News & Events - News
HarbourVest Partners Participates in Management Buyout of Deutsche Bank Capital Partners' Private Equity Portfolio
BOSTON — 05 March 2003 — HarbourVest Partners, LLC is pleased to announce participation in the management buyout of the Deutsche Bank Capital Partners' later stage private equity portfolio. After extensive due diligence and negotiations, this transaction closed on February 21, 2003, with HarbourVest committing $160 million to the transaction from two investment vehicles.HarbourVest played an integral role in an investment syndicate that included NIB Capital, Ontario Teachers' Pension Plan, CPP Investment Board, Paul Capital Partners, Bregal, and The Yucaipa Companies. This syndicate provided 92% of the outside capital to MidOcean Partners L.P. ("MidOcean"), the acquisition vehicle used to complete the transaction. A number of other small investors agreed to provide the remaining 8% of outside capital, although these investors were passive and did not participate in the negotiations or due diligence process. In total, the outside investors provided 80% of the capital used to acquire the portfolio, and Deutsche Bank agreed to retain a 20% interest in the portfolio.
MidOcean will be managed by the former executive team of Deutsche Bank Capital Partners, led by Ted Virtue in New York and Graham Clempson in London. This ensures that the same professionals who made the initial investments and provided ongoing management and board representation on behalf of Deutsche Bank will manage the investments going forward.
Highlights of the transaction are as follows:
- Well-diversified later stage portfolio: MidOcean contains 82 investments in a broad array of industries including business services, chemicals, communications, consumer products and services, entertainment and leisure, financial services, healthcare, industrial manufacturing, and technology. Approximately 60% of the portfolio is U.S.-based with the balance based in Western Europe. Many of the underlying portfolio companies have revenues and EBITDA in excess of $500 million and $100 million, respectively.
- Industry leading companies: MidOcean's holdings include well-known, stable, industry leaders such as American Media, Center Parcs, Jenny Craig, Jostens, Jefferson Smurfit, Lecta, Punch Group, Stratus, Shinsei, and United Biscuits.
HarbourVest Partners, LLC is a global private equity firm and registered investment advisor, providing vehicles for institutional investors wishing to invest in venture capital and buyout markets in the U.S., Europe, and elsewhere through primary partnerships, secondary purchases, and direct investments. HarbourVest has 113 employees, including 51 investment professionals, in Boston, London, and Hong Kong. During its 20-year history of investing, the team has committed $7.9 billion to 200 managers of private equity funds on a primary basis, completed $1.3 billion in 210 purchases of secondary partnership interests, and invested $1.9 billion directly in operating companies. The firm's clients include more than 200 pension funds, endowments, foundations, and financial institutions from the U.S., Europe, Canada, Australia, and Japan.