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TowerBrook Capital Partners

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TowerBrook Capital Partners L.P.
Company typeLimited partnership
IndustryInvestment management
PredecessorSoros Private Equity
FoundedApril 2005
HeadquartersLondon and New York City
Number of locations
London, New York City, Madrid, Frankfurt
Areas served
North America, Europe
Key people
Neal Moszkowski (Founder and Chair)
Jonathan Bilzin (co-CEO)
Karim Saddi (CFO)[1]
ProductsPrivate equity funds, structured opportunities funds
AUMUSD$13.7 billion[2]
Number of employees
102[2]
Websitewww.towerbrook.com

TowerBrook Capital Partners, L.P. is an investment management firm[3][4] headquartered in London and New York City. TowerBrook spun out of Soros Fund Management in 2005[5] and became known for acquiring majority stakes in companies such as Jimmy Choo.[6] Managing $13.7 billion in a number of private equity funds and structured opportunities funds,[7] TowerBrook listed 30 active investments on its website as of 2020.

History

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2005 and prior

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TowerBrook Capital Partners was formed as a spin-off of George Soros' equity management firm.[5] 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.[8] SPEP was also an early investor[9] in companies such as Eircom,[5] CSTV Networks, and Cablecom, which it sold to Liberty Global in 2005.[9] In April 2005,[5] Moszkowski and Sousou spun out SPEP from Soros Fund Management to establish TowerBrook Capital Partners in New York and London.[10]

2006–2013

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TowerBrook closed its TowerBrook Investors II LP fund at $1.3 billion in March 2006,[10] with George Soros contributing a significant amount.[11] Later that month, the fund purchased 67% of French engineering company GSE, which had an estimated value of €230 million.[12] In 2006,[13] TowerBrook purchased 75% of the St. Louis Blues National Hockey League team[14] for $150 million, also then purchasing the lease of the Scottrade Center in St. Louis, Missouri.[15] The purchase made TowerBrook "the only private equity firm to own a share in a professional sports team," according to Sports Business Daily.[13] Also in 2006, TowerBrook raised $850 million from the sale of WellCare Health Plans, and a further $160 million from the disposal of Tradedoubler.[8] After acquisition of clothing company Odlo in 2006,[16] in 2007 TowerBrook purchased the designer shoe company Jimmy Choo[11] for £180 million.[17] In 2007, it invested in U.S. company Sound Inpatient Physicians.[18]

In 2008, TowerBrook raised $2.8 billion from investors for its third fund.[11][19] 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."[11] The fund's first deal was in 2009, when TowerBrook acquired 60% of Autodistribution Group for $139 million,[20] selling the stake six years later to Bain Capital.[21] 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.[22] TowerBrook sold its stake in HayFin in 2017.[23] In 2010, Towerbrook acquired the building company Monier[24] and sold Broadlane Group for $850 million.[25]

TowerBrook purchased the fashion retailer Phase Eight for £80 million in February 2011.[26] Three months later,[27] TowerBrook sold Jimmy Choo,[6] for a reported £500 million.[17] In 2012, TowerBrook sold part of its stake in the St. Louis Blues[15] to a consortium of investors, retaining a stake of around 50%.[28] Also in 2012, TowerBrook acquired a majority interest in the professional coaching business Vistage International.[29] In 2013, Towerbrook acquired scrap refiner Metallum for £295 million[30] and True Religion Apparel for $835 million.[14] That year, the company also sold Rave Cinemas to Cinemark.[31] In early 2013, The Financial Times wrote that TowerBrook was "defying a depressed fundraising market" by raising $3.5 billion for its new fund,[3] TowerBrook Investors IV.[32] Originally targeted at $3 billion, Fund IV became "considerably oversubscribed", receiving subscriptions of over $5 billion.[3]

2014–2020

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In 2014, TowerBrook acquired Independent Clinical Services from The Blackstone Group for $408 million.[33] In June of that year, TowerBrook portfolio company Volution Group completed an initial public offering (IPO) on the London Stock Exchange,[34] diluting TowerBrook’s stake from 85%[35] to 61%.[36] In 2015, TowerBrook sold Phase Eight, then valued at £300 million, to the Foschini Group of South Africa,[26] and sold a 10% stake in itself to Wafra Investment Advisory Group "to free up capital to spend on the business."[37] In November 2015 TowerBrook secured over $800 million[38] for its new TowerBrook Structured Opportunities Fund,[39] exceeding its initial target of $600 million.[38] Also in 2015, Towerbrook purchased American Apparel business J.Jill[4][40] for around $400 million,[41] and acquired a stake in U.S.-based Accretive Health for $200 million.[42] In March 2016, TowerBrook sold the majority of Van Geloven, a Dutch snack maker it had acquired the previous year, to McCain Foods.[43] 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.[44] 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.[45][46]

The firm completed eight investments in 2017,[46] including purchasing 47% of the aerospace company Aernova[47] and acquisition of loyalty services business Rewards Network.[48] TowerBrook retained 50% of J.Jill stock when taking it public on the New York Stock Exchange in March 2017.[49] Several months later, True Religion filed for bankruptcy protection, stating that TowerBrook would "swap debt into equity, handing them majority control."[50] The bankruptcy plan was approved by the courts in October 2017,[51] with True Religion's debt cut by $354 million.[49]

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.[45][46] In 2018 and 2019, TowerBrook made significant investments in Validity Finance,[52] GBA Group,[39] Orchid Underwriters[53] and Studio Movie Grill.[7] TowerBrook listed 30 active investments on its website in 2020, among them KeHe Distributors, BevMo!, and OVH.[54][7] In 2019, Towerbrook became the first "mainstream private-equity shop" to be certified as a B corporation.[55] 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.[56] In February 2020, the company was researching a sale of Independent Clinical Services.[57]

Business model

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TowerBrook operates two fund types, private equity and structured opportunities.[45] TowerBrook's website states that its private equity strategy is "based on the focused, proprietary sourcing of selected, control-oriented" investments[58] in large and midsize companies,[45] where the firm has “identified scope for significant further improvement and value creation."[58] The firm's Structured Opportunities Funds make minority investments in a range of businesses,[45] "principally via structured asset and structured equity investments."[58] The firm publishes an annual "Responsible Ownership Report",[59] and is a signatory to the United Nations Principles for Responsible Investment Initiative (PRI).[60] Towerbrook is a certified B Corporation.[55]

Locations

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TowerBrook is co-headquartered in London, England and New York City.[13] The firm also has offices in Madrid, Spain and Frankfurt, Germany,[58][61] and a representative office in Amsterdam.[62] It previously had an office in San Francisco, California[63] and also in Munich.[58]

Key People

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The firm is led by its founders, Neal Moszkowski, and Ramez Sousou, who are its co-chairs and co-CEOs,[14] and are based in New York and London, respectively.[10] 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.[64]

Philanthropy

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The TowerBrook Foundation is a charitable organization established by the partners of the firm in 2006.[65] It has donated to nonprofits such as City Year[66] and Habitat for Humanity.[67]

See also

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References

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  1. ^ "Our team". Retrieved September 28, 2024.
  2. ^ a b "Purpose-driven value creation Responsible ownership" (PDF). Towerbrook.com. November 2019. Retrieved June 1, 2020.
  3. ^ a b c Chassany, Anne-Sylvaine (February 7, 2013). "TowerBrook raises $3.5bn fund". Financial Times. Retrieved June 1, 2020.
  4. ^ a b Masunaga, Samantha (March 31, 2015). "Women's retailer J.Jill bought by private equity firm". Los Angeles Times. Retrieved May 30, 2020.
  5. ^ a b c d Mawson, James (April 15, 2005). "Soros hives off private equity arm". Financial News. Retrieved June 1, 2020.
  6. ^ a b Ozanian, Mike (July 25, 2017). "Michael Kors to buy shoemaker Jimmy Choo for £896m". Financial Times. Retrieved June 4, 2020.
  7. ^ a b c Hayes, Dade (April 2, 2019). "Studio Movie Grill Gets $100M Investment From TowerBrook Capital". Deadline. Retrieved June 14, 2020.
  8. ^ a b Smiddy, Oliver (August 7, 2006). "TowerBrook makes 12 times money on exit". Financial News London. Retrieved June 6, 2020.
  9. ^ 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.
  10. ^ a b c "Soros Spinoff Raises $1.3 Billion Fund". The New York Times. March 7, 2015. Retrieved June 3, 2020.
  11. ^ a b c d Arnold, Martin (November 10, 2008). "TowerBrook raises $2.8bn in less than a year". Financial Times. Retrieved June 4, 2020.
  12. ^ Paisner, Guy (March 15, 2006). "Towerbrook in European first with GSE". Financial News London. Retrieved June 6, 2020.
  13. ^ a b c Mickle, Tripp (May 11, 2010). "TowerBrook Capital Partners Looking To Sell Stake In Blues". SportsBusiness Journal. Retrieved May 31, 2020.
  14. ^ 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.
  15. ^ a b Ozanian, Mike (May 8, 2012). "St Louis Blues Being Sold To Stillman For $120 Million". Forbes. Retrieved June 4, 2020.
  16. ^ "Odlo". Retrieved June 13, 2020.
  17. ^ a b Felsted, Andrea (February 25, 2011). "TowerBrook set for Jimmy Choo sale". Financial Times. Retrieved June 4, 2020.
  18. ^ "Sound Inpatient Physicians Announces Mergers With Excelsis Healthcare and Inpatient Services, P.C." globalnewsire.com. February 20, 2007. Retrieved June 12, 2020.
  19. ^ November 10, 2008. "TowerBrook Capital closes third fund on $2.8 bln". Reuters. Archived from the original on June 5, 2020. Retrieved June 4, 2020.{{cite news}}: CS1 maint: numeric names: authors list (link)
  20. ^ Arnold, Martin (March 1, 2009). "TowerBrook set for takeover of French car parts supplier". Financial Times. Retrieved June 13, 2020.
  21. ^ González, Andrés (December 18, 2017). "Car parts firm Autodis sets course for French share listing: sources". Reuters. Retrieved June 13, 2020.
  22. ^ Arnold, Martin (September 5, 2010). "HayFin receives €450m capital injection". Financial Times. Retrieved June 7, 2020.
  23. ^ "British Columbia Investment Management Acquires Hayfin Capital Management". Mergr. January 31, 2017. Retrieved June 7, 2020.
  24. ^ O’Doherty, John (August 27, 2010). "Southern Cross rejects TowerBrook offer". Financial Times. Retrieved June 11, 2020.
  25. ^ "MedAssets to Buy Broadlane for $850 Million". The New York Times. September 14, 2010. Retrieved June 11, 2020.
  26. ^ 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.
  27. ^ Nicholson, Chris V. (May 22, 2011). "Jimmy Choo Sold to Labelux for About $800 Million". The New York Times. Retrieved June 4, 2020.
  28. ^ Kurtovic, Amir (May 17, 2012). "Stillman's Blues group raised $72 million to buy team". St. Louis Business Journal. Retrieved June 4, 2020.
  29. ^ "TowerBrook Capital Acquires Majority Interest in Vistage International". San Diego Business Journal. November 1, 2012. Retrieved June 13, 2020.
  30. ^ Ruckin, Claire (June 22, 2013). "Metallum buyout backed with 295 million euros of debt". Reuters. Retrieved June 11, 2020.
  31. ^ Chavez, Jon (June 1, 2013). "Cinemark completes Rave movie theater chain purchase". Toledo Blade. Retrieved June 11, 2020.
  32. ^ "TowerBrook Closes its Fourth Fund". Retrieved February 6, 2013.
  33. ^ Ruckin, Claire (June 23, 2014). "RLPC-Banks line up loans for ICS buyout". Reuters. Retrieved June 8, 2020.
  34. ^ Flitman, Nina (June 19, 2014). "Volution IPO avoids heavy market traffic". Global Capital. Retrieved June 8, 2020.
  35. ^ Sharman, Andy (June 11, 2014). "Volution ready to extract value with UK listing". Financial Times. Retrieved June 13, 2020.
  36. ^ Armstrong, Ashley (June 18, 2014). "Phase Eight sold to South African retailer Phase Eight sold for £238m". The Telegraph. Retrieved June 13, 2020.
  37. ^ Javed, Ayesha (January 15, 2015). "TowerBrook Sells 10% Stake to U.S. Firm". The Wall Street Journal. Retrieved June 14, 2020.
  38. ^ a b Javed, Ayesha (November 20, 2015). "TowerBrook's structured opportunities foray beats target". Financial News London. Retrieved June 14, 2020.
  39. ^ a b Farrell, Stephen (March 26, 2019). "Towerbrook Invests in Vehicle Logistics Business". Insider Media. Retrieved June 14, 2020.
  40. ^ J.Jill - Our history: http://www.jjill.com/jjillonline/Customer/AboutUs.aspx?q=Ourhistory
  41. ^ "TowerBrook to acquire women's apparel retailer J. Jill". Reuters. March 31, 2015. Retrieved June 13, 2020.
  42. ^ Miller, Ben (December 9, 2015). "Accretive Health gets a $200 million investment". Chicago business Journal. Retrieved June 14, 2020.
  43. ^ "Canadian fry maker takes over Dutch croquette company". Dutch News. March 4, 2016. Retrieved June 14, 2020.
  44. ^ "TowerBrook Investing in Ascension Subsidiary TriMedx". The Wall Street Journal. April 12, 2016. Retrieved June 14, 2020.
  45. ^ 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.
  46. ^ a b c Dowd, Kevin (February 5, 2018). "TowerBrook seeks new buyout billions". Pitchbook. Retrieved June 14, 2020.
  47. ^ 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.
  48. ^ Sweeney, Brigid (October 3, 2017). "Zell sells Rewards Network to TowerBrook Capital". Crain's Chicago Business. Retrieved June 14, 2020.
  49. ^ a b Kell, John (March 9, 2017). "Women's Retailer J.Jill Gets Lukewarm IPO Response". Fortune. Retrieved May 30, 2020.
  50. ^ Nicolaou, Anna (July 5, 2017). "Designer jeans maker True Religion files for bankruptcy". Financial Times. Retrieved June 6, 2020.
  51. ^ Rizzo, Lillian (October 5, 2017). "True Religion Reorganization Plan Wins Confirmation". The Wall Street Journal. Retrieved May 30, 2020.
  52. ^ Hartel, Heather (June 26, 2018). "Litigation funding firm opening in New York, Chicago, Houston". Chicago Business Journal. Retrieved June 15, 2020.
  53. ^ "TowerBrook Acquires Orchid Underwriters From Gryphon Investors". The Wall Street Journal. December 20, 2018. Retrieved June 15, 2020.
  54. ^ "Sector expertise". towerbrook.com. Retrieved June 15, 2020.
  55. ^ 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.
  56. ^ Parker, Jim (October 1, 2019). "Towerbrook, Ascension Health to Acquire Compassus for $1 Billion". Hospice News. Retrieved June 13, 2020.
  57. ^ Mkandawire, Vinjeru (February 3, 2020). "TowerBrook hires bankers for £800m sale of health recruiter IC". The Telegraph. Retrieved June 13, 2020.
  58. ^ a b c d e "About Us - Our Strategy, Private Equity, Structured Opportunity". Retrieved June 9, 2020.
  59. ^ "Responsible Ownership". Towerbrook.com. Retrieved June 9, 2020.
  60. ^ "TowerBrook Capital Partners". unpri.org. June 7, 2017. Retrieved June 9, 2020.
  61. ^ https://www.towerbrook.com/us/contact/ on 13 Dec 2020
  62. ^ "TowerBrook Responsible Ownership Report" (PDF). towerbrook.com. November 2018. Retrieved June 9, 2020.
  63. ^ Volkmann, Kelsey (May 11, 2010). "TowerBrook selling stake in St. Louis Blues". St. Louis Business Journal. Retrieved June 3, 2020.
  64. ^ "Our Team Senior Advisory Board". Towerbrook.com. Retrieved June 12, 2020.
  65. ^ TowerBrook Foundation IRS filing (US), Internal Revenue Service: https://www.irs.gov/charities-non-profits/copies-of-scanned-eo-returns-available
  66. ^ TowerBrook Foundation supports City Year (US and UK): http://www.cityyear.org.uk/about-city-year-uk/annual-report/ City Year Annual report 2018.
  67. ^ "2018 Annual Report". habitatnyc.org. 2019. Retrieved June 11, 2020.
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