Paine & Partners
Encyclopedia
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.
In 2007, the Paine & Partners formalized a year-long separation process, with Fox Paine co-founder Saul Fox retaining the predecessor 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.
Paine & Partners is headquarterd in Foster City, California
, with offices in New York City
and Chicago
.
In 2005, Saul Fox and Dexter Paine, the two partners of Fox Paine & Company
, began showing signs of disagreement 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 was originally known as Fox Paine Capital Fund III, without Saul Fox's active involvement. However under this arrangement Fox would receive 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.
Prior to co-founding founding Fox Paine in 1997, Paine had been an investment banker and private equity investor at San Francisco-based Robertson Stephens
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.
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. The firm was founded in 2007 by W. Dexter Paine III following his departure from predecessor Fox Paine & Company
Fox Paine & Company
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...
, which he had co-founded in 1997.
In 2007, the Paine & Partners formalized a year-long separation process, with Fox Paine co-founder Saul Fox retaining the predecessor 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.
Paine & Partners is headquarterd in Foster City, California
Foster City, California
Foster City is an affluent planned city located in San Mateo County, California, 94404. As of the 2010 census, the city had a total population of 30,567. Forbes ranked Foster City #10 on their 2009 list of America's Top 25 Towns to Live Well. Money has also recognized Foster City multiple times as...
, with offices in New York City
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 Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
.
History
- See also: Fox Paine & Company History
In 2005, Saul Fox and Dexter Paine, the two partners of Fox Paine & Company
Fox Paine & Company
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...
, began showing signs of disagreement 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 was originally known as Fox Paine Capital Fund III, without Saul Fox's active involvement. However under this arrangement Fox would receive 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.
Prior to co-founding founding Fox Paine in 1997, Paine had been an investment banker and private equity investor at San Francisco-based Robertson Stephens
Robertson 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.