Hellman & Friedman

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Hellman & Friedman LLC
TypePrivate, LLC
IndustryPrivate equity
Founded1984; 37 years ago (1984)
FounderWarren Hellman
Tully Friedman
HeadquartersSalesforce Tower
San Francisco, California, United States
ProductsLeveraged buyout, growth capital
AUMUS$48.9 billion [1]
Total assetsUS$25 billion
Number of employees
100+ (2011)
Websitewww.hf.com

Hellman & Friedman LLC (H&F) is an American private equity firm, founded in 1984 by Warren Hellman[2][3] and Tully Friedman, that makes investments primarily through leveraged buyouts as well as growth capital investments. H&F has focused its efforts on several core target industries including media, financial services, professional services and information services. The firm tends to avoid asset intensive or other industrial businesses (e.g., manufacturing, chemicals, transportation). H&F is based in San Francisco, with offices in New York and London.

History[edit]

Founding[edit]

Hellman & Friedman was founded in 1984 by Warren Hellman and Tully Friedman. Before H&F, Hellman was a founding partner of Hellman, Ferri Investment Associates, which would later be renamed Matrix Management Company. Today, Matrix is among the most prominent venture capital firms in the U.S. Before that, Hellman worked in investment banking at Lehman Brothers, where he served as president as well as head of the Investment Banking Division and Chairman of Lehman Corporation.[citation needed] Tully Friedman was formerly a managing director at Salomon Brothers. In 1997, Friedman left the firm to found Friedman Fleischer & Lowe, a private equity firm also based in San Francisco.[citation needed]

Recent[edit]

As of 2011, H&F employed approximately 50 investment professionals, including 15 managing directors, 6 principals and 13 associates as well as senior advisors and general counsels.[citation needed] In August 2013, the firm acquired Canada's largest insurance broker, Hub International, for around $4.4 billion.[4] In March 2014, the firm acquired Renaissance Learning, a firm providing assessment methods such as electronic tests that adapt questions in real time depending on how successfully the student is answering, for $1.1 billion in cash.[5]

In February 2015, it was announced that Hellman & Friedman were putting together a takeover bid for used car company Auto Trader, which could amount to an offer of £2 billion.[6] On May 18, 2017, Hellman & Friedman made a A$2.9 billion bid for Fairfax Media in Australia, starting a bidding war with TPG Group for the company.[7]

In May 2016, H&F agreed to a deal to acquire the healthcare cost management company MultiPlan Inc. for about $7.5 billion.[8]

In June 2018, it was announced that Hellman & Friedman were taking a controlling interest in the security monitoring company, SimpliSafe.[9]

In February 2019, it was announced that Hellman & Friedman purchased Ultimate Software for $11 billion, an all-cash transaction.[10] Ultimate Software has since been combined with Kronos Incorporated, and rolled into the brand Ultimate Kronos Group.[11] In December 2019, Hellman & Friedman acquired Scout24, a European automotive digital marketplace, for 2.9 billion euros ($3.2 billion).[12]

In 2020, Hellman & Friedman joined Diligent Corporation's Modern Leadership Initiative and pledged to create five new board roles among its portfolio companies for racially diverse candidates.[13][14]

In July 2021, it was announced that Hellman & Friedman purchased At Home.[15]

Notable holdings[edit]

A core element in H&F's strategy is investing in "growth" opportunities whether in an industry sector or a specific company. H&F invests in a variety of structures, frequently making minority investments with only limited controls. Additionally, H&F has taken a number of unconventional steps to finance and close transactions, including arranging and syndicating the financing for several investments including Getty Images and Goodman Global.[16]

Since closing its sixth private equity fund in 2007, H&F has been active in making new investments:

Investment funds[edit]

H&F invests through a series of private equity funds (structured as limited partnerships) and its investors include a variety of pension funds, endowments and other institutional investors:

  • 1984 — Hellman & Friedman I
  • 1991 — Hellman & Friedman II ($826 million)
  • 1995 — Hellman & Friedman III ($1.5 billion)
  • 2000 — Hellman & Friedman IV ($2.2 billion)
  • 2004 — Hellman & Friedman V ($3.5 billion)
  • 2007 — Hellman & Friedman VI ($8.4 billion)[30]
  • 2011 — Hellman & Friedman VII ($8.8 billion)[31]
  • 2014 — Hellman & Friedman VIII ($10.9 billion)[32]
Source: Preqin[33][34]

See also[edit]

References[edit]

  1. ^ "Hellman & Friedman LLC | AUM 13F".
  2. ^ "Bloomberg Business". Bloomberg.com. Archived from the original on 23 May 2011. Retrieved 19 January 2016.
  3. ^ A Casual Approach to Success: Warren Hellman (Harvard Business School Bulletin)
  4. ^ Greg Roumeliotis and Tanya Agrawal (5 August 2013). "Hellman & Friedman agrees to acquire Hub in $4.4 billion deal". Reuters.
  5. ^ Reuters Editorial (13 March 2014). "Hellman & Friedman pays $1.1 billion for Renaissance Learning". Reuters. Retrieved 19 January 2016.
  6. ^ "Private equity firm Hellman in Auto Trader bid". City A.M. February 2015. Retrieved 2015-02-02.
  7. ^ Smith, Jamie (May 18, 2017). "Private equity bidding war erupts over Fairfax". Financial Times. United Kingdom. Retrieved May 18, 2017.
  8. ^ "Private equity closes in on $7.5bn deal for MultiPlan". Financial Times. Retrieved 2017-07-21.
  9. ^ "Hellman & Friedman deal values SimpliSafe at $1B – TechCrunch". techcrunch.com. Retrieved 2018-06-29.
  10. ^ "Ultimate Software - Ultimate Software Announces Agreement to be Acquired by an Investor Group Led by Hellman & Friedman to Operate as a Privately Held Company". Retrieved 2020-09-28.
  11. ^ "Kronos and Ultimate Software Unveil Plans to Rebrand as "UKG"". 28 August 2020. Retrieved 2020-09-28.
  12. ^ "Scout24 sells AutoScout24 to Hellman & Friedman," Reuters, 17 December 2019.
  13. ^ Gara, Antoine. "Inside The Massive New Effort To Get Minorities On Corporate Boards". Forbes. Retrieved 2020-11-23.
  14. ^ "Modern Governance Requires Modern Leadership". diligent.com. Retrieved 2020-11-23.
  15. ^ "Hellman & Friedman Completes Acquisition of At Home". Businesswire. July 23, 2021.
  16. ^ Financing without banks (WSJ.com, February 25, 2008)
  17. ^ DoubleClick Agrees To Be Acquired By Hellman & Friedman (New York Times, 2005)
  18. ^ Closing Letter to Counsel for Hellman & Friedman Capital Partners (Federal Trade Commission)
  19. ^ Maker of Heating Systems Is Bought for $1.8 Billion (New York Times, October 23, 2007)
  20. ^ World Business Briefing | Europe: Britain: Hedge Fund Manager Acquired (New York Times, 2006)
  21. ^ The Deal That Even Awed Them in Houston (New York Times, November 23, 2005)
  22. ^ Hellman to Take Stake in Grosvenor (New York Times, 2007)
  23. ^ Buyout Bid For Parent Of Nielsen (New York Times, 2006)
  24. ^ Firm Pays $240 Million For 9.8% Stake in Nasdaq (New York Times, 2001)
  25. ^ "Internet Brands announcement". Retrieved 19 January 2016.
  26. ^ "Archived copy". Archived from the original on 2013-05-27. Retrieved 2016-02-06.CS1 maint: archived copy as title (link)
  27. ^ Hellman & Friedman LLC and SSP Holdings plc (23 July 2008). "Hellman & Friedman Backs SSP Holdings in a GBP198 Million Investment". Retrieved 19 January 2016.
  28. ^ "Web Reservations International Acquired by Hellmann & Friedman - Hostelworld.com". Hostelworld. Archived from the original on 26 January 2016. Retrieved 19 January 2016.
  29. ^ Hellman & Friedman closes $8.4 bln equity fund (Reuters, 2007)
  30. ^ Hellman Friedman announces final close of 88 billion private equity fund - firm implements management transition plan, PR Newswire, 2009, archived from the original on July 16, 2016, retrieved July 22, 2017
  31. ^ Chassany, Anne-Sylvain (November 9, 2014). "Hellman & Friedman amasses $11bn for new fund". Financial Times. United Kingdom. Retrieved July 22, 2017.
  32. ^ Preqin
  33. ^ "About - Hellman & Friedman". Hellman & Friedman. Retrieved 19 January 2016.

External links[edit]