MutualFundWire.com
   The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
Wednesday, June 20, 2007 Who is Madison Dearborn Partners? Madison Dearborn Partners, LLC the new owner of Nuveen Investments may not be a familiar name to many in the mutual fund industry. So who are they? Founded in 1992 by alumns of First Chicago, MDP is a Chicago-based $14 billion private equity firm that specializes in management buyout and other private equity transactions across a broad spectrum of industries. Earlier this year it closed on a $6.5 billion fund. Its portfolio includes stakes in: CapitalSource Inc., Eldorado Bancshares, HomeSide, Pax Holding Corporation, PayPal and PeopleFirst. The Nuveen deal is one of two MDP is involved in today; It is also one of four private equity firms involved $5.03 billion buyout of satellite operator Intelsat Ltd. On May 29, MDP bought out CDW Corporation, a provider of technology products and services to business, government and education customers, in a deal valued at approximately $7.3 billion.
MDP generally seeks to invest $100 million to $600 million of equity capital in a single transaction. When shopping for financial services companies, MDP looks for the following characteristics; * Barriers to entry and inherent franchise value emanating from unique distribution capabilities, servicing capabilities, or industry-specific knowledge; * Outstanding management; * Aggressive utilization of technology; * Favorable industry or demographic trends; and * Conservative accounting and financing policies. Recent acquisitions by MDP are -- CDW Corp., a computer retailer, in a deal that was announced at the end of May and VWR International, a laboratory supply company, in a deal that was announced in the beginning of May. A representative for MDP was not immediately able to comment on the Nuveen deal. Printed from: MFWire.com/story.asp?s=14793 Copyright 2007, InvestmentWires, Inc. All Rights Reserved |