Providence Equity Partners
Encyclopedia
Providence Equity Partners is a global private equity
investment firm focused on media, entertainment, communications and information investments. The firm specializes in leveraged buyout
transactions as well as growth capital investments and has invested in more than 100 companies globally since its inception in 1989.
The firm manages funds with over $22 billion in equity 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 sixth fund, Providence Equity Partners VI, closed on $12 billion in 2007, making it the largest sector-focused private equity fund
ever raised.
Providence is headquartered in Providence, Rhode Island with five additional offices in New York, Los Angeles, London, Hong Kong and New Delhi.
On September 16, 2009 Richard Parsons, who became chairman of Citigroup Inc. in February 2009, joined Providence Equity Partners Inc. as a senior adviser. “Dick is a highly regarded corporate leader and his counsel is regularly sought by boards, CEOs and government officials,” Citigroup said in a separate statement. “His advisory role at Providence will not require any day-to-day operational work or oversight, and his primary business activity absolutely will remain with Citi.”
Providence partners with companies across different stages in their development, from growth capital and complex recapitalizations of family-owned businesses to large buyouts and take-privates. The firm targets equity investments of $250 million to $2.5 billion and can employ a variety of financing structures. Providence prefers to lead its investments, serve on company boards, and work collaboratively with company management.
In 2008, Providence hired Thomas Gahan as president of the firm’s new capital markets group. Prior to joining Providence, Mr. Gahan was head of Deutsche Bank’s corporate and investment banking in the Americas and chief executive officer of Deutsche Bank Securities. Providence’s capital markets group invests in the debt of media, communications, entertainment and information companies worldwide.
In 2010, Providence has been one of the most active private equity firms. Providence buyouts and portfolio transactions in 2010 include Study Group, Kroll, Kerasotes Theatres, Virtual Radiologic, AutoTrader, and Baidu's online video division. Providence exits by sale or IPO include Bresnan Communications and Kabel Deutschland.
and growth capital
investments completed by Providence to date.
Select current investments as of July 2011 include:
Select current investments as of January 2011 include:
Select current investments as of June 2009 include:
Select past investments as of June 2009 include:
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....
investment firm focused on media, entertainment, communications and information investments. The firm specializes 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...
transactions as well as growth capital investments and has invested in more than 100 companies globally since its inception in 1989.
The firm manages funds with over $22 billion in equity 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 sixth fund, Providence Equity Partners VI, closed on $12 billion in 2007, making it the largest sector-focused 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....
ever raised.
Providence is headquartered in Providence, Rhode Island with five additional offices in New York, Los Angeles, London, Hong Kong and New Delhi.
History
Providence is led by CEO Jonathan M. Nelson. The firm relies primarily on pools of committed capital that are raised from a broad array of institutional investors (e.g., pension funds, endowments, sovereign wealth funds, financial institutions, insurance companies, fund of funds, and high net worth individuals).On September 16, 2009 Richard Parsons, who became chairman of Citigroup Inc. in February 2009, joined Providence Equity Partners Inc. as a senior adviser. “Dick is a highly regarded corporate leader and his counsel is regularly sought by boards, CEOs and government officials,” Citigroup said in a separate statement. “His advisory role at Providence will not require any day-to-day operational work or oversight, and his primary business activity absolutely will remain with Citi.”
Providence partners with companies across different stages in their development, from growth capital and complex recapitalizations of family-owned businesses to large buyouts and take-privates. The firm targets equity investments of $250 million to $2.5 billion and can employ a variety of financing structures. Providence prefers to lead its investments, serve on company boards, and work collaboratively with company management.
In 2008, Providence hired Thomas Gahan as president of the firm’s new capital markets group. Prior to joining Providence, Mr. Gahan was head of Deutsche Bank’s corporate and investment banking in the Americas and chief executive officer of Deutsche Bank Securities. Providence’s capital markets group invests in the debt of media, communications, entertainment and information companies worldwide.
In 2010, Providence has been one of the most active private equity firms. Providence buyouts and portfolio transactions in 2010 include Study Group, Kroll, Kerasotes Theatres, Virtual Radiologic, AutoTrader, and Baidu's online video division. Providence exits by sale or IPO include Bresnan Communications and Kabel Deutschland.
Portfolio investments
The following are lists of some of the most significant current and past leveraged buyoutLeveraged 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...
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 completed by Providence to date.
Select current investments as of July 2011 include:
- SRA InternationalSRA InternationalSRA International, Inc. is an information technology services and solutions consulting company incorporated as Systems Research and Applications Corporation in 1976 and beginning operations in 1978. Founded by Dr. Ernst Volgenau, it is headquartered in Fairfax, Virginia, and employs 7200 people...
Select current investments as of January 2011 include:
- AutoTrader.comAutoTrader.comAutoTrader.com is an American automotive classified Web site operated by AutoTrader.com L.L.C.; Cox Enterprises owns 75% of the company, Providence Equity Partners owns the rest. It was founded in August of 1997 and is the largest classified automotive site in the United States...
(25%) - Catalpa Kinderopvang BV
- Television Broadcasts LimitedTelevision Broadcasts LimitedTelevision Broadcasts Limited, commonly known as TVB, is the second over-the-air commercial television station in Hong Kong. It commenced broadcasting on 19 November 1967...
Select current investments as of June 2009 include:
- ABTL (Indus Towers)
- AsurionAsurionAsurion Corp. is the largest global provider of wireless handset insurance and wireless roadside assistance programs. Asurion also offers data-backup services through wireless carriers in North America. The International Headquarters is located in Nashville, Tennessee, and the North American...
- CanalDigitaal
- Com HemCom HemCom Hem AB of Sweden, supplies triple play services that include cable tv, digital television, broadband, telephony and HDTV.Founded in 1983 as Televerket Kabel-TV as part of the former state-owned Televerket, the company has been successively named Svenska Kabel-TV AB and Telia InfoMedia...
- Decision Resources
- DigiturkDigiturkDigiturk is a Turkish Satellite television provider, founded in 1999, with services starting in mid-2000. They offer, both national cable TV channels and their own channels, national radio, and music streams of different genres. Digiturk is also the current owner of the broadcasting rights of...
- Education Management CorporationEducation Management CorporationEducation Management Corporation is an operator of private for-profit post-secondary educational institutions, primarily in the United States. The company's institutions provide primarily career-focused educational programs...
- eTelecare Global Solutions
- HuluHuluHulu is a website and over-the-top subscription service offering ad-supported on-demand streaming video of TV shows, movies, webisodes and other new media, trailers, clips, and behind-the-scenes footage from NBC, Fox, ABC, and Obstacle on October 20th 2011 Nickelodeon and CBS and many other...
- Idea CellularIdea cellularIdea Cellular, usually referred to as Idea, is an Indian wireless telecom company based in Mumbai, India. Idea is the 3rd largest mobile services operator in India, in revenue terms, and recorded of over 98.4 million customers as of August 2011....
- JBP Holdings
- Kabel DeutschlandKabel Deutschland-Company:Kabel Deutschland operates in 13 of the 16 states . In 2006, of the 15.4 million households passed by their cable the company served 9.6 million, however only one third of these are direct customers of Kabel Deutschland, since especially in large apartment complexes the in-house cable...
- Kerasotes TheatresKerasotes TheatresKerasotes Showplace Theatres, LLC is a movie-theatre operator in the Midwestern United States. Based in Chicago, Kerasotes Showplace Theatres, LLC was the sixth-largest movie-theatre company in North America with 957 screens in 95 locations in California, Colorado, Illinois, Indiana, Iowa, Ohio,...
- Metro-Goldwyn-MayerMetro-Goldwyn-MayerMetro-Goldwyn-Mayer Inc. is an American media company, involved primarily in the production and distribution of films and television programs. MGM was founded in 1924 when the entertainment entrepreneur Marcus Loew gained control of Metro Pictures, Goldwyn Pictures Corporation and Louis B. Mayer...
- MobileServ
- Mountain States Cable Television
- NexTagNexTagNextag is a price comparison service website. It started originally as a website where buyers and sellers could negotiate prices for computers and electronics products. The current business model with a focus on comparison shopping has existed since 2000. In June 2007, Providence Equity Partners...
- Study Island / Archipelago LearningArchipelago LearningArchipelago Learning is an American subscription-based, software-as-a-service provider of education studies used by over 14 million students in nearly 38,700 schools throughout the United States, Canada, and the United Kingdom. Their comprehensive digital supplemental product suite uses technology...
- TDC A/STDC A/STDC A/S is the former telecom monopoly in Denmark. It is now privatized. Thus, it is the biggest company in all aspects of telecommunications in Denmark with landline, mobile, Internet, VHF maritime borderline-radio etc.By the end of 2004, the TDC Group had more than 13.4 mil. customers in Europe:...
- Trilogy International Partners
- USIS
- Warner Music GroupWarner Music GroupWarner Music Group is the third largest business group and family of record labels in the recording industry, making it one of the big four record companies...
- WhitePages
- World Triathlon Corporation
- Yankees Entertainment and Sports Network
- ZeniMax MediaZeniMax MediaZeniMax Media Inc. is an American media company that develops and publishes computer and video games through its subsidiaries. ZeniMax is known as the owner of id Software , Bethesda Softworks , Arkane Studios , Tango Gameworks and...
Select past investments as of June 2009 include:
- American Cellular
- Brooks Fiber Properties
- CasemaCasemaCasema was a major Dutch provider of cable television, internet and telephone services until the merger with Multikabel and @Home to Ziggo on May 16, 2008...
- eircomEircomEircom Group LTD is a telecommunications company in the Republic of Ireland, and a former state-owned incumbent. It is currently the largest telecommunications operator in the Republic of Ireland and operates primarily on the island of Ireland, with a point of presence in Great Britain.As Bord...
- Language Line Services
- MetroNet
- PanAmSatPanAmSatThe former PanAmSat Corporation founded in 1984 by Reynold Anselmo, was a satellite service provider headquartered in Greenwich, Connecticut. It operated a fleet of communications satellites used by the entertainment industry, news agencies, internet service providers, government agencies, and...
- Powerfone Holdings
- ProSiebenSat.1
- Recoletos Grupo de Comunicación
- VerioVerioVerio is a global web hosting provider headquartered in the United States. Incorporated in 1996 in Denver, Colorado, it is currently a wholly owned subsidiary of Nippon Telegraph and Telephone Communications, who acquired the company in 2000...
- VoiceStream WirelessVoiceStream WirelessVoiceStream Wireless Inc. traces it roots to the 1994 establishment of VoiceStream Wireless PCS as a subsidiary of Western Wireless Corporation. On May 3, 1999, Western Wireless Corporation spun off its VoiceStream Wireless PCS subsidiary to Western Wireless shareholders, creating an independent,...
- Western Wireless
- WNP Communications