code WSJPRO.

Warburg Pincus-backed Summit Health, the parent company of CityMD urgent-care centers, said it would be acquired by Village Practice Management, the Chicago-based medical clinic operations unit of Walgreens Boots Alliance Inc., in a deal worth roughly $8.9 billion, confirming an earlier report by The Wall Street Journal’s Laura Cooper. Health insurer Cigna Corp. is also investing in the combined company through its Evernorth group. The transaction is the latest in a string of acquisitions by big consumer-focused companies aiming to delve deeper into medical care. Summit Health has been backed by Warburg Pincus since 2017, when it took a stake in CityMD, a large chain of New York City urgent-care centers and later helped it combined with CityMD and multi-speciality medical-practice group, Summit Medical Group.

Arsenal Capital Partners has agreed to buy $449 million worth of Certara Inc. stock, adding to the firm’s 4% stake in the publicly traded biosimulation software maker, according to a news release. Arsenal is acquiring roughly 30 million Certara shares from Swedish investment firm EQT AB’s private-equity arm at $15 each, bringing Arsenal’s stake in the company to about 22%. Arsenal held a majority interest in Certara before selling a controlling stake to EQT in 2017. The company went public in 2020.

Energy-focused NGP Energy Capital has committed $150 million to mineral and royalty acquisition company Mesa Minerals Partners III, according to a news release. Mesa is focusing on acquisitions of assets in the Haynesville and Permian basins. NGP is investing through its  NGP Natural Resources XII LP and NGP Royalty Partners II LP funds.

Orion Infrastructure Capital is providing a $125 million senior secured term loan facility to publicly traded Alto Ingredients Inc., according to a news release. The term runs for six years with $25 million of the facility available only after Alto meets certain performance targets. Orion will receive as much as 1.6 million Alto shares in connection with making the loan available. Alto provides specialty alcohols and essential ingredients used in foods, health and beauty products.

BV Investment Partners in Boston is backing the combination of supply-chain companies Krypt Inc. and Novigo Inc. to create a new business called ArchLynk, according to a news release. San Mateo, Calif.-based Novigo and San Jose, Calif.-based Krypt provide digital systems to manage trade.

Climate-focused impact investment firm Sandbrook Capital is backing specialty vessel operator Havfram in Norway, acquiring a majority stake, and has committed to invest $250 million to build new ships designed to maintain off-shore wind power installations, according to a news release. Havfram has also split with its undersea cable operations, which are owned by energy and infrastructure investment firm HitecVision in Norway. Havfram spun out of Havfram A/S, which is backed by HitecVision.

Chicago-based Concentric Equity Partners has backed the recapitalization of Aruza Pest Control, a Charlotte, N.C.-based provider of residential and commercial pest, termite and mosquito control services, 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.

Eurazeo SE has agreed to sell down its stake in Nest Fragrances to an investor group led by North Castle Partners in a transaction that values the company at around $200 million, according to a press release. Nest was launched in 2008 by founder Laura Slatkin, who, along with Eurazeo, will retain a minority stake in the company. Eurazeo initially acquired a majority stake in the fragrance brand in 2017 from consumer-focused Tengram Capital Partners for around $70 million, WSJ Pro Private Equity reported at the time. Eurazeo stands to generate a roughly 2.7 times return on its investment in the company, which was the first that the Paris-based firm made from its Eurazeo Brands strategy, which focuses on consumer and retail brands.

Investors including General Catalyst have sold mobile and desktop app development services provider Ionic to strategic buyer OutSystems, according to a news release. Madison, Wis.-based Ionic, whose legal name is Drifty Co., provides development tools and processes to mobile application builders. General Catalyst first backed the business in 2016. The Boston-based buyer’s parent company in Portugal is legally named OutSystems- Software em Rede SA, according to the company’s website.

Paragon Partners-backed WEKA Group GmbH has sold its Lexagri SAS data aggregation unit in France to FoodChain ID Group Inc., an agribusiness owned by Berkshire Partners in Boston, according to a news release. Fairfield, Iowa-based FoodChain works with around 30,000 clients to provide testing, certification and compliance services. Berkshire first backed the business in 2020. Munich-based Paragon acquired WEKA, a business media and software company, in July of that year.

Midmarket firm Kinderhook Industries has raised $1.85 billion for Kinderhook Capital Fund 7 LP and related parallel funds, making the new fund the firm’s largest to date, according to a news release. The final tally includes more than $250 million in commitments from Kinderhook itself, its operating partners and affiliates, more than double the roughly $111 million that the firm, its operating partners and affiliates contributed to its sixth flagship fund, which closed with $1.11 billion more than two years ago.

Chimera Investment’s Chimera Capital unit in Abu Dhabi and Alpha Wave Global have raised $2 billion for Alpha Wave Private Credit, an open-ended fund, according to a news release. The fund will mainly invest in private loans.

Adams Street Partners in Chicago has raised more than $1.3 billion for its fifth co-investment fund, bringing the firm’s total co-investment strategy assets to $4.2 billion, according to a press release. The firm said it aims to deploy its Co-Investment Fund V offering into around 50 deals.

Life Sciences-focused Catalio Capital Management has collected more than $85 million for its first special situations fund, Catalio Credit Opportunities Fund I, according to a press release. The fund targets debt and structured equity investments in biomedical technology companies, the release stated.

Clayton, Dubilier & Rice said it has appointed Lori Butler as director of environmental stewardship, a new position at the New York buyout firm. She will help the firm’s portfolio companies use environmental strategies to build value and accelerate and improve sustainability, compliance and operational excellence initiatives across the businesses. She was most recently vice president of environment, health and safety at air conditioner maker Carrier Corp.

Waud Capital Partners in Chicago said it has hired Chad Birckelbaw as an operating partner, focusing on software and technology investments. He is currently the chief executive of Waud-backed workplace training company Health and Safety Institute Inc., leading the Eugene, Ore.-based company since 2016. He remains in that role in addition to the new responsibilities.

Apogem Capital, the recently formed alternatives investment firm owned by New York Life Insurance Co., said it has hired Megan Nixon as head of ESG and Steven Scolnik as a managing director and chief technology officer. Ms. Nixon joins from Blackstone Inc., where she was ESG director. Mr. Scolnik was most recently in a similar role with Portfolio Advisors. New York-based Apogem was formed earlier this year through the combination of three firms and manages about $37 billion, according to its website.

Private-equity investment financing company 17Capital said it has added Dane Graham as a managing director in New York, focusing on preferred equity and net asset value lending. He reports to Managing Partner Robert de Corainville. Mr. Graham joins from RBC Capital Markets.

Hamilton Lane Inc. has hired Ryan Jaggers as managing director and head of insurance solutions at the firm, a newly created role. Mr. Jaggers, who joins Hamilton Lane from Morgan Stanley Investment Management, where he was head of North America insurance solutions, will help Hamilton Lane develop strategic sales plans for the U.S. insurance market, according to a press release. He will work alongside John Brecker, managing director and head of client solutions for the Americas at Hamilton Lane.

The $427.72 billion California Public Employees' Retirement System reported a revised 7.5% loss for the year ended June 30, a steeper decline than the 6.1% drop initially reported, Heather Gillers writes for The Wall Street Journal. The change reflects the fact that preliminary returns of Calpers funds are based on private market performance for the 12 months ended March 31. The gap between preliminary and revised second-quarter returns is the largest since Calpers began tracking the data in 2014, highlighting the dramatic difference between market performance in 2021 versus 2022. The loss was driven by the system’s fixed-income investments, which lost more than $15 billion in the past fiscal year.

A hedge-fund manager who secretly wrote a scathing report in 2020 that accused Luckin Coffee Inc. of accounting fraud is now backing the Chinese chain, calling it “a miracle in China’s business history,” The Wall Street Journal’s Jing Yang reports. Snow Lake Capital, a Beijing-based hedge fund founded and run by Sean Ma, has bought a minority stake in Luckin and is betting that the formerly Nasdaq-listed company’s valuation will surge, the investor said on Monday.

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