Hellman & Friedman LLC, a leading San Francisco based private equity firm, today announced the closing of Hellman & Friedman Capital Partners V, L.P. (HFCP V), a $3.5 billion fund.
"The closing of our fifth fund, on our 20th anniversary, is a key milestone for Hellman & Friedman," said F. Warren Hellman, Chairman of Hellman & Friedman. "The commitment of $3.5 billion in capital from our partners reaffirms H&F's track record and history of disciplined investing in strong franchises with solid management and defensible market positions."
The vast majority of HFCP V capital was contributed by investors who have invested in H&F's previous funds, leaving limited capacity for selected new investors. "We have been investing with H&F since HFCP III in 1995. They have been among our best performing private equity funds, and we are pleased to continue the relationship with the firm," stated Thomas Rest, the Manager of Private Equity for the New York State Teachers' Retirement System.
"We have been and continue to be one of H&F's largest investors. We believe they merit our continued support based on their outstanding record, integrity, and commitment to the alignment of interests with their partners," commented Leon Shahinian, Senior Investment Officer of Alternative Investment Management for the California Public Employees' Retirement System.
When asked to comment on the participation of the Ontario Municipal Employees Retirement System, Dominique Hansen, Vice President of OMERS Capital Partners, said, "OMERS is honored to be a new investor in HFCP V. We believe H&F is differentiated in the buyout space by its proven track record and unique focus of being true partners to the best management teams."
The firm said it would apply the same investment approach and focus to HFCP V, and that it would continue to make large-scale equity-related investments of $100 to $750 million, primarily in the United States and the developed markets in Europe and Australia.
H&F also announced it has opened an office in London, which is headed by Patrick Healy, a Managing Director of the firm. Having made four significant investments in Europe in its current fund, the London office will help the firm monitor and build its existing European investments and continue to seek investment opportunities in the United Kingdom and continental Europe.
Prior to HFCP V, Hellman & Friedman successfully raised and managed a total of four funds, comprising approximately $5 billion of committed capital invested in over 45 companies beginning in 1987. Over 80 percent of the total value of the previous funds has been realized and returned to investors.
"Over the past 14 years, amid increasing competition in the private equity industry, Hellman & Friedman has sought to differentiate itself by partnering with management of quality portfolio companies to provide not only capital, but relevant expertise," said Brian M. Powers, CEO of Hellman & Friedman.
"Our belief in strong, constructive partnerships with management and existing strategic or family shareholders allows us more flexibility in the structure and form of our investments -- we do not always seek a majority or controlling stake, and we find opportunities in both private and publicly traded companies."
Mr. Powers continued, "We are most appreciative of the support we have received from our investors. The increased size of our fund puts us among the handful of funds capable of committing up to $750 million to a single investment opportunity."
Historically, the firm has emphasized investing in the service industries, including media (e.g. television, newspapers, radio, outdoor, entertainment), financial services (e.g. asset management, insurance, securities services), professional services (e.g. advertising agencies, marketing services, consulting), and information services (e.g. software, business services). In addition to these sectors, H&F continuously seeks investments in other sectors that match the firm's investment criteria -- strong operating management teams, attractive business franchises, high levels of free cash flows, and predictable revenue growth.
About Hellman & Friedman LLC
Hellman & Friedman LLC is a San Francisco-based private equity investment firm with additional offices in New York City and London. Since its founding in 1984, the Firm has raised and managed approximately $5 billion of committed capital and invested in over 45 companies. The Firm's strategy is to invest in superior business franchises and to be a value-added partner to management in select industries including media, financial services, professional services, and information services. Representative investments include Axel Springer AG (ASV GR), ProSieben Sat.1 AG (PSM GR), Formula One Holdings, Ltd, Arch Capital Group Limited (ACGL), the NASDAQ Stock Market, Inc. (NDAQ), Blackbaud, Inc., Young & Rubicam, Inc., Eller Media Company, Inc., Voicestream Wireless Corporation, Western Wireless Corporation (WWCA), Franklin Resources, Inc. (BEN), and others. For more information on Hellman & Friedman, visit www.hf.com.