Tuesday, September 28, 2004
More on Providence Equity V + Other LBO Raises
Providence Equity closes fifth fundby Kelly Holman Posted 03:34 EST, 27, Sep 2004
Providence Equity Partners Inc. said Monday, Sept. 27, it has closed its fifth private equity fund at $4.25 billion, much more than its last fundraising effort.
"This most recent fundraising is indicative of how good their performance is and how investors are viewing them," said Erik Hirsch, chief investment officer of Hamilton Lane Advisors LLC, an investor in the firm's funds. Hirsch said Providence has a strong track record, enabling it to raise larger funds each time it seeks new capital.
The firm raised $363 million in 1996; a $950 million fund in 1999; and a $2.8 billion fund in 2000, according to longtime investor Oregon Public Employees Retirement System. The plan and the San Francisco Employees' Retirement System have been past investors in Providence's funds.
Institutional investors in the Providence, R.I.-based firm's Providence Equity Partners V fund were not released; Providence Equity officials declined comment through a spokesman.
Debevoise & Plimpton LLP partner Michael P. Harrell was counsel to Providence on the fundraising.
The Rhode Island private equity firm, which has 30 investment professionals spread among offices in Providence, New York and London, invests in the media and communications industries. One of its more recent deals featured the firm on Sept. 13 joining with DLJ Merchant Banking Partners, Sony Corp. and Texas Pacific Group to acquire Metro-Goldwyn-Mayer Inc. for $4.9 billion. The PE firm is also an investor in Warner Music Group, which is expected to hold a $5 billion initial public offering in the coming months.
Providence Equity plans to invest around $50 million to $500 million of equity from the new fund per deal, said a source. The firm expects to invest $525 million in the MGM transaction, the source added.
Several other private equity firms are expected to embark on fundraising soon, including Washington's Carlyle Group and New York's Warburg Pincus LLC. Strong institutional investor interest is fueling a spate of fund closings this year.
In July, San Francisco private equity firm Hellman & Friedman LLC closed its latest fund at $3.5 billion, while MMC Capital Inc., the Greenwich, Conn.-based private equity unit of Marsh & McLennan Cos., announced the closing of its $1.1 billion Trident III LP fund.
In late June, ArcLight Capital Partners LLC, a Boston investment firm that focuses on the energy industry, closed its second private equity fund at $1.6 billion, exceeding its initial $1.2 billion target.
©Copyright 2004, The Deal, LLC. All rights reserved.
Providence Equity Partners Inc. said Monday, Sept. 27, it has closed its fifth private equity fund at $4.25 billion, much more than its last fundraising effort.
"This most recent fundraising is indicative of how good their performance is and how investors are viewing them," said Erik Hirsch, chief investment officer of Hamilton Lane Advisors LLC, an investor in the firm's funds. Hirsch said Providence has a strong track record, enabling it to raise larger funds each time it seeks new capital.
The firm raised $363 million in 1996; a $950 million fund in 1999; and a $2.8 billion fund in 2000, according to longtime investor Oregon Public Employees Retirement System. The plan and the San Francisco Employees' Retirement System have been past investors in Providence's funds.
Institutional investors in the Providence, R.I.-based firm's Providence Equity Partners V fund were not released; Providence Equity officials declined comment through a spokesman.
Debevoise & Plimpton LLP partner Michael P. Harrell was counsel to Providence on the fundraising.
The Rhode Island private equity firm, which has 30 investment professionals spread among offices in Providence, New York and London, invests in the media and communications industries. One of its more recent deals featured the firm on Sept. 13 joining with DLJ Merchant Banking Partners, Sony Corp. and Texas Pacific Group to acquire Metro-Goldwyn-Mayer Inc. for $4.9 billion. The PE firm is also an investor in Warner Music Group, which is expected to hold a $5 billion initial public offering in the coming months.
Providence Equity plans to invest around $50 million to $500 million of equity from the new fund per deal, said a source. The firm expects to invest $525 million in the MGM transaction, the source added.
Several other private equity firms are expected to embark on fundraising soon, including Washington's Carlyle Group and New York's Warburg Pincus LLC. Strong institutional investor interest is fueling a spate of fund closings this year.
In July, San Francisco private equity firm Hellman & Friedman LLC closed its latest fund at $3.5 billion, while MMC Capital Inc., the Greenwich, Conn.-based private equity unit of Marsh & McLennan Cos., announced the closing of its $1.1 billion Trident III LP fund.
In late June, ArcLight Capital Partners LLC, a Boston investment firm that focuses on the energy industry, closed its second private equity fund at $1.6 billion, exceeding its initial $1.2 billion target.
©Copyright 2004, The Deal, LLC. All rights reserved.
# posted by Tom @ 3:45 PM 
