Providence Equity

Last updated

Providence Equity Partners L.L.C.
Type Private
Industry Private equity
Founded1989;34 years ago (1989)
Founder Jonathan M. Nelson, Founder and Executive Chairman
Headquarters
50 Kennedy Plaza
Providence, Rhode Island
,
USA
Key people
Michael Dominguez, Chief Investment Officer
Davis Noell, Senior Managing Director
David Phillips, Senior Managing Director
Karim Tabet, Senior Managing Director
Andrew Tisdale, Senior Managing Director
Products Leveraged buyouts, Growth capital
AUM $35 billion (2023)
Number of employees
180
Website www.provequity.com OOjs UI icon edit-ltr-progressive.svg

Providence Equity Partners L.L.C. is a specialist private equity investment firm focused on media, communications, education, and technology investments across North America and Europe. The firm specializes in growth-oriented private equity investments and has invested in more than 170 companies globally since its inception in 1989. [1] [2]

Contents

The firm manages funds with over $31 billion in aggregate private equity capital commitments, making it a large global player in the private equity industry. Providence was one of the principal pioneers of a sector-based approach to private equity investing. The firm's eighth fund, Providence Equity Partners VIII, closed on $6 billion in 2019, above its $5 billion target. The prior fund, Providence VII, closed with $5 billion in 2013. [3] [4] [5]

Providence is headquartered in Providence, Rhode Island with additional offices in New York, Boston, London and Atlanta. [6]

Operations

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 at various stages of 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 $500 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. [7]

History

In 2008, Providence hired Thomas Gahan as president of the firm's new capital markets group and its affiliate, Benefit Street Partners. [8] [9] Prior to joining Providence, Gahan was head of Deutsche Bank's corporate and investment banking in the Americas and chief executive officer of Deutsche Bank Securities. Benefit Street Partners closed on a $1.75 billion middle market direct lending fund in April 2014. [10] [11] [12] The credit platform was sold to Franklin Templeton Investments in October 2018. [13]

In 2014, Providence established Providence Strategic Growth (PSG), its growth equity affiliate focused on investments in lower middle market software and technology-enabled service companies. PSG is headquartered in Boston, Massachusetts, with offices in London and Kansas City. [14]

Providence's investments have included AutoTrader.com Group, Blackboard Inc., Conversica, eircom, Hulu, Kabel Deutschland, MLS Media, NEW Asurion, Bluestone Television, Newport Television, Univision, VoiceStream (now T-Mobile US), Warner Music Group, Western Wireless, and World Triathlon Corporation (Ironman), YES Network and TopGolf. [15] [16]

Since 2013, significant investments by the firm include 365 Retail Markets, Ambassador Theatre Group, DoubleVerify, Learfield Communications, GlobalTranz, Groupe La Centrale, MásMóvil Group, n2y, Node4, Smartly.io, TAIT, Tenstreet, and TCP. [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28]

Providence's recent exits include TES, Galileo Global Education, EdgeConneX, OEConnection, PADI, Ascend Learning, Vector Solutions and ZeniMax Media. [29] [30] [31] [32] [33] [34] [35] [36]

In March 2013, Providence and the National Football League formed a global partnership to invest primarily in sports and entertainment related media assets. [37]

In September 2012, Providence sold a less than 10% stake in the firm to Florida's state pension system and a sovereign wealth fund. [38]

In February 2015, Providence's $800 million stake in security screener Altegrity was wiped out when the security company was accused of fraud and filed for bankruptcy. This followed a series of other expensive losses that Providence blamed on investments outside of its expertise made during the peak of the 2007 and 2008 private equity boom. [39]

In February 2017, Providence expanded its education business by buying NACE Schools, a Spain-based operator of for-profit schools. [40] As of 2021, the schools portfolio branded as Globeducate [41] has 55 schools in nine countries. [42]

In October 2017, Modern Times Group sold its telecommunication businesses in the Baltic states to Providence Equity Partners. [43] [44] The newly acquired companies were united and operate under the All Media Baltics company name (currently TV3 Group). [45] [46] [47]

In April 2019, MasMovil agreed to repurchase its convertible bond from Providence Equity. Providence remains a shareholder in the company. [48]

In September 2019, Providence Strategic Growth collected $2 billion for its fourth fund. [49]

In August 2021, it was announced that Providence Equity had purchased a majority share of Sweetwater Sound, a major musical equipment retailer based in Fort Wayne, Indiana. [50]

In April 2022, it was announced Providence had acquired the cloud-based managed Wi-Fi solutions provider, Airties. [51]

Key people

In September 2020, Providence announced a leadership transition plan, under which founder and CEO Jonathan M. Nelson would become Executive Chairman in January 2021. As part of this planned transition, Providence appointed Davis Noell and David Phillips senior managing directors and co-heads of North America, and Karim Tabet and Andrew Tisdale senior managing directors and co-heads of Europe. Managing Director Michael Dominguez was appointed Chief Investment Officer. [52]

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References

  1. 1 2 "Company Overview of Providence Equity Partners LLC". Bloomberg Businessweek . Archived from the original on October 18, 2007. Retrieved September 21, 2012.
  2. ↑ "Providence Equity buys Star India's stake in Star CJ". afaqs.com. June 6, 2014. Archived from the original on March 4, 2016. Retrieved June 30, 2014.
  3. ↑ "Providence Equity Closes Eighth Flagship Fund Above $6 Billion". The Wall Street Journal. September 17, 2019.
  4. ↑ "Providence Equity Raises $12 Billion Buyout Fund". The New York Times . February 21, 2007.
  5. ↑ "Private Equity International magazine's ranking of the world's largest private equity firms". PEI – Alternative Insight. May 1, 2008.
  6. ↑ "Private Equity". Providence Equity Partners. October 6, 2020.
  7. ↑ "About Us". Provequity.com. Retrieved September 14, 2012.
  8. ↑ Ken MacFadyen (January 21, 2010). "Providence Expands Capital Markets Arm". Leveraged Finance News. Archived from the original on March 10, 2016. Retrieved November 25, 2013.
  9. ↑ "Movers & shakers: Sept. 26, 2008". The Deal. September 26, 2008. Archived from the original on November 30, 2011. Retrieved September 24, 2012.
  10. ↑ Matthew Sheahan (April 10, 2014). "Benefit Street Closes $1.75B Credit Fund". Leveraged Finance News. Archived from the original on March 25, 2016. Retrieved June 30, 2014.
  11. ↑ Chris Witkowsky (April 10, 2014). "Providence Equity debt arm hits $1.75 bln hard cap on Fund III". pehub.com.
  12. ↑ Julie Segal (November 12, 2014). "Tommy Gahan Wants to Capitalize on Volatility". Institutional Investor.
  13. ↑ Segal, Julie (October 25, 2018). "Franklin Templeton Buys Providence Equity's Benefit Street Partners". Institutional Investor. Retrieved February 10, 2019.
  14. ↑ "PSG-backed Imaweb buys Evolutive". PE Hub. October 2, 2020.
  15. ↑ Phil Wahba (June 25, 2014). "Private equity fuels Ironman triathlon organizer's gauntlet". Fortune .
  16. ↑ "Providence Equity Backs Golf Entertainment Company Topgolf". Dow Jones & Company. February 22, 2016. Archived from the original on March 5, 2016. Retrieved February 27, 2016.
  17. ↑ "Providence takes over 365 Retaily". PitchBook Data. January 4, 2021.
  18. ↑ Anne-Sylvaine Chassany (October 21, 2013). "Providence buys Ambassador Theatre Group for £350m". Financial Times .
  19. ↑ "Providence Acquires Majority Stake in DoubleVerify". The Wall Street Journal . August 23, 2017.
  20. ↑ LEARFIELD MEDIA SERVICES (September 10, 2013). "Shamrock Capital to sell Learfield to Providence Equity". The Southern Illinoisan.
  21. ↑ "Providence Equity buys GlobalTranz back from The Jordan Company after just 8 months". Freight Waves. April 3, 2019.
  22. ↑ "Groupe La Centrale sale finalized". AIM Group. June 1, 2021.
  23. ↑ "Providence Equity Closes Eighth Flagship Fund Above $6 Billion". The Wall Street Journal . September 17, 2019.
  24. ↑ "Providence Equity buys Riverside's majority stake in n2y". S&P Global . November 19, 2019.
  25. ↑ "Providence Equity Partners takes majority stake in Node4". DatacenterDynamics. March 3, 2021.
  26. ↑ "Providence Equity Invests $223 Million in Finnish Social Ad-Tech Firm". The Wall Street Journal . December 18, 2019.
  27. ↑ "Providence Equity Partners Invests In TAIT". Mergr. February 25, 2019.
  28. ↑ "Driver clearinghouse Tenstreet acquired by Providence Equity Partners". Freight Waves. October 4, 2021.
  29. ↑ "Onex Corp to buy Tes Global from Providence Equity Partners". PE Hub. December 7, 2021.
  30. ↑ "Providence sells Galileo to CPP-led consortium". Unquote. March 9, 2020.
  31. ↑ "Investment Firm EQT Agrees to Purchase EdgeConneX for $2.5 to $3 Billion". Barron's . August 19, 2020.
  32. ↑ "Majority stake in OEConnection is sold". Auto Service World. August 15, 2019.
  33. ↑ "Providence Equity Sells Scuba Certifier PADI for $700 Million". The Wall Street Journal . March 21, 2017.
  34. ↑ "Providence to Sell Ascend Learning Stake to Blackstone, CPPIB After Nearly 10-Year Hold". The Wall Street Journal . April 14, 2017.
  35. ↑ "Golden Gate Capital Buying Vector Solutions". The Wall Street Journal . November 5, 2018.
  36. ↑ "Providence Equity's Sale of ZeniMax Will Bring Lucrative End to 13-Year Deal". The Wall Street Journal. September 21, 2020.
  37. ↑ Nadia Damouni (March 18, 2013). "NFL, Providence Equity form strategic investment partnership". Reuters .
  38. ↑ "Providence Equity Said to Sell Stake in Firm to Investors". Bloomberg Businessweek . September 25, 2012.
  39. ↑ "Providence Equity May Lose Hundreds of Millions as Altegrity Faces Seizure in Snowden Fallout". GoLocalProv. January 2, 2015.
  40. ↑ Smith, Beckie (February 28, 2017). "Providence Equity acquires NACE international schools group". The PIE News. Retrieved July 7, 2021.
  41. ↑ "Globeducate". Providence Equity Partners. Retrieved July 7, 2021.
  42. ↑ "Globeducate" . Retrieved July 7, 2021.
  43. ↑ "MTG sells Baltic broadcasting businesses – MTG".
  44. ↑ "MTG completes the sale of its Baltic broadcasting businesses – MTG".
  45. ↑ "All Media Baltics to Deliver Top-quality TV Reception via SES Video". Business Wire. Retrieved July 25, 2018.
  46. ↑ "SES inks All Media Baltics deal". Broadband TV News. December 19, 2017. Retrieved July 25, 2018.
  47. ↑ "Acquisition of MTG's business in Baltics completed; new company to be named All Media Baltics". The Baltic Times. Retrieved July 25, 2018.
  48. ↑ Cooper, Laura (April 2, 2019). "Providence to More Than Quintuple Its Money on MásMóvil". WSJ Private Equity. Retrieved April 10, 2019.
  49. ↑ Cooper, Laura (September 16, 2019). "Providence Strategic Growth collects $2bn for fourth fund". Private Equity News.
  50. ↑ "Sweetwater Has New Majority Owner; Chuck Surack Leaves CEO Post Sweetwater Sound Sold; Surack Steps Up". August 10, 2021.
  51. ↑ "Providence to acquire Airties | Infrastructure | News | Rapid TV News". www.rapidtvnews.com. Retrieved April 27, 2022.
  52. ↑ "Providence Equity's Nelson Plans to Shift Role as Firm Maps Out Transition". The Wall Street Journal. September 30, 2020.

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