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Hellman & Friedman

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Hellman & Friedman LLC
Company typePrivate
IndustryPrivate equity
Founded1984; 40 years ago (1984)
FounderWarren Hellman
Tully Friedman
HeadquartersSalesforce Tower
San Francisco, California, United States
ProductsLeveraged buyout, growth capital
AUMUS$80 billion (September 2022)[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.

In June 2023, Hellman & Friedman was ranked 18th in Private Equity International's PEI 300 ranking of the largest private equity firms in the world.[4]

History

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History of private equity
and venture capital
Early history
(origins of modern private equity)
The 1980s
(leveraged buyout boom)
The 1990s
(leveraged buyout and the venture capital bubble)
The 2000s
(dot-com bubble to the credit crunch)
The 2010s
(expansion)
The 2020s
(COVID-19 recession)

Founding

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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

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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.[5] 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.[6]

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.[7] 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.[8]

In May 2016, H&F agreed to a deal to acquire the healthcare cost management company MultiPlan Inc. for about $7.5 billion.[9]

In June 2018, it was announced that Hellman & Friedman were taking a controlling interest in the security monitoring company, SimpliSafe.[10]

In February 2019, it was announced that Hellman & Friedman purchased Ultimate Software for $11 billion, an all-cash transaction.[11] Ultimate Software has since been combined with Kronos Incorporated, and rolled into the brand Ultimate Kronos Group.[12] In December 2019, Hellman & Friedman acquired AutoScout24, a European automotive digital marketplace, for 2.9 billion euros ($3.2 billion) from Scout24.[13]

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.[14][15]

In July 2021, it was announced that Hellman & Friedman purchased At Home.[16]

In November 2021, H&F and Bain Capital agreed to buy Athenahealth for $17 Billion.[17]

Notable holdings

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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.[18]

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

Investment funds

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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)[29]
  • 2011 – Hellman & Friedman VII ($8.8 billion)[30]
  • 2014 – Hellman & Friedman VIII ($10.9 billion)[31]
  • 2018 – Hellman & Friedman IX ($16.5 billion)
  • 2021 – Hellman & Friedman X ($24.4 billion)
Source: Preqin[32][33]

See also

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References

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  1. ^ "Hellman & Friedman LLC | AUM 13F".
  2. ^ "Bloomberg Business". Bloomberg.com. Archived from the original on May 23, 2011. Retrieved January 19, 2016.
  3. ^ A Casual Approach to Success: Warren Hellman (Harvard Business School Bulletin)
  4. ^ "PEI 300 | The Largest Private Equity Firms in the World". Private Equity International. June 1, 2023. Retrieved June 2, 2023.
  5. ^ Greg Roumeliotis and Tanya Agrawal (August 5, 2013). "Hellman & Friedman agrees to acquire Hub in $4.4 billion deal". Reuters.
  6. ^ Reuters Editorial (March 13, 2014). "Hellman & Friedman pays $1.1 billion for Renaissance Learning". Reuters. Retrieved January 19, 2016. {{cite web}}: |author= has generic name (help)
  7. ^ "Private equity firm Hellman in Auto Trader bid". City A.M. February 2015. Retrieved February 2, 2015.
  8. ^ Smith, Jamie (May 18, 2017). "Private equity bidding war erupts over Fairfax". Financial Times. United Kingdom. Retrieved May 18, 2017.
  9. ^ "Private equity closes in on $7.5bn deal for MultiPlan". Financial Times. Retrieved July 21, 2017.
  10. ^ "Hellman & Friedman deal values SimpliSafe at $1B – TechCrunch". techcrunch.com. Retrieved June 29, 2018.
  11. ^ "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 September 28, 2020.
  12. ^ "Kronos and Ultimate Software Unveil Plans to Rebrand as "UKG"". August 28, 2020. Retrieved September 28, 2020.
  13. ^ "Scout24 sells AutoScout24 to Hellman & Friedman," Reuters, December 17, 2019.
  14. ^ Gara, Antoine. "Inside The Massive New Effort To Get Minorities On Corporate Boards". Forbes. Retrieved November 23, 2020.
  15. ^ "Modern Governance Requires Modern Leadership". diligent.com. Archived from the original on August 17, 2021. Retrieved November 23, 2020.
  16. ^ "Hellman & Friedman Completes Acquisition of At Home". Businesswire. July 23, 2021.
  17. ^ "H&F, Bain Capital tap into health tech boom with $17 bln Athenahealth deal". Reuters. November 22, 2021.
  18. ^ Financing without banks (WSJ.com, February 25, 2008)
  19. ^ DoubleClick Agrees To Be Acquired By Hellman & Friedman (New York Times, 2005)
  20. ^ Closing Letter to Counsel for Hellman & Friedman Capital Partners (Federal Trade Commission)
  21. ^ Maker of Heating Systems Is Bought for $1.8 Billion (New York Times, October 23, 2007)
  22. ^ World Business Briefing | Europe: Britain: Hedge Fund Manager Acquired (New York Times, 2006)
  23. ^ The Deal That Even Awed Them in Houston (New York Times, November 23, 2005)
  24. ^ Hellman to Take Stake in Grosvenor (New York Times, 2007)
  25. ^ Buyout Bid For Parent Of Nielsen (New York Times, 2006)
  26. ^ Firm Pays $240 Million For 9.8% Stake in Nasdaq (New York Times, 2001)
  27. ^ "Internet Brands announcement". Retrieved January 19, 2016.
  28. ^ "Pharmaceutical Product Development - PPD to be Acquired by the Carlyle Group and Hellman & Friedman". Archived from the original on May 27, 2013. Retrieved February 6, 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. Archived from the original on April 30, 2015. Retrieved January 19, 2016.
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