A private equity firm or private equity company (often described as a financial sponsor ) is an investment management company that provides financial backing and makes investments in the private equity of a startup or of an existing operating company with the end goal to make a profit on its investments. The target companies are generally privately owned entities (not publicly listed ), but it seldomly happens that private equity firms purchase the majority of a publicly listed company and delists the firm after the purchase.
21-445: 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. The firm manages funds with over $ 31 billion in aggregate private equity capital commitments, making it
42-439: A return on investment through one of the following avenues: Private equity firms characteristically make longer-hold investments in target industry sectors or specific investment areas where they have expertise. Private equity firms and funds differ from hedge fund firms which typically make shorter-term investments in securities and other more liquid assets within an industry sector, with less direct influence or control over
63-1097: A $ 1.75 billion middle market direct lending fund in April 2014. The credit platform was sold to Franklin Templeton Investments in October 2018. 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. 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 . Since 2013, significant investments by
84-463: 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
105-460: A fund, will be invested in accordance with one or more specific investment strategies including leveraged buyout , venture capital , and growth capital . Although the industry has developed and matured substantially since it was invented, there has been criticism of private equity firms because they have pocketed huge and controversial profits while stalking ever larger acquisition targets. The history of private equity firms has occurred through
126-411: A global partnership to invest primarily in sports and entertainment related media assets. In September 2012, Providence sold a less than 10% stake in the firm to Florida's state pension system and a sovereign wealth fund. 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
147-609: 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. Providence is headquartered in Providence, Rhode Island with additional offices in New York , Boston , London and Atlanta . The firm raises investment funds from
168-469: A series of boom-and-bust cycles since the middle of the 20th century with significant growth since the 1980s. Within the broader private equity industry two distinct sub-industries, leveraged buyouts and venture capital , grew along parallel tracks. In its early years through to roughly the year 2000, the private equity and venture capital asset firms were primarily active in the United States. With
189-465: 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. In February 2017, Providence expanded its education business by buying NACE Schools, a Spain-based operator of for-profit schools. As of 2021, the schools portfolio branded as Globeducate has 55 schools in nine countries. In October 2017, Modern Times Group sold its telecommunication businesses in
210-451: A top-tier esports tournament operator, owning brands such as Electronic Sports League (ESL). MTG then acquired 51% of the shares in Zoomin.TV , Europe's largest MCN and the 5th largest network on YouTube. Later the same year MTG made the acquisition of 100% of DreamHack , one of the biggest esports tournament organisers in the world. In 2016 and 2017 MTG continued its journey by acquiring 35% of
231-547: 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 and its affiliate, Benefit Street Partners. 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
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#1732880174790252-464: Is a digital entertainment company based in Stockholm , Sweden . It formed from the media holdings of investment company Kinnevik , which in 1997 was distributed to the company stockholders. It is a strategic and operational investment holding company, managing a portfolio including gaming companies InnoGames , Ninja Kiwi and Kongregate , and digital network company Zoomin.TV . Kinnevik distributed
273-530: The Baltic states to Providence Equity Partners. The newly acquired companies were united and operate under the All Media Baltics company name (currently TV3 Group ). In April 2019, MasMovil agreed to repurchase its convertible bond from Providence Equity. Providence remains a shareholder in the company. In September 2019, Providence Strategic Growth collected $ 2 billion for its fourth fund. In August 2021, it
294-514: The MTG shares to its shareholders in 2018 and in 2019 MTG distributed shares in the newly founded Nordic Entertainment Group (now Viaplay Group) to its shareholders following the strategic transformation into a global digital entertainment company. Since July 2015, MTG's digital presence was expanded through a number of acquisitions. In 2015 MTG bought 74% of the shares in Turtle Entertainment ,
315-497: 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. Providence's recent exits include TES, Galileo Global Education, EdgeConneX, OEConnection, PADI , Ascend Learning, Vector Solutions and ZeniMax Media . In March 2013, Providence and the National Football League formed
336-800: The operations of a specific company. Where private equity firms take on operational roles to manage risks and achieve growth through long-term investments, hedge funds more frequently act as short-term traders betting on the up or down sides of a business or of an industry sector's financial health. According to Private Equity International 's PEI 300 ranking, the largest private equity firms include The Blackstone Group , Kohlberg Kravis Roberts , EQT AB , Thoma Bravo , The Carlyle Group , TPG Capital , Advent International , Hg , General Atlantic , Warburg Pincus , Silver Lake , Goldman Sachs Principal Investment Group and Bain Capital . These firms are typically direct investors in companies rather than investors in
357-577: The private equity asset class, and for the most part the largest private equity investment firms focused primarily on leveraged buyouts rather than venture capital . Preqin ltd (formerly known as Private Equity Intelligence), an independent data provider, provides a ranking of the 25 largest private equity investment managers . Among the largest firms in that ranking were AlpInvest Partners , Ardian (formerly AXA Private Equity), AIG Investments , Goldman Sachs Private Equity Group, and Pantheon Ventures . Because private equity firms are continuously in
378-537: The process of raising, investing, and distributing their private equity funds, capital raised can often be the easiest metric to measure. Other metrics can include the total value of companies purchased by a firm or an estimate of the size of a firm's active portfolio plus capital available for new investments. As with any list that focuses on size, the list referenced above does not provide any indication as to relative investment performance of these funds or managers. Modern Times Group Modern Times Group ( MTG )
399-619: The second private equity boom in the mid-1990s and liberalization of regulation for institutional investors in Europe, a mature European private equity market emerged. Private equity companies, acting as general partners with investors as limited partners , acquire a controlling or substantial minority position in a company and then look to maximize the value of that investment. Strategies include leveraged buyout (with borrowed capital), venture capital (for start ups), and growth capital (mature companies). Private equity firms generally receive
420-813: Was announced that Providence Equity had purchased a majority share of Sweetwater Sound , a major musical equipment retailer based in Fort Wayne, Indiana. In April 2022, it was announced Providence had acquired the cloud-based managed Wi-Fi solutions provider, Airties. 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
441-408: Was appointed Chief Investment Officer. [REDACTED] Media related to Providence Equity Partners at Wikimedia Commons Private equity firm To complete its investments, a private equity firm will raise funds from large institutional investors, family offices and others pools of capital (eg also other private-equity funds ) which supply the equity . The money raised, often pooled into
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