Hurd, Magnus Exit Madison Dearborn to Launch Own Firm

Tim Hurd and Eddie Magnus have left Madison Dearborn Partners to start their own firm, according to an MDP letter to investors.

Hurd was an MD and head of Madison Dearborn’s financial services team, while Magnus was a director on the same team, MDP says. Both Hurd and Magnus are still listed on the MDP website but have already left the Chicago private equity firm, I’m told. “All of us here at MDP would like to wish Tim and Eddie the very best as they embark on their new careers,” Madison Dearborn says in the letter announcing the departures.

Hurd and Magnus’ only portfolio responsibility was Nuveen Investments, which Madison Dearborn acquired in 2007 for $5.75 billion. The Nuveen investment comes from MDP’s fifth fund, which collected $6.5 billion in 2006. Fund V is producing a net IRR of 3.59%, according to June 30 data from the Washington State Investment Board.

Vahe Dombalagian, a Madison Dearborn MD who is also on the financial services team, will become lead deal partner on the Nuveen investment, the letter says. Dombalagian, who led MDP’s investment in EVO Payments, will assume overall responsibility of the PE firm’s activities in financial services.

Hurd and Magnus have launched a new firm, called BlueSpruce Investments, an announcement from Hurd says. Hurd will be president and CIO of BlueSpruce, while Magnus will be an MD and head of research, the announcement says. “After a combined 26 years in private equity at MDP, we have decided to pursue our passion of starting our own investment firm focused on public, marketable securities,” Hurd says.

BlueSpruce will invest across multiple asset classes. The firm has the backing and support of prominent and sophisticated families and investors in the U.S., Hurd says. BlueSpruce expects to call down capital late in second quarter after it completes the registration process with the Securities and Exchange Commission, he says in the announcement.

News of Hurd and Magnus’ departure from MDP was first reported by ChiFinance.

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