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TowerBrook Capital Partners, L.P. is an investment management firm[2][3] headquartered in London and New York City. TowerBrook spun out of Soros Fund Management in 2005[4] and became known for acquiring majority stakes in companies such as Jimmy Choo.[5] Managing $13.7 billion in a number of private equity funds and structured opportunities funds,[6] 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.[4] 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.[7] SPEP was also an early investor[8] in companies such as Eircom,[4] CSTV Networks, and Cablecom, which it sold to Liberty Global in 2005.[8] In April 2005,[4] Moszkowski and Sousou spun out SPEP from Soros Fund Management to establish TowerBrook Capital Partners in New York and London.[9]

2006–2013

TowerBrook closed its TowerBrook Investors II LP fund at $1.3 billion in March 2006,[9] with George Soros contributing a significant amount.[10] Later that month, the fund purchased 67% of French engineering company GSE, which had an estimated value of €230 million.[11] In 2006,[12] TowerBrook purchased 75% of the St. Louis Blues National Hockey League team[13] for $150 million, also then purchasing the lease of the Scottrade Center in St. Louis, Missouri.[14] The purchase made TowerBrook "the only private equity firm to own a share in a professional sports team," according to Sports Business Daily.[12] Also in 2006, TowerBrook raised $850 million from the sale of WellCare Health Plans, and a further $160 million from the disposal of Tradedoubler.[7] After acquisition of clothing company Odlo in 2006,[15] in 2007 TowerBrook purchased the designer shoe company Jimmy Choo[10] for £180 million.[16] In 2007, it invested in U.S. company Sound Inpatient Physicians.[17]

In 2008, TowerBrook raised $2.8 billion from investors for its third fund.[10][18] 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."[10] The fund's first deal was in 2009, when TowerBrook acquired 60% of Autodistribution Group for $139 million,[19] selling the stake six years later to Bain Capital.[20] 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.[21] TowerBrook sold its stake in HayFin in 2017.[22] In 2010, Towerbrook acquired the building company Monier[23] and sold Broadlane Group for $850 million.[24]

TowerBrook purchased the fashion retailer Phase Eight for £80 million in February 2011.[25] Three months later,[26] TowerBrook sold Jimmy Choo,[5] for a reported £500 million.[16] In 2012, TowerBrook sold part of its stake in the St. Louis Blues[14] to a consortium of investors, retaining a stake of around 50%.[27] Also in 2012, TowerBrook acquired a majority interest in the professional coaching business Vistage International.[28] In 2013, Towerbrook acquired scrap refiner Metallum for £295 million[29] and True Religion Apparel for $835 million.[13] That year, the company also sold Rave Cinemas to Cinemark.[30] In early 2013, The Financial Times wrote that TowerBrook was "defying a depressed fundraising market" by raising $3.5 billion for its new fund,[2] TowerBrook Investors IV.[31] Originally targeted at $3 billion, Fund IV became "considerably oversubscribed", receiving subscriptions of over $5 billion.[2]

2014–2020

In 2014, TowerBrook acquired Independent Clinical Services from The Blackstone Group for $408 million.[32] In June of that year, TowerBrook portfolio company Volution Group completed an initial public offering (IPO) on the London Stock Exchange,[33] diluting TowerBrook’s stake from 85%[34] to 61%.[35] In 2015, TowerBrook sold Phase Eight, then valued at £300 million, to the Foschini Group of South Africa,[25] and sold a 10% stake in itself to Wafra Investment Advisory Group "to free up capital to spend on the business."[36] In November 2015 TowerBrook secured over $800 million[37] for its new TowerBrook Structured Opportunities Fund,[38] exceeding its initial target of $600 million.[37] Also in 2015, Towerbrook purchased American Apparel business J.Jill[3][39] for around $400 million,[40] and acquired a stake in U.S.-based Accretive Health for $200 million.[41] In March 2016, TowerBrook sold the majority of Van Geloven, a Dutch snack maker it had acquired the previous year, to McCain Foods.[42] 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.[43] 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.[44][45]

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

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.[44][45] In 2018 and 2019, TowerBrook made significant investments in Validity Finance,[51] GBA Group,[38] Orchid Underwriters[52] and Studio Movie Grill.[6] TowerBrook listed 30 active investments on its website in 2020, among them KeHe Distributors, BevMo!, and OVH.[53][6] In 2019, Towerbrook became the first "mainstream private-equity shop" to be certified as a B corporation.[54] 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.[55] In February 2020, the company was researching a sale of Independent Clinical Services.[56]

Business model

TowerBrook operates two fund types, private equity and structured opportunities.[44] TowerBrook's website states that its private equity strategy is "based on the focused, proprietary sourcing of selected, control-oriented" investments[57] in large and midsize companies,[44] where the firm has “identified scope for significant further improvement and value creation."[57] The firm's Structured Opportunities Funds make minority investments in a range of businesses,[44] "principally via structured asset and structured equity investments."[57] The firm publishes an annual "Responsible Ownership Report",[58] and is a signatory to the United Nations Principles for Responsible Investment Initiative (PRI).[59] Towerbrook is a certified B Corporation.[54]

Locations

TowerBrook is co-headquartered in London, England and New York City.[12] The firm also has offices in Madrid, Spain and Frankfurt, Germany,[57][60] and a representative office in Amsterdam.[61] It previously had an office in San Francisco, California[62] and also in Munich.[57]

Key People

The firm is led by its founders, Neal Moszkowski, and Ramez Sousou, who are its co-chairs and co-CEOs,[13] and are based in New York and London, respectively.[9] 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.[63]

Philanthropy

The TowerBrook Foundation is a charitable organization established by the partners of the firm in 2006.[64] It has donated to nonprofits such as City Year[65] and Habitat for Humanity.[66]

See also

References

  1. ^ a b "Purpose-driven value creation Responsible ownership" (PDF). Towerbrook.com. November 2019. Retrieved June 1, 2020.
  2. ^ a b c Chassany, Anne-Sylvaine (February 7, 2013). "TowerBrook raises $3.5bn fund". Financial Times. Retrieved June 1, 2020.
  3. ^ a b Masunaga, Samantha (March 31, 2015). "Women's retailer J.Jill bought by private equity firm". Los Angeles Times. Retrieved May 30, 2020.
  4. ^ a b c d Mawson, James (April 15, 2005). "Soros hives off private equity arm". Financial News. Retrieved June 1, 2020.
  5. ^ a b Ozanian, Mike (July 25, 2017). "Michael Kors to buy shoemaker Jimmy Choo for £896m". Financial Times. Retrieved June 4, 2020.
  6. ^ a b c Hayes, Dade (April 2, 2019). "Studio Movie Grill Gets $100M Investment From TowerBrook Capital". Deadline. Retrieved June 14, 2020.
  7. ^ a b Smiddy, Oliver (August 7, 2006). "TowerBrook makes 12 times money on exit". Financial News London. Retrieved June 6, 2020.
  8. ^ a b Tritto, Christopher (April 2, 2006). "Checketts' team: $2.5 billion equity fund backs new Blues owner". St. Louis Business Journal. Retrieved June 1, 2020.
  9. ^ a b c "Soros Spinoff Raises $1.3 Billion Fund". The New York Times. March 7, 2015. Retrieved June 3, 2020.
  10. ^ a b c d Arnold, Martin (November 10, 2008). "TowerBrook raises $2.8bn in less than a year". Financial Times. Retrieved June 4, 2020.
  11. ^ Paisner, Guy (March 15, 2006). "Towerbrook in European first with GSE". Financial News London. Retrieved June 6, 2020.
  12. ^ a b c Mickle, Tripp (May 11, 2010). "TowerBrook Capital Partners Looking To Sell Stake In Blues". SportsBusiness Journal. Retrieved May 31, 2020.
  13. ^ a b c Lattman, Peter (May 10, 2013). "TowerBrook to Purchase True Religion Apparel for $835 Million". The New York Times. Retrieved May 31, 2020.
  14. ^ a b Ozanian, Mike (May 8, 2012). "St Louis Blues Being Sold To Stillman For $120 Million". Forbes. Retrieved June 4, 2020.
  15. ^ "Odlo". Retrieved June 13, 2020.
  16. ^ a b Felsted, Andrea (February 25, 2011). "TowerBrook set for Jimmy Choo sale". Financial Times. Retrieved June 4, 2020.
  17. ^ "Sound Inpatient Physicians Announces Mergers With Excelsis Healthcare and Inpatient Services, P.C." globalnewsire.com. February 20, 2007. Retrieved June 12, 2020.
  18. ^ November 10, 2008. "TowerBrook Capital closes third fund on $2.8 bln". Reuters. Retrieved June 4, 2020.{{cite news}}: CS1 maint: numeric names: authors list (link)
  19. ^ Arnold, Martin (March 1, 2009). "TowerBrook set for takeover of French car parts supplier". Financial Times. Retrieved June 13, 2020.
  20. ^ González, Andrés (December 18, 2017). "Car parts firm Autodis sets course for French share listing: sources". Reuters. Retrieved June 13, 2020.
  21. ^ Arnold, Martin (September 5, 2010). "HayFin receives €450m capital injection". Financial Times. Retrieved June 7, 2020.
  22. ^ "British Columbia Investment Management Acquires Hayfin Capital Management". Mergr. January 31, 2017. Retrieved June 7, 2020.
  23. ^ O’Doherty, John (August 27, 2010). "Southern Cross rejects TowerBrook offer". Financial Times. Retrieved June 11, 2020.
  24. ^ "MedAssets to Buy Broadlane for $850 Million". The New York Times. September 14, 2010. Retrieved June 11, 2020.
  25. ^ a b Armstrong, Ashley (January 15, 2015). "Phase Eight sold to South African retailer Phase Eight sold for £238m". The Telegraph. Retrieved June 4, 2020.
  26. ^ Nicholson, Chris V. (May 22, 2011). "Jimmy Choo Sold to Labelux for About $800 Million". The New York Times. Retrieved June 4, 2020.
  27. ^ Kurtovic, Amir (May 17, 2012). "Stillman's Blues group raised $72 million to buy team". St. Louis Business Journal. Retrieved June 4, 2020.
  28. ^ "TowerBrook Capital Acquires Majority Interest in Vistage International". San Diego Business Journal. November 1, 2012. Retrieved June 13, 2020.
  29. ^ Ruckin, Claire (June 22, 2013). "Metallum buyout backed with 295 million euros of debt". Reuters. Retrieved June 11, 2020.
  30. ^ Chavez, Jon (June 1, 2013). "Cinemark completes Rave movie theater chain purchase". Toledo Blade. Retrieved June 11, 2020.
  31. ^ "TowerBrook Closes its Fourth Fund". Retrieved February 6, 2013.
  32. ^ Ruckin, Claire (June 23, 2014). "RLPC-Banks line up loans for ICS buyout". Reuters. Retrieved June 8, 2020.
  33. ^ Flitman, Nina (June 19, 2014). "Volution IPO avoids heavy market traffic". Global Capital. Retrieved June 8, 2020.
  34. ^ Sharman, Andy (June 11, 2014). "Volution ready to extract value with UK listing". Financial Times. Retrieved June 13, 2020.
  35. ^ Armstrong, Ashley (June 18, 2014). "Phase Eight sold to South African retailer Phase Eight sold for £238m". The Telegraph. Retrieved June 13, 2020.
  36. ^ Javed, Ayesha (January 15, 2015). "TowerBrook Sells 10% Stake to U.S. Firm". The Wall Street Journal. Retrieved June 14, 2020.
  37. ^ a b Javed, Ayesha (November 20, 2015). "TowerBrook's structured opportunities foray beats target". Financial News London. Retrieved June 14, 2020.
  38. ^ a b Farrell, Stephen (March 26, 2019). "Towerbrook Invests in Vehicle Logistics Business". Insider Media. Retrieved June 14, 2020.
  39. ^ J.Jill - Our history: http://www.jjill.com/jjillonline/Customer/AboutUs.aspx?q=Ourhistory
  40. ^ "TowerBrook to acquire women's apparel retailer J. Jill". Reuters. March 31, 2015. Retrieved June 13, 2020.
  41. ^ Miller, Ben (December 9, 2015). "Accretive Health gets a $200 million investment". Chicago business Journal. Retrieved June 14, 2020.
  42. ^ "Canadian fry maker takes over Dutch croquette company". Dutch News. March 4, 2016. Retrieved June 14, 2020.
  43. ^ "TowerBrook Investing in Ascension Subsidiary TriMedx". The Wall Street Journal. April 12, 2016. Retrieved June 14, 2020.
  44. ^ a b c d e Louch, Will (June 26, 2018). "Private equity firm Towerbrook raises $5.3bn for two funds". Financial News London. Retrieved June 8, 2020.
  45. ^ a b c Dowd, Kevin (February 5, 2018). "TowerBrook seeks new buyout billions". Pitchbook. Retrieved June 14, 2020.
  46. ^ Dowd, Kevin (July 1, 2017). "American fund TowerBrook will be the main shareholder in the Basque firm Aernnova". Grupo SPRI Taldea. Retrieved June 14, 2020.
  47. ^ Sweeney, Brigid (October 3, 2017). "Zell sells Rewards Network to TowerBrook Capital". Crain's Chicago Business. Retrieved June 14, 2020.
  48. ^ a b Kell, John (March 9, 2017). "Women's Retailer J.Jill Gets Lukewarm IPO Response". Fortune. Retrieved May 30, 2020.
  49. ^ Nicolaou, Anna (July 5, 2017). "Designer jeans maker True Religion files for bankruptcy". Financial Times. Retrieved June 6, 2020.
  50. ^ Rizzo, Lillian (October 5, 2017). "True Religion Reorganization Plan Wins Confirmation". The Wall Street Journal. Retrieved May 30, 2020.
  51. ^ Hartel, Heather (June 26, 2018). "Litigation funding firm opening in New York, Chicago, Houston". Chicago Business Journal. Retrieved June 15, 2020.
  52. ^ "TowerBrook Acquires Orchid Underwriters From Gryphon Investors". The Wall Street Journal. December 20, 2018. Retrieved June 15, 2020.
  53. ^ "Sector expertise". towerbrook.com. Retrieved June 15, 2020.
  54. ^ a b Louch, Will (February 8, 2019). "TowerBrook Is First Buyout Firm to Earn Ethical Business Certification". The Wall Street Journal. Retrieved June 6, 2020.
  55. ^ Parker, Jim (October 1, 2019). "Towerbrook, Ascension Health to Acquire Compassus for $1 Billion". Hospice News. Retrieved June 13, 2020.
  56. ^ Mkandawire, Vinjeru (February 3, 2020). "TowerBrook hires bankers for £800m sale of health recruiter IC". The Telegraph. Retrieved June 13, 2020.
  57. ^ a b c d e "About Us - Our Strategy, Private Equity, Structured Opportunity". Retrieved June 9, 2020.
  58. ^ "Responsible Ownership". Towerbrook.com. Retrieved June 9, 2020.
  59. ^ "TowerBrook Capital Partners". unpri.org. June 7, 2017. Retrieved June 9, 2020.
  60. ^ https://www.towerbrook.com/us/contact/ on 13 Dec 2020
  61. ^ "TowerBrook Responsible Ownership Report" (PDF). towerbrook.com. November 2018. Retrieved June 9, 2020.
  62. ^ Volkmann, Kelsey (May 11, 2010). "TowerBrook selling stake in St. Louis Blues". St. Louis Business Journal. Retrieved June 3, 2020.
  63. ^ "Our Team Senior Advisory Board". Towerbrook.com. Retrieved June 12, 2020.
  64. ^ TowerBrook Foundation IRS filing (US), Internal Revenue Service: https://www.irs.gov/charities-non-profits/copies-of-scanned-eo-returns-available
  65. ^ TowerBrook Foundation supports City Year (US and UK): http://www.cityyear.org.uk/about-city-year-uk/annual-report/ City Year Annual report 2018.
  66. ^ "2018 Annual Report". habitatnyc.org. 2019. Retrieved June 11, 2020.

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