Hellman & Friedman has closed its seventh buyout fund with $8.8 billion in capital commitments. The firm also announced that Warren Hellman will step down as firm chairman, but remain as an investment committee member. Philip Hammarskjold will succeed Brian Powers as CEO.
Hellman & Friedman LLC, a leading private equity investment firm based in San Francisco, today announced the successful closing of Hellman & Friedman Capital Partners VII (HFCP VII), an US$8.8 billion fund and the largest in the Firm’s history. With the closing of HFCP VII, Hellman & Friedman has successfully raised over US$25 billion of committed capital since its first partnership in 1987.
The Firm also announced the completion of a management transition plan that was previously announced to limited partners in mid-2008. Philip Hammarskjold has been appointed Chief Executive Officer, succeeding Brian Powers who will become the Firm’s Chairman. Patrick Healy has been named Deputy CEO and Warren Hellman has transitioned from Chairman to Founder. All four, along with Thomas Steyer, will continue to serve on the Firm’s Investment Committee. The management changes are effective immediately.
“We are very pleased to announce the closing of our seventh fund, especially in this very challenging fundraising market,” said Mr. Powers. “We are grateful for the continued support of our longstanding limited partners, who have once again entrusted us to manage their capital. We are also pleased to welcome a number of new partners to the fund with whom we look forward to building long-term relationships.”
Through HFCP VII, Hellman & Friedman will continue to pursue the same disciplined investment approach it has developed over the past 25 years and will focus on large-scale equity-related investments of US$300 million to US$1.2 billion, primarily in the United States and Europe.
“We believe our philosophy of investing in support of outstanding management teams in strong business franchises with defensible market positions has served us well, particularly in these challenging economic times,” said Mr. Hammarskjold. “Our focused strategy and differentiated approach to the business has allowed us to spend time on the things that matter most – helping to build great companies and earn attractive returns for our limited partners.”
“We have invested with Hellman & Friedman since their first fund in 1987. Over the years, we have become one of their largest investors in recognition of their outstanding track record of providing strong returns, and their industry leadership in terms of aligning interests with those of the limited partners. We are delighted to be participants in their new fund and look forward to working closely with them in the future,” said Dr. Teh, President of GIC Special Investments.
In announcing the transition, Brian Powers said, “Warren continues to be an inspiration to all of us. Our ability to transition to another generation of leadership is a tribute to his long-term vision for Hellman & Friedman. Philip has been involved in many of our most successful investments and this appointment recognizes his tremendous contributions to the Firm.”
“I am pleased to be taking on this new role,” said Philip Hammarskjold, who joined Hellman & Friedman in 1992. “I look forward to leading the Firm with Patrick in this challenging investment environment. We have built an outstanding investment team at the Firm and are committed to continuing to earn ‘best in class’ returns for our investors.”
About Philip Hammarskjold
Mr. Hammarskjold is Chief Executive Officer of Hellman & Friedman. He serves as Chairman of the Firm’s Investment and Compensation Committees, as well as overseeing the Firm’s day-to-day activities. He is a Director of AlixPartners LLP, Catalina Marketing Corporation, and Emdeon Business Services and was formerly a Director of numerous portfolio companies, including Digitas, Inc., DoubleClick Inc., Goodman Global, Inc., Texas Genco LLC, and Young & Rubicam Inc. He is a graduate of Princeton University and the Harvard Business School.
About Patrick Healy
Mr. Healy is Deputy CEO of Hellman & Friedman. He is a member of the Investment Committee, and leads the Firm’s London office and European activities. He is a Director of The Nielsen Company, Gartmore Investment Management Limited, Gaztransport et Technigaz S.A.S. and Mondrian Investment Partners Ltd. His previous investments include Formula One Holdings, ProSiebenSat.1 Media AG, Axel Springer AG, Doubleclick Inc., Digitas, Inc., and The Nasdaq Stock Market LLC. He is a graduate of Harvard College and the Harvard Business School.
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 over US$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 business services, information services, internet / digital media, asset management, insurance, other specialty financial services, media, healthcare, energy and industrials. Representative investments include AlixPartners LLP, Catalina Marketing Corporation, DoubleClick Inc., Emdeon Business Services, Getty Images, Inc., Goodman Global, Inc., IRIS Software Group, Kronos Incorporated, LPL Holdings, Inc., The NASDAQ Stock Market LLC, The Nielsen Company and Texas Genco LLC. For more information on Hellman & Friedman, visit www.hf.com.