Fox Paine & Company
Encyclopedia
Fox Paine & Company is a private equity
firm focused on leveraged buyout
transactions. Fox Paine & Company, LLC was founded in 1997 by former Kohlberg Kravis Roberts partner Saul A. Fox and former Kohlberg & Co. partner W. Dexter Paine III. In 2007, the firm formalized a year-long separation process, with Saul Fox retaining the firm's name, while Dexter Paine formed a new firm, Paine & Partners
, with the legacy Fox Paine investment team.
The firm primarily invests in financial services and insurance companies, with investments in semiconductors, agribusiness, healthcare, energy, telecommunications, industrials and consumer goods.
Fox Paine is headquartered in Foster City, California.
and later Kohlberg & Co. The two partners had been encouraged to work together given their previous business dealings. In 1985, Dexter Paine had helped Saul Fox arrange financing for the leveraged buyout
of Motel 6
, while at KKR.
In 1998, Fox Paine completed fundraising for Fox Paine Capital Fund, an investment fund with $500 million of investor commitments. In 2001, the firm successfully raised Fox Paine Capital Fund II, a $1.0 billion investment fund, exceeding its original $750 million target.
The following is a selected list of notable investments made by Fox Paine
In 2005, the two partners disagreed about the raising of a third investment fund, with Dexter Paine pushing the effort and Saul Fox preferring to focus on existing investments. In 2006, they reached an agreement that let Dexter Paine launch what became known as the Fox Paine Capital Fund III, without Saul Fox's active involvement while paying Fox a 25% interest in the new fund's general partnership. The situation broke down in 2007 and the two partners resorted to litigation to settle a number of disputes.
In December 2007, Fox and Paine came to a compromise under which Saul Fox retained the use of the Fox Paine name and control over the investments in Fox Paine Fund II. In return, Saul Fox ceded his interest in Fox Paine Fund III, which would subsequently be renamed Paine Capital Fund III as well as the remaining legacy interest in the original Fox Paine Capital Fund.
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm focused on leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
transactions. Fox Paine & Company, LLC was founded in 1997 by former Kohlberg Kravis Roberts partner Saul A. Fox and former Kohlberg & Co. partner W. Dexter Paine III. In 2007, the firm formalized a year-long separation process, with Saul Fox retaining the firm's name, while Dexter Paine formed a new firm, Paine & Partners
Paine & Partners
Paine & Partners is a private equity firm focused on leveraged buyout transactions. The firm was founded in 2007 by W. Dexter Paine III following his departure from predecessor Fox Paine & Company, which he had co-founded in 1997....
, with the legacy Fox Paine investment team.
The firm primarily invests in financial services and insurance companies, with investments in semiconductors, agribusiness, healthcare, energy, telecommunications, industrials and consumer goods.
Fox Paine is headquartered in Foster City, California.
History
Prior to founding Fox Paine in 1997, Fox had been a partner at Kohlberg Kravis Roberts, while Paine had been an investment banker and private equity investor at San Francisco-based Robertson StephensRobertson Stephens
Robertson Stephens was a San Francisco-based boutique investment bank that focused on primarily on technology companies...
and later Kohlberg & Co. The two partners had been encouraged to work together given their previous business dealings. In 1985, Dexter Paine had helped Saul Fox arrange financing for the leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
of Motel 6
Motel 6
Motel 6 is a major chain of budget motels with more than 1,000 locations in the United States and Canada, and is the largest owned and operated hotel chain in North America. It is owned and operated by Accor Hotels.-History:...
, while at KKR.
In 1998, Fox Paine completed fundraising for Fox Paine Capital Fund, an investment fund with $500 million of investor commitments. In 2001, the firm successfully raised Fox Paine Capital Fund II, a $1.0 billion investment fund, exceeding its original $750 million target.
The following is a selected list of notable investments made by Fox Paine
- Alaska Communications SystemsAlaska Communications SystemsAlaska Communications is a telecommunications corporation headquartered in Anchorage, Alaska. It was the first telecommunications provider in the state of Alaska to maintain a third-generation wireless network and the only provider in Alaska that owns fully incorporated infrastructure for the...
- Erno Laszlo / Cradle HoldingsErno LaszloErno Laszlo, Ernő László was a Hungarian-born American dermatologist and cosmetic businessman who founded The Erno Laszlo Institute.-Early life:...
- L'Artisan ParfumeurL'Artisan ParfumeurL'Artisan Parfumeur is a French niche perfume house, established in 1976 by Jean Laporte. He later left the company to form rival Maître Parfumeur et Gantier.L'Artisan is based in Paris, but now has outlets worldwide....
- Penhaligon'sPenhaligon'sPenhaligon's is an English perfume house. It was founded in the late 1860s by William Henry Penhaligon, a Cornish barber who moved to London and who became Court Barber and Perfumer to Queen Victoria.- History :...
- SeminisSeminisSeminis is the largest developer, grower and marketer of fruit and vegetable seeds in the world. Seminis' hybrids claim to improve nutrition, boost crop yields, limit spoilage and reduce the need for chemicals...
- Stabilus
- United National
- Watkins-Johnson Company
In 2005, the two partners disagreed about the raising of a third investment fund, with Dexter Paine pushing the effort and Saul Fox preferring to focus on existing investments. In 2006, they reached an agreement that let Dexter Paine launch what became known as the Fox Paine Capital Fund III, without Saul Fox's active involvement while paying Fox a 25% interest in the new fund's general partnership. The situation broke down in 2007 and the two partners resorted to litigation to settle a number of disputes.
In December 2007, Fox and Paine came to a compromise under which Saul Fox retained the use of the Fox Paine name and control over the investments in Fox Paine Fund II. In return, Saul Fox ceded his interest in Fox Paine Fund III, which would subsequently be renamed Paine Capital Fund III as well as the remaining legacy interest in the original Fox Paine Capital Fund.