Dossey to “Re-Energize” Blum Capital’s Buyout Biz

Yesterday we reported that Doug Dossey left his position as managing director at mid-market buyout firm FdG Associates to take a position with Blum Capital. Today I’ve got more details.

Dossey made the move in August after Blum Capital approached him in March, possibly as a result of attention from his work on the firm’s buyout of infrastructure company Joseph B. Fay & Co.

In an interview with peHUB, Dossey said he wasn’t looking to leave the firm he spent 11 years with, but found the prospects of Blum Capital’s buyout segment intriguing. As a partner with Blum Capital, he is charged with “re-energizing” the firm’s private equity business.

Blum Capital is technically a private equity firm, but its mandate includes investments in public companies in the form of PIPEs. Likewise, the firm has a generous recycling provision for returns on public equity investments. Dossey said, over the years, the firm’s business has evolved toward the public markets side, so he was brought in to lead a renaissance of its private deals side.

“I’ll continue to do the same things I did at FdG, including finding opportunities where Blum can be the first institutional money to the business,” he said. FdG Associates invests almost exclusively in family-owned businesses.

As I noted yesterday, Blum Capital manages quite a bit more capital than FdG Associates, which is nearing fully deployment on its second fund, a $310 million pool. In contrast, Blum Capital has at least $2.5 billion to deploy from its third and fourth funds, which were raised in 2005 and 2008, respectively. I say “at least” because of the aforementioned recycling provision.

Blum Capital recently exited a private equity co-investment it made when TPG bought Australian retailer Myer. The company went public in November.

Previously:

Dossey Leaves FdG for Blum Capital

Kind of a Big Deal: “The Stimulus Is Just Icing on the Cake”