NEW YORK--()--AlixPartners, LLP, the global business advisory firm, and CVC Capital Partners (“CVC”) today announced they have agreed to a recapitalization by which funds affiliated with CVC will purchase majority ownership of AlixPartners. AlixPartners’ 125 Managing Directors will maintain a considerable equity stake in the enterprise. The transaction is subject to customary closing conditions and is expected to close this summer.
Terms of the transaction were not disclosed. Hellman & Friedman made a significant investment in AlixPartners in 2006; as part of that transaction, Jay Alix, who founded the firm in 1981, transferred a substantial portion of his interest. He will maintain a substantial minority stake in the firm.
Said Fred Crawford, CEO of AlixPartners, “In recent years, AlixPartners has significantly expanded our offerings, to the point that while we continue to enjoy a leadership position globally in restructuring, today the majority of our revenues come from our other service lines, including performance-improvement consulting, litigation and investigations support, and IT transformation and data analytics. Partnering with CVC will enable us to continue to develop our services and expand geographically.”
David Tayeh, Managing Director at CVC, commented, “AlixPartners is recognized globally as one of the top corporate advisory firms. We are delighted to partner with Fred Crawford and the world-class AlixPartners team to capitalize on the significant growth opportunities across its service offerings worldwide. With more than one third of AlixPartners’ revenue currently derived outside of the U.S., CVC, as a global private equity firm, is uniquely positioned to help further expand AlixPartners’ footprint.”
AlixPartners specializes in improving corporate financial and operational performance, executing corporate turnarounds, providing litigation consulting, forensic accounting, and specialized IT services. Since its founding, AlixPartners has achieved consistent and significant growth by providing a high level of value-added services to its clients across a number of practice areas and geographies.
Since 2006, AlixPartners has grown from 550 to more than 950 professionals; expanded from 12 to 17 offices globally; expanded into mainland China, Hong Kong and the Middle East; and has greatly expanded its services to clients in industries including retail, consumer products, financial services and media, among many others.
Philip Hammarskjold, CEO of Hellman & Friedman, commented, “We have been pleased to work with the Managing Directors at AlixPartners to help them significantly grow the Firm into new geographies and service lines over the past six years. The Firm has an outstanding roster of people and capabilities, which allows them to do great work to serve their clients’ most pressing business challenges. We wish our colleagues at AlixPartners continued success in the coming years.”
Some of AlixPartners’ clients in recent years include Ruby Tuesday, Media General, Dubai World, Henkel, Nokia Siemens Networks, BorgWarner, Baccarat, Diamond Foods and General Growth Properties, as well as the Bernard L. Madoff Investment Securities LLC case.
Deutsche Bank, Bank of America Merrill Lynch, Goldman Sachs, Jefferies, and UBS have provided committed financing for the transaction. Goldman Sachs & Co. and Bank of America Merrill Lynch served as financial advisors to AlixPartners and Hellman & Friedman. Simpson Thacher & Bartlett LLP served as legal counsel to AlixPartners and Hellman & Friedman. Willkie Farr & Gallagher LLP served as legal counsel to Jay Alix. Morgan Stanley served as financial advisor to CVC. Gibson Dunn & Crutcher served as legal counsel to CVC.
AlixPartners, LLP is a global business advisory firm offering comprehensive services in four major areas: enterprise improvement, turnaround and restructuring services, financial advisory services and information management services. Founded in 1981, the firm has more than 900 professionals in offices around the world, and can be found on the Web at www.alixpartners.com.
About CVC Capital Partners
CVC is one of the world’s leading private equity and investment advisory firms. Founded in 1981, CVC today has a network of 20 offices and some 250 employees throughout Europe, US and Asia. Currently, CVC advises funds on behalf of over 300 investors from North America, Europe, Asia and the Middle East. CVC Funds seek to identify attractive investments and develop sustainable, long-term value in close partnership with management teams. To date, CVC has raised over U.S.$44 billion from a diverse and loyal investor base, completing over 290 investments in a wide range of industries and countries across the globe, with an aggregate transaction value of U.S.$169 billion. In total, we manage over U.S.$37 billion and are investing from CVC Tandem Fund, CVC Fund V and CVC Asia III.
The CVC team’s local knowledge and extensive contacts underpin a 31-year proven track record of investment success. Thanks to its extensive international presence, CVC excels at pulling together cross-border resources to assess investment opportunities quickly and consistently, so allowing sound and timely decisions to be made on questions of value. This is key both in deal completion and in generating strong returns for investors. Today, CVC Funds own 61 companies worldwide, employing around 400,000 people in numerous countries. Together these companies have combined annual sales of over U.S.$136 billion.
About Hellman & Friedman
Hellman & Friedman LLC is a leading private equity investment firm with offices in San Francisco, New York and London. Since its founding in 1984, Hellman & Friedman has raised and, through its affiliated funds, managed over $25 billion of committed capital. The Firm focuses on investing in superior business franchises and serving as a value-added partner to management in select industries including internet & digital media, software, business & marketing services, financial services, insurance, media, healthcare and energy & industrials. For more information on Hellman & Friedman, visit www.hf.com.