The Gores Group

Last updated
The Gores Group, LLC
Company type Private
Industry Financial services
Asset management
Founded1987;37 years ago (1987)
Founder Alec Gores, chairman & CEO
Headquarters Beverly Hills, California, United States
Products Private equity
Website www.gores.com

The Gores Group, LLC is a private equity firm specializing in acquiring and partnering with mature and growing businesses. The company was founded in 1987 by its CEO and chairman, Alec E. Gores. [1]

Contents

Headquartered in Beverly Hills, California, with an office in Boulder, Colorado, and is investing from Gores Capital Partners III, L.P. and Gores Small Capitalization Partners, L.P., which have approximately $1.5 billion and $300 million in capital commitments, respectively. Since 1987, Gores has successfully acquired and operated more than 80 companies. [2]

The company's portfolio as of 2021, includes technology, telecommunications, business services, industrial, media and entertainment and consumer products companies. [3]

History

In 1978, Alec Gores founded Executive Business Systems, a hardware and software distributor, which he sold eight years later to establish what has become the Gores Group today. [4]

Gores closed its first institutional private equity fund, Gores Capital Partners, L.P., in November 2003 with $400 million of committed capital. [5] The firm's second fund, Gores Capital Partners II, L.P. held a final closing in June 2007 with $1.3 billion of committed capital. [6]

Timeline

1978

  • Alec Gores launches his own computer company, Executive Business System (EBS), with $10,000; eight years later, he sells EBS for approximately $2 million current. [7]

1987

  • The Gores Group is founded by Alec Gores with the single vision to buy, fix and sell businesses. [8]

1997

1998

2000

2001

2003

  • Netherlands-based Anker BV, an independent European supplier of point of sale technology, was acquired, positioning Gores as an investor in Europe. [14]
  • The firm launches Gores Capital Partners, its first private equity fund. [7]

2004

  • Gores opens its London office, after several years of investment activity in the U.K. and Europe. [7]

2007

  • Gores closed on $1.3 billion in capital for its second institutional fund, Gores Capital Partners II, L.P. [15]

2008

  • Gores announced a joint venture with Siemens AG for enterprise communication business. [16]

2010

2011

  • Gores sells Lineage Power to General Electric in what is the largest sale transaction in Gores’ history. [19]
  • Gores closes on $2.1 billion in capital commitments for its third institutional fund, Gores Capital Partners III, L.P. [20]
  • Gores acquires an 81.25% majority interest in fashion company Mexx for $85 Million

2012

  • Gores Small Capitalization Partners, L.P. sells $300 million in commitments, expanding Gores’ resources for small and lower middle market investments. [21]
  • Acquires Harris Broadcast from Harris Corporation in December. [22]

2013

  • Stock Building Supply goes public, marking Gores' first U.S. IPO. [23]

2014

  • Gores announces plans to close 34 subsidiaries of 45 in total located in Germany and being part of Unify. Close downs are expected to be completed by Q2/2015.
  • Gores acquired a 51% stake in Hovis Bread
  • Gores sold Norment to Cornerstone, a full service detention equipment contractor based in Alabama [24]
  • Gores sells Sage Automotive Interiors to Clearlake Capital [25]
  • Gores sells Scovill Fasteners to Morito Co., Ltd., a leading global supplier of apparel fasteners [26]

Recognition

Representative transactions

Portfolio

Current (2024)

Select Exited

SPACs

Beginning in 2015, Gores Holdings was announced, specializing in special-purpose acquisition companies (SPACs). [38] It was credited with starting the SPAC revival with their first SPAC transaction in Hostess Brands. [39] Gores is considered one of the most prolific investors in the SPAC space, having created 13 SPACs, more than any other single investor, [40] and The Gores Group is considered a premier SPAC sponsor. [41] [42] [43]

Gores announced or completed more than seven SPAC transactions representing over $36 billion in transaction value. [44]

Gores launched Gores Holdings VII and Gores Holdings VIII in 2021, [55] and publicly filed for Gores Technology Partners and Gores Technology Partners II, [56] as well as Gores Guggenheim, [57] the latter in partnership with Guggenheim Partners.

Related Research Articles

<span class="mw-page-title-main">Mark Pincus</span> American Internet entrepreneur

Mark Jonathan Pincus is an American Internet entrepreneur known as the founder of Zynga, a mobile social gaming company. Pincus also founded the startups Freeloader, Inc., Tribe Networks, and Support.com. Pincus served as the CEO of Zynga until July 2013, then again from 2015 to 2016.

<span class="mw-page-title-main">Blackstone Inc.</span> American alternative investment company

Blackstone Inc. is an American alternative investment management company based in New York City. Blackstone's private equity business has been one of the largest investors in leveraged buyouts in the last three decades, while its real estate business has actively acquired commercial real estate across the globe. Blackstone is also active in credit, infrastructure, hedge funds, secondaries, growth equity, and insurance solutions. As of May 2024, Blackstone has more than US$1 trillion in total assets under management, making it the largest alternative investment firm globally.

<span class="mw-page-title-main">TPG Inc.</span> American investment company

TPG Inc., previously known as Texas Pacific Group and TPG Capital, is an American private equity firm based in Fort Worth, Texas. TPG manages investment funds in growth capital, venture capital, public equity, and debt investments. The firm invests in a range of industries including consumer/retail, media and telecommunications, industrials, technology, travel, leisure, and health care. TPG became a public company in January 2022, trading on the NASDAQ under the ticker symbol “TPG”.

SunGard was an American multinational company based in Wayne, Pennsylvania, which provided software and services to education, financial services, and public sector organizations. It was formed in 1983, as a spin-off of the computer services division of Sun Oil Company. The name of the company originally was an acronym which stood for Sun Guaranteed Access to Recovered Data, a reference to the disaster recovery business it helped pioneer. SunGard was ranked at 480th in the U.S. Fortune 500 list in the year 2012.

A reverse takeover (RTO), reverse merger, or reverse IPO is the acquisition of a public company by a private company so that the private company can bypass the lengthy and complex process of going public. Sometimes, conversely, the public company is bought by the private company through an asset swap and share issue. The transaction typically requires reorganization of capitalization of the acquiring company.

A special-purpose acquisition company, also known as a "blank check company", is a shell corporation listed on a stock exchange with the purpose of acquiring a private company, thus making the private company public without going through the initial public offering process, which often carries significant procedural and regulatory burdens. According to the U.S. Securities and Exchange Commission (SEC), SPACs are created specifically to pool funds to finance a future merger or acquisition opportunity within a set timeframe; these opportunities usually have yet to be identified while raising funds.

<span class="mw-page-title-main">Perella Weinberg Partners</span> U.S.-based financial services firm

Perella Weinberg Partners is an American global financial services firm focused on investment banking advisory services.

Alec E. Gores is an American billionaire businessman who began making his fortune through leveraged buyouts of technology firms at the firm The Gores Group. He has also been instrumental in popularizing SPACs, beginning in the mid-2010s.

<span class="mw-page-title-main">Apollo Global Management</span> American private equity company

Apollo Global Management, Inc. is an American asset management firm that primarily invests in alternative assets. As of 2022, the company had $548 billion of assets under management, including $392 billion invested in credit, including mezzanine capital, hedge funds, non-performing loans, and collateralized loan obligations, $99 billion invested in private equity, and $46.2 billion invested in real assets, which includes real estate and infrastructure. The company invests money on behalf of pension funds, financial endowments, and sovereign wealth funds, as well as other institutional and individual investors.

Khosla Ventures is a private American venture capital firm based in Menlo Park, California. It was founded by entrepreneur Vinod Khosla in 2004. The firm focused on early-stage companies in the Internet, computing, mobile, financial services, agriculture, healthcare and clean technology sectors. Some of its most successful investments include Affirm, DoorDash, Square, Impossible Foods, Instacart, and OpenAI.

<span class="mw-page-title-main">SoundHound</span> American music and speech recognition company

SoundHound AI, Inc. is a voice AI and speech recognition company founded in 2005. It develops speech recognition, natural language understanding, sound recognition and search technologies. Its featured products include a voice AI developer platform, SoundHound Chat AI, a voice-enabled digital assistant, and music recognition mobile app SoundHound. Key vertical industries include the automotive, IoT devices, restaurant and customer service industries. The company’s headquarters are in Santa Clara, California.

MidOcean Partners is a New York–based alternative asset management firm that specializes in mid-sized private equity and alternative leveraged investments.

Charterhouse Capital Partners is a London based private equity investment firm focused on investing in European mid-market companies valued between €200m and €1.5bn. The company targets investments across the services, healthcare, specialised industrials and consumer sectors.

IHS Markit Ltd was an information services provider that completed a merger with S&P Global in 2022. Headquartered in London, it was formed in 2016 with the merger of IHS Inc. and Markit Ltd.

Solera Inc is an American company based in Texas which provides risk management and asset protection software and services to the automotive industry and property insurance marketplace. Solera also provides digital identity management services, as well as re-underwriting and data analytics for the automotive, property and casualty insurance industries. Solera is active in 88 countries across six continents.

<span class="mw-page-title-main">Rhône Group</span> Private equity firm

Rhône Group is a global private equity firm with approximately $11 billion of assets under management, specializing in mergers and acquisitions, leveraged buyouts, recapitalizations, and partnerships with particular focus on European and trans-Atlantic investments. Rhône also offers financial advisory services, strategic alliances, joint partnerships, and business valuation services. Rhone Group was listed in 2013 to 2014 by Preqin as the 'Most Consistent Performing Private Equity Fund Manager' based on both its multiple and IRR of all 3 funds in the top quartile ranking.

Cvent Holding Corp. is a Tysons Corner, Virginia–based company that provides software-as-a-service (SaaS) solutions for meetings, events, and hospitality management. Their web-based platform caters to in-person, virtual, and hybrid events, offering functionalities like online registration, venue selection, event management tools, and attendee engagement features. Cvent also provides software for hotels and venues to manage group bookings, including corporate travel, and source new group business. Previously a public company, Cvent was acquired by investment firm Blackstone Inc. for $4.6 billion in June 2023.

Sapphire Ventures is a venture capital firm with offices in Menlo Park, San Francisco, Austin, and London. The firm is considered one of the world's premier venture capital firms.

GreenSky, LLC is a financial technology company founded in 2006 based in Atlanta, Georgia. It provides technology to banks and merchants to make loans to consumers for home improvement, solar, healthcare and other purposes.

Veritas Capital Fund Management, L.L.C. is a New York–based private-equity firm founded in 1992 that invests in companies providing critical products and services, primarily technology-enabled products and services, to government and commercial customers worldwide. The firm's first fund closed in 1998. They closed an eighth flagship fund in 2022; in all, Veritas has approximately $45 billion of assets under management. Veritas is led by Ramzi Musallam, the firm's Chief Executive Officer and Managing Partner.

References

  1. "Our History". The Gores Group. Retrieved May 13, 2021.
  2. "Overview". The Gores Group. Archived from the original on November 8, 2012. Retrieved April 9, 2013.
  3. "Portfolio". The Gores Group. Retrieved May 13, 2021.
  4. "Fixer-upper pro loves a challenge". Docstoc.com.
  5. "Manta - Rediscover America's Small Business". Manta.
  6. "Alec Gores: '100% devoted' to private equity", Fortune, February 16, 2011
  7. 1 2 3 "The Gores Group – The Gores Group".
  8. "Company Overview of the Gores Group LLC" [ dead link ], Bloomberg Business Week
  9. "Gores Technology Group Acquires CSC Artemis", AECNews (archived), March 1, 1997
  10. "Gores Technology Group Acquires Connection Machines Services Business Unit", The Gores Group, April 16, 1997
  11. "Gores Acquires TI CIM Unit", Software Intensive Systems Engineering, June 15, 1998
  12. "Learning Co. Profits From Expense Cuts", SF Gate, March 6, 2001
  13. The Associated Press (2001-05-11). "Gores Technology to Acquire VeriFone - The New York Times". The New York Times . Retrieved 2019-08-21.
  14. "Gores Technology Group Announces the Acquisition of Anker B.V.", PR Newswire, February 27, 2003
  15. "Gores Fund is looking to close Smaller Deals", Los Angeles Times, June 28, 2007
  16. "The Gores Group and Siemens AG Complete Transaction", Bloomberg, October 1, 2008
  17. Wikipedia Vincotech Article (In German)
  18. "Gores Group Completes Sale of Vinotech", PE Hub, January 5, 2011
  19. "GE Energy to Acquire Gores Group's Lineage Power Holdings", Bloomberg, January 13, 2011
  20. "The Gores Group closes $2 billion private equity fund", CPI Financial
  21. "The Gores Group Debuts New Fund" (Press release). 7 March 2012.
  22. Harris Corporation. "Harris Corporation to Sell Broadcast Communications to The Gores Group for $225 Million".
  23. "Stock Building Supply files to go public". Triangle Business Journal. 18 June 2013.
  24. "The Gores Group Sells Norment Security Group to Cornerstone Detention Products" (PDF).
  25. "The Gores Group Sells Sage Automotive Interiors to Clearlake Capital Group" (PDF).
  26. "The Gores Group Sells Sage Automotive Interiors to Clearlake Capital Group" (PDF).
  27. "Cosmo Specialty Fibers Awarded PEFC Chain-of-Custody Certification". Aberdeen, Washington: KBKW. Archived from the original on November 6, 2013.{{cite web}}: CS1 maint: unfit URL (link)
  28. Joann Muller (27 May 2013). "Ford's Global Ambitions Include Turning The World's Plastic Bottles Into Car Parts". Forbes.
  29. "Premier Foods in Hovis partnership with US Gores Group". FoodManufacture.co.uk. 27 January 2014.
  30. "Stock Building Supply Announces Closing of IPO - DWM/Shelter Magazine". 16 August 2013.
  31. "The Hay Group Announces the Acquisition of Metallumform".
  32. "The Gores Group Completes the Acquisition of Therakos, Inc. from Ortho-Clinical Diagnostics, Inc. - Business Wire" (Press release). 2 January 2013.
  33. "News - Charlesbank". charlesbank.com.
  34. "The Gores Group Extends Binding Offer to Acquire Therakos, Inc. from Ortho-Clinical Diagnostics, Inc. - Business Wire" (Press release). 15 October 2012.
  35. "Carlyle says finalises buy of France's Sagemcom from The Gores Group", Reuters, August 20, 2011
  36. "The Gores Group Acquires Sage Automotive Interiors", Yahoo Finance, May 9, 2011
  37. "GE Energy to Acquire Gores Group's Lineage Power Holdings for $520 Million", Bloomberg, January 13, 2011
  38. "The Beverly Hills blank check: Gores Holdings files and sets terms for $400 million IPO". www.nasdaq.com. Retrieved 2021-03-11.
  39. "Hostess Brands Returns to Wall Street". www.forbes.com. Retrieved 2021-03-11.
  40. "The Man With More SPACs Than Anyone". www.wsj.com. Retrieved 2021-05-04.
  41. "Billionaire Gores backs Matterport listing with $2.9 bln blank-check deal". www.nasdaq.com. Retrieved 2021-03-11.
  42. "Gores-backed SPACs to raise $640 million through IPOs". www.reuters.com. Retrieved 2021-03-11.
  43. "Alec Gores SPAC Deal Turns $25,000 Into $80 Million in Months". Bloomberg. 24 September 2020. Retrieved 2021-03-11.
  44. "Ardagh Metal Packaging to Combine With Gores Holdings V and List on NYSE". www.businesswire.com (Press release). 23 February 2021. Retrieved 2021-03-11.
  45. "Mesa tech company goes public in $2.4 billion reverse merger". www.bizjournals.com. Retrieved 2021-03-11.
  46. "Gores Holdings III Takes PAE Public After Deal Completion; John Heller Quoted". www.govconwire.com. 11 February 2020. Retrieved 2021-03-11.
  47. "Founder, funder explain deal behind Luminar's $8B 'blank check' market debut (Video)". www.bizjournals.com. Retrieved 2021-03-11.
  48. "United Wholesale Mortgage Goes Public in Biggest SPAC Deal Ever". www.wsj.com. Retrieved 2021-03-11.
  49. "The private equity shop that took Twinkies public leads the largest SPAC merger yet". www.fortune.com. Retrieved 2021-03-11.
  50. "Billionaire Gores backs Matterport listing with $2.9 bln blank-check deal". www.reuters.com. Retrieved 2021-03-11.
  51. "Ardagh Metal Packaging to Go Public Through $8.5 Billion PE-Backed SPAC Deal". www.morningstar.com. Retrieved 2021-03-11.
  52. "Ardagh Metal Packaging S.A. and Gores Holdings V Announce Completion of Business Combination" (PDF).
  53. "Lodging Firm Sonder Agrees to $2.2 Billion Gores SPAC Merger". www.bloomberg.com. Retrieved 2021-05-12.
  54. Hawkins, Andrew J. (September 27, 2021). "Electric car company Polestar is going public via SPAC". The Verge . Retrieved September 27, 2021.
  55. "The Gores Group launches yet another SPAC". www.pitchbook.com. Retrieved 2021-03-11.
  56. "The Gores Group's second tech SPAC Gores Technology Partners II files for a $400 million IPO". www.nasdaq.com. Retrieved 2021-03-11.
  57. "UPDATE 1-Alec Gores, Guggenheim-backed SPAC seeks to raise $750 million via IPO". www.reuters.com. Retrieved 2021-03-11.