Searchlight Capital Partners L.P. has agreed to buy a majority stake in Roots Canada Ltd. Financial terms weren’t announced. Founded in 1973 by Michael Budman and Don Green, Roots is a leading lifestyle brand in Canada that sells leather bags, footwear, jackets, apparel, athletic wear, accessories, and home furnishings. Budman and Green will remain shareholders.Continue
3i Group plc said Thursday it sold its stake in TouchTunes to Searchlight Capital. 3i said it would receive 38 million pounds (US$57 million) in proceeds. New York-based TouchTunes is a digital jukebox maker. With the sale, 3i said the deal represents an IRR of 22 percent and a 2.1x money multiple on its original investment of 24 million pounds ($40 million).Continue
Searchlight Capital Partners has acquired a stake in Ocean Group. The seller was LDC. No financial terms were disclosed. Based in the U.K., Ocean Group is an out-of-home advertising firm.Continue
Searchlight Capital, the PE firm founded by former KKR and Apollo execs, is raising $750 million for its first fund, sources say.
The pool is fully subscribed, sources say.
“They are oversubscribed at their current target and basically closed already,” one placement source says.
News of the Searchlight fundraising was reported in May 2010 by the Wall Street Journal. The WSJ, at that time, said that Searchlight was marketing for a $500 million to $1 billion fund.Continue
Don’t expect a rush of private equity execs to start their own firms, said Eric Zinterhofer, co-founder of Searchlight Capital.
Zinterhofer, who was speaking at the Buyouts Conference in Dallas Thursday, was asked about a Triago report that predicts up to half of GPs could disappear in the next five years as junior PE execs form their own firms. “I don’t think you’ll see a ton of new guys starting their own firms,” Zinterhofer said during the Newsmakers panel.
Why is this? Some PE execs may complain, but most don’t end up leaving their firms, Zinterhofer told me on the sidelines of the conference. “While there is always a degree of angst among senior professionals at PE firms, at the end of the day the job is very attractive and the ‘golden handcuffs’ are significant,” Zinterhofer said.
It’s also a tough fundraising environment for …Continue
Catch up on what your colleagues found most interesting on peHUB this week. Posts that garnered the most pageviews from regular readers from June 13 to June 17 focused on reader opinions about expanding the 500-shareholder rule; the biggest winners in Pandora’s IPO; IRRs for Austin Ventures and Morgenthaler provided by UTIMCO; PE pros that have bought into pro sports teams; Searchlight’s new media fund; and more.
1. Slideshow: Top 10 Winners in Pandora’s IPO, by Lawrence Aragon
2. Slideshow: IRRs for Eight Morgenthaler Funds, Courtesy of UTIMCO, by Mark Boslet
3. Slideshow: Who Makes The Most Money Of All?, by David Toll (Subscribers only)
4. Slideshow: VCs and PE Execs Who’ve Made the Leap into Pro Sports, by Jonathan Marino
5. Slideshow: UTIMCO Holds 7 Austin Ventures Funds, 4 of Which Have Negative IRRs, by Mark Boslet
6. Winklevoss Twins Still Pursuing Facebook Founder, by Jonathan Stempel, Reuters
7. Searchlight Reaches $800M On Debut Media Fund, by Gregory Roth
8. TALK BACK: What to Do with the 500 Shareholder Rule, by Jonathan Marino
9. Middle Market M&A Dominates First Five Months, Strategic Most Active Buyers, by Luisa Beltran
10. Reinventing The Board Meeting, by Brad Feld, Foundry Group (Subscribers only)
Searchlight Capital Partners, a media-focused private equity firm working to launch its debut fund, has come closer to reaching its initial goal of raising $1 billion, according to people familiar with the fund.
In addition, federal filings reveal that the firm has so far raised several hundred million dollars, although those figures could include some overlap. The $1 billion goal is considered large for a first-time fund, although the firm’s three founders are by no means new to the private equity space.
The three founders of Searchlight have overseen deals in media and other industries at two top private equity firms as well as one of Canada’s leading pension funds. Before co-founding Searchlight, Eric Zinterhofer helped lead media and telecommunications investing at Apollo Global Management, where he was a partner. He remains the chairman of Charter Communications, the St. Louis, Missouri-based cable television giant.Continue