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Providing Private Equity Capital for Co-investments in Buyouts with Equity Sponsors, Management Buyouts, Recapitalizations, Industry Build-ups and Growth Equity
An Overview
For private equity co-investing, "PPM America Capital Partners" refers to PPM America Capital Partners, LLC, PPM America Capital Partners II, LLC, and PPM America Capital Partners III, LLC. Each is the general partner (respectively) for the "PPM America Private Equity Funds:" PPM America Private Equity Fund LP, PPM America Private Equity Fund II LP and PPM America Private Equity Fund III LP. The limited partners in each of the PPM America Private Equity Funds are Jackson National Life Insurance Company and Pacus (UK) Limited (a nominee for The Prudential Assurance Company Limited of the UK). The PPM America Private Equity Funds provide private equity capital for:
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co-investments in buyouts with equity sponsors |
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management buyouts and recapitalizations |
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industry build-ups |
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growth equity
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In the past several years on behalf of clients, the PPM America Private Equity Funds have provided equity for approximately 20 transactions. The financial acumen and investment experience of the 10 professionals who comprise our team cover a broad business base vital in evaluating and successfully closing equity investments.
The PPM America Private Equity Funds' limited partners are Jackson National Life Insurance Company and Pacus (UK) Limited. Jackson is one of the largest life insurance companies in the United States, with nearly $77 billion in total assets (IFRS unaudited) as of June 30, 2009*. Based in London, our UK Parent** and its affiliated companies constitute one of the world's leading financial services groups, providing insurance and financial services directly and through its subsidiaries and affiliates throughout the world. It has been in existence for over 160 years and has $403.5 billion in assets under management as of June 30, 2009. |
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Management Buyouts | An Investment
Partner | Worldwide
Affiliates
Advantages |
Co-Investment Partner | Consolidations/Growth
Buyouts & Recapitalizations | Fund
Investments |
MANAGEMENT BUYOUTS
PPM America Capital Partners actively pursues co-investment opportunities in sponsor-led buyouts. PPMACP will also provide capital for growth financings, including industry build-ups and corporate acquisitions.
AN INVESTMENT PARTNER
On behalf of its client, PPMACP views itself as a partner of both the private equity sponsor and management. PPMACP provides advice and assistance in financings, acquisitions and other strategic, board level issues. Moreover, PPMACP offers access to a broad network of global relationships to support the development of each portfolio company.
Consistent with investors' objectives, PPMACP's goal is to build the value of its portfolio companies. Its primary source of profit is through the appreciation of its client's equity investments, generally not from fees, asset sales or interest payments.
PPMACP is highly motivated to fund a company's growth through acquisitions or internal expansion. As a consequence, it is critical to create a financially sound capital structure and provide follow-on growth capital to enable each portfolio company to take advantage of strategic growth opportunities.
PPM America Capital Partners is represented on the Board of Directors or holds observer or advisory seats when appropriate for its clients’ investment. PPMACP does not, however, expect to have involvement in the day-to-day operations of a portfolio company.
THE ADVANTAGES TO INVESTORS AND
MANAGEMENT PARTNERS
When PPMACP makes an investment on behalf of its client, it provides the following advantages:
Transaction Expertise
The professionals who work on each investment have a high level of experience and a track record of successfully analyzing and closing equity investments. In addition, PPMACP has a broad network of contacts and resources that complement its own in-house capabilities.
Financial Capabilities
PPM America Private Equity Fund III, LP has over $200 million in committed capital and is able to provide flexible financing, with individual investments of $5 million and greater. Additionally, each of the respective PPM America Private Equity Funds frequently makes follow-on investments to facilitate the continued development of growing companies.
Timely Response
PPMACP's management structure and streamlined investment decision-making process permits it to respond quickly to investment opportunities.
CO-INVESTMENT PARTNER
On behalf of its client, PPMACP will partner with other investors. PPMACP's strong relationships with buyout sponsors as well as individual and institutional investors provide it with unique access to a wide variety of investment opportunities.
PPMACP's co-investment activities include equity financing for buyouts, recapitalizations, and growth. Co-investments range from significant minority ownership positions in companies with values between $30 million to $300 million to smaller stakes in companies with values in excess of $1 billion.
PPMACP actively pursues co-investment opportunities where it can be a value-added partner in terms of investment resources, responsiveness, global reach and additional acquisitions.
INDUSTRY CONSOLIDATIONS/ GROWTH
PPMACP has played an important role in creating and financing companies that take advantage of consolidation opportunities. The funds have invested in strategic consolidations in industries as diverse as office equipment, healthcare, telecommunications, industrial distribution, publishing and travel services. PPMACP assists in the formation of these companies and provides equity for subsequent acquisitions. Attractive opportunities include fragmented industries where companies can be combined to create more efficient operations through larger scale. These companies can become more profitable, serve their customers better and grow more quickly than their competitors.
MANAGEMENT BUYOUTS & RECAPITALIZATIONS
PPM America Capital Partners may consider investing in management buyouts and recapitalizations of companies with values typically ranging from $30 to $300 million. PPMACP frequently partners with other investment firms in large transactions. PPMACP's investments encompass a wide variety of industries. PPMACP originates and structures transactions and provides equity financing. Its professionals have been involved in management buyouts and recapitalizations since its inception. PPMACP strives to provide prudent financial structures which afford each of its portfolio companies the greatest degree of flexibility to achieve its financial goals.
FUND INVESTMENTS: LIMITED PARTNERSHIP INVESTING
On behalf of each of Jackson National Life Insurance Company and Pacus (UK) Limited directly, the private equity team of PPM America, Inc. invests in unaffiliated third-party funds. PPM actively pursues funds with experienced managers and a proven track record of solid returns. PPM may consider investing in a variety of funds ranging from buyouts to venture capital to communication funds.
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