Providence Equity
{{Short description|American global private equity investment firm}}
{{Use mdy dates|date=July 2021}}
{{Infobox company
| name = Providence Equity Partners L.L.C.
| logo = Providence_Equity_Partners_Logo.png
| image = 50_Kennedy_Plaza_(formerly_known_as_Fleet_Center).jpg
| image_caption = Headquarters at 50 Kennedy Plaza
| type = Private
| foundation = {{start date and age|1989}}
| founder = Jonathan M. Nelson (founder and executive chairman)
| location_city = 50 Kennedy Plaza
Providence, Rhode Island
| location_country = U.S.
| location =
| locations =
| area_served =
| key_people = Michael Dominguez (CIO)
| industry = Private equity
| products = Leveraged buyouts, Growth capital
| num_employees = 180
| aum = $35 billion (2023)
| caption =
| homepage = {{Official URL}}
| footnotes =
| intl =
}}
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.{{cite magazine|url=http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=22559|archive-url=https://web.archive.org/web/20071018230616/http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=22559|url-status=dead|archive-date=October 18, 2007|title=Company Overview of Providence Equity Partners LLC|access-date=2012-09-21|magazine=Bloomberg Businessweek}}{{Cite news|url=http://www.afaqs.com/news/story/41041_Providence-Equity-buys-Star-India's-stake-in-Star-CJ|title=Providence Equity buys Star India's stake in Star CJ|date=June 6, 2014|publisher=afaqs.com|access-date=June 30, 2014|archive-url=https://web.archive.org/web/20160304125807/http://www.afaqs.com/news/story/41041_Providence-Equity-buys-Star-India's-stake-in-Star-CJ|archive-date=March 4, 2016|url-status=dead}}
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.{{Cite web|date=2019-09-17|title=Providence Equity Closes Eighth Flagship Fund Above $6 Billion|url=https://www.wsj.com/articles/providence-equity-closes-eighth-flagship-fund-above-6-billion-11568761201|website=The Wall Street Journal|language=en}}{{cite news|url=https://dealbook.nytimes.com/2007/02/21/providence-equity-said-to-raise-12-billion-fund/|title=Providence Equity Raises $12 Billion Buyout Fund|date=February 21, 2007|newspaper=The New York Times}}{{Cite news|url=http://www.peimedia.com/PEI50|title=Private Equity International magazine's ranking of the world's largest private equity firms. |date=May 1, 2008|publisher=PEI – Alternative Insight}}
Providence is headquartered in Providence, Rhode Island with additional offices in New York, Boston, London and Atlanta.{{cite web |url =https://www.provequity.com/private-equity| title =Private Equity |publisher =Providence Equity Partners |date =October 6, 2020}}
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. Providence prefers to lead its investments, serve on company boards, and work collaboratively with company management.{{Cite news|url=http://www.provequity.com/about-us|title=About Us|access-date=2012-09-14|publisher=Provequity.com}}
History
In 2008, Providence hired Thomas Gahan as president of the firm's new capital markets group and its affiliate, Benefit Street Partners.{{cite web|author=Ken MacFadyen|date=January 21, 2010|title=Providence Expands Capital Markets Arm|url=http://www.leveragedfinancenews.com/news/providence_expands_capital-markets_arm-202069-1.html|url-status=dead|archive-url=https://web.archive.org/web/20160310145638/http://www.leveragedfinancenews.com/news/providence_expands_capital-markets_arm-202069-1.html|archive-date=March 10, 2016|access-date=November 25, 2013|publisher=Leveraged Finance News}}{{Cite news|url=http://www.thedeal.com/magazine/ID/019986/dealmakersold/092608-movers-shakers-baz-hiralal.php|title=Movers & shakers: Sept. 26, 2008|date=September 26, 2008|publisher=The Deal|access-date=September 24, 2012|archive-url=https://web.archive.org/web/20111130062303/http://www.thedeal.com/magazine/ID/019986/dealmakersold/092608-movers-shakers-baz-hiralal.php|archive-date=November 30, 2011|url-status=dead}} 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.{{Cite news|author=Matthew Sheahan|date=April 10, 2014|title=Benefit Street Closes $1.75B Credit Fund|publisher=Leveraged Finance News|url=http://www.leveragedfinancenews.com/news/benefit-street-closes-175b-credit-fund-249053-1.html|url-status=dead|access-date=June 30, 2014|archive-url=https://web.archive.org/web/20160325222755/http://www.leveragedfinancenews.com/news/benefit-street-closes-175b-credit-fund-249053-1.html|archive-date=March 25, 2016}}{{Cite news|author=Chris Witkowsky|date=April 10, 2014|title=Providence Equity debt arm hits $1.75 bln hard cap on Fund III|publisher=pehub.com|url=http://www.pehub.com/2014/04/providence-equity-debt-arm-hits-1-75-bln-hard-cap-on-fund-iii/}}{{Cite news|author=Julie Segal|date=November 12, 2014|title=Tommy Gahan Wants to Capitalize on Volatility|publisher=Institutional Investor|url=http://www.institutionalinvestor.com/article/3399592/banking-and-capital-markets-corporations/tommy-gahan-wants-to-capitalize-on-volatility.html#.VGN7wdoo7t4}} The credit platform was sold to Franklin Templeton Investments in October 2018.{{cite web|last=Segal|first=Julie|date=25 October 2018|title=Franklin Templeton Buys Providence Equity's Benefit Street Partners|url=https://www.institutionalinvestor.com/article/b1bjrw3f1zlm1g/Franklin-Templeton-Buys-Providence-Equity-s-Benefit-Street-Partners|access-date=10 February 2019|website=Institutional Investor}}
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.{{cite web| url =https://www.pehub.com/psg-backed-imaweb-buys-evolutive/| title=PSG-backed Imaweb buys Evolutive|publisher =PE Hub|date= October 2, 2020}}
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.{{cite magazine| url =http://fortune.com/2014/06/25/iron-man-triathlon-private-equity/|title= Private equity fuels Ironman triathlon organizer's gauntlet|author=Phil Wahba |magazine= Fortune|date = June 25, 2014}}{{cite web |title=Providence Equity Backs Golf Entertainment Company Topgolf |publisher=Dow Jones & Company |url=http://pevc.dowjones.com/Article?an=DJFLBO0120160222ec2mosf2a&cid=&ctype=&from=Search&ReturnUrl=http%3a%2f%2fpevc.dowjones.com%2fArticle%3fan%3dDJFLBO0120160222ec2mosf2a%26cid%3d%26ctype%3d%26from%3dSearch |date=22 February 2016 |access-date=27 February 2016 |archive-url=https://web.archive.org/web/20160305032609/http://pevc.dowjones.com/Article?an=DJFLBO0120160222ec2mosf2a&cid=&ctype=&from=Search&ReturnUrl=http%3a%2f%2fpevc.dowjones.com%2fArticle%3fan%3dDJFLBO0120160222ec2mosf2a%26cid%3d%26ctype%3d%26from%3dSearch |archive-date=5 March 2016 |url-status=dead }}
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.{{cite news| url =https://pitchbook.com/newsletter/providence-takes-over-365-retail|title= Providence takes over 365 Retaily|newspaper= PitchBook Data|date = January 4, 2021}}{{cite news| url =http://www.ft.com/intl/cms/s/0/f282fd10-3a44-11e3-b234-00144feab7de.html#axzz2lIUINder|title= Providence buys Ambassador Theatre Group for £350m|author= Anne-Sylvaine Chassany|newspaper= Financial Times|date = October 21, 2013}}{{cite news| url =https://www.wsj.com/articles/providence-acquires-majority-stake-in-doubleverify-1503487802|title=Providence Acquires Majority Stake in DoubleVerify|newspaper= The Wall Street Journal|date = August 23, 2017}}{{cite web| url =http://thesouthern.com/news/local/shamrock-capital-to-sell-learfield-to-providence-equity/article_131e1bf6-1a36-11e3-82cd-0019bb2963f4.html|title= Shamrock Capital to sell Learfield to Providence Equity|author= LEARFIELD MEDIA SERVICES|publisher= The Southern Illinoisan|date = September 10, 2013}}{{cite news| url =https://www.freightwaves.com/news/providence-equity-buys-globaltranz-back-from-the-jordan-company|title=Providence Equity buys GlobalTranz back from The Jordan Company after just 8 months|newspaper= Freight Waves|date = April 3, 2019}}{{cite news| url =https://aimgroup.com/2021/06/01/groupe-la-centrale-sale-finalized/|title=Groupe La Centrale sale finalized|newspaper= AIM Group|date =June 1, 2021}}{{cite news| url =https://www.wsj.com/articles/providence-equity-closes-eighth-flagship-fund-above-6-billion-11568761201|title=Providence Equity Closes Eighth Flagship Fund Above $6 Billion|newspaper= The Wall Street Journal|date =September 17, 2019}}{{cite news| url =https://www.spglobal.com/marketintelligence/en/news-insights/trending/ofi5jy_vxckmqaarr2hkxa2 |title=Providence Equity buys Riverside's majority stake in n2y|newspaper= S&P Global|date =November 19, 2019}}{{cite news| url =https://www.datacenterdynamics.com/en/news/providence-equity-partners-takes-majority-stake-node4/|title=Providence Equity Partners takes majority stake in Node4|newspaper=DatacenterDynamics|date =March 3, 2021}}{{cite news| url =https://www.wsj.com/articles/providence-equity-invests-223-million-in-finnish-social-ad-tech-firm-11576656120|title=Providence Equity Invests $223 Million in Finnish Social Ad-Tech Firm|newspaper=The Wall Street Journal|date =December 18, 2019}}{{cite news| url =https://mergr.com/providence-equity-partners-invests-in-tait|title=Providence Equity Partners Invests In TAIT|newspaper=Mergr|date =February 25, 2019}}{{cite news| url =https://www.freightwaves.com/news/driver-clearinghouse-tenstreet-acquired-by-providence-equity-partners|title=Driver clearinghouse Tenstreet acquired by Providence Equity Partners|newspaper= Freight Waves|date = October 4, 2021}}
Providence's recent exits include TES, Galileo Global Education, EdgeConneX, OEConnection, PADI, Ascend Learning, Vector Solutions and ZeniMax Media.{{cite news| url =https://www.pehub.com/onex-to-buy-tes-global-from-providence/|title=Onex Corp to buy Tes Global from Providence Equity Partners|newspaper= PE Hub|date = December 7, 2021}}{{cite news| url =https://www.unquote.com/france/official-record/3018559/providence-sells-galileo-to-cpp-led-consortium|title=Providence sells Galileo to CPP-led consortium |newspaper= Unquote|date = March 9, 2020}}{{cite news| url =https://www.barrons.com/articles/private-equity-firm-eqt-buys-data-center-company-edgeconnex-51597878233|title=Investment Firm EQT Agrees to Purchase EdgeConneX for $2.5 to $3 Billion |newspaper= Barron's|date = August 19, 2020}}{{cite news| url =https://www.autoserviceworld.com/majority-stake-in-oeconnection-is-sold/|title=Majority stake in OEConnection is sold|newspaper= Auto Service World|date = August 15, 2019}}{{cite news| url =https://www.wsj.com/articles/providence-equity-sells-scuba-certifier-padi-for-700-million-1490129540|title=Providence Equity Sells Scuba Certifier PADI for $700 Million|newspaper= The Wall Street Journal|date = March 21, 2017}}{{cite news| url =https://www.wsj.com/articles/providence-to-sell-ascend-learning-stake-to-blackstone-cppib-after-nearly-10-year-hold-1492185692|title=Providence to Sell Ascend Learning Stake to Blackstone, CPPIB After Nearly 10-Year Hold|newspaper= The Wall Street Journal|date = April 14, 2017}}{{cite news| url =https://www.wsj.com/articles/golden-gate-capital-buying-vector-solutions-1541458571|title=Golden Gate Capital Buying Vector Solutions|newspaper= The Wall Street Journal|date = November 5, 2018}}{{cite web | url =https://www.wsj.com/articles/providence-equitys-sale-of-zenimax-will-bring-lucrative-end-to-13-year-deal-11600725932| title=Providence Equity's Sale of ZeniMax Will Bring Lucrative End to 13-Year Deal | publisher =The Wall Street Journal | date =September 21, 2020}}
In March 2013, Providence and the National Football League formed a global partnership to invest primarily in sports and entertainment related media assets.{{cite news| url =https://www.reuters.com/article/us-nfl-providence-idUSBRE92I01P20130319|title= NFL, Providence Equity form strategic investment partnership|author= Nadia Damouni|work= Reuters|date = March 18, 2013 }}
In September 2012, Providence sold a less than 10% stake in the firm to Florida's state pension system and a sovereign wealth fund.{{cite magazine|url=https://www.bloomberg.com/news/2012-09-25/providence-equity-said-to-sell-stake-in-firm-to-investors.html|title=Providence Equity Said to Sell Stake in Firm to Investors|date=September 25, 2012 |magazine=Bloomberg Businessweek}}
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.{{cite web|url=https://www.golocalprov.com/business/new-providence-equity-owned-altegrity-facing-seizure-following-snowden-fall |title=Providence Equity May Lose Hundreds of Millions as Altegrity Faces Seizure in Snowden Fallout|website=GoLocalProv |date=January 2, 2015 }}
In February 2017, Providence expanded its education business by buying NACE Schools, a Spain-based operator of for-profit schools.{{Cite web|last=Smith|first=Beckie|date=28 February 2017|title=Providence Equity acquires NACE international schools group|url=https://thepienews.com/news/providence-equity-acquires-nace-schools-magnum-capital/|access-date=2021-07-07|website=The PIE News}} {{As of|2021}}, the schools portfolio branded as Globeducate{{Cite web|title=Globeducate|url=https://www.provequity.com/portfolio/globeducate|access-date=2021-07-07|website=Providence Equity Partners}} has 55 schools in nine countries.{{Cite web|title=Globeducate|url=https://globeducate.com/|access-date=2021-07-07|website=}}
In October 2017, Modern Times Group sold its telecommunication businesses in the Baltic states to Providence Equity Partners.{{Cite web|url=https://www.mtg.com/press-releases/mtg-sells-baltic-broadcasting-businesses/|title=MTG sells Baltic broadcasting businesses – MTG}}{{Cite web|url=https://www.mtg.com/press-releases/mtg-sale-baltic-broadcasting/|title=MTG completes the sale of its Baltic broadcasting businesses – MTG}} The newly acquired companies were united and operate under the All Media Baltics company name (currently TV3 Group).{{Cite news|url=https://www.businesswire.com/news/home/20171218006201/en/Media-Baltics-Deliver-Top-quality-TV-Reception-SES|title=All Media Baltics to Deliver Top-quality TV Reception via SES Video|work=Business Wire|access-date=2018-07-25|language=en}}{{Cite news|url=https://www.broadbandtvnews.com/2017/12/19/ses-inks-all-media-baltics-deal/|title=SES inks All Media Baltics deal|date=2017-12-19|work=Broadband TV News|access-date=2018-07-25|language=en-GB}}{{Cite web|url=https://www.baltictimes.com/acquisition_of_mtg_s_business_in_baltics_completed__new_company_to_be_named_all_media_baltics/|title=Acquisition of MTG's business in Baltics completed; new company to be named All Media Baltics|website=The Baltic Times|language=en|access-date=2018-07-25}}
In April 2019, MasMovil agreed to repurchase its convertible bond from Providence Equity. Providence remains a shareholder in the company.{{cite web|url=https://www.wsj.com/articles/providence-to-more-than-quintuple-its-money-on-masmovil-11554237209|title=Providence to More Than Quintuple Its Money on MásMóvil|date=2 April 2019|last=Cooper|first=Laura|website=WSJ Private Equity|access-date=10 April 2019}}
In September 2019, Providence Strategic Growth collected $2 billion for its fourth fund.{{cite web|url=https://www.penews.com/articles/providence-strategic-growth-collects-2bn-for-fourth-fund-20190911|title=Providence Strategic Growth collects $2bn for fourth fund|date=16 September 2019|last=Cooper|first=Laura|website=Private Equity News}}
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.{{Cite web|url=https://msretailer.com/sweetwater-sound-has-new-majority-owner-chuck-surack-leaves-ceo-post/|title=Sweetwater Has New Majority Owner; Chuck Surack Leaves CEO Post Sweetwater Sound Sold; Surack Steps Up|date=August 10, 2021}}
In April 2022, it was announced Providence had acquired the cloud-based managed Wi-Fi solutions provider, Airties.{{Cite web |title=Providence to acquire Airties {{!}} Infrastructure {{!}} News {{!}} Rapid TV News |url=https://www.rapidtvnews.com/2022042762399/providence-to-acquire-airties.html#axzz7RefaEJ1g |access-date=2022-04-27 |website=www.rapidtvnews.com}}
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.{{cite web|date=September 30, 2020|title=Providence Equity's Nelson Plans to Shift Role as Firm Maps Out Transition|url=https://www.wsj.com/articles/providence-equitys-nelson-plans-to-shift-role-as-firm-maps-out-transition-11601465400|publisher=The Wall Street Journal}}
References
{{reflist}}
External links
{{commons category-inline}}
- {{Official website}}
{{Private equity and venture capital}}
Category:Private equity firms of the United States