Providence Equity Partners

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Providence Equity Partners LLC
Limited liability company
Industry Private equity
Founded 1989
Founder Jonathan M. Nelson, CEO
Headquarters 50 Kennedy Plaza
Providence, Rhode Island, USA
Key people
 Glenn M. Creamer, Senior Managing Director
Paul J. Salem, Senior Managing Director
Products Leveraged buyouts, Growth capital
Total assets $40 billion
Number of employees
 240
Website www.provequity.com

Providence Equity Partners LLC is an American global private equity investment firm focused on media, communications, education and information investments. The firm specializes in leveraged buyout transactions as well as growth capital investments and has invested in more than 140 companies globally since its inception in 1989.[1][2]

The firm manages funds with over $40 billion in commitments, making it a large global player in the private equity industry. The firm also invests in credit funds through its Capital Markets group and affiliate, Benefit Street Partners.[3][4] Benefit Street Partners closed on a $1.75 billion middle market direct lending fund in April 2014.[5][6] Providence was one of the principal pioneers of a sector-based approach to private equity investing. The firm’s sixth fund, Providence Equity Partners VI, closed on $12 billion in 2007,[7] making it the largest sector-focused private equity fund ever raised.[8]

Providence is headquartered in Providence, Rhode Island with five additional offices in New York, London, Hong Kong, Beijing and New Delhi.

History

Providence is led by Founder and CEO Jonathan M. Nelson and Senior Managing Director Paul J. Salem. The firm raises investment funds from a broad array of institutional investors, including pension funds, endowments, sovereign wealth funds, financial institutions, insurance companies, fund of funds, and high-net-worth individuals.

Providence partners with companies across different stages in their development, from growth capital and complex recapitalizations of family-owned businesses to large buyouts and take-privates. The firm targets equity investments of $150 million to $800 million and can employ a variety of financing structures.[1] Providence prefers to lead its investments, serve on company boards, and work collaboratively with company management.[9]

In 2008, Providence hired Thomas Gahan as president of the firm’s new capital markets group.[10] Prior to joining Providence, Mr. Gahan was head of Deutsche Bank’s corporate and investment banking in the Americas and chief executive officer of Deutsche Bank Securities. The credit platform has 18 investment professionals based in the firm’s New York office.[11]

Providence’s investments have included AutoTrader.com Group, Blackboard Inc., eircom, Hulu, Kabel Deutschland, MLS Media, NEW Asurion, Newport Television, Univision, VoiceStream (now T-Mobile US), Warner Music Group, Western Wireless, and World Triathlon Corporation (Ironman), YES Network, and ZeniMax Media.[12]

Since 2010, significant investments by the firm include RentPath, Ambassador Theatre Group, Miller Heiman, Learfield Communications, The Chernin Group, GLM, UFO Moviez, Study Group, and Abacus Data Systems.[13][14][15][16][17] Providence’s recent exits by sale or IPO include iQivi, Hulu, YES Network, Decision Recourses, MobileServ (Phones 4U), Bresnan Communications, and Kabel Deutschland.[1][18][19][20] Providence Strategic Growth, the firm’s lower midmarket and growth equity arm, invested in Burning Glass Technologies in June 2015.[21] In March 2013, Providence and the National Football League formed a global partnership to invest primarily in sports and entertainment related media assets.[22]

In September 2012, Providence sold a less than 10% stake in the firm to Florida’s state pension system and a sovereign wealth fund.[23]

Major losses

In 2010, Providence lost hundreds of millions of dollars when Metro-Goldwyn-Mayer went bankrupt.[24]

In 2014, Providence lost its entire $460 million investment in Education Management Corporation after that company faced multiple investigations.[25][24]

In 2014, Providence lost $400 million on the Dutch child-care group Estro.[26]

A $675 million stake in NexTag was written down to zero in 2014.[27][24]

In February 2015, Providence lost $800 million when Altegrity filed for bankruptcy after fraud accusations.[24]

These poor investments caused Providence to deliver "dismal" returns.[24]

Senior Advisors

Senior Advisors that work with the firm on new investment opportunities and certain of the firm’s existing investments, include:

References

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External links

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