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Ted VirtueNew York City, United States
London, England, United Kingdom
|Products||Private equity funds, Leveraged buyouts|
|Total assets||$3.5 billion|
MidOcean Partners is an American private equity firm specializing in leveraged buyouts, recapitalizations and growth capital investments in middle-market companies. The firm has historically focused on investments in middle market companies in four core industries including business services; consumer and leisure companies, media and niche industrial services.
The firm, founded in February 2003, is based in Midtown Manhattan, New York City, with an office in London and more than 20 investment professionals globally. MidOcean was originally formed by the managers of DB Capital Partners to acquire Deutsche Bank's late stage private equity investments in the United States and Europe in one of the largest private equity secondary transactions completed to date.
MidOcean Partners was formed through a management spinout transaction. A group of investors provided capital to the managers of DB Capital Partners, led by MidOcean CEO Ted Virtue, to acquire the portfolio of private equity investments they had managed at Deutsche Bank. Among the investors in the transaction were NIB Capital Private Equity (today AlpInvest Partners), HarbourVest Partners, Paul Capital Partners, Coller Capital, Ontario Teachers' Pension Plan and CPP Investment Board, with investments from Northwestern Mutual, The Yucaipa Companies and Presidential Life. The management spinout of MidOcean, at the time valued at €1.5 billion (over $1.8 billion) was then and is still one of the largest transactions completed in the private equity secondary market.
The spinout of MidOcean came at the same time as the spinouts of private equity groups from other leading investment banks including: JPMorgan Chase (CCMP Capital), Citigroup (Court Square Capital Partners), Morgan Stanley (Metalmark Capital) and Credit Suisse First Boston (Avista Capital Partners, Diamond Castle Holdings).
Since its inception, MidOcean has managed three private equity funds:
- MidOcean Partners – Approximately $2 billion vehicle used to house the investments acquired from Deutsche Bank through the secondary purchase.
- MidOcean Partners Fund II – $520 million of investor commitments, primarily from investors in the original 2003 secondary transaction.
- MidOcean Partners Fund III - $1.25 billion raised as a fully independent private equity fund in 2007
Among MidOcean's investments are various business services; consumer and leisure companies, media and niche industrial services companies including:
- Bushnell Corporation
- Casablanca Fan Company
- Center Parcs UK
- Hunter Fan Company
- Jenny Craig, Inc.
- LA Fitness (Europe)
- Palace Entertainment
- Prestige Brands
- Stratus Technologies
- United Biscuits
- Young America Corporation
- "Former Deutsche Buyout Arm Raised $1 billion for New Fund." New York Times, July 19, 2006
- "MidOcean Partners to Raise $1 billion fund", eFinancial News, January 9, 2006
- Funds raised since inception
- "Contact." MidOcean Partners. Retrieved on March 5, 2010.
- MidOcean Partners (company website)
LA fitness UK Not LA fitness USA