TA Associates
Encyclopedia
TA Associates, founded in 1968, is one of the oldest private equity
firms in the United States. The firm employs a hybrid strategy making growth capital
investments in developing companies and acquiring mature companies through leveraged buyout
and recapitalization transactions. TA Associates has invested across a range of industries including technology, healthcare, consumer products, financial services and business services.
The firm manages approximately $16 billion of committed capital, including over $6 billion in actively investing funds. Since its founding in 1968, TA has been a lead investor and director in more than 400 companies. TA has been ranked among the 50 largest private equity firms globally.
The firm is headquartered in Boston, Massachusetts. In 2011, TA had more than 60 investment professionals in Boston
, Menlo Park
, London
, Mumbai
and Hong Kong
.
investments in earlier stage companies.
The firm expanded significantly through the 1970s growing from $5 million of capital in 1969 to $125 million by the beginning of the 1980s, making TA the largest independent venture capital firm in a 1980 ranking. Through the 1970s, the firm's investments averaged 30% to 40% annually. Among the firm's notable investments of the 1970s were Biogen, Artificial Intelligence Software, Immunogen and Digital Research
As the 1980s developed, TA found itself increasingly investing larger amounts in more mature, profitable companies as opposed to the small early stage investments in start-up companies that had characterized the firm's first decade and a half. By the mid-1980s, the firm was no longer describing itself as a "venture capital firm", instead using the more general "private equity" description. By the early 1990s the firm found itself rarely investing in early stage start-up companies, focusing primarily on later-stage growth capital
investments in more mature businesses.
firms, there are many successful investment firms that trace their lineage back to TA Associates.
In 1979, TA's Craig Burr
and William P. Egan
left to found venture capital firm, Burr, Egan, Deleage & Co.
. BEDCO would itself give rise to a group of notable successor firms Alta Partners
, Alta Communications
and Polaris Venture Partners
, which can trace their lineage to TA.
In 1984, TA's founder, Peter Brooke founded Advent International
which is today among the largest global private equity firms. Also in 1984, Stephen Woodsum and E. Roe Stamps decided to leave TA to form Summit Partners
. Two years later, in 1986, the firm's media
group completed a spin-out to form Media/Communications Partners, which would later rename itself M/C Venture Partners
.
In 1994, General Partner Brion Applegate and Bill Collatos left to found private equity firm, Spectrum Equity Investors
.
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....
firms in the United States. The firm employs a hybrid strategy making 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 developing companies and acquiring mature companies through 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...
and recapitalization transactions. TA Associates has invested across a range of industries including technology, healthcare, consumer products, financial services and business services.
The firm manages approximately $16 billion of committed capital, including over $6 billion in actively investing funds. Since its founding in 1968, TA has been a lead investor and director in more than 400 companies. TA has been ranked among the 50 largest private equity firms globally.
The firm is headquartered in Boston, Massachusetts. In 2011, TA had more than 60 investment professionals in Boston
Boston
Boston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had...
, Menlo Park
Menlo Park
Menlo Park may refer to:*Menlo Park, New Jersey, USA*Menlo Park, California, USA*Menlo Park, Pretoria, South Africa...
, 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...
, Mumbai
Mumbai
Mumbai , formerly known as Bombay in English, is the capital of the Indian state of Maharashtra. It is the most populous city in India, and the fourth most populous city in the world, with a total metropolitan area population of approximately 20.5 million...
and Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
.
History
TA Associates was founded in 1968 by Peter Brooke with the backing of his former firm, Tucker, Anthony & RL Day, an investment banking and brokerage firm. Prior to founding TA, from 1963 to 1968, Brooke had headed the corporate finance and venture capital activities of Tucker Anthony. Previously, Brooke had been responsible for expanding the private equity activities of Bessemer Securities and had founded the High Technology Lending Group of First National Bank of Boston. At the time it was founded, the firm focused primarily on making venture capitalVenture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
investments in earlier stage companies.
The firm expanded significantly through the 1970s growing from $5 million of capital in 1969 to $125 million by the beginning of the 1980s, making TA the largest independent venture capital firm in a 1980 ranking. Through the 1970s, the firm's investments averaged 30% to 40% annually. Among the firm's notable investments of the 1970s were Biogen, Artificial Intelligence Software, Immunogen and Digital Research
Digital Research
Digital Research, Inc. was the company created by Dr. Gary Kildall to market and develop his CP/M operating system and related products. It was the first large software company in the microcomputer world...
As the 1980s developed, TA found itself increasingly investing larger amounts in more mature, profitable companies as opposed to the small early stage investments in start-up companies that had characterized the firm's first decade and a half. By the mid-1980s, the firm was no longer describing itself as a "venture capital firm", instead using the more general "private equity" description. By the early 1990s the firm found itself rarely investing in early stage start-up companies, focusing primarily on later-stage 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 more mature businesses.
Spin-out firms
As one of the earliest venture capitalVenture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
firms, there are many successful investment firms that trace their lineage back to TA Associates.
In 1979, TA's Craig Burr
Craig Burr
Craig L. Burr is an early venture capital investor, notable for his role in the founding of two venture capital firms, Burr, Egan, Deleage & Co. in 1979 and Alta Communications in 1996.-Career:...
and William P. Egan
William P. Egan
William P. Egan is the founder and General Partner at Alta Communications, a venture capital firm, and Marion Equity Partners, a private equity firm, both based in Boston, Massachusetts. Mr. Egan also founded Alta's predecessor firm, Burr, Egan, Deleage & Co...
left to found venture capital firm, Burr, Egan, Deleage & Co.
Burr, Egan, Deleage & Co.
Burr, Egan, Deleage & Co. was a venture capital firm which focused on investments in information technology, communications, and healthcare/biotechnology companies....
. BEDCO would itself give rise to a group of notable successor firms Alta Partners
Alta Partners
Alta Partners is a venture capital firm based in San Francisco, CA. The company was founded in 1996 by Dr. Jean Deleage, Ph.D., who was also a founder of the venture capital firms Burr, Egan, Deleage & Co. and Sofinnova, together with Garrett Gruener, a former general partner at BEDCO.The company...
, Alta Communications
Alta Communications
Alta Communications is a Boston-based private equity firm specializing in equity investments in media and telecommunications companies.Their equity funds are invested in about 100 companies with total market capitalization approximately $1.5 billion....
and Polaris Venture Partners
Polaris Venture Partners
Polaris Venture Partners is a venture capital firm specializing in seed and early stage investments particularly in companies engaged in the information technology and life sciences sectors....
, which can trace their lineage to TA.
In 1984, TA's founder, Peter Brooke founded Advent International
Advent International
Advent International is a global private equity firm focused on buyouts of middle market growth companies in Western and Central Europe, North America, Latin America and Asia...
which is today among the largest global private equity firms. Also in 1984, Stephen Woodsum and E. Roe Stamps decided to leave TA to form Summit Partners
Summit Partners
Summit Partners is a growth equity investment firm focusing on a wide array of transactions from leveraged buyouts and recapitalizations to growth capital, venture capital investments, and mezzanine capital....
. Two years later, in 1986, the firm's 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...
group completed a spin-out to form Media/Communications Partners, which would later rename itself M/C Venture Partners
M/C Venture Partners
M/C Partners is a private equity firm focused on venture capital investments in emerging companies in the media and communications industries. M/C invests in early, mid, and late stage companies as well as turnarounds and buyouts in its sectors of focus...
.
In 1994, General Partner Brion Applegate and Bill Collatos left to found private equity firm, Spectrum Equity Investors
Spectrum Equity Investors
Spectrum Equity Investors is a Boston-based private equity and venture capital firm founded in 1994. The firm focuses on business services, entertainment, communications, information services, media, and related growth sectors. The firm currently has a capital base of approximately $4.7 billion...
.
External links
- TA Associates (company website)