Crossroads Group

Last updated
The Crossroads Group
Type Private ownership
Industry Private equity, venture capital
Founded1981
DefunctOctober 2003
FateAcquired by Lehman Brothers
Successor Neuberger Berman (2009)
Lehman Brothers Private Equity (2003)
Headquarters Dallas, Texas, United States
Products Fund of funds, Secondaries, Co-investments

The Crossroads Group was a Dallas-based private equity fund of funds firm focusing on venture capital investments. The firm, founded in 1981 by Brad Heppner, was acquired by Lehman Brothers in October 2003. Since Lehman Brothers' 2008 bankruptcy, Crossroads has been a part of Neuberger Berman. [1]

Contents

History

Founded in 1981 as Bigler/Crossroads, the firm focused on investing as a limited partner in venture capital funds and, to a lesser extent, other private equity strategies including middle market U.S. leveraged buyout investments and mezzanine capital. Crossroads was also an early investor in secondary interests in existing private equity partnerships. [2] [3]

At the time of its acquisition in 2003, Crossroads managed approximately $2 billion of capital on behalf of its investors. Over its 22-year history, the firm raised 16 Crossroads Funds, and invested with more than 200 private equity firms. [4]

In 1999, Crossroads acquired a $340 million portfolio of direct investments in large to mid-cap companies from Electronic Data Systems (EDS). [5]

Related Research Articles

<span class="mw-page-title-main">Doughty Hanson & Co</span>

Doughty Hanson & Co is a British private equity fund manager focused on leveraged buyout and recapitalization transactions primarily of upper middle-market companies in Europe. The firm also invests opportunistically in European real estate and provides early-stage venture capital to technology companies.

In the field of finance, private equity (PE) is stock in a private company that does not offer stock to the general public. Private equity is offered instead to specialized investment funds and limited partnerships that take an active role in the management and structuring of the companies. In casual usage, "private equity" can refer to these investment firms rather than the companies that they invest in.

<span class="mw-page-title-main">Neuberger Berman</span> American financial services firm

Neuberger Berman Group LLC is a private, independent, employee-owned investment management firm. The firm manages equities, fixed income, private equity and hedge fund portfolios for global institutional investors, advisors and high-net-worth individuals.

<span class="mw-page-title-main">D. E. Shaw & Co.</span> U.S.-based investment management firm

D. E. Shaw & Co., L.P. is a multinational investment management firm founded in 1988 by David E. Shaw and based in New York City. The company is known for developing complicated mathematical models and sophisticated computer programs to exploit anomalies in the financial market. As of June 1, 2021, D. E. Shaw manages $55 billion in AUM, $35 billion of which are alternative investments and the remaining $20 billion long-oriented investments.

HM Capital Partners was a private equity firm in the United States that specialized in leveraged buyouts. The firm was previously known as Hicks, Muse, Tate & Furst. It was founded in 1989 by Tom Hicks and John Muse as Hicks, Muse & Co. and was changed in 1994 to reflect the roles of Charles Tate and Jack Furst.

A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity. Private equity funds are typically limited partnerships with a fixed term of 10 years. At inception, institutional investors make an unfunded commitment to the limited partnership, which is then drawn over the term of the fund. From the investors' point of view, funds can be traditional or asymmetric.

In finance, the private-equity secondary market refers to the buying and selling of pre-existing investor commitments to private-equity and other alternative investment funds. Given the absence of established trading markets for these interests, the transfer of interests in private-equity funds as well as hedge funds can be more complex and labor-intensive.

A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital. Often described as a financial sponsor, each firm will raise funds that will be invested in accordance with one or more specific investment strategies.

AlpInvest Partners is a global private equity asset manager with over $85 billion of committed capital since inception as of December 31, 2022. The firm invests on behalf of more than 450 institutional investors from North America, Asia, Europe, South America and Africa.

<span class="mw-page-title-main">Hellman & Friedman</span> American private equity firm

Hellman & Friedman LLC (H&F) is an American private equity firm, founded in 1984 by Warren Hellman and Tully Friedman, that makes investments primarily through leveraged buyouts as well as growth capital investments. H&F has focused its efforts on several core target industries including media, financial services, professional services and information services. The firm tends to avoid asset intensive or other industrial businesses. H&F is based in San Francisco, with offices in New York and London.

<span class="mw-page-title-main">History of private equity and venture capital</span> Aspect of history

The history of private equity, venture capital, and the development of these asset classes has occurred through a series of boom-and-bust cycles since the middle of the 20th century. Within the broader private equity industry, two distinct sub-industries, leveraged buyouts and venture capital experienced growth along parallel, although interrelated tracks.

<span class="mw-page-title-main">H.I.G. Capital</span> US private equity and alternative assets investment firm


H.I.G. Capital is a global private equity and alternative assets investment company, headquartered in Miami, Florida. With over $59 billion of equity capital under management, the firm has a range of funds, including private equity, growth equity, credit/special situation, primary lending, and syndicated credit funds, as well as real estate funds. H.I.G. Capital provides both debt and equity investments for small and medium-sized businesses.

<span class="mw-page-title-main">Private equity in the 2000s</span> Aspect of history

Private equity in the 2000s represents one of the major growth periods in the history of private equity and venture capital. Within the broader private equity industry, two distinct sub-industries, leveraged buyouts and venture capital expanded along parallel and interrelated tracks.

Cogent Partners is a boutique, private equity-focused investment bank and advisory firm and was one of the first advisory firms dedicated to transactions in the private equity secondary market (secondaries). The firm, which was founded in 2002, provides an array of sell-side advisory services such as secondary advisory, portfolio valuation and other research functions. Since inception, Cogent Partners has advised on over 5,639 limited partnership interests representing over $103 billion in private equity secondaries.

<span class="mw-page-title-main">Bankruptcy of Lehman Brothers</span> 2008 bankruptcy of American investment bank

The bankruptcy of Lehman Brothers on September 15, 2008, was the climax of the subprime mortgage crisis. After the financial services firm was notified of a pending credit downgrade due to its heavy position in subprime mortgages, the Federal Reserve summoned several banks to negotiate financing for its reorganization. These discussions failed, and Lehman filed a Chapter 11 petition that remains the largest bankruptcy filing in U.S. history, involving more than US$600 billion in assets.

<span class="mw-page-title-main">HarbourVest Partners</span> American private equity fund of funds

HarbourVest Partners is a private equity fund of funds and one of the largest private equity investment managers globally. The firm invests in all types of private equity funds, including venture capital and leveraged buyout funds, and also directly in operating companies.

<span class="mw-page-title-main">Tenaya Capital</span> American venture capital firm

Tenaya Capital is a venture capital firm with offices in Portola Valley, California, and Wellesley, Massachusetts. Founded in 1995 as Lehman Brothers Venture Partners, Tenaya spun out to become an independent firm in 2009 following Lehman's bankruptcy. It opened its seventh fund in 2015. In 2009 the firm had approximately $750 million under management.

<span class="mw-page-title-main">Trimaran Capital Partners</span> American middle-market private equity firm

Trimaran Capital Partners is a middle-market private equity firm formerly affiliated with CIBC World Markets. Trimaran is headquartered in New York City and founded by former investment bankers from Drexel Burnham Lambert. Trimaran's predecessors were early investors in telecom and Internet businesses, most notably backing Global Crossing in 1997. Trimaran also led the first leveraged buyout of an integrated electric utility.

Trilantic Capital Partners (Trilantic) is a global private equity firm focused on control and significant minority investments across a range of industries in North America and Europe managed by Trilantic North America and Trilantic Europe. The firm specializes in management buyouts, recapitalizations, growth equity, middle market investments and corporate divestitures investments. Trilantic invests through equity and equity-linked securities transactions.

References

  1. Halkias, Maria (22 August 2018). "Dallas firm that recruited CNBC correspondent hires fourth SEC lawyer for its team". Dallasnews.com. Retrieved 1 October 2019.
  2. "Lehman Brothers buying Crossroads Group." Dallas Business Journal September 17, 2003
  3. "Press Release: LEHMAN BROTHERS TO ACQUIRE THE CROSSROADS GROUP, EXPANDING ITS PRIVATE EQUITY FUND INVESTMENT MANAGEMENT BUSINESS Archived 2007-10-07 at the Wayback Machine . September 17, 2003"
  4. Crossroads Group: About (company website from Internet Archive)
  5. Cawley, Rusty "Crossroads uses EDS portfolio to launch fund." Dallas Business Journal, September 24, 1999