Hellman & Friedman
Encyclopedia
Hellman & Friedman is a private equity firm
, founded in 1984 by Warren Hellman
and Tully Friedman, that makes investments primarily through leveraged buyouts and minority 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
. As of 2008, H&F employed in 2011 over 50 investment professionals, including 15 managing directors, 6 principals and 13 associates as well as senior advisors and general counsels.
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.
Tully Friedman was formerly a managing director at Salomon Brothers
. In 1997, Friedman left the firm to found Friedman Fleischer & Lowe
, a new private equity firm also based in San Francisco.
and Goodman Global
.
Since closing its sixth private equity fund
in 2007, H&F has been active in making new investments:
s (structured as limited partnerships) and its investors include a variety of pension funds, endowments
and other institutional investors:
Source: Preqin
Private equity firm
A private equity firm is an investment manager that makes investments in the private equity of operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital...
, founded in 1984 by Warren Hellman
Warren Hellman
F. Warren Hellman is a private equity investor and co-founder of Hellman & Friedman, a multi-billion dollar private equity firm...
and Tully Friedman, that makes investments primarily through leveraged buyouts and minority growth capital
Growth capital
Growth capital is a type of private equity investment, most often a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.Companies...
investments.
H&F has focused its efforts on several core target industries including media, financial services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
, professional services
Professional services
Professional services is an industry of infrequent, technical, or unique functions performed by independent contractors or by consultants whose occupation is the rendering of such services....
and information services
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
. The firm tends to avoid asset intensive or other industrial businesses (e.g., manufacturing, chemicals, transportation).
H&F is based in San Francisco
San Francisco, California
San Francisco , officially the City and County of San Francisco, is the financial, cultural, and transportation center of the San Francisco Bay Area, a region of 7.15 million people which includes San Jose and Oakland...
, with offices in New York
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
and London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
. As of 2008, H&F employed in 2011 over 50 investment professionals, including 15 managing directors, 6 principals and 13 associates as well as senior advisors and general counsels.
History
Hellman & Friedman was founded in 1984 by Warren HellmanWarren Hellman
F. Warren Hellman is a private equity investor and co-founder of Hellman & Friedman, a multi-billion dollar private equity firm...
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
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
firms in the U.S. Before that, Hellman worked in investment banking
Investment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
at Lehman Brothers
Lehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
, where he served as president as well as head of the Investment Banking Division and Chairman of Lehman Corporation.
Tully Friedman was formerly a managing director at Salomon Brothers
Salomon Brothers
Salomon Brothers was a bulge bracket, Wall Street investment bank. Founded in 1910 by three brothers along with a clerk named Ben Levy, it remained a partnership until the early 1980s, when it was acquired by the commodity trading firm Phibro Corporation and then became Salomon Inc. Eventually...
. In 1997, Friedman left the firm to found Friedman Fleischer & Lowe
Friedman Fleischer & Lowe
Friedman Fleischer & Lowe is a private equity firm, founded in 1998 by Tully Friedman, Spencer Fleischer, David Lowe, and Christopher Masto. The firm makes investments primarily through leveraged buyouts and growth capital investments....
, a new private equity firm also based in San Francisco.
Investments
A core element in the H&F’s strategy is investing ‘growth’ opportunities whether it is an industry sector or a specific company and as a result H&F will invest in a variety of structures, frequently making minority investments with only limited controls. H&F views its willingness to accept minority positions as the competitive advantage while acknowledging the inherent risks associated with a minority position. 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 ImagesGetty Images
Getty Images, Inc. is a stock photo agency, based in Seattle, Washington, USA. It is a supplier of stock images for business and consumers with an archive of 80 million still images and illustrations and more than 50,000 hours of stock film footage...
and Goodman Global
Goodman Global
Goodman Global is a privately held company which manufactures commercial grade room air conditioners and specialty cooling products for residential and light commercial applications...
.
Since closing its sixth private equity fund
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
in 2007, H&F has been active in making new investments:
- Getty ImagesGetty ImagesGetty Images, Inc. is a stock photo agency, based in Seattle, Washington, USA. It is a supplier of stock images for business and consumers with an archive of 80 million still images and illustrations and more than 50,000 hours of stock film footage...
- DoubleClickDoubleClickDoubleClick is a subsidiary of Google that develops and provides Internet ad serving services. Its clients include agencies, marketers and publishers who serve customers like Microsoft, General Motors, Coca-Cola, Motorola, L'Oréal, Palm, Inc., Apple Inc., Visa USA, Nike, Carlsberg among others...
- Goodman GlobalGoodman GlobalGoodman Global is a privately held company which manufactures commercial grade room air conditioners and specialty cooling products for residential and light commercial applications...
- GartmoreGartmoreGartmore is a village in the Stirling council area, Scotland. It is a picturesque little village with an excellent view of the Wallace Monument in Stirling, almost 25 miles away....
- Texas GencoTexas GencoTexas Genco is a major power generation firm, active in the deregulated Texas electricity market and owns several major power plants in the Houston area that serve area power needs....
- Grosvenor Capital ManagementGrosvenor Capital ManagementGrosvenor Capital Management is one of the largest hedge fund sponsors globally. With estimated assets under management of $22.6 billion as of December 31, 2009, Grosvenor ranked as the third largest firm, but the largest independent firm...
- Nielsen Company
- NasdaqNASDAQThe NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
- Internet BrandsInternet BrandsInternet Brands is a new media company based in El Segundo, California that operates online media, community, and e-commerce sites in vertical markets. The company also develops and licenses internet software and social media applications....
Investment Funds
H&F invests through a series of private equity fundPrivate equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
s (structured as limited partnerships) and its investors include a variety of pension funds, endowments
Financial endowment
A financial endowment is a transfer of money or property donated to an institution. The total value of an institution's investments is often referred to as the institution's endowment and is typically organized as a public charity, private foundation, or trust....
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)
Source: Preqin
Preqin
Preqin is a research and consultancy firm focusing on alternative asset classes. The company covers private equity, real estate, infrastructure, and hedge funds and is headquartered in London, UK, with additional offices in New York and Singapore. Preqin maintains a number of publications and...
External links
- Hellman & Friedman (official website)
- Hellman & Friedman: The Deal Journal PE Firm of the Quarter (WSJ.com, 2008)