TowerBrook Capital Partners

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TowerBrook Capital Partners, L.P. is an investment management firm[1][2] headquartered in London and New York City. TowerBrook spun out of Soros Fund Management in 2005[3] and became known for acquiring majority stakes in companies such as Jimmy Choo.[4] Managing $13.7 billion in a number of private equity funds and structured opportunities funds,[5] TowerBrook listed 30 active investments on its website as of 2020.

History

2005 and prior

TowerBrook Capital Partners was formed as a spin-off of George Soros' equity management firm.[3] TowerBrook's co-founders, Neal Moszkowski and Ramez Sousou, had previously served as co-heads of Soros Fund Management's private equity arm, Soros Private Equity (SPEP); SPEP launched its first fund around 2000.[6] SPEP was also an early investor[7] in companies such as Eircom,[3] CSTV Networks, and Cablecom, which it sold to Liberty Global in 2005.[7] In April 2005,[3] Moszkowski and Sousou spun out SPEP from Soros Fund Management to establish TowerBrook Capital Partners in New York and London.[8]

2006–2013

TowerBrook closed its TowerBrook Investors II LP fund at $1.3 billion in March 2006,[8] with George Soros contributing a significant amount.[9] Later that month, the fund purchased 67% of French engineering company GSE, which had an estimated value of €230 million.[10] In 2006,[11] TowerBrook purchased 75% of the St. Louis Blues National Hockey League team[12] for $150 million, also then purchasing the lease of the Scottrade Center in St. Louis, Missouri.[13] The purchase made TowerBrook "the only private equity firm to own a share in a professional sports team," according to Sports Business Daily.[11] Also in 2006, TowerBrook raised $850 million from the sale of WellCare Health Plans, and a further $160 million from the disposal of Tradedoubler.[6] After acquisition of clothing company Odlo in 2006,[14] in 2007 TowerBrook purchased the designer shoe company Jimmy Choo[9] for £180 million.[15] In 2007, it invested in U.S. company Sound Inpatient Physicians.[16]

In 2008, TowerBrook raised $2.8 billion from investors for its third fund.[9][17] According to Financial Times, the successful fundraising during a difficult economic period was noted as reflecting TowerBrook's sharp decline in its investing pace during a credit boom, while keeping debt for new investments "below the market average."[9] The fund's first deal was in 2009, when TowerBrook acquired 60% of Autodistribution Group for $139 million,[18] selling the stake six years later to Bain Capital.[19] In 2009, TowerBrook founded Haymarket Financial, or HayFin, initially as a corporate lender for small and medium businesses. Investors, including Sunseeker, Ronald Mourad Cohen, Lord Rothschild, and Future Fund, invested a total of $580 million in HayFin in September 2010, raising the lender's equity to about €1 billion.[20] TowerBrook sold its stake in HayFin in 2017.[21] In 2010, Towerbrook acquired the building company Monier[22] and sold Broadlane Group for $850 million.[23]

TowerBrook purchased the fashion retailer Phase Eight for £80 million in February 2011.[24] Three months later,[25] TowerBrook sold Jimmy Choo,[4] for a reported £500 million.[15] In 2012, TowerBrook sold part of its stake in the St. Louis Blues[13] to a consortium of investors, retaining a stake of around 50%.[26] Also in 2012, TowerBrook acquired a majority interest in the professional coaching business Vistage International.[27] In 2013, Towerbrook acquired scrap refiner Metallum for £295 million[28] and True Religion Apparel for $835 million.[12] That year, the company also sold Rave Cinemas to Cinemark.[29] In early 2013, The Financial Times wrote that TowerBrook was "defying a depressed fundraising market" by raising $3.5 billion for its new fund,[1] TowerBrook Investors IV.[30] Originally targeted at $3 billion, Fund IV became "considerably oversubscribed", receiving subscriptions of over $5 billion.[1]

2014–2020

In 2014, TowerBrook acquired Independent Clinical Services from The Blackstone Group for $408 million.[31] In June of that year, TowerBrook portfolio company Volution Group completed an initial public offering (IPO) on the London Stock Exchange,[32] diluting TowerBrook’s stake from 85%[33] to 61%.[34] In 2015, TowerBrook sold Phase Eight, then valued at £300 million, to the Foschini Group of South Africa,[24] and sold a 10% stake in itself to Wafra Investment Advisory Group "to free up capital to spend on the business."[35] In November 2015 TowerBrook secured over $800 million[36] for its new TowerBrook Structured Opportunities Fund,[37] exceeding its initial target of $600 million.[36] Also in 2015, Towerbrook purchased American Apparel business J.Jill[2][38] for around $400 million,[39] and acquired a stake in U.S.-based Accretive Health for $200 million.[40] In March 2016, TowerBrook sold the majority of Van Geloven, a Dutch snack maker it had acquired the previous year, to McCain Foods.[41] In April 2016, TowerBrook announced it was partnering with U.S.-based health system Ascension Health Alliance to develop Ascension's healthcare technology business TRIMEDX.[42] By that summer, the firm had raised a total of $9.4 billion from investors in four private equity funds and one structured opportunities fund, designed to allow the firm to make minority investments.[43][44]

The firm completed eight investments in 2017,[44] including purchasing 47% of the aerospace company Aernova[45] and acquisition of loyalty services business Rewards Network.[46] TowerBrook retained 50% of J.Jill stock when taking it public on the New York Stock Exchange in March 2017.[47] Several months later, True Religion filed for bankruptcy protection, stating that TowerBrook would "swap debt into equity, handing them majority control."[48] The bankruptcy plan was approved by the courts in October 2017,[49] with True Religion's debt cut by $354 million.[47]

In June 2018, $4.25 billion was raised for a new Towerbrook buyout fund, Towerbrook Investors V. $1.05 billion was also raised for a Structured Opportunities Fund.[43][44] In 2018 and 2019, TowerBrook made significant investments in Validity Finance,[50] GBA Group,[37] Orchid Underwriters[51] and Studio Movie Grill.[5] TowerBrook listed 30 active investments on its website in 2020, among them KeHe Distributors, BevMo!, and OVH.[52][5] In 2019, Towerbrook became the first "mainstream private-equity shop" to be certified as a B corporation.[53] In October 2019 it was reported that TowerBrook and Ascension Health were co-investing in the hospice company Compassus through Ascension TowerBrook Healthcare Opportunities (ATHO), a new joint venture.[54] In February 2020, the company was researching a sale of Independent Clinical Services.[55]

Business model

TowerBrook operates two fund types, private equity and structured opportunities.[43] TowerBrook's website states that its private equity strategy is "based on the focused, proprietary sourcing of selected, control-oriented" investments[56] in large and midsize companies,[43] where the firm has “identified scope for significant further improvement and value creation."[56] The firm's Structured Opportunities Funds make minority investments in a range of businesses,[43] "principally via structured asset and structured equity investments."[56] The firm publishes an annual "Responsible Ownership Report",[57] and is a signatory to the United Nations Principles for Responsible Investment Initiative (PRI).[58] Towerbrook is a certified B Corporation.[53]

Locations

TowerBrook is co-headquartered in London, England and New York City.[11] The firm also has offices in Madrid, Spain and Frankfurt, Germany,[56][59] and a representative office in Amsterdam.[60] It previously had an office in San Francisco, California[61] and also in Munich.[56]

Key people

The firm is led by its founders, Neal Moszkowski, and Ramez Sousou, who are its co-chairs and co-CEOs,[12] and are based in New York and London, respectively.[8] TowerBrook's 23-member senior advisory board includes David J. Barger, Daniel Bernard, Anne Bouverot, Dave Checketts, Andrew Feldman, Trevor Fetter, Alan Fishman, Reuben Jeffery III, Marwan Lahoud and Gareth Penny.[62]

Philanthropy

The TowerBrook Foundation is a charitable organization established by the partners of the firm in 2006.[63] It has donated to nonprofits such as City Year[64] and Habitat for Humanity.[65]

See also

References

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  1. ↑ a b c Script error: No such module "citation/CS1".
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  3. ↑ a b c d Script error: No such module "citation/CS1".
  4. ↑ a b Script error: No such module "citation/CS1".
  5. ↑ a b c Script error: No such module "citation/CS1".
  6. ↑ a b Script error: No such module "citation/CS1".
  7. ↑ a b Script error: No such module "citation/CS1".
  8. ↑ a b c Script error: No such module "citation/CS1".
  9. ↑ a b c d Script error: No such module "citation/CS1".
  10. ↑ Script error: No such module "citation/CS1".
  11. ↑ a b c Script error: No such module "citation/CS1".
  12. ↑ a b c Script error: No such module "citation/CS1".
  13. ↑ a b Script error: No such module "citation/CS1".
  14. ↑ Script error: No such module "citation/CS1".
  15. ↑ a b Script error: No such module "citation/CS1".
  16. ↑ Script error: No such module "citation/CS1".
  17. ↑ Script error: No such module "citation/CS1".
  18. ↑ Script error: No such module "citation/CS1".
  19. ↑ Script error: No such module "citation/CS1".
  20. ↑ Script error: No such module "citation/CS1".
  21. ↑ Script error: No such module "citation/CS1".
  22. ↑ Script error: No such module "citation/CS1".
  23. ↑ Script error: No such module "citation/CS1".
  24. ↑ a b Script error: No such module "citation/CS1".
  25. ↑ Script error: No such module "citation/CS1".
  26. ↑ Script error: No such module "citation/CS1".
  27. ↑ Script error: No such module "citation/CS1".
  28. ↑ Script error: No such module "citation/CS1".
  29. ↑ Script error: No such module "citation/CS1".
  30. ↑ Script error: No such module "citation/CS1".
  31. ↑ Script error: No such module "citation/CS1".
  32. ↑ Script error: No such module "citation/CS1".
  33. ↑ Script error: No such module "citation/CS1".
  34. ↑ Script error: No such module "citation/CS1".
  35. ↑ Script error: No such module "citation/CS1".
  36. ↑ a b Script error: No such module "citation/CS1".
  37. ↑ a b Script error: No such module "citation/CS1".
  38. ↑ J.Jill - Our history: http://www.jjill.com/jjillonline/Customer/AboutUs.aspx?q=Ourhistory
  39. ↑ Script error: No such module "citation/CS1".
  40. ↑ Script error: No such module "citation/CS1".
  41. ↑ Script error: No such module "citation/CS1".
  42. ↑ Script error: No such module "citation/CS1".
  43. ↑ a b c d e Script error: No such module "citation/CS1".
  44. ↑ a b c Script error: No such module "citation/CS1".
  45. ↑ Script error: No such module "citation/CS1".
  46. ↑ Script error: No such module "citation/CS1".
  47. ↑ a b Script error: No such module "citation/CS1".
  48. ↑ Script error: No such module "citation/CS1".
  49. ↑ Script error: No such module "citation/CS1".
  50. ↑ Script error: No such module "citation/CS1".
  51. ↑ Script error: No such module "citation/CS1".
  52. ↑ Script error: No such module "citation/CS1".
  53. ↑ a b Script error: No such module "citation/CS1".
  54. ↑ Script error: No such module "citation/CS1".
  55. ↑ Script error: No such module "citation/CS1".
  56. ↑ a b c d e Script error: No such module "citation/CS1".
  57. ↑ Script error: No such module "citation/CS1".
  58. ↑ Script error: No such module "citation/CS1".
  59. ↑ https://www.towerbrook.com/us/contact/ on 13 Dec 2020
  60. ↑ Script error: No such module "citation/CS1".
  61. ↑ Script error: No such module "citation/CS1".
  62. ↑ Script error: No such module "citation/CS1".
  63. ↑ TowerBrook Foundation IRS filing (US), Internal Revenue Service: https://www.irs.gov/charities-non-profits/copies-of-scanned-eo-returns-available
  64. ↑ TowerBrook Foundation supports City Year (US and UK): http://www.cityyear.org.uk/about-city-year-uk/annual-report/ City Year Annual report 2018.
  65. ↑ Script error: No such module "citation/CS1".

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External links

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