Dyal Capital Partners and Goldman Sachs Asset Management’s Petershill program, along with Landmark Partners, have made a minority investment in Clearlake Capital Group LP. Financial terms weren’t announced. The deal will provide permanent capital to Clearlake increase the firm’s investment in its own funds.
CLEARLAKE CAPITAL GROUP ANNOUNCES STRATEGIC MINORITY INVESTMENT BY DYAL CAPITAL, GOLDMAN SACHS ASSET MANAGEMENT AND LANDMARK PARTNERS
Santa Monica, CA – May 29, 2018 — Clearlake Capital Group, L.P. (together with its affiliates, “Clearlake”), a leading global private equity and alternative asset investment firm, announced today that Dyal Capital Partners (“Dyal”), a division of Neuberger Berman, and Goldman Sachs Asset Management’s Petershill program (“Petershill”), along with existing partner, Landmark Partners (“Landmark”), have made a strategic minority investment in Clearlake.
Under the terms of the transaction, the passive, non-voting minority stake will provide permanent capital to significantly increase the firm’s investments in its own funds and to support the development of initiatives that capitalize on the firm’s sector-focused approach coupled with its unique integration of private equity, special situations, and credit capabilities.
José E. Feliciano and Behdad Eghbali, the Founders and Managing Partners of Clearlake, commented, “This partnership will broaden the resources and support available to Clearlake as we pursue strategic initiatives and continue to build a market leading franchise. This is the first time the two industry leaders, Dyal and Petershill, which have earned a reputation for supporting best-in-class managers and teams, have come together, and we couldn’t be happier to partner with them alongside our existing partner, Landmark, as they make a permanent capital investment in Clearlake.”
Michael Rees, Head of Dyal Capital Partners, added, “We are excited to partner with Clearlake, which has a leading franchise, a unique sector-focused private equity approach, and an integrated special situations and credit capability. We believe that Clearlake’s track record, strategy, and depth position Clearlake for continued success and make the firm a good fit for our strategy of partnering with leading alternative asset management firms.”
Michael Brandmeyer, co-CIO of the Alternative Investments & Manager Selection Group at Goldman Sachs Asset Management, said, “We have known and invested with Clearlake for nearly a decade and seen first-hand their success in driving performance across their businesses. Clearlake stands out for their efforts to build a differentiated platform that incorporates a proven model of portfolio operations improvement coupled with a strong track record as well as an expanding and diverse international investor base. These are key qualities that Petershill looks for in a partner and we are excited by the opportunity to expand our relationship with Clearlake.”
Ian Charles, a Partner at Landmark added, “We are thrilled to continue the partnership with Clearlake and welcome our new partners, Dyal and Petershill, as we all bring unique resources and capabilities to the partnership. Clearlake creates value and provides patient, long-term capital to dynamic businesses that can benefit from the firm’s proprietary operational improvement approach, O.P.S.®. We continue to believe Clearlake has capability and scale to execute its strategy and generate superior returns for investors.”
“We are humbled by the support and believe the strategic partnership with Dyal, Petershill, and Landmark will help accelerate Clearlake’s growth as a leading franchise with a proven strategy, a core team which has been together for more than 11 years, and an unwavering commitment to investing with insight and discipline in our target sectors. We are very appreciative of the support from our longtime Limited Partners, portfolio company management teams and employees, and the broader Clearlake family,” Eghbali and Feliciano concluded.
The terms of the transaction are private and will not be publicly disclosed. Berkshire Capital Securities LLC and Goldman Sachs & Co. LLC advised Clearlake on the transaction. Kirkland & Ellis LLP and Simpson Thacher & Bartlett LLP served as legal counsel to Clearlake. Fried, Frank, Harris, Shriver & Jacobson LLP served as legal counsel to Dyal and Petershill.
About Clearlake Capital Group
Clearlake Capital Group, L.P. is a leading private investment firm founded in 2006. With a sector-focused approach, the firm seeks to partner with world-class management teams by providing patient, long-term capital to dynamic businesses that can benefit from Clearlake’s operational improvement approach, O.P.S.® The firm’s core target sectors are industrials and energy; software and technology-enabled services; and consumer. Clearlake has managed over $7 billion of institutional capital since inception and its senior investment principals have led or co-led over 100 investments. More information is available at www.clearlake.com.
About Dyal Capital Partners
Dyal Capital Partners, a division of Neuberger Berman Group, seeks to acquire minority equity interests in institutional alternative asset management businesses worldwide. Dyal Capital Partners was established in 2011 and currently has 30 minority partnerships. For more information, please visit www.dyalcapital.com.
About the Goldman Sachs Asset Management AIMS Group The Alternative Investments & Manager Selection (AIMS) Group provides investors with investment and advisory solutions across leading private equity funds, hedge fund managers, real estate managers, public equity strategies and fixed income strategies. Institutional and individual investors access these opportunities through new fund commitments, multi-manager programs, strategic partnerships, secondary-market investments, co-investments, management-company stakes, and seed-capital investments. The Petershill Strategies are a part of the AIMS Group, which manages over $200 billion, providing manager diligence, portfolio construction, risk management, and liquidity solutions to investors around the world.
About Landmark Partners
Landmark Partners specializes in secondary market transactions of private equity, real estate and real assets investments, with approximately $25 of AUM. Founded in 1989, the firm has one of the longest track records in the industry and is a leading source of liquidity to owners of interests in real estate, real asset, venture, mezzanine and buyout limited partnerships. Landmark has completed almost 600 transactions and acquired over 2,200 partnership interests, managed by over 750 general partners, as of March 31, 2018. Landmark Partners has more than 100 professionals across four offices in Boston, London, New York and Simsbury, Connecticut. More information is available at www.landmarkpartners.com.