Madison Dearborn Partners

From Wikipedia, the free encyclopedia
Jump to: navigation, search
Madison Dearborn Partners
Type Private Ownership
Industry Private Equity
Founded 1992
Headquarters Chicago, Illinois, United States
Products Leveraged Buyout
Total assets $18 billion[1]
Employees 50+ (2007)
Website www.madisondearborn.com

Madison Dearborn Partners (MDP) is an American private equity firm specializing in leveraged buyouts of privately held or publicly traded companies, or divisions of larger companies; recapitalizations of family-owned or closely held companies; balance sheet restructurings; acquisition financings; and growth capital investments in mature companies.

History[edit]

Madison Dearborn Partners was founded in 1992 and is based in Chicago, Illinois. The founders, John A Canning Jr, Paul J. Finnegan, Samuel M. Mencoff, and Nicholas W. Alexos had previously made private equity investments for First Chicago Bank.[2] The north-east corner of First Chicago's then-headquarters was at the intersection of Madison and Dearborn Streets.

Madison Dearborn's chairman, John Canning, Jr., is also a minority owner of the Milwaukee Brewers baseball team and submitted an ultimately unsuccessful bid to buy the Chicago Cubs[3][4]

Investments[edit]

In 1998, the firm bought Reiman Publications, based in Greendale, Wisconsin, from Roy Reiman for $640 million. In 2002, the firm sold Reiman Publications to Reader's Digest Association.

In 2007, the firm joined forces with Michael Eisner's Tornante investment company to buy out baseball card maker The Topps Company.[5]

Madison Dearborn completed leveraged buyout transactions for a number of publicly traded and other significant companies in 2006 and 2007 including:

  • Nuveen investments;[7] in 2014, a plan for MDP to sell Nuveen to TIAA-CREF for $6.25 billion was announced;[8] while the Wall Street Journal cited an anonymous source close to the transaction to the effect that MDP "will have broken even on the transaction", Felix Salmon queried that assertion at Reuters;[9] Dan Primack at Fortune then published additional information about auxiliary benefits to MDP to buttress the break-even claim.[10]
  • Sorenson Communications

Bell Canada[edit]

On June 30, 2007, Bell Canada Enterprises (BCE) announced that the company entered into a definitive agreement for BCE to be acquired pursuant to a plan of arrangement by an investor group led by Teachers Private Capital, the private investment arm of the Ontario Teachers' Pension Plan, Providence Equity Partners Inc. and Madison Dearborn Partners. The all-cash transaction is valued at C$51.7 billion (US$48.5 billion), including C$16.9 billion (US$15.9 billion) of debt, preferred equity and minority interests. The arrangement was approved on September 21, 2007 at a Special Meeting of shareholders by more than 97% of the votes cast by holders of common and preferred shares, voting as a single class.[13]

Investment funds[edit]

MDP invests through a series of private limited partnerships and its investors include a variety of pension funds, endowments and other institutional investors:

Fund Vintage
Year
Committed
Capital
Madison Dearborn Capital Partners 1993 $550 million
Fund II 1997 $925 million
Fund III 1999 $2.2 billion
Fund IV 2000 $4.1 billion
Fund V 2006 $6.5 billion
Fund VI 2010 $4.1 billion

Sources:[14][15]

Selected Portfolio[edit]

References[edit]

  1. ^ Capital raised since inception in 1992
  2. ^ COMPANY NEWS; Fund Venture Begun in Chicago (New York Times, 1992)
  3. ^ Is John Canning Jr. the next John Henry? (TheDeal.com, 2007)
  4. ^ Brewers stakeholder in the fan business (Milwaukee Journal Sentinel)
  5. ^ A Bid for Topps, the Baseball Card Company (New York Times, 2007)
  6. ^ Equity Firm to Acquire Net Retailer (New York Times)
  7. ^ Mutual Fund Manager Agrees to Buyout (New York Times, 2007)
  8. ^ Hoffman, Liz, and Leslie Scism, "TIAA-CREF to buy Nuveen Investments for $6.25 billion", MarketWatch, April 14, 2014. Retrieved 2014-04-14.
  9. ^ Salmon, Felix, "Private equity math, Nuveen edition", Reuters, April 14, 2014. Retrieved 2014-04-14.
  10. ^ Primack, Dan, "Madison Dearborn's patience pays off on Nuveen Investments", Fortune, April 14, 2014. Retrieved 2014-04-14.
  11. ^ Madison Dearborn part of winning $12.3B bid for Univision (Chicago Business News, Analysis & Articles, 2006)
  12. ^ Candle Maker Accepts a Buyout Offer (New York Times, 2006)
  13. ^ Privatization of BCE
  14. ^ Skelly, Keenan (May 4, 2010). "Press Release". The Wall Street Journal. 
  15. ^ Madison Dearborn Partners Overview

External links[edit]