Hello readers! Deal activity has slowed dramatically in the past several months, but there are still a few sub-sectors that investors point to as bright spots in the investment clouds. One that comes up frequently is energy, and more specifically, renewable energy as well as products and technologies that support a transition to more efficient energy sources. This morning, our own Luis Garcia looks at another play in the energy transition market that’s capturing the hearts, minds and wallets of private investment firms: energy-as-a-service companies.

Also, KKR & Co. co-founder Henry Kravis is among a group of investors that are buying a small stake in venture firm Thrive Capital, Berber Jin writes for The Wall Street Journal, and WSJ Pro Bankruptcy’s Andrew Scurria reports on the bankruptcy filing of mattress retailer Serta Simmons Bedding LLC.

Finally, we are following along online with some of the panels at the IPEM private markets conference in Cannes, France, where there seems to be much discussion of valuations, private credit, the impact of inflation, volatile markets and economic recessions of all shapes and sizes.

Stay tuned for more takeaways later in the week.  À demain chers lecteurs!

A small but growing number of private-equity firms are backing businesses that help clients better manage their energy consumption, betting that pressure to reduce carbon emissions will expand demand for their services, Luis Garcia writes for WSJ Pro Private Equity. So-called energy-as-a-service providers use various methods to help their customers reduce energy consumption, from upgrading lighting and heating systems to installing solar panels or electric vehicle charging stations.

Venture firm Thrive Capital is selling a stake to a group of investors including Walt Disney Co. CEO Robert Iger and KKR & Co. co-founder Henry Kravis, a rare move designed to expand its investing reach and give the founders of the startups it backs access to some of the world’s most powerful business figures, Berber Jin writes for The Wall Street Journal. As a part of the transaction, Brazilian food magnate Jorge Paulo Lemann, French telecom executive Xavier Niel, Indian oil businessman Mukesh Ambani, Mr. Iger and Mr. Kravis will invest about $175 million to purchase a 3.3% stake in Thrive, the New York-based firm said Tuesday. The deal values the venture firm at $5.3 billion.

Serta Simmons Bedding LLC filed for chapter 11, aiming to cut nearly $1.6 billion in debt from its balance sheet and end a yearslong feud with Angelo Gordon & Co., Apollo Global Management Inc. and other minority lenders, Andrew Scurria writes for WSJ Pro Bankruptcy. The bedding manufacturer behind the Beautyrest, Serta, Simmons and Tuft & Needle brands sought protection in the U.S. Bankruptcy Court in Houston on Monday with a prearranged restructuring plan to cut its nearly $1.9 billion debt load to $300 million. Most of Serta’s top creditors and its private-equity owner Advent International Corp. have signed on to the restructuring plan. But Serta will continue a legal fight with other lenders that dates to 2020, when it pulled off a controversial debt exchange and capital raise to stay afloat through the worst of the Covid-19 pandemic.

Join us on Feb. 15 for a virtual webinar to discuss how limited partners view the investment outlook. In one panel, Mina Pacheco Nazemi from Barings and Sara Bowdoin from Siguler Guff will consider allocations, while a second panel on finding diverse managers will feature Katie Moore from Hamilton Lane and Pamela Pavkov from TPG. You can register here.

Pop star Justin Bieber has sold his music rights to Blackstone Inc.-backed Hipgnosis Songs Capital, Joseph De Avila writes for The Wall Street Journal. The Journal previously reported that the deal had an expected value of around $200 million.  The deal includes the Canadian singer’s publishing and recorded music catalog, according to Hipgnosis and representatives for Mr. Bieber. That covers more than 290 titles released before the end of 2021.

Japanese insurer Nippon Life Insurance Co. has agreed to invest an additional $1 billion in Resolution Life, a company focused on the acquisition and management of portfolios of life insurance policies, according to a news release. Nippon Life’s additional commitment follows the recently announced strategic partnership between Resolution Life and Blackstone Inc., and will bring Nippon Life’s cumulative investment in Resolution Life to $1.65 billion.

Providence Equity Partners has acquired a multi-decade lease for nine marquee billboards at Two Times Square and 1600 Broadway from Universal Branding Group, and has simultaneously entered a long-term operating agreement with existing portfolio company Outfront Media Inc., who will operate the billboards on Providence’s behalf, according to a news release. In addition, Providence has acquired the existing digital billboard signage and will continue to work with several blue-chip advertisers who currently have long-term agreements in place at these locations.

The private-equity unit of Waterfall Asset Management and private-investment firm Atalaya Capital Management backed a strategic investment in OnPoint Warranty Solutions LLC to support the company’s acquisition of Guardian Protection Products Inc., according to an emailed news release. OnPoint Warranty helps brands deliver underwriting and manufacturer warranty administration and extended warranty programs, among other insurance technology and services. Guardian Protection  meanwhile, offers warranty administration for furniture retailers.

Midmarket firm Wynnchurch Capital has acquired a majority stake in FloWorks International LLC from fellow private-equity firm Clearlake Capital, which will retain a minority stake in the company, according to a press release. Houston-based FloWorks distributes critical flow control products and technology for maintenance, repair and overall applications, particularly across manufacturing and industrial applications, according to a press release. Clearlake invested in the company back in 2017.

Ridgemont Equity Partners has recapitalized Worldwide Produce, a distributor of fresh and specialty food products, according to a news release. The investment was made from Ridgemont Equity Partners IV LP, a $2.35 billion fund raised in 2022. Sole Source Capital, the company’s existing financial sponsor, will retain a stake in the company alongside Ridgemont and company management.

The Beekman Group said it has recapitalized Eclipse Fitness Group, a franchisor of Planet Fitness gym chains with 20 clubs across Georgia and Florida. Beekman said in a news release that it has backed the company out of Beekman Investment Partners IV LP, a $425 million fund closed in 2018.

Boyne Capital said it is acquiring business process outsourcing and automation services provider Flatworld Solutions Inc., in partnership with the company’s management. Boyne is investing in Flatworld out of  BCM Fund II,, the firm said in a news release.

Blackstone Inc is in discussions to sell around half of its stake in Indian real-estate investment trust Embassy Office Parks REIT to Bain Capital in a deal valued at $480 million at current prices, Reuters reports, citing unnamed sources.

Miami-based private-equity firm Eir Partners facilitated the acquisition of SwiftMD, a virtual care services company, by ReviveHealth, a healthcare subscription solution provider, according to a news release. Eir Partners took a majority interest in ReviveHealth as a part of the transaction.

Two Sigma and Goldman Sachs Group’s growth equity unit have led $50 million in previously unannounced funding for Crux Informatics Inc., bringing the total funding raised by the data integration technology provider to $157 million, according to a press 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.

Publicly traded Matador Resources Company said it has agreed to acquire oil and gas producer Advance Energy Partners Holdings LLC from EnCap Investments LP for an initial cash payment of $1.6 billion, plus another $7.5 million for each month in 2023 in which the average oil price as defined in the securities purchase agreement exceeds $85 per barrel. The transaction includes certain oil and natural gas producing properties and undeveloped acreage located in Lea County, N.M., and Ward County, Texas, the release stated. EnCap initially invested in the Houston-based oil and gas producer in 2014, according to the energy-focused firm’s website.

Renewable energy investor Copenhagen Infrastructure Partners said it has sold all of its interest in the Travers Solar project to a fund managed by fellow infrastructure investor Axium Infrastructure. In 2021, Copenhagen Infrastructure announced it was backing the construction of the solar project, which is located around 130 kilometers south of Calgary and was the infrastructure firm’s first investment in Canada, according to a press release. Copenhagen backed the deal out of Copenhagen Infrastructure IV LP, which closed with €7 billion, the equivalent of $7.61 billion, in 2021.

Cotton Creek Capital is selling Vecta Environmental Services LLC, a Gonzales, La.-based provider of environmental and industrial services across the Southern U.S., according to a press release. Cotton Creek initially backed Vecta in 2018 and the company more than quadrupled its earnings under the firm’s ownership.

The market for investments in private-equity fund managers, which has grown very quickly in recent years, has slowed as valuations have declined and investors have become more selective, Chris Cumming writes citing asset managers at the IPEM private-markets conference in Cannes, France. Valuations for asset managers have declined about 40% from the beginning of 2022, and investors are likely to become far more selective in choosing which managers to back, says Augustin Duhamel, managing partner at investment firm 17Capital. With valuations low, managers who need capital to expand are likely to look to sources that don't dilute their equity, he adds.

Nate Maier, a private-markets investment officer at the State of Wisconsin Investment Board, remains bullish on European technology, despite recent sector volatility, WSJ Pro's Maria Armental reports. "Long-term, tech is the place to be," Mr. Maier said at the IPEM private-markets conference in Cannes, France. "The future of tech is actually very bright...because it is what's driving the economy forward," added Olya Klueppel, a partner at technology advisory and investment firm GP Bullhound. And despite the sector's ups and downs, from valuations to buyers' and sellers' performance expectations, "I hope LPs and investors will not only remember the excesses of the past couple of years but also see the bigger picture" of how tech has matured and grown as an asset class, says Elina Berrebi, a founding partner at French growth investor Revaia.

Ivan Vercoutère, a managing partner and co-founder of Swiss alternative investment specialist LGT Capital Partners, said he expects a longer "winter" in the growth venture tech sector, WSJ Pro’s Maria Armental writes. Speaking at the IPEM private-markets conference in Cannes, France, Mr. Vercoutère said that after a rush of cash into the sector during the pandemic-led tech boom, he expects to see some adjustments, such as the recent announcements of job cuts. "They grew tremendously,"  Mr. Vercoutère said at the industry event. "They were the darlings of Wall Street, of private-equity investors, [and] the returns have been just phenomenal," he says, adding, "It's part of the cycle."

Sun Capital Partners has hired Marc A. Keirstead as chief financial officer at the firm and has also named Adam J. Massman as chief human resources officer, according to a news release.  Mr. Keirstead joins the firm from Abu Dhabi Investment Authority, where he was CFO of the sovereign wealth investors private-equity unit, while Mr. Massman was most recently head of human resources for sustainability at Jones Lang LaSalle, the release stated.

The Stephens Group LLC, a Little Rock, Ark.-based investment firm backed by the Witt Stephens and Elizabeth Campbell families, said it has hired Jack Nadal as a managing director focusing on engineered products, niche industrial services and vertical software, according to a news release. Mr. Nadal most recently served as a partner and investment committee member at aerospace and defense-focused Liberty Hall Capital Partners LP.

Paine Schwartz Partners, a New York–based firm focused on sustainable-food-chain investing, has hired Tommy Levengood as a managing director, according to a news release. Mr. Levengood most recently served in the middle-market private-equity team at AEA Investors, and prior to that was a strategy consultant at Bain & Co.

Midmarket firm Comvest Partners has added Charles Asfour as a partner on the firm’s special opportunities investment team, where he will serve on that team’s investment committee out of its Chicago office. Before joining Comvest, Mr. Asfour founded Aves Capital Management L.P., a Chicago-based manager of special-situation-oriented structured capital investments and funds and before that spent nearly a decade with private-capital investment firm Victory Park Capital Advisors LLC.

RCP Advisors, a private-capital firm focused on the midmarket, announced a series of promotions including two new partners, Michael Rice and Jon Soffer. Mr. Rice is responsible for overseeing fundraising and business development, while Mr. Soffer helps manage RCP’s co-investment funds, according to a press release. Other promotions include Peter Jasaitis and Andrew Ogletree, both elevated to principal, Julie Douglass to manager and Alex Williams to vice president, the release stated.

Golding Capital Partners has named Wiebke Kuhne to head the firm’s institutional sales team for insurance and pension fund clients, according to a press release. Ms. Kuhne has worked at the firm in sales since 2012, the release stated.

New York-based Garnett Station Partners has announced two promotions at the firm including Richard Reuter, who has been elevated to managing director and Max Hoberman, who has been promoted to vice president.

Keystone Capital Management said that it has hired Todd Lanscioni as a managing director at the lower midmarket firm. Mr. Lanscioni previously spent 20 years with lower midmarket focused 20 years with JZ Partners/Jordan Industries, according to a press release.

Republican-leaning states are attracting most of the clean-energy investments spurred by the Biden administration’s signature Inflation Reduction Act, a bill that passed the U.S. Congress without any Republican votes, Phred Dvorak writes for the Wall Street Journal. The act, which was signed into law in mid-August, offers beefy tax credits and other support for clean-energy projects ranging from wind farms to factories that make batteries, solar components or hydrogen. The incentives have improved the economics of those projects and helped spark a flood of investment announcements from companies including the solar manufacturing unit of South Korean conglomerate Hanwha Group and Norwegian startup Freyr Battery.

Increased scrutiny from the Securities and Exchange Commission has derailed crypto companies’ efforts to go public this past year, as financial distress and failures spread across the volatile industry, Dave Michaels and Peter Rudegeair write for the Journal. Crypto-focused companies including Bullish Global, Circle Internet Financial and eToro Group Ltd. have failed to secure the SEC approvals that are required of companies going public.

Compass Diversified Holdings, a publicly listed private-investment company focused on consumer and industrial deals, is gearing up for more investments in healthcare where it sees bright spots for dealmaking in an otherwise lackluster environment, Steve Gelsi writes for sister publication MarketWatch.

A group of creditors that include BlackRock Inc. and Apollo Global Management lent bankrupt crypto miner Core ScientificInc $500 million by purchasing the company’s secured convertible notes, Bloomberg News reported citing court documents.

Bridgepoint Group PLC said Tuesday that it plans to buy back up to 50 million pounds ($61.9 million) of its shares by Sept. 30, Dow Jones Newswires Ian Walker writes. The private-equity firm said the buyback plan reflects the board's confidence in the company's fundamental value and long-term prospects. Any shares bought will be canceled, it said. 

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

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