Private Equity Council adds 18 new members, changes name to Private Equity Growth Capital Council
WASHINGTON, DC, SEPTEMBER 14, 2010 – Reflecting its expanded and diversified membership, the Private Equity Council announced today that it has changed its name to the Private Equity Growth Capital Council. The Council earlier this year launched a major effort to broaden membership beyond the founding firms.
In the last few months, the following new members have joined: Avista Capital Partners; Brockway Moran & Partners; Crestview Partners; Genstar Capital; Global Environment Fund; GTCR; Kelso & Company; KPS Capital Partners; Levine Leichtman Capital Partners; MidOcean Partners; New Mountain Capital; The Riverside Company; Sterling Partners; Sun Capital Partners; TA Associates; Thomas H. Lee Partners; Vector Capital; and Welsh, Carson, Anderson & Stowe. Discussions with more firms continue. The additions to date bring total membership to 30.
“Private equity firms invest in a broad spectrum of businesses, from startups to mature companies, and they use varying capital structures to complete acquisitions,” said PEGCC President Douglas Lowenstein. “But they are united by a commitment to growing and strengthening portfolio companies. Our new members will help us better tell the story of how private equity investment delivers substantial economic benefits to companies of all types and sizes in virtually every state in this country. And our new name better conveys what private equity is all about: growing companies.”
Diverse investments
Investments by new member firms span a range of industries, including clean technology and clean energy, defense and government services, education, food services, financial services, healthcare, Internet services, manufacturing, sustainable forestry, software, and others. Assets under management range from less than $1 billion to $20 billion.
“We welcome our new members and look forward to working with them on a broad range of legislative, regulatory and business issues that affect the entire private equity investment community,” said PEGCC Chairman Mark Tresnowski, general counsel and managing director of Chicago-based Madison Dearborn Partners.
“We emphasize growth, and our portfolio companies have added or created over 7,000 jobs in recent years, net of any job losses, and spent more than $700 million on R&D,” said Steven B. Klinsky, Founder and Chief Executive Officer of New Mountain Capital. “We think hearing about our firm, and others like us, will raise awareness about the wide-ranging nature of private investment firms.”
“The Private Equity Council has proven its value in effectively representing our industry during one of the most turbulent and challenging times that our industry has faced,” said Anthony de Nicola, Co-President and General Partner of Welsh Carson. “We’re pleased to join with some of the best-known and most well respected investment firms in the country to help continue that critically important effort,” he added.
“Too many policy makers mistakenly conclude that private equity is just about a small group of very large and well-known firms,” said Peter Brockway, managing partner at Brockway Moran. “Firms like ours are less visible but provide critical financing to hundreds of smaller firms seeking capital to grow. By joining the PEGCC we will help tell the story of this key segment of the private equity world.”
As part of its new structure, the Private Equity Growth Capital Council will create a Growth Capital Committee to consider and act on issues directly involving and affecting mid and small market firms.
Current members are: Apax Partners; Apollo Global Management LLC; Bain Capital Partners; The Blackstone Group; The Carlyle Group; Hellman and Friedman LLC; Kohlberg Kravis Roberts & Co.; Madison Dearborn Partners; Permira; Providence Equity Partners; Silver Lake; and TPG Capital. (Thomas H. Lee Partners was an original founding member that is rejoining the Council.)
About The New Members
Avista Capital Partners
Avista Capital Partners is a leading private equity firm with offices in New York, Houston, and London. Founded in 2005, Avista’s strategy is to make controlling or influential minority investments primarily in growth-oriented healthcare, energy, and media companies. Through its team of seasoned investment professionals and industry experts, Avista seeks to partner with exceptional management teams to invest in and add value to well-positioned businesses. www.avistacap.com
Brockway Moran & Partners
Brockway Moran & Partners is a private equity firm with more than $1.3 billion of capital under management. The firm acquires growth-oriented middle market companies valued between $50 million and $300 million in partnership with exceptional management teams. Brockway Moran focuses on businesses with significant growth opportunities either through internal expansion, industry consolidation or innovative business strategies. The principals of the firm have a record of productively working with management teams to build companies into larger and more diverse enterprises. Brockway Moran & Partners invests in a broad spectrum of industries with significant experience in consumer, industrial and service businesses. Since 1998, the firm has completed over 50 acquisitions. www.brockwaymoran.com
Crestview Partners
Crestview Partners is a New York‐based private equity firm with over $4 billion of assets undermanagement. Crestview was founded in 2004 and is led by six partners who have a long andsuccessful track record as executives in the private equity business and senior management ofGoldman Sachs and Morgan Stanley. Crestview has a value‐oriented investment strategy andtakes a prudent and disciplined approach to risk. Crestview is focused on partnering withstrong management teams and adding value to its investments through the firm’s relationshipnetwork and senior operating capabilities. Crestview currently manages 14 investments across
two fund complexes. www.crestview.com
Genstar Capital
Genstar Capital is a leading private equity firm that has been actively investing in high quality companies for more than 20 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of operating executives and strategic advisors to transform its portfolio companies into industry-leading businesses. Genstar has more than US$3 billion of committed capital under management and targets investments focused on selected sectors within the software, healthcare, financial services, and industrial technology industries. www.gencap.com
Global Environment Fund
Established in 1990, the Global Environment Fund (GEF) invests in businesses around the world that provide cost-effective solutions to environmental and energy challenges. The firm manages private equity dedicated to clean technology, emerging markets, and sustainable forestry, with approximately $1 billion in aggregate capital under management. GEF’s investors include prominent endowments, foundations, family offices, and pension funds. www.globalenvironmentfund.com
GTCR
Founded in 1980, GTCR is a leading private equity firm focused on investing in growth companies in the Financial Services & Technology, Healthcare and Information Services & Technology industries. The Chicago-based firm pioneered the “Leaders Strategy” – finding and partnering with world-class leaders as the critical first step in identifying, acquiring and building market-leading companies through acquisitions and organic growth. Since its inception, GTCR has invested more than $8.0 billion in over 200 companies. www.gtcr.com
Kelso & Company
Kelso & Company is one of the oldest and most established firms specializing in private equity investing. Since 1980, Kelso has made investments in over 100 companies in a broad range of industry sectors with aggregate initial capitalization at closing of over $36 billion and has managed eight private equity partnerships with total capital committed of over $10 billion. The firm is currently investing its eighth partnership, Kelso Investment Associates VIII, L.P., with $5.1 billion of committed capital. Kelso’s principals and employees are collectively the single largest investor in each of Kelso’s three most recent funds, which creates a strong alignment of interests with limited partners and management teams. Kelso focuses its efforts and resources primarily on investment opportunities in growing middle market companies and has built its successful investment record by working in close partnership with experienced and talented management teams. Kelso enjoys a reputation of being an attractive partner for management due to the firm’s long-term view to building shareholder value, the continuity and stability of the firm’s employees, Kelso’s significant level of personal investment, and its willingness to support growth in its portfolio companies. www.kelso.com
KPS Capital Partners
KPS Capital Partners, LP is the manager of the KPS Special Situations Funds, a family of private equity funds with over $2.6 billion of committed capital focused on constructive investing in restructurings, turnarounds and other special situations. KPS has created new companies to purchase operating assets out of bankruptcy; established stand-alone entities to operate divested assets; and recapitalized highly leveraged public and private companies. The KPS investment strategy targets companies with strong franchises that are experiencing operating and financial problems. KPS invests its capital concurrently with a turnaround plan predicated on cost reduction, capital investment and capital availability. Typically, the KPS turnaround plan is accompanied by a financial restructuring of the company’s liabilities. The KPS investment strategy and portfolio companies are described in detail at the firm’s website: www.kpsfund.com
Levine Leichtman Capital Partners
Levine Leichtman Capital Partners is an independent investment firm that invests in middle market companies located in the United States. LLCP manages approximately $5 billion of institutional capital on behalf of itself and its worldwide network of investors. These investors include state and corporate pension plans, insurance companies, fund of funds, family offices, foundations and endowments. Established in California in 1984 by Arthur E. Levine and Lauren B. Leichtman, the Firm has expanded geographically with offices in Los Angeles, Dallas, Chicago, and New York. The Firm has a proven business philosophy of investing alongside entrepreneurs who believe in their company’s growth and want substantial equity ownership. LLCP’s private equity activities are conducted through Levine Leichtman Capital Partners III, L.P. (Structured Equity Fund), Levine Leichtman Capital Partners Deep Value Fund, L.P. (Distressed Debt Fund) and Levine Leichtman Capital Partners California Growth Fund (California focused Small Cap Fund). www.llcp.com
MidOcean Partners
MidOcean Partners is a premier private equity firm focused on the middle market. With offices in New York and London, MidOcean is committed to investing in high quality companies with stable market positions and multiple opportunities for growth. Targeted sectors include consumer and leisure, media and communications, business and financial services and industrial services. MidOcean brings significant expertise to its focus industries and leverages the firm’s broad operations and strategic resources to create value for its investors and partners. www.midoceanpartners.com
New Mountain Capital
New Mountain Capital is a New York-based private equity firm investing for long-term capital appreciation through direct investment in growth equity transactions, leveraged acquisitions, and management buyouts. The Firm currently manages private and public equity funds with approximately $8.5 billion in aggregate capital commitments. New Mountain seeks out the highest-quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. In addition to its investments, the firm has begun issuing a social responsibility statement annually. As of January 2010, the firm had added or created over 7,000 jobs at its portfolio companies, net of all job losses, during the firm’s period of ownership. New Mountain has never had a portfolio company bankruptcy or a debt default. New Mountain portfolio companies have invested over $700 million in research and development, software development and capital expenditures. www.newmountaincapital.com
The Riverside Company
The Riverside Company is a global private equity firm focused on acquiring leading small and medium-sized enterprises (with a value of up to $200 million/€200 million) and partnering with strong management teams to enhance the success of its companies through acquisitions and organic growth. Since its founding in 1988, the firm has invested in 236 transactions with a total enterprise value of $5.0 billion/€4.1 billion. The investment portfolio in North America, Europe and Asia includes 71 companies with annual sales totaling $3.3 billion/€2.7 billion, EBITDA of $506 million/ €415 million and more than 13,000 employees. Riverside offers the resources to complete acquisitions smoothly – thanks to its more than $3.0 billion/ €2.5 billion in assets under management, more than 190 professionals in 19 offices (Atlanta, Brussels, Budapest, Chicago, Cleveland, Dallas, Stockholm, Hong Kong, Los Angeles, Luxembourg, Madrid, Melbourne, Munich, New York, Prague, San Francisco, Seoul, Tokyo and Warsaw) and its longstanding relationships with partner lenders. www.riversidecompany.com
Sterling Partners
Sterling Partners is a leading private equity firm with over 25 years of experience partnering with entrepreneurs to build market-leading businesses and generate superior returns. With approximately $4 billion of assets under management, Sterling invests growth capital in industries with positive, long-term trends and provides ongoing support to management through
a dedicated team of industry veterans, operators, strategy experts and human capital professionals. Sterling Partners is a leader in business services, education and healthcare and is co-headquartered in Chicago and Baltimore, with additional offices in Mexico City and Delhi. www.sterlingpartners.com
Sun Capital Partners
Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in companies that can benefit from its in–house operating professionals and experience. Sun Capital affiliates have invested in more than 225 companies worldwide with combined sales in excess of $40 billion since Sun Capital’s inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles, and New York, as well as affiliates with offices in London, Paris, Frankfurt, Luxembourg, Shanghai and Shenzhen. www.SunCapPart.com
TA Associates
Founded in 1968, TA Associates is one of the largest and most experienced middle market private equity firms. The firm has invested in 400 companies and manages more than $16 billion in capital. With offices in Boston, London, Menlo Park and Mumbai, TA Associates leads buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. www.ta.com
Thomas H. Lee Partners
Thomas H. Lee Partners (“THL”) is one of the world’s oldest and most experienced private equity firms. The firm invests in growth-oriented global businesses, headquartered principally in North America, within three broad sectors: Business & Financial Services, Consumer & Healthcare and Media & Information Services. THL’s team of investment and operating professionals partner with its portfolio company management teams to identify and implement business model improvements that accelerate sustainable revenue and profit growth. Since its founding in 1974, THL has acquired more than 100 portfolio companies and has completed over 200 add-on acquisitions, representing a combined value of more than $150 billion. THL’s two most recent investment funds comprise more than $14 billion of aggregate committed equity capital. Notable transactions sponsored by THL include Aramark, Ceridian, Dunkin’ Brands,Experian, Fidelity National Information Services, HomeSide Lending, Houghton Mifflin, Michael Foods, The Nielsen Company, ProSiebenSat.1, Snapple, Warner Chilcott, Warner Music Group and West Corporation. www.thl.com
Vector Capital
Vector Capital is a leading global private equity firm specializing in spinouts, buyouts and recapitalizations of established technology businesses. Vector identifies and pursues these complex investments in both the private and public markets. Vector actively partners with management teams to devise and execute new financial and business strategies that materially improve the competitive standing of these businesses and enhance their value for employees, customers and shareholders. Among Vector’s notable investments are Aladdin Knowledge Systems, Certara, Corel Corporation, LANDesk, Precise Software, Printronix, Register.com, SafeNet, Savi Technology, WatchGuard Technologies, and WinZip. www.vectorcapital.com
Welsh, Carson, Anderson & Stowe
Welsh, Carson, Anderson & Stowe (“WCAS”) was formed in 1979 and has focused its investment activities in two growth industries, information/business services and healthcare. WCAS manages over $20 billion in capital and has a current portfolio of over thirty companies. WCAS’s strategy is to buy growth businesses, partner with outstanding management teams and build value for its investors through a combination of operational improvements, internal growth initiatives and strategic acquisitions. www.welshcarson.com
About the Private Equity Growth Capital Council
Based in Washington, DC, the Private Equity Growth Capital Council is an advocacy, communications and research organization and resource center established to develop, analyze and distribute information about the private equity and growth capital investment industry and its contributions to the national and global economy. Members are: Apax Partners; Apollo Global Management LLC; Avista Capital Partners; Bain Capital Partners; The Blackstone Group; Brockway Moran & Partners; The Carlyle Group; Crestview Partners; Genstar Capital; Global Environment Fund; GTCR; Hellman and Friedman LLC; Kelso & Company; Kohlberg Kravis Roberts & Co.; KPS Capital Partners; Levine Leichtman Capital Partners; Madison Dearborn Partners; New Mountain Capital; MidOcean Partners; Permira; Providence Equity Partners; The Riverside Company; Silver Lake; Sterling Partners; Sun Capital Partners; TA Associates; Thomas H. Lee Partners; TPG Capital; Vector Capital; and Welsh, Carson, Anderson & Stowe. For more information, please visit our web site at: www.pegcc.org
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