Irving Place Capital

Last updated
Irving Place Capital
Company type Private
Industry Private equity
Founded1997;27 years ago (1997) (as Bear Stearns Merchant Banking)
FounderJohn D. Howard [1]
Headquarters745 Fifth Avenue, New York City, New York, U.S. [2]
Products Leveraged buyout, Growth capital
Total assets $5.9 billion
Number of employees
20+ [3]
Website www.irvingplacecapital.com

Irving Place Capital, formerly known as Bear Stearns Merchant Banking (BSMB), is an American private equity firm focused on leveraged buyout and growth capital investments in middle-market companies in the industrial, packaging, consumer and retail industries. Based in New York City, it has total committed capital across its funds of $5.9 billion.

Contents

The firm's predecessor Bear Stearns Merchant Banking was founded in 1997 by John D. Howard, formerly a co-founder of Vestar Capital Partners. The group completed its separation from Bear Stearns' owner JPMorgan Chase in 2008.

Investments

Since inception, Irving Place Capital and its predecessor, Bear Stearns Merchant Banking has made a number of investments in notable companies in the retail, consumer products, healthcare, energy, financial and business services, packaging and industrial sectors. Among the firm's most notable investments are the following (separated by the private equity fund from which the investment was made:

History

1997 - 2008

In 1997, John D. Howard was hired by Bear Stearns to launch a new private equity and merchant banking effort for the investment bank. Prior to joining Bear Stearns, Howard had been senior vice president of Wesray Capital Corporation and later co-founded Vestar Capital Partners in 1988. In 1998, Bear Stearns Merchant Banking raised its first fund with $200 million of investor commitments.

In 2001, Bear Stearns Merchant Banking completed fundraising for its second fund with $1.5 billion of investor commitments including a $500 million commitment from Bear Stearns. [10] [11]

In 2006, Bear Stearns Merchant Banking raised its third fund with $2.7 billion of investor commitments. [12] [13]

Spinout Into Independent Firm

BSMB logo in use prior to the firm's rebranding as Irving Place Capital BSMB logo.png
BSMB logo in use prior to the firm's rebranding as Irving Place Capital

Through the intervention of the Federal Reserve and other US Government agencies, Bear Stearns agreed to a sale of the company to JPMorgan Chase on March 24, 2008, which was completed on May 30, 2008. Following the closing of this transaction, Bear Stearns Merchant Banking became a part of JPMorgan Chase. [14]

On November 1, 2008, Bear Stearns Merchant Banking completed a spin out from JPMorgan Chase to become Irving Place Capital. [15] [16] As an independent firm, Irving Place Capital began focusing on its core strengths in industrial, packaging, consumer, and retail businesses, completing seven additional investments in those verticals for its third fund, and also making several exits. In 2014, with several of the third fund's investments needing extra time, Irving Place Capital sought a mechanism to provide liquidity to those limited partners in its third fund desiring it, while also providing those limited partners interested in participating in future value to do so. [17] As a result, in July 2015, Irving Place Capital closed on a new vehicle, Irving Place Capital Partners III SPV, LP, with $1.5 billion in capital commitments. During the same period, Phil Carpenter joined John Howard in managing the firm as Co-Managing Partners.

2015-Present

Since the closing of the new fund, Irving Place Capital has purchased three additional portfolio companies - Ohio Transmission Corporation, [18] a technical distributor of industrial products and provider of related services, Dynojet Research, [19] a manufacturer of aftermarket performance-enhancing parts and accessories as well as diagnostic equipment for powersports vehicles, and Coker Tire, a manufacturer of vintage-style tires for collector automobiles. In addition, it has made several add-on acquisitions to its portfolio companies, including add-on acquisitions for Alpha Packaging, Ohio Transmission, Pet Supplies Plus, and Universal Hospital Services. [20]

The firm has also exited several portfolio companies during this period. In March 2017, the firm sold its investment in Cabi Holdings, a direct seller of women's apparel in the United States, Canada and the United Kingdom, to Sentinel Capital Partners. [21] In March 2017, it announced its sale of National Surgical Hospitals to Surgery Partners, [22] a transaction which closed in August of that year. In May 2017, it agreed to sell Chromalox, a thermal technology company, to Spirax-Sarco Engineering plc, [23] a transaction which closed in July of that year.

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References

  1. Howitt, David M. (2014). "Praise for Heed Your Call". Heed Your Call. Simon and Schuster. ISBN   978-1476767147.
  2. Directory of Venture Capital & Private Equity. BoogarLists. 2010. p. 171 via Google Books.
  3. "Our Team - Irving Place Capital". www.irvingplacecapital.com. Retrieved 2 October 2017.
  4. Bear Stearns Tries on Shoes. Business Week, June 29, 2005
  5. Bear, Stearns Unit Is Said To Buy Vitamin Shoppe. New York Times , December 2, 2002.
  6. Irving Place, Oaktree Buy Chesapeake Archived 2016-03-04 at the Wayback Machine . May 05, 2009
  7. "FindArticles.com - CBSi". findarticles.com. Retrieved 2 October 2017.
  8. Universal Hospital Services, Inc. Completes Acquisition by Bear Stearns Merchant Banking. Business Wire, June 4, 2007
  9. Irving Place to Buy Thermadyne for $200 Million. New York Times, October 6, 2010
  10. Bear Stearns closes $1.5 billion investment fund Archived 2011-07-14 at the Wayback Machine . National Real Estate Investor, May 2, 2001
  11. '08 Candidacy Could Shake Up Giuliani's Firm. New York Times, January 7, 2007
  12. BSMB closes latest fund on $2.7bn Archived 2006-10-16 at the Wayback Machine . AltAssets, August 3, 2006
  13. "PSERS" (PDF). www.psers.state.pa.us. Retrieved 2 October 2017.
  14. New Life, New Fund for Constellation Ventures. PE Hub, May 5, 2009
  15. BSMB is Now Irving Place. Private Equity Professional Digest, October 29, 2008
  16. Bear Stearns Merchant Banking rebrands . Private Equity Online, October 28, 2008
  17. "Irving Place to let Fund III LPs sell at full value or roll into new fund - PE Hub". PE Hub. 2015-06-17. Retrieved 2018-01-31.
  18. "Press Release, Irving Place Capital Completes Acquisition Ohio Transmission" (Press release). 2 October 2015.
  19. "American Capital Announces the Sale of Dynojet".
  20. "Franchise Group acquires Pet Supplies Plus for $700M". Retail Dive. Retrieved 2023-08-25.
  21. "Sentinel Capital Acquires Cabi".
  22. "Surgery Partners to Acquire National Surgical Healthcare from Irving Place Capital".
  23. "Irving Place Capital Agrees to sale of Chromalox".