Madison Dearborn Partners

Last updated
Madison Dearborn Partners, LLC
Company type Privately held company
Industry Private equity
Founded1992;33 years ago (1992)
Headquarters Chicago, Illinois, United States
Products Leveraged buyout
Total assets $23 billion [1]
Number of employees
50+ (2007)
Website https://www.mdcp.com/

Madison Dearborn Partners (MDP) is an American private equity firm which invests in industries, business and government software and services, financial & transaction services, health care sectors. [2] It was established as an independent firm in 1992. [3]

Contents

History

Madison Dearborn Partners was founded in 1992 and is based in Chicago, Illinois. The founders, John A Canning Jr, Paul J. Finnegan, Samuel M. Mencoff, and Nicholas W. Alexos, had previously made private equity investments for First Chicago Bank. [3]

Investments

Between 2006 and 2007, Madison Dearborn completed leveraged buyout transactions for a number of publicly traded companies, including Asurion, [4] CDW, [5] LA Fitness, [6] Nuveen investments, [7] Sorenson Communications, [8] Univision Communications, [9] VWR International [10] and Yankee Candle. [11]

In 2007, the firm joined with Michael Eisner's Tornante investment company to buy out baseball card maker The Topps Company. [12]

In 2014, a plan for MDP to sell Nuveen to TIAA-CREF for $6.25 billion was announced. [13] While the Wall Street Journal cited an anonymous source close to the transaction to the effect that MDP "will have broken even on the transaction", Felix Salmon queried that assertion at Reuters. [14] Dan Primack at Fortune then published additional information about auxiliary benefits to MDP to buttress the break-even claim. [15]

Bell Canada

In June 2007, Madison Dearborn, Providence Equity Partners and the Ontario Teachers' Pension Plan agreed to acquire Bell Canada Enterprises (BCE) in what would have been one of the largest leveraged buyouts in history. The transaction was valued at C$51.7billion (US$48.5 billion) and was approved on September 21, 2007 by more than 97% shareholder votes cast by holders of common and preferred shares. [16] [17]

Bondholders argued in the Superior Court of Quebec that the deal did not protect their interests. [18] While the court rejected the bondholder's arguments, the Quebec Court of Appeal sided with those opposed to the deal. In 2008, the Supreme Court of Canada overruled the Court of Appeal, allowing the deal to move forward. [19]

In December 2008, the deal collapsed after auditing firm KPMG determined that the transaction would create an insolvent entity. [20]

Selected portfolio

References

  1. ↑ Capital raised since inception in 1992
  2. ↑ "Madison Dearborn Partners LLC - Company Profile and News". Bloomberg.com. Archived from the original on February 16, 2022. Retrieved September 9, 2025.
  3. 1 2 "Company News; Fund Venture Begun in Chicago". The New York Times. January 7, 1992. ISSN   0362-4331 . Retrieved July 23, 2022.
  4. ↑ Beltran, Luisa (August 2, 2015). "Which PE firm (or firms) is selling some of its Asurion stake?". PE Hub. Retrieved April 4, 2024.
  5. ↑ Mouawad, Jad (May 30, 2007). "Equity Firm to Acquire Net Retailer". The New York Times. ISSN   0362-4331 . Retrieved July 23, 2022.
  6. ↑ "Madison Dearborn Buys into LA Fitness". Venture Capital Journal. May 21, 2007. Retrieved April 4, 2024.
  7. ↑ "Mutual Fund Manager Agrees to Buyout". The New York Times. Reuters. June 21, 2007. ISSN   0362-4331 . Retrieved July 23, 2022.
  8. ↑ Marek, Lynne (July 26, 2014). "A deal that went sideways". Crain's Chicago Business. Retrieved April 4, 2024.
  9. ↑ Madison Dearborn part of winning $12.3B bid for Univision (Chicago Business News, Analysis & Articles, 2006)
  10. ↑ "Madison Dearborn to buy VWR International". Reuters. August 9, 2007. Retrieved April 4, 2024.
  11. ↑ "Candle Maker Accepts a Buyout Offer". The New York Times . October 26, 2006. ISSN   0362-4331 . Retrieved July 23, 2022.
  12. ↑ "A Bid for Topps, the Baseball Card Company". The New York Times. Reuters. May 25, 2007. ISSN   0362-4331 . Retrieved July 23, 2022.
  13. ↑ Hoffman, Liz; Scism, Leslie (April 14, 2014). "TIAA-CREF to buy Nuveen Investments for $6.25 billion". MarketWatch . Retrieved July 23, 2022.
  14. ↑ Salmon, Felix (April 14, 2014). "Private equity math, Nuveen edition". Reuters. Retrieved July 23, 2022.
  15. ↑ Primack, Dan (April 14, 2014). "Madison Dearborn's patience pays off on Nuveen Investments". Fortune . Retrieved July 23, 2022.
  16. ↑ Privatization of BCE
  17. ↑ "BCE sets $33 billion buyout deal, one of Canada's biggest - Jun. 30, 2007". money.cnn.com. June 30, 2007. Retrieved April 4, 2024.
  18. ↑ McFeat, Tom (May 22, 2008). "The BCE takeover". CBC. Retrieved April 4, 2024.
  19. ↑ "BCE Finalizes Tumultuous Takeover". Forbes. July 4, 2008. Retrieved April 4, 2024.
  20. ↑ Lattman, Peter (December 11, 2008). "BCE Leveraged Buyout Deal Collapses - WSJ". WSJ. Retrieved April 4, 2024.
  21. ↑ Dusane, Ameya (May 16, 2019). "Madison Dearborn Partners Invests in InMoment's Customer Experience Management Platform". Martech Advisor . Retrieved March 8, 2021.
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