Centerbridge Partners is a multi-strategy private investment firm focused on

leveraged buyout A leveraged buyout (LBO) is one company's acquisition of another company using a significant amount of borrowed money (leverage) to meet the cost of acquisition. The assets of the company being acquired are often used as collateral for the loan ...

s and

distressed securities Distressed securities are securities over companies or government entities that are experiencing financial or operational distress, default, or are under bankruptcy. As far as debt securities, this is called distressed debt. Purchasing or holding ...

. The firm manages over $32 billion of assetsBidding company with participation by Advent International and Centerbridge Partners announces intention to launch
Bloomberg, November 23, 2021. and is based in

New York City New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...

, with an additional office in

London London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...

. The firm invests in both control (

private equity In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a ty ...

and public debt with a "loan-to-own" strategy) and non-control (public market debt, public market equities, and other publicly traded securities) opportunities. The firm Split in Private Equity Funding
WallStreetJournal, August 21, 2012 was founded in 2005 by

Jeffrey Aronson Jeffrey Kenneth Aronson (born 1947) is a British clinical pharmacologist. Education Aronson studied at the University of Glasgow from 1964 to 1970, qualifying with the degree of MBChB, and after primary medical training in Glasgow hospitals ...

and Mark Gallogly. Aronson had previously been the head of distressed securities and had founded the

leveraged loan In finance, leverage (or gearing in the United Kingdom and Australia) is any technique involving borrowing funds to buy things, hoping that future profits will be many times more than the cost of borrowing. This technique is named after a lever ...

business at Angelo, Gordon & Co., which he had joined in 1989 from L.F. Rothschild & Co. Gallogly was formerly a senior managing director and head of private equity investments at the

Blackstone Group Blackstone Inc. is an American alternative investment management company based in New York City. Blackstone's private equity business has been one of the largest investors in leveraged buyouts in the last three decades, while its real estate b ...

from 2003 until his departure. At Blackstone, Gallogly was heavily involved in the firm's investments in

New Skies Satellites SES World Skies was a short lived company formed as a result of the merger between the two SES subsidiaries, ''SES Americom'' and ''SES New Skies''. The company was merged into its parent company, SES S.A. in 2011. History SES Americom ...

and

Sirius Satellite Radio Sirius Satellite Radio was a satellite radio (SDARS) and online radio service operating in North America, owned by Sirius XM Holdings. Headquartered in New York City, with smaller studios in Los Angeles and Memphis, Tennessee, Memphis, Sirius ...

among others and had joined the firm in 1989 from

Manufacturers Hanover Trust Company Manufacturers Hanover Corporation was the bank holding company formed as parent of Manufacturers Hanover Trust Company, a large New York bank formed by a merger in 1961. After 1969, Manufacturers Hanover Trust became a subsidiary of Manufac ...

, where he worked in acquisition finance. In September 2006, the firm raised its debut fund with $3.2 billion of investor commitments to focus on control investments in distressed securities as well as

transactions. The firm also raised a $2 billion noncontrol, activist-oriented credit trading fund known as Centerbridge Special Credit Partners through 2009 and 2010. In 2010, the firm announced plans to begin marketing a second investment fund with a target of $3.75 billion of investor commitments. In 2011, the firm closed its second flagship fund, Centerbridge Partners II, on $4.4 billion, including a commitment from the GP. This was followed by a closing of its $2bn second Special Credit Partners fund in March 2012. In 2010, Centerbridge won control of

Extended Stay Hotels Extended Stay America, Inc., headquartered in Charlotte, North Carolina, is the operator of an economy apartment hotel chain in the United States and Canada. As of December 31, 2019, the company owned and operated 557 hotel properties consisting ...

, a company that Gallogly had been involved with at Blackstone. That same year, Centerbridge acquired 'GMAC Commercial Finance', a subsidiary of

Ally Financial Ally Financial is a bank holding company organized in Delaware and headquartered in Detroit, Michigan. The company provides financial services including car finance, online banking via a direct bank, corporate lending, vehicle insurance, mortgage ...

as well as Rock Bottom Restaurants and Gordon Biersch Brewery Restaurant Group, merged to form

CraftWorks Restaurants & Breweries CraftWorks Holdings, Inc. was a multi-brand restaurant operator headquartered in Nashville, Tennessee with an additional Restaurant Support Office (RSO) in Broomfield, Colorado. The company owned several casual dining restaurant chain brands, inc ...

. In 2012, Centerbridge acquired

P. F. Chang's China Bistro P. F. Chang's China Bistro is an American-based, casual dining restaurant chain founded in 1993 by Paul Fleming and Philip Chiang that serves Asian fusion cuisine. Centerbridge Partners owned and operated Chang's until acquired by the private e ...

, a chain of Chinese casual dining restaurants. Three years later announced its agreement to buy

Senvion SE Senvion S.A. (called REpower Systems SE until 2014) was a German wind turbine manufacturer founded in 2001 in Germany, majority owned by a private equity firm. Senvion as REpower Systems, as it was initially called, was established in 2001 th ...

from Indian wind turbine manufacturer

Suzlon Suzlon Energy Limited (NSE:SUZLONEQ, BSE:532667) is an Indian multinational wind turbine manufacturer based in Pune, India. It was formerly ranked by MAKE as the world's fifth largest wind turbine supplier.Source: MAKE Report: Global Wind Turb ...

and acquired

Great Wolf Resorts Great Wolf Resorts (formerly known as Great Wolf Lodge) is a chain of indoor water parks. The company owns and operates its family resorts under the Great Wolf Lodge brand. In addition to a water park, each resort features restaurants, arcades, ...

, the world's largest chain of indoor water park resorts for $1.35 billion. In August 2016, Centerbridge Partners, together with Canyon Capital Advisors, Värde Partners and seven other funds, participates in the rescue of Spanish giant Abengoa, injecting a combined €1.17 billion. In January 2017, Centerbridge Partners sells Vela Energy to Sonnedix for €600 million. Sonnedix thus takes over a portfolio of 136MWp, corresponding to 43 solar PV plants in Spain, making it the second largest solar PV operator in Spain and one of the largest in the world, with close to 500MW worldwide. During the

2020 Democratic Party presidential primaries Presidential primaries and caucuses were organized by the Democratic Party to select the 3,979 pledged delegates to the 2020 Democratic National Convention held on August 17–20 to determine the party's nominee for president in the 2020 Unit ...

Pete Buttigieg Peter Paul Montgomery Buttigieg ( ; ; Sometimes pronounced or , but not by Buttigieg himself. born January 19, 1982) is an American politician and former military officer who is currently serving as the United States secretary of transp ...

received scrutiny for accepting donations from members of Centerbridge due to the firm's "reputation for its work buying up distressed debt in

Puerto Rico Puerto Rico (; abbreviated PR; tnq, Boriken, ''Borinquen''), officially the Commonwealth of Puerto Rico ( es, link=yes, Estado Libre Asociado de Puerto Rico, lit=Free Associated State of Puerto Rico), is a Caribbean island and Unincorporated ...

." Centerbridge sat on the steering committee of the Ad Hoc group, a group of hedge funds that litigated against the Puerto Rican government for full repayment on constitutionally guaranteed general obligation bonds. In the fall of 2020, Centerbridge took a minority stake in

FreshDirect FreshDirect is an American online grocery company and among the first enterprises to sell and deliver perishable foods to consumers without maintaining a retail operation. Established in New York City, the company serves the New York metropolita ...

, an online grocer. The deal was part of a buyout of the company along with Dutch-based food retailer

Ahold Delhaize Koninklijke Ahold Delhaize N.V. (in Dutch literally "Royal Ahold Delhaize"), commonly known as Ahold Delhaize, is a Dutch multinational retail and wholesaling company. Its name comes from a merger between Ahold (Dutch) and Delhaize Group (Belgia ...

References

External links

Centerbridge Partners
(company website)
Centerbridge Partners
(NYT Deal Book) {{private equity firms Private equity firms of the United States Financial services companies established in 2005 Companies based in New York City The Blackstone Group Companies based in London 2005 establishments in the United States Companies established in 2005