MidOcean Partners
Encyclopedia
MidOcean Partners is a private equity
firm specializing in leveraged buyout
s, recapitalizations
and growth capital
investments in middle-market companies. The firm has historically focused on investments in middle market companies in four core industries including business services; consumer and leisure companies, media
and niche industrial services.
The firm, founded in February 2003, is based in Midtown Manhattan
, New York City
, with an office in London
and more than 20 investment professionals globally. MidOcean was originally formed by the managers of DB Capital Partners to acquire Deutsche Bank
's late stage private equity
investments in the United States and Europe in one of the largest private equity secondary
transactions completed to date.
transaction. A group of investors provided capital to the managers of DB Capital Partners, led by MidOcean CEO Ted Virtue, to acquire the portfolio of private equity investments they had managed at Deutsche Bank
. Among the investors in the transaction were NIB Capital Private Equity (today AlpInvest Partners
), HarbourVest Partners
, Paul Capital Partners, Coller Capital
, Ontario Teachers' Pension Plan
and CPP Investment Board
, with investments from Northwestern Mutual, The Yucaipa Companies and Presidential Life. The management spinout
of MidOcean, at the time valued at €1.5 billion (over $1.8 billion) was then and is still one of the largest transactions completed in the private equity secondary market
.
The spinout of MidOcean came at the same time as the spinouts of private equity groups from other leading investment banks including: JPMorgan Chase (CCMP Capital
), Citigroup
(Court Square Capital Partners
), Morgan Stanley
(Metalmark Capital
) and Credit Suisse First Boston
(Avista Capital Partners
, Diamond Castle Holdings
).
Since its inception, MidOcean has managed three private equity fund
s:
and niche industrial services companies including:
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm specializing in leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
s, recapitalizations
Leveraged recapitalization
In corporate finance, a leveraged recapitalization is a change of the capital structure of a company, a substitution of equity for debt —e.g. by issuing bonds to raise money, and using that money to buy the company's stock or to pay dividends...
and growth capital
Growth capital
Growth capital is a type of private equity investment, most often a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.Companies...
investments in middle-market companies. The firm has historically focused on investments in middle market companies in four core industries including business services; consumer and leisure companies, media
Mass media
Mass media refers collectively to all media technologies which are intended to reach a large audience via mass communication. Broadcast media transmit their information electronically and comprise of television, film and radio, movies, CDs, DVDs and some other gadgets like cameras or video consoles...
and niche industrial services.
The firm, founded in February 2003, is based in Midtown Manhattan
Midtown Manhattan
Midtown Manhattan, or simply Midtown, is an area of Manhattan, New York City home to world-famous commercial zones such as Rockefeller Center, Broadway, and Times Square...
, New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, with an office in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
and more than 20 investment professionals globally. MidOcean was originally formed by the managers of DB Capital Partners to acquire Deutsche Bank
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
's late stage private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
investments in the United States and Europe in one of the largest private equity secondary
Private equity secondary market
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....
transactions completed to date.
History
MidOcean Partners was formed through a management spinoutPrivate equity secondary market
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....
transaction. A group of investors provided capital to the managers of DB Capital Partners, led by MidOcean CEO Ted Virtue, to acquire the portfolio of private equity investments they had managed at Deutsche Bank
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
. Among the investors in the transaction were NIB Capital Private Equity (today AlpInvest Partners
AlpInvest Partners
AlpInvest Partners is a private equity investment manager and at the end of 2009 globally managed over €42 billion ....
), HarbourVest Partners
HarbourVest Partners
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...
, Paul Capital Partners, Coller Capital
Coller Capital
Coller Capital, founded in 1990 by Jeremy Coller, is one of the leading global investors in the Private equity secondary market ....
, Ontario Teachers' Pension Plan
Ontario Teachers' Pension Plan
The Ontario Teachers' Pension Plan , commonly referred to as Teachers, is the organization responsible for administering pensions for public school teachers of the Canadian province of Ontario. The OTPP also invests the plan's pension fund, making it one of the largest and most powerful investment...
and CPP Investment Board
CPP Investment Board
Under the direction of the then Canadian Finance Minister Paul Martin, the CPP Investment Board was created in 1997 as an organization independent of the government to monitor and invest the funds held by the Canada Pension Plan . In turn, the CPP Investment Board created the CPP Reserve Fund. The...
, with investments from Northwestern Mutual, The Yucaipa Companies and Presidential Life. The management spinout
Private equity secondary market
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....
of MidOcean, at the time valued at €1.5 billion (over $1.8 billion) was then and is still one of the largest transactions completed in the private equity secondary market
Private equity secondary market
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....
.
The spinout of MidOcean came at the same time as the spinouts of private equity groups from other leading investment banks including: JPMorgan Chase (CCMP Capital
CCMP Capital
CCMP Capital is a private equity investment firm that focuses on leveraged buyout and growth capital transactions. Formerly known as JP Morgan Partners, the investment professionals of JP Morgan Partners separated from JPMorgan Chase on July 31, 2006. CCMP has invested approximately $12 billion...
), Citigroup
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
(Court Square Capital Partners
Court Square Capital Partners
Court Square Capital Partners is a private equity firm focused on leveraged buyout transactions. Court Square was originally a captive private equity firm within Citigroup known as Citigroup Venture Capital Equity Partners...
), Morgan Stanley
Morgan Stanley
Morgan Stanley is a global financial services firm headquartered in New York City serving a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley also operates in 36 countries around the world, with over 600 offices and a workforce of over 60,000....
(Metalmark Capital
Metalmark Capital
Metalmark Capital, formerly Morgan Stanley Capital Partners is a private equity firm focused on leveraged buyout investments in middle-market companies across a range of industries. Metalmark was acquired by Citigroup Alternative Investments in December 2007....
) and Credit Suisse First Boston
Credit Suisse First Boston
Credit Suisse First Boston was the former name of the banking firm Credit Suisse.-History:In 1978, Credit Suisse and First Boston Corporation formed a London-based 50-50 investment banking joint venture called the Financière Crédit Suisse-First Boston...
(Avista Capital Partners
Avista Capital Partners
Avista Capital Partners is a private equity firm focused on growth capital and leveraged buyout investments in middle-market companies in the energy, healthcare and media sectors....
, Diamond Castle Holdings
Diamond Castle Holdings
Diamond Castle Holdings is a private equity firm focused on leveraged buyout and growth capital investments in middle-market companies across a range of industries including the media, healthcare, financial services, power and industrial sectors....
).
Since its inception, MidOcean has managed three private equity fund
Private equity fund
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....
s:
- MidOcean Partners – Approximately $2 billion vehicle used to house the investments acquired from Deutsche Bank through the secondary purchasePrivate equity secondary marketIn 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....
. - MidOcean Partners Fund II – $520 million of investor commitments, primarily from investors in the original 2003 secondary transaction.
- MidOcean Partners Fund III - $1.25 billion raised as a fully independent private equity fund in 2007
Investments
Among MidOcean's investments are various business services; consumer and leisure companies, mediaMass media
Mass media refers collectively to all media technologies which are intended to reach a large audience via mass communication. Broadcast media transmit their information electronically and comprise of television, film and radio, movies, CDs, DVDs and some other gadgets like cameras or video consoles...
and niche industrial services companies including:
- Bushnell CorporationBushnell CorporationBushnell Corporation, also known as Bushnell and Bushnell Outdoor Products, is an American company specializing in optics and imaging. Its products include binoculars, spotting scopes, telescopes, night vision equipment, GPS devices, laser rangefinders, riflescopes, holographic weapon sights, game...
- Center ParcsCenter ParcsCenter Parcs is a European network of holiday villages incorporating a UK-based company, Center Parcs UK, which runs holiday villages in the United Kingdom and a sister enterprise, Center Parcs Europe, that operates in numerous locations in continental Europe...
- Jenny Craig, Inc.
- JostensJostensJostens is an American company providing yearbooks and class rings for various high schools and colleges as well as championship rings for sports, including the Super Bowl rings....
- LA Fitness (Europe)
- Palace EntertainmentPalace EntertainmentPalace Entertainment is an American amusement and entertainment company owned by Parques Reunidos. The company was established in 1998 after the acquisition of four independently owned family entertainment companies with the five brands Camelot Parks, Palace Park, Boomers!, Grand Prix Race-O-Rama...
- Prestige BrandsPrestige BrandsPrestige Brands, Inc. is a company that manufactures personal care and home cleaning products. It was formed by the merger of Medtech Products, Inc., Prestige Brands International, and The Spic and Span Company...
- SbarroSbarroSbarro is a bankrupt chain of pizza restaurants that specializes in traditional Italian cuisine, including its most popular menu item "pizza by the slice." Its headquarters is located in Melville, Huntington, New York.- History :...
- Stratus TechnologiesStratus TechnologiesStratus Technologies, Inc. a major producer of fault tolerant computer servers. The company was founded in 1980 as Stratus Computer, Inc. in Natick, Massachusetts, and adopted its present name in 1999. The current CEO and president is Dave Laurello. Stratus Technologies, Inc. is a privately held...
- Totes-IsotonerTotesTotes»ISOTONER is an international umbrella, footwear, and cold weather accessory supplier. The company is based in Cincinnati, Ohio, USA. Totes is the largest supplier of umbrellas in the world with divisions in the United States, Canada, UK, and France...
- United BiscuitsUnited Biscuits__FORCETOC__United Biscuits is a British multinational food manufacturer, makers of the BN biscuits, McVitie's biscuits, KP Nuts, Hula Hoops, The Real McCoy's crisps, Phileas Fogg snacks, Jacob's Cream Crackers, and Twiglets...
- Young America CorporationYoung America CorporationYoung America Corporation is a major rebating center and clearinghouse with locations in the United States, Canada, Mexico, Argentina and India. The corporation handles mail-in and paperless rebates, gift cards and pre-paid cards, sweepstakes, targeted sampling, premiums and merchandising, CRM,...
- Pre-Paid Legal ServicesPre-Paid Legal ServicesLegalShield is a privately held corporation that offers specialized legal service products in the United States and Canada. The original company, Pre-Paid Legal Services, Inc., was founded on August 8, 1972, and made its initial public offering in 1984. Pre-Paid Legal Services, Inc...
External links
- MidOcean Partners (company website)